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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Good morning Peter and Team,
I have been researching the various pros and cons of the companies in the Capped Utility Sector. Would you mind ranking the following companies under "buy" "hold' or "avoid:
AQN;ACO;ATP;CU;CPX;EMA;FTS;JE;NPI;SPB;TA and BEP.UN
Many thanks for the wonderful service.
Paul
Read Answer Asked by Paul on June 05, 2014
Q: Peter - thanks for your earlier comments on Just Energy (JE).

Today's announcement: Just Energy to sell National Energy for $505-million

They also announce the dividend will drop from 0.84 to 0.50 and go from monthly to quarterly.

Is this enough to improve the debt situation and help right the ship?

The market seems to like it (so far).

Thanks.
Read Answer Asked by Dean on June 05, 2014
Q: I have some cash in my TFSA. What do you think of Brookfield Infrastructure and the current price as an entry point.


Thanks
Read Answer Asked by Greg on June 03, 2014
Q: Hi Peter & Team,
Opinion on BIP.UN or ZGI please for long term income. Thanks
Read Answer Asked by Karl on June 03, 2014
Q: Hi Peter:
I hold this: MFR.UN.T
in my RRSP portfolio
what you say it is of decent hold as an income generating
investment; if not what would you suggest ?
thanks!
Read Answer Asked by Michael on June 03, 2014
Q: hello 5i:
re: question asked by John about AGU.

On the 23 May, AGUs Borger, TX plant went down for repairs. That was the second plant in two months to go down, which obviously impacts the amount of product being produced, resulting in decreased earnings. I must advise I'm a long term bull on AGU, but sold my shares some time ago due to perceived problems with execution. John, hope that helps as it may explain why share price is drifting down.
Paul
Read Answer Asked by Paul on June 02, 2014
Q: Hi, could you please rank the following companies in terms of safety of income. Could you then re-rank in order of long term growth potential. Thanks.
VSN
CSE
CPX
NPI
AQN



Read Answer Asked by Gary on June 02, 2014
Q: ALA-TSX, AltaGas has been a favourite holding of mine since it was an income trust. I see it as being a well run, ever growing utility and energy company with a consistently growing dividend with a bright future. It is a diversified company.

I see it as similar to a young Enbridge Gas of years gone by, for example. I DRIP it and have traded it also occasionally.

I actually like it better than Fortis (FTS), TransCanada (TRP) & Emera (EMA). I also DRIP ENB, TRP & FTS.

Any thoughts or concerns that you would like to highlight for would be appreciated.

Thanx in advance.
Read Answer Asked by Stan on June 02, 2014
Q: Greetings, fellas. True North Apartment REIT (tn.un) announced a deal today where it looks like the reit's management is selling the properties to true north from Starlight. On first glance, it looks like management is simply paying themselves for properties they will still partially own.

With the $9 exercise price, as part of the deal going to management and with Daniel Drimmer owning 41% of tn.un do you think with this deal it is more likely or less likely that Mr. Drimmer will put together a bid to eventually take tn.un private, in the future.


Thanks.
Read Answer Asked by john on May 30, 2014
Q: Peter. You have Brookfield renewable ranked very high on you ratings and I have followed your advice on that. I am looking for guidance on Brookfield Infrastucture. Would you rate it as high? Would you buy it before Emera, Telus or Fortis? Looking for long term safety with moderate growing dividends. Thank you , Ken
Read Answer Asked by Ken on May 30, 2014
Q: 10:25 AM 5/29/2014

Hello Peter
I have been watching Canadian Oil Sands COS for a long time. I am looking for a regular income from another very stable low-risk company with a dividend yield in the 5% to 6% range, for a permanent hold. I already own 4 big banks and SLF and GWO, PSK, BDT, BTE, ENB, ENF, PKI, EMA, FTS, TRP, and PPL.

COS has a low debt/equity ratio of 34% and a forward P/E of 12.9 according to Morningstar.
The Company has steady revenue and margins, slowly rising dividends, and a payout ratio of about 82%.
The Company has only about 25 employees so the overhead must be extremely low. Their only job is to contribute their ongoing share towards their 36.74% working interest in Syncrude Ltd.
COS's only product is light sweet crude so that is eminently saleable and always commands premium prices

So my question is: Why is 5i so cool on the stock? I know it doesn't have strong growth ahead compared to some but the company has a very stable business, sells a product in high demand and has many decades of reserves...... so what's not to like?

If I don't buy COS then the only other possible "Stalwart Core Holding" Alternatives that I don't already own seem to be :
MKP, FRU, FN, CTY, AW.UN, GH, KMP, BEP.UN, and AD, but most of these have individual flaws of some sort or are less likely to be able to maintain or grow their dividends in the event of a major market correction.

My guess is you may prefer BEP.UN to COS despite BEP's terrible payout ratio, but it is just a guess....I am open to any comments and suggestions you can make, and any other stocks to consider, and to your informed opinion on COS.

Many thanks......... Paul.
Read Answer Asked by Paul on May 30, 2014
Q: Hi 5i,

What are your thoughts on Ensco (ESV) for growth and income?
Read Answer Asked by Wayne on May 29, 2014
Q: Hi team:
I am aware that Peter put alot of weight in fundamentals of a company/stock before a recommnedaton is being made
I was watching the market call on BNN recently, and the comments was made re: utilities tend to do well in the summer
I do have FTS and EMA and CU and would not hesitate to add more
Is there any particular reason from a seasonal or fundamental point of view to support this trend ?
(I do have some ZUT in my RRSP as well),
many thanks !
Read Answer Asked by Michael on May 29, 2014
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