Investment Q&A

Q: what do you think of the alaris deal, would you buy the ipo. dave

Q: Hi. TFI has dramatically underperformed UNS. Is the valuation that much more attractive for UNS or do you think TFI will finally get out of its funk.

Thanks.

Q: What is your opinion of split corp preferreds as a medium term income investment? LBS.A yields 4.75%, matures in 3 years or so at par and appears to be protected in value by the Class A shares. There aren't many other 3 year investments that offer anywhere near this sort of return. What are the downsides? Thanks.

Q: will companies such as BEP.UN and BIP.UN be hurt with any rise in U.S. interest rates or are they safe long term holds for growth and dividend.

Q: Hello Team,

what's your opinion of Tca.a for a rrif?

Thank you

Q: Good Morning
I was wondering what your opinion is of STB. It pays a great consistent dividend but stock price has been falling lately and I am nor sure why. Would you be a buyer or seller
Thanks

Q: Further to the question asked today by Ernest re: ipl. Is it not true that the big IF here is the alberta royalty review?
50% of the GOVT royalty revenues come from the oilsands, and 40% of ipl's revenue is from the sands. according to the RSI it is way oversold. The financial metrics according to you are
within limits, yet it won't break out of the descending triangle. If I am incorrect, what in your opinion will make it move. Thanks as
always. Sorry that I didn't put a salutation at the beginning.

Q: Hi Peter

re: ALA versus IPL

Here is what globe and mail data shows

near 52 week lows; both
dividend yield; both >5%
HISTORY OF DIVIDEND CUT ALA YES; IPL NO ?
P/E ALA > 40; IPL >10
payout ratio ALA > 50 % ; IPL > 80 %
size IPL : ALA is about 2:1 based on market cap

Your opinion between the two.

1. is my data correct ? in particular the payout ratio
2. which of the 2 would you say is "safer" in the present climate and why ?
3. Is there anything else I should consider before choosing between the 2 or would you recommend an alternative utility ( I already own BEP and TRP ; only 1 % each)


many thanks

Ernie

Q: Dear Peter, Would you please give me your assessment of this stock-to keep or not to keep? Thank you for your honest work!

Q: DCI has dropped significantly recently. Has there been some fundamental issues impacting the stock or do you see this as a buying opportunity?
Thank you very much,Bob.

Q: With the announced transfer of some assets to Enbridge Income Fund, what affect will this have on Enbridge and its share price in the future, and what do you recommend for holders of Enbridge shares?

Q: Hi Team, might you have a preference BEP as compared to ENF. Only one or half position in both?Potential growth as well as stability of dividend. Thanks,Jerry.

Q: Hi Guys,

I know you like Corby's but I have a question about the relationship with it's parent.

The parent does a lot of the day to day administration and preparation of the actual beverages for Corby's. In addition there are many significant agreements to sell the parent's brands which expire on different dates. For example, Wiser's Canadian Wiskey and Polar Ice Vodka expire 30/06/2017.

Why couldn't the parent just not renew the agreements and sell on their own? This would leave a large whole in revenue for Corby's.

Do you see a problem with Related Party Transactions.

Thanks
John

Q: What do you think of selling RLC at this point and buying INO or PHM or do you suggest another similar trade?

Thanks

Q: Looking to add to our daughter's TFSA account. We are interested in stability, with some growth. We are considering New Flyer or K-Bro Linen and would like your opinion. Thanks.

Q: Hello Peter, I manage my elderly mother’s accounts. Investments are well-diversified amongst her RRIF and non-registered account. As she had significant unused TFSA room available, we decided to contribute a few stocks and some cash from her non-registered account. Currently, the TFSA is 50% WSP, 23% NPR.UN and 27% cash to be invested. The situation changed, however, when she (thoughtfully) decided to name her grandchildren as the TFSA beneficiaries, which causes me to consider the TFSA’s makeup on a more standalone basis (including to protect the children’s legacy). With a 5-year plan, would you agree with acquiring BCE with the remaining cash (with its almost 5% yield and some growth potential) or do you agree with my inclination to perhaps buy CDZ instead (giving up some yield but gaining some diversification safety and presumably better growth potential). Or you may have a different recommendation. Thanks in advance!

Q: Pza has been selling off for the past 2 weeks or so. Any idea why and is this a good buying opportunity? Thank you. Don.

Q: I have been a happy owner of CHE.UN in a tax advantaged acc't. for some time but have noticed price weakness recently. Is there any company specific or sector specific news to explain this? Also, does the ownership suggest major holdings by institutions or insiders? Thanks for all you and fellow members do. Bill

Q: Hello Peter & Co,
I like the Brookfield family of stocks
I own BPI and BEP from way back when
Do I buy BPY while I also hold FSV,CIG and TCN?
I'd like to buy BAM; should I? I hold TD,BNS,SLF,EFN and CXI (financials)
Thanks
Antoine

Q: Hello all at 5i and thank you so much for this forum.
I am grappling a bit with the concept of reaching for yield. What is a healthy stretch vs an unhealthy or perhaps irresponsible overextension?
I am retired, no pension and rely on my investments for my income. I am very comfortable with 4 to 4.5% from dividends, distributions etc. My portfolios are made up of approx. 15% fixed income (etf's) and 85% equities. I am comfortable for the most part with this division as well as overall diversification.
Some of my portfolio anchors, gwo, slf, kbl, sj, stn, fts, sap, dh, t, td, bns etc have dividends below this level. Other like esl, dsg, aya dhx.d, have tiny or no yield but are intended for growth to purchase future income.
I also hold companies like vnr, win, che.un, eif, mkp, rus, wcp with a higher yield to bring the portfolio yield up toward my target range.
Today you replied regarding d.un 8.9% and cuf.un 8.2% yield - “We would consider both buyable within the context of the REIT sector. Their valuations largely reflect rate concerns already. Distributions are quite secure. We think the sector will relax a bit once rates do move up: we do not expect a big increase in rates, and the market is good at anticipating. Like last year, we think investors will eventually reconsider the sector's merits.”
My question is how do you determine a healthy stretch vs over extension for yield? What do you think of my plan and could you provide a few names that I can consider to bring portfolio income up to my target 4 to 4.5% range. I apologize for so many words
Thank you very much,
Brian