Investment Q&A

Q: 2:58 PM 2/3/2014
Hi Peter:
Today both Liquor Stores LIQ [down over 11% today ] and Rogers Sugar RSI [down over 6% today] have had big declines over the last months. I know that the BC Government have just approved the sale of wines and spirits in corner stores and this extra competition will hit Liquor Stores in BC. As far as Rogers Sugar goes all I can see as a cause is possible higher natural gas costs. Do you know of any other news?
Both companies have had considerable net insider buying as prices fell over the last year which surely is encouraging.
I hold these stocks purely for the dividends and expect little if any capital gain over the years.
Can we reasonably expect both companies to just jog along and continue to pay their dividends and recover over time, and should I just continue to hold them?
Regards........ Paul

Q: What are your thoughts on LIQ at this time?

Q: The pipeline utilities IPL PPL ALA ENF are trading well above their moving averages on lowish volume, some setting new highs in the face of generally higher interest rates and a weak market, while TRP has been quite volatile on high volume. What should a holder read into this? Thanks, J.

Q: Could I please have an update on Horizon's Floating Rate Bond ETF - HFR? Thanks!

Q: I would appreciate your thoughts on High Yield Bond ETFs for a long term hold in a registered account. I am looking at HYI, CHB or XHY. Which of those, if any, would you suggest (or something else).

Q: IPL seems to be on a decent run over the past 2 months. Is it time to take some profits on this one?
Thanks for your great service,
Jeff

Q: Hi 5i Team,
Can you please comment on Rogers Sugar's results this quarter? The stock has taken another beating today on disappointing results. Is the cash flow still there, and is the dividend still secure? Many thanks!

Q: Peter,

You should look more closely at STB. It is a great little company that is total misunderstood due to how it finances itself and the seasonality of their revenues. Income, profits and cash flow continue to rise over the years. I am a longterm shareholder and love the dividend.

The following is from their 2013 annual report:

"We finished the year with
a pay out ratio of 79 percent and
forecast that number to decrease further
in fiscal 2014."

Regards
John

Q: Peter, My question is on Student Transportation. I cannot find the payout ratio anywhere, including the web site. Also, your comments please. Great div. as long as it is dependable. Looking for real long term hold. Thank you Ken

Q: Hello 5i Team,
HPR, HYI, XSB
All are down (slightly). These are the only bond and preferred share funds that I hold, for a total of $80k. My question is, should I replace them with something else or should they be part of a diversified portfolio? Many thanks in advance.

Q: Hi guys, could you give me an update on Extendicare (EXE), please? I just read an article in Motley Fool that states that
buying into this company, you get their US unit for
free. I like freebees, but is this business still as tenuous as
when you last answered to a query back in August? Regards, Robert.

Q: I notice that Rogers Sugar (RSI) is down again to-day before a conference call to-morrow regarding Q1 results. It is now paying a dividend of 7%. Do you have any insight as to what might be going on, and do you think the dividend is safe? Is the company well managed?
Thanks for your excellent service, Bob.

Q: Rogers Sugar has dropped significantly in just 2 days, with earnings on Jan 30th.
Besides the possibility of a leak of unimpressive earnings, what other reasons might account for the drop?
Thanks!

Q: Veresen (VSN) - buy, sell or hold? Tx

Q: Could you please comment on bond ETF's as an addition to GIC's in the fixed income side of my portfolio. I am 66, retired, with a small company pension. Currently I hold 33.33% in Canadian dividend paying equities, and 66.67% in GIC's and cash. Last year I sold my bond ETF's (CBO and ZHY) on a recommendation from your team. I'm glad I did, as they both declined markedly throughout last summer. However, with inflation projected to remain stagnant through 2016 and interest rates more likely to decline than increase, are bond ETF's worth re-purchasing at this point, both for income and capital preservation? They have recovered sharply over the past couple of months. And, if so, would you stick to Laddered Corporates and/or high yield Corporates, or would you recommend another approach? I continue to favour 5-year laddered corporates (CBO) and High Yield U.S. Corporates (ZHY). Thanks for your expertise.

Q: A recent Globe and Mail article was titled "Winning and Losing Stocks for a Low-Loonie Era". In it, one analyst named Patrick Kenney suggested that Brookfield Renewable Energy Partners is "seen as a moderate loser".

Do you agree with this assertion, and if so, should I re-think my exposure to BEP.UN? (Currently overweight in my RRSP). Thanks as always for the great service and timely advice.

Q: You last commented on CHB in May 2013. It has done quite well for a fixed income ETF over 3 years with an average return of 8.34%. Would you care to update your opinion on their hybrid strategy in the present investment climate? Thank you.

Q: Hi Peter,

Would you 5-6 names of company which recently declares its first-ever dividend? what's your thought of those names?
Love your service and just renewed membership.
Thank you

Santos

Q: A question about Enbridge. I love it when my stock go up especially in days the market is neg. Today Enb has a pe of 44.
Is that not in sky high levels. For example Priceline pcln growing at double digit levels has a pe of only 35 .
Am I missing something?
Thanks for your advice

Q: I'm looking to "green-up" my portfolio a bit by investing in 3 renewable energy companies. (AQN, BEP.UN, AND NPI). Firstly, what do you think of the sector and secondly, what do you think the future holds of each of the companies?