Investment Q&A

Q: Veresen (VSN)

Hi Team,

I am following up on my earlier question regarding Veresen's payout ratio as reported on CIBC Investor's Edge. You have suggested that the dividend payout to cash flow is more meaningful than dividend payout to income. Does it follow then that price/cash flow (P/CF = 23.10x TTM) is generally a better metric than price/earnings (P/E = 50.99x TTM)? If so, would this typically be the case or would it depend on the sector?

Thank you again for your advice.

Michael

Q: Hello Peter and co.
Your rational thought process and in-depth stock analyses have helped me be disciplined and cool headed; thanks a lot.
Sensing that some kind of correction would soon happen, I raised, at the end of August the cash level of my RRIF portfolio to 15%; half of it was earmarked for the income I will withdraw in January 2015 (I'm early perhaps, but I sleep better) and the other half was to nibble at stocks that I already own but in need to be topped up. So far so good because my total return to date in 2014 is 13% while my annual objective was 7%.
I take the opportunity to thank those who have responded to my search for a website that would help me track my various portfolios and watch lists; I decided to stick to the free version of Globe Investor + my own excel spreadsheets.
Cheers,
Tony

Q: Veresen (VSN)

Hi Team - I was hoping you could please explain the apparently high payout ratio of Veresen. According to CIBC Investors Edge, the payout ratio is 439.63%. From what I can see with FASTGraphs, the payout ration has been over 100% (sometimes well over) since 2001.

I don't understand how this can be possible over such a long time period. I've noticed this with other companies as well from time to time. Generally though, the commentary you provide suggests a low payout ratio is best.

Could you please help educate me?

Thanks very much. Michael

Q: My portfolio currently is a little overweight in REITS and light on US exposure. REITS have generally gone sideways or declined somewhat over the last few months and I realize that you generally are of the view that REITS should not be expected to have any capital appreciation of note over the next year or so. Accordingly in order to seek some capital appreciation and some US exposure I am thinking of selling a significant portion of my REIT holdings (Calloway, American Hotel, Artis, Summit) and purchasing some of AAPL, GE, BCR, DE, MFST, NWL, PG, TXN. Do you see anything questionable in my logic or do any of these US holdings present a concern? Thanks in advance.

Q: Do you have any suggestions with regard to selling your losers? For example, I own Avigilon (AVO) and currently have a loss of 41% and keep on holding it with the hope that some good news will be on the horizon and the stock will head up. Frankly, I wish I had sold it long ago. I know that some investors have a rule if a stock drops 7-10% from purchase price, it is sold. Do you have any general recommendations for selling losers? Thanks, Bill

Q: Peter, CONGRATULATIONS on your last day of your cross-country bike trip. You and your bike mates are simply amazing!!!

Q: On your latest blog "Value Stocks with Momentum", I am a bit confused with the company IBG.TO. My records shows that this company does not issue a dividend. Is this correct or not? Tnx

Q: Dear Peter,
I'm glad to see that contributions to your ride are continuing and you are now at 98%. Way to go! My question is about investing in European securities. It was mentioned in a recent answer that 5% of a portfolio be in Europe and 10% in USA. What do you think are the best way(s) to invest in those areas?
Linda

Q: On your research reports, how are you calculating the dividend (expressed as a percentage)? I am assume that this is some kind of yield calculation? Also, in the '5i Report Card' sidebar on the left hand side, would you consider adding dividend growth as a criteria?

Q: Hello Peter..not a question..just want to say.."enjoy the ride" and thanks for all you do!
Be safe!

Q: This is not a question- but a challenge to all 5I members who have not yet contributed to Peters ride. If you have benefited from your membership here & the advise you have received please contribute what you can! Peter has raised 88% of his goal- lets not let him come up short!
Les

Q: Re; Meeting Peter
If you want to meet Peter, attend the Money Show in October. He was the Master of Ceremonies last year. I attend the Money Show regularly and from the literature I have received, he will have a similar role this year.

Dennis

Q: Hope you don't mind an elementary tax question!
I have some Sino-Forest (unfortunately), which I believe is delisted. Can I report it as a "sale" for NIL value in my capital gains/losses Schedule this year and/or in later years?

Q: I own 25 shares of CSU. I have pretty much ignored the talk of debentures since I understand nothing about them. However, I've now got some CSU.RT worth practically nothing sitting in my discount brokerage account. Do I have to do anything with it? Why do I have it at all?

Q: Hi 5i team
This is a general question. I always seem to be two steps behind in knowing what is happening with stocks in particular and markets in general. What would you suggest that I subscribe to or read on a daily basis to be informed on a more timely manner regarding my particular stocks and those on my watchlist, without devoting all day to it).
Thanks
Kathy

Q: Good Morning 5i,

As an investor who recently took control of my finances from my company directed investments I have found 5i to be a good friend and am making gains I never did previously. Thank you for that! I met another investor while on holiday who casually mentioned that what I should be doing is trading options...what would your advice be? Include options as part of my strategy or simply stick with the Model Portfolio and maybe 1 or 2 other stocks with 1 being a higher risk, higher gainer and 1 being an ETF?
Thanks.

Q: Peter
My daughter is turning 21 next month She has $ 2500 to put in her TFSA Any suggestions as to how she should start her investing career Good luck on your ride

Q: Comment re: meet and greet proposal.
" maybe hold a meet and greet sometime in Toronto with an invitation to all subscribers? (I am from Ottawa

Perhaps 2 would cover more subscribers. 1 in Waterloo which would be easy and within range of Windsor, Barrie etc as well as tri-cities, London and perhaps Toronto and maybe one somewhere east of Toronto for that area of the province.

Bryon in Elmira

Q: Hi Peter and team: Just a question: I am sure a lot of your subscribers like me would like to meet you and your team personally. Is it in the realm of possibility to maybe hold a meet and greet sometime in Toronto with an invitation to all subscribers? (I am from Ottawa) but would gladly travel to Toronto and pay to attend such a forum. Thanks for all your hard work and good luck on your bike ride. Stay safe.

Q: Hello Team

I often watch BNN when they have analysts on and I have noticed that when the analyst reveals their top 3 selections most often the disclosure statements indicate that the analyst does not actually own the stock personally nor do family members own the stock. Almost always though it is held in the fund that they manage. Are analysts generally precluded from owing stock that they recommend for their funds to hold?