Investment Q&A

Q: SPH - Superior propane. I could not find any questions on this one. It has a nice yield, is off its highs for the year. Would you recommend this stock as a yield play or both a yield and growth story.
Thanks.

Q: I had an order in today for Fortis shares, but missed on my offer. I don't know whether to be happy or sad! As we now know, trading was haulted at the end of the day due to their announcement of purchasing UNS Energy of Arizona. Is 1.8B rather massive for Fortis? If the price moves downward tomorrow does one buy now, or wait until the dust settles? I was buying for the long term. I'm not too keen on purchasing companies heavily in debt. Your opinion of this deal would be very much appreciated. Many thanks, and Merry Christmas 5i staff.\
John.

Q: I have a question about Brookfield Renewable Energy LP.
I have owned BEP.UN long enough to have done fairly well with it. However, Vectorvest shows BEP.UN's earnings as fairly flat and low, give it a lower safety rating, and a '0' dividend rating.
Any thoughts as to why they are bearish and you are still bullish on the firm?
Thanks

Q: Hi Peter & 5i: I have held a number of REITs in an account where maintaining the level of income is a significant purpose. With the potential for rising interest rates in the next few years, I’d like to raise the growth potential in the portfolio and reduce the rate sensitivity. With that in mind, and assuming no overweight positions result, what would you think of moving some money from the REITs into a pairing of Canexus (CUS) and Chemtrade (CHE.UN)? I realize that the level of yield implies risk and that a move like this could be viewed as exchanging one kind of risk for another. But I think that both CUS and CHE.UN are currently making efforts to grow, have more of an industrial orientation, and provide yields that can help maintain the portfolio income. I realize that both are somewhat cyclical businesses but my sense is that cyclical potential is part of the attraction at the current stage of their cycles. Does another company/stock come to mind that might be a better candidate for the kind of shift I am trying to make? The portfolio is already about market weight in lower yielding financials. Thanks for any ideas!

Q:
I have a 3/4 position in NPI. From 1 Nov to today it has fallen almost 7%. Buy, hold, sell? Your opinion please.

Q: I have held FTS for 3 years now with little growth, would EMA be better for growth . Thanks so much for your reply. As a recent new member really like the service.

Q: Hello 5i,
Out of the twelve utility stocks I own two are underperforming, which are Emera (ema) and First Energy (fe). From this starting point, in your opinion should I sell and buy CPX or wait for them to come back
Thanks

Q: My "DOGS" for 2013 include the following stocks. AET.un, BA, COS, PME, JE.

They were bought in part for the dividend and all still yield over 5% (10.6% in the case of AET.un).
My question is this: are these worth holding, adding to, or simply selling now?
Thanks for the info and your guidance.

Q: With the net asset value of Aberdeen Asia's shares [FAP] approaching the current share price, would this be a good time to add to my portfolio? I'm a little nervous given the decline thein share value over the past year
Thanks as always for your good service

Q: What are your thoughts on EMA for a long term hold versus AQN or FTS ?

Q: Morning ... I have 71K in my TFSA and am looking for monthly (tax free) income. I presently have 6 stocks AD,BPF,EIF,IPL,MG and SYZ. Are you comfortable with this positioning and strategy. Thanks as always.

Q: Hi team:
On Berman's call, he mentioned a BMO EFT called the tactical dividend ETF, relatively low risks in terms of dividends portfolio and is well diversified

The BMO tactical dividend ETF is fairly small in size (of assets under management); just started in Oct
I am looking for abit of diversification outside Canadian Banks
and Life co, for dividends and yield and some safety
Please let me know what you think, no hurry

Also, is it true that starting in Jan, each member is only allowed to ask so many questions a year ? I always keep my questions to one or 2 stocks per time, it would be frustrating to stack the questions, thanks!

Q: I've held BEP.UN since 2009 when it was Great Lakes Power. It has been a near double since purchase at $15 and the dividends have been excellent too, but I see in your response to an earlier question that you feel it is a purchase for income only, not gains; do you not feel it has a potential to near double once again over a number of years, even, say ten years, which would still be a first class return for a, hopefully, low risk equity? Thanks, J.

Q: IPL and Enbridge have showed a steady decline in share price since mid-october ?

Q: Pardon me! The symbol was CHW - Chesswood Group -not CHN.
Thank you.I own shares in CHW. So far, it's been a pleasant ride. My concern, of course, is both their relative small size as well as the inherent risks that must be accepted when almost all their individual entities operate in a very leveraged & high risk market. As a retired US Attorney, I am familiar with legal & case funding as well as Plaintiff financial support. These areas along with their start-up financing loan business is my primary concern. Would much appreciate your opinion.

Q: re ATP...At these new prices is there any value in taking the contrary view and picking up a little. What would be a steal price? I might like to try to go bottom hunting. Also, if a company like ATP does cut or eliminate divvies could this be actually to best thing for shareholders?

Q: I took a flyer on XSR this spring at $6.50 and have been rewarded with a 32% rise plus the div. But the valuation looks crazy stretched and the payout ratio is high. I know it's priced for growth but my gut says to take the money and run. Would you dissuade me?

Thanks!

Q: Hey Folks,
I have sold all but one of my American LP stock in my portfolio which is ETP, the 35% off the div. is just too much... I am considering WMB, could you give me another choice.
Thanks

Q: Hi Team,
Could I have your opinion on CSE ( Capstone Infrastructure)?
Many thanks
vera

Q: Hi Peter & 5i: Been meaning to ask you about this for a while. Can you please let me know if you disagree with me on this and, if so, exactly why? I don’t like bond ETFs and bond mutual funds. I have a strong preference for my own ladder of individual bonds. I recognize that the funds offer convenience for retail investment and the advantage of superior instant credit risk diversification. But at this stage they don’t offer particularly inspiring yields and they don’t offer any certainty (not any!) that I will get all of my principal back. The two things I want from my fixed income investments are visibility of investment return and the relative certainty that when a bond matures I get my principal back – all of it. In my view the main point of the fixed income side is to have a portion of one’s assets not be exposed to equity risk. While both bonds and funds’ unit prices may fluctuate with daily trading, the only way out of an ETF is to sell the units at a market price. You simply don’t have the option of waiting for instrument maturity to make you whole. Of course that doesn’t necessarily mean you will lose money relative to your ETF unit purchase price, but you might. A bond maturing inside an ETF puts the bond’s principal back into the fund for the manager to reinvest. But, subsequent to that reinvestment, if rates rise the fund’s unit value will almost certainly decline. Having recently come through a period of about 30 years of declining rates, it ought to occur to people that rates could rise slowly and steadily for a very long time. That scenario could mean that the very investments people most count on to be protected and reliable could end up significantly under water with no certain prospect of recovery. A bond ETF or mutual fund introduces an equity risk component into the fixed income side of one’s investments. I wonder about the extent to which retail investors really understand the implications of that risk. Despite the relatively limited diversification of credits in one’s own ladder of between say 10 to 20 bonds, I prefer managing that credit risk through instrument selection, versus a fund’s market risk, which is entirely out of my control and based on rate movements that are beyond my ability to predict. Thanks for any critique!