Investment Q&A

Q: In regard to your notes on Just Energy on Nov. 27 I have been tied in to them for five years for gas at 36.9 cents a cubic meter. On renewal they highly promoted the savings that you would get at their new rate of about 25 cent a cubic meter

However they did not tell you that the rate from the gas company was 12.49 cents a cubic meter now and not far off for a lot of the time I was hooked into them.

Now I should be paying about 1/3 of what I was paying

Obviously I did not renew with them. If other people did their homework, there would be a lot more non renewals. This may affect their earnings

Q: Hello, Would you consider ALA a decent buy at current price? Better names in the sector? Thanks for the great service! Lavern

Q: Hi Peter,
Will the announcement today from MCAN Mortgage (MKP) be overall neutral (or better) from a revenue point of view, and if so does the drop in price provide a chance to add to current holdings at a good price. Present holdings are 3.4% of overall portfolio, held in a RIF and TFSA.

Q: I am interested in the question from Gary and your answer re: ENB and ENF. According to the Globe website, ENB has a beta of -0.037 and ENF 0.513. This would suggest ENB has far less volatility than ENB. But first, what does the negative number on ENB mean and, are we comparing apples to apples?

Q: Hi, the share prices of Enbridge (ENB) and Enbridge Income Fund Hldgs(ENF) have performed about equally over the past 5 yrs, but ENF has a much higher yield. Would you hold both of these in a portfolio or just one. Which one do you prefer for the next 5 yrs. Thanks.

Q: Hello, in regards to JE, Just Energy, Billionaire Ron Joyce now owns over 10% of the company, this makes another big owner along with Pattison. Is there value in this company others are missing?

Q: An article on this morning's (27 Nov) Globe & Mail website suggested investors be wary of restaurant stocks in general and A&W in particular (due to the latter's PO ratio >100%). Would you comment, pse. Thx.

Q: gsz is a european gas company based in France could I have your opinion please

Q: RCI.B signed big deal with NHL which is suppose to EPS right away. Of all the telcos has by far the lowest FPE but a fair bit of debt. Would you buy for long term-income and growth??

Q: Hello Peter and Crew,
Could you please rank in order of your preference, Enbridge, Pembina and Inter Pipeline with a brief explanation.
Thank you for your great work. I am very pleased with your program.
Thank You,
Barry

Q: Hi Peter,
I (age 51) have the majority of my investment portfolio in equities (stocks and ETFs) with very little fixed income. With the fear of rising interest rates over the past 5 years, I have stayed away from bonds. I had a position in CHB but cashed it out last year, but am now thinking maybe I should put some funds into this space. Thinking about either ZHY, or CHB, or other. Suggestions?

Q: I own Telus shares and am considering selling my position. The company generates solid cash flow but at about 18 times earnings the shares seem expensive. The shares still look good for the 4% dividend and dividend growth over the next few years but growth could be limited from current prices. There is also the concern about the politics of Telecom in Canada currently as the federal government seems determined to reduce the major players' market share and margins. Technically the shares have had a substantial increase since early August. Do you think that it would be prudent to sell the shares at current levels.

Q: Hi Peter. Are Mortgage Investment Corporations (MIC) considered as Fixed Income when assessing portfolio allocations.

Thanks Carl

Q: Peter I am thinking of taking a 5% position in RNW any thoughts?
Stan

Q: HI team:
I have a part position in both KBL and Bep.un
both have not make too much move recently
are the dividends safe /
IS IT a good time to add if i have new funds coming in?
I am looking for dividends with long term hold or 3 years or more
thanks!

Q: could i have your opinion on (acc) as long term hold. thank you, great service

Q: What is your opinion on convertable debentures? They do pay higher rates and could do well if the stock price does well. I am intrested in the CD's that are issued by FCR.
Thanks

Q: Hello Peter
First I want to thank you for your excellent information, particularly on the SSL warrants. What a great research service.
I am looking for a Midstream oil/gas business because these are less dependent on oil prices and mainly just collect tariffs, or possibly a pipeline, and I checked your comments on each of the ones listed below.
I am retired and looking for good sustainable dividends over 3.5% and enough growth to offset inflation.

This is the data I get from my TD Waterhouse site:

Earn$ Div% Yield% P/E POR*
Parkland PKI 1.14 1.04 5.70 16.0 91%
Transcan TRP 2.26 1.84 3.91 20.85 81
Shawcor SCL 4.29 0.50 1.24 9.40 12
Keyera KEY 2.17 2.40 3.89 28.45 110
Gibson GEI 0.97 1.10 4.14 27.39 113
EnbridgeENB 1.09 1.26 2.84 40.62 116
Altagas ALA 1.37 1.53 3.84 29.08 117
Pembina PPL 1.12 1.68 4.88 30.71 150
CanexusCUS 0.22 0.56 9.31 26.73 248
InterPipeIPL -0.29 1.29 5.00 0 infinite
* Payout Ratio [POR] calculated by me.

Of these. the only one I own now is PKI... good dividend, lowest P/E Ratio, and reasonable payout ratio and you rate it "B".

1. Why do you favour PPL with it's 150% POR? You rate PPL and ALA well above TRP though it has a good dividend and 81% POR?
2. I don't understand why you say IPL, with negative earnings and an infinite POR, is a "favourite", though weak.
3. Only KEY, GEI, and ALA have decent dividends and PORs a little over 110% but maybe these PORs are considered ok because of large dividend reinvestment plans.
4. So my question is: What one or two should I choose, or do you have a better suggestion, and are you not worried about the high P/E ratios?
Many thanks........... Paul

Q: Hello all,
What are your thoughts on PHK, Pimco High Income Fund? It has a descent yield and seems to be hanging in at it's mid price range. Thanks.

Q: I presently own Pembina Pipeline for the last several years for dividend & growth. I see Trans Canada has been in the news a lot lately and was wondering if this is a good entry point going forward for the same reason I have owned Pembina? Thank you for your valued opinion.