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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: You answered my question this morning, asking which stock to put into a RSP, as if I asked for stock to put in TFSA. Very different tax consequences.

What would I put in RSP from this list? I would think a stable but slower growth choice could work well.
Read Answer Asked by Brenda on February 01, 2022
Q: What are your three highest conviction growth stocks from your Growth Portfolio at this time. This for a long term medium to higher risk for my TSFA. I already have all the stocks in the Balanced Portfolio.
Read Answer Asked by Steven on February 01, 2022
Q: The market has been less than enthusiastic about Dye and Durham since the takeover announced a month ago, which looks iffy now there is another rebellion among Canadian legal clients over fee jumps. If the takeover succeeds an article in the Jan.29 Globe projects debt will be 5X EBITDA up from 3X which could bury DND.

5i's assessment of David Berman's piece and the outlook for shares should the takeover be turned down by regulators in Australia, please.

https://www.theglobeandmail.com/investing/markets/inside-the-market/article-investors-have-turned-cold-on-dye-durham-heres-why/
Read Answer Asked by Jeff on February 01, 2022
Q: My question is moreless about Morningstar's numbers. I have access through my TD trading account. It indicates the Fair Value of SLF pretty much where it is, BCE at $66.64 and ATD at $46.12. I'm not sure if you share the same opinion (?)

SLF - the FV has gradually been increasing, but are projected rate hikes already priced in the present stock price? I would expect the FV to ramp up.

BCE - They show a trailing PE of 21. That, and the P/S seem historically a bit higher than normal. I think your Bloomberg info would show a future PE that may be lower...hopefully.

ATD - This one shows a trailing PE of 16, This, compared to its past, seems "quite cheap", yet the FV doesn't seem to reflect this. Agree?

So what are your thoughts? Would you say SLF, ATD and BCE are good value - in that order based on my above comments, or any opinion of your own?
Read Answer Asked by James on January 31, 2022
Q: BAM.a is one of u top favourites. As per u advices,bought @ $44.49 & add recently @ $71.46.It has dropped from some $78 H near end of Dec.tocurrent levels where it seems to stabilize.Is it advisable to some at this level in view of the current backdrop. Txs for U usual great services & views
Read Answer Asked by Peter on January 31, 2022
Q: In a Jan 28th response you stated cash had declined and there is maybe a need to raise capital. This is a company that has grown by acquisition, which usually requires cash. Has the outlook changed drastically in a short period and now they have cash flow issues? Is the status of their cash flow available before the quarterly report?
A potential sale of the company was also mentioned. Can you reference any additional information regarding the sale of the company? Thanks.
Read Answer Asked by Dan on January 31, 2022
Q: Good day.

1. I am considering the purchase of mentioned. I did some quick research and noticed that on Jan 19th you mentioned in a response that it had a P/E of 15. Looking at its profile on your site and the BMO site, it shows 9.x.

If I look at the current stock price of $142 and its EPS of $15.66 (from its profile), this would correspond with the P/E of 9.x (which would not even be its forward looking P/E but its historical).

Am I missing something here? It appears to be a great deal.

2. I read your Jan 18,2022 report about this company. At the very top of the report (on the right hand side) it states that debt is high. At the very bottom of the report in the Summary section it mentions that that this company has strong balance sheet. Furthermore, this section and and "Key risks" section do not mention any concerns with debt. Is this something we should be concerned with? (Note; I normally look at the debt on the balance sheet but have difficulties understanding how to interpret this number for financial institutions as they have customer deposits on-hand as debt OR they would need to borrow money to lend it out which is also debt. Do you know of any articles that help explain this).

3. Do you think the business model is sustainable? I went on their web site and rates start at 30% for personal loans. That is high, really high (I feel).

Thanks again. Walter.
P.S. I recently posted a question and must have accidently posted it as private. If you want to make it public, please do so.
Read Answer Asked by Walter on January 30, 2022
Q: Currently own BAM.A and BIP.UN (From Enercare aquisition), I am quite comfortable with the two Brookfield companies combined percentage within portfolio.

After reviewing the sectors allocation, I am high on financial (BAM.A) and low on Energy, I plan to reduce BAM.A position (take profit) and move the proceed to BEP.UN in a registered account?

Goal is to maintain the same percentage of Brookfield companies in portfolio and balance the sectors better especially want to long renewable energy.

Do you agree with this move or have comment, concern, other suggestion ?

Thanks.
Read Answer Asked by Steve on January 28, 2022
Q: With interest rates rising, companies with heavy debt loads may suffer somewhat.
Can you please offer 5-10 top picks with large cash balances and low debt w/best bets in each Cda and US? also which big cap sectors would you stay away from due to large debt holdings? many thanks...
Read Answer Asked by adam on January 28, 2022
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