skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

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

Q: Hi Peter and Team:
Regarding CSS - cash offer:
I bought at $15 and cash offer is $14.60.
should I sell it at 15.25 now or wait?
I called RBC direct invest. they told me if majority agree cash offer, I have to accept it. Or majority rejected, they may make a new offer.
I think I bought at price too high. Maybe I should sell it now.
Appreciate your advice very much. thank you so much.
Adriana
Read Answer Asked by hong on September 03, 2014
Q: Pipelines:
In looking to add pipelines to a balanced portfolio what is your preference when it comes to company size,looking at growth first and income second. I.E. ENB/TRP vs IPL/PPl. If chosing one, which would it be? (or other suggestion) Also how do you feel SCL fits in to the mix. As a supplier of pipeline coatings, is it a redundant play or a stock with different qualities/prospects than pure pipelines?
Thanks very much as always!

Phil
Read Answer Asked by Phil on September 02, 2014
Q: A group of 8 Pipeline and Midstream companies analyzed by a broker has a 2015 forward PE of 28.4, after removing a high outlier, VSN. To me this number seems quite lofty and I'd like to know how it compares historically, say in the group's last cycle peak; after all how much growth can this group generate? I know the analysts say that growth is visible years out but it seems N. America is presently awash in oil with an average 250,000 BPD being imported by Eastern Canada from the U.S. so if shale oil continues to expand production, and there's no consensus on this prospect, would that be a catalyst for the group to stumble or accelerate growth? It seems likely that the growth number should be far less than 28% too, hardly justifying the PE.

And it seems the group is analyzed on its AFFO yield (like REITs) of 6.3% for 2015. Should interest rates rise would the group be hurt by the rise? Current stock yield averages only 3.6%. In the group I hold ENB with smaller positions in IPL and ALA; stock prices have been on a 45 degree climb for several years now - time to take profits or just watch closely? Thanks, J.
Read Answer Asked by Jeff on September 02, 2014
Q: Hi Guys, since joining in January, I have transformed my portfolio into the 5i model, thanks for the guidance. I just found some extra money, do I;
1) increase my half positions in PKI, DSG or Ciniplex
2) buy a full position in QST, DHX or.................
3) hold cash
I am long term investor, 5 years +
Good Luck Peter with the ride, be safe and enjoy the journey!
Jim
Read Answer Asked by jim on September 02, 2014
Q: VII.US/AVO
Are VII and AVO in direct competition? As per a quote from VII's statement, "highly regarded brands within the security industry allows us to bring a compelling and completely proprietary video solution to our customers”, does one have better security solutions or do they each have specialized niches? I would appreciate your opinion and if possible a brief evaluation/comparison of VII. I'm also considering owning both for a combined full position. Reasonable? Thank you.
Read Answer Asked by Gayle on September 02, 2014
Q: CSS closed @ $15.25 up .08.Thomson Reuters ranked it a 10(the highest) with a target range of $16.30(high),$15.20(mean) & $14.60(low) by 7 analysts.Note $6 low on Oct 7/11 & up since then.Been telling my friends about the great risk/reward ratio since our P.Hodson's recommendation on 7/29.Will have to wait to see what unfolds soon especially if the price holds or continue to increases
Read Answer Asked by Peter on September 02, 2014
Q: Hi 5i: some additional thoughts on the CSU debentures. Shouldn't people think first about whether these debentures are really the right kind of investment for them? For starters, maturity is a long way out (2041?), so the fact that you can buy 100 face value for 95 with your CSU rights is not as material as what the debentures will trade for in the meantime. Second, long term corporates may not be a good idea from a risk standpoint. Hank Cunningham I believe suggests that average fixed income investors keep their corporate maturities at 10 years or less, just because the corporate world does not provide sufficient visibility to justify going longer. Let's remember too; this is no utility; this is a tech company with a significant growth by acquisition component, despite successes to date. Third, if these really are the product for you, shouldn't you be thinking about whether you would use market purchases to top up to your regular position size, essentially with the rights just giving you a small potential discount on the whole position? Along those lines Peter, would you consider making CSU debentures an important addition to the Model Income Portfolio and, if so, take us through the analysis of whether to go ahead with the purchase at anticipated prices and what you would sell to do so? Thanks!
Read Answer Asked by Lance on September 01, 2014
Q: As for Kathy's question on acquiring a small CSU debenture with rights, possibly she ought to check with her broker to see IF a $200 bond could be sold. This quote is from the itrade site "Face value should be in multiples of $1,000.00 as there are no fractional bond units, except for strips where the rule in multiples of $1,000 does not apply." Also it is not possible with them to trade anything less than a $5000 corporate bond online.

Perhaps for most of us small holders of the rights the best course of action is to sell them on the open market; otherwise you might be stuck with an unmarketable security until maturity in 2040. Alternatively if you're really keen on the debentures you could purchase enough rights to get up to the minimum trading levels so you are holding something marketable. Thanks, J.
Read Answer Asked by Jeff on August 30, 2014
Q: As a Constellation shareholder, rights have been deposited into my account and I have been considering an additional purchase of rights (CSU.RT)on the open market to participate more fully in the debenture offering. However, I have no experience in such rights offering and no idea as to how to value them. From the price action in the first week of trading ( ranging from .40 to .70 cents), I suspect I'm not alone. Any advice, suggestions, guidelines appreciated.
Thanks
Read Answer Asked by William on August 29, 2014
Q: I have set aside funds specifically for the purpose of establishing an income portfolio. While I understand your reservations in trying to time the market, could you recommend a strategy for deploying the funds giving consideration to the weak seasonal period for equities we are entering, the imminent elimination of QE, and the potential for incremental increases in interest rates starting within the next six months. Would it be wise to place the funds in money market, or even a short term bond etf like VSB or VSC, and wait till later in the year to begin the investing process? What ideas in the 5i income portfolio are buy-able currently? Many thanks.
Read Answer Asked by Rupert on August 28, 2014
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!