Investment Q&A

Q: I purchased a convertible bond from Just Energy a few years back that they recently "force converted" to equity because they couldn't pay the interest on the bond anymore from what I can tell. This thing has been a disaster. Is their business viable anymore?
-Disappointed Dave in Montreal

Q: Hi guys,

I'm looking for potential opportunities in the energy space where the line between clean and fossil, as well as energy vs utilities seems to blur more and more. Also there seems to be increasing suggestion that big oil is interest to move into this space with investment and engineering capital.
Are these corporations good opportunities and if so do they look to be positioned as underpriced for growth relative to the current frothy players like npi and bep?

Q: is the new gas contract with Pomigas a + or - from previous contract or from reality of what is actually going on. What was the dispute about.
TKS

Q: Good evening to you all - Thanks to 5i, I loaded up on BPEC eighteen months ago and now have a utility bulge in my portfolio that needs trimming. I am only underweight in "energy" and herein lies my problem. Energy in Canada seems to mean non renewables like our wonderful SU, Canadian Natural Resources and TOU. Is not BEPC an energy company as well as a utility? If say half it's valuation is in production, then could that be construed as energy sector allocation for my purposes and I don't have to sell, just mentally reallocate? Or, is this just mental gymnastics on my part and I should just sell to reduce, pay my taxes ( i'm out of losses, hopefully forever), and invest the proceeds in a normal energy company to satisfy my portfolio analytics?
Many thanks

al

Q: Looking to sell cvx and move back to Canada would you see this as a good move or would the oil sector be a little safer in the US with more growth potential and less environmental negative news going forward.If you agree with selling could you give me a replacement in Canada held in a rrsp.

Q: Dear 5i Team. This company has been on fire the past few days. Do you know why? Is it time for a small position? Thanks for your impressive expertise answering the daily questions. I read them every day.
Lorraine

Q: Please comment on the relative pros and cons for each, and rank them for purchase soon. I am grateful for your excellent service!

Q: I have no utilities exposure. I want to add 1 Company. I was looking at Fortis because I believe they are your favourite given their size and history of dividend increases. They currently are mostly electricity delivery (<90%) with some renewables and fossil fuel. By 2035 they expect to increase renewables from 2% to 7%. That seems like a long time for such a small increase. They are eliminating their fossil fuel generation. If I prefer to invest in a utility with more of a focus on renewables, would AQN or BEP.UN be a better bet. Shouldn't they do better as renewables become 'trendier'? Which do you prefer out of AQN and BEP.UN. BEP.UN has had quite a run recently.

Q: Good morning 5i team,
Which would you buy PEY or BIR ?
Thanks,
George

Q: Hi guys,

Two questions so please deduct the appropriate credits:

1 - Is the energy sector now purely a trade going forward? Are the days or steady production growth gone given how volatile the price of energy can be? It seems like there are ample opportunities for trades, but buy and hold, unless its a pipelines seems to be finished for now at least. Agree or Disagree?

2 - Looking to add some consumer discretionary to my portfolio for a recovery. Deciding between QSR and ATZ. I like the size of QSR and the dividend, but ATZ has lots of growth potential in the U.S. and Internationally and my wife likes their clothes!! ;) If you had to choose one, which would it be?

Thank you,
Jason

Q: I read a report that indicated that short positions in Algonquin were increasing of late. Can you briefly explain the short thesis?

Q: I have losses on ERF and ARX, thinking of switching them to one or combination of CNE, SU and TOU or any suggestion you may have for less risk and better recovery. Your opinion please. Thanks

Q: Hello 5i,
I am a 74 buy and hold income investor investing for dividends with some growth positions.You wrote on October 2 that Cu was OK for income. Are you still OK with Cu for income or should I sell then add to Fortis, NWS, SLF and QSR?
Thank you
Stanley

Q: While favouring ENB and PPL, I can’t help but find some of the U.S. pipelines of interest. Is HESM an acceptable alternative? Which others? Thanks!

Q: On Topaz and oil/gas royalty companies in general, how do these companies do if oil/gas prices were to recovery from here? Would this be a good proxy for the trade?

Q: I am looking for the 10 year share price history of this stock. could not find it anywhere. my ACB shows $ 70 plus, was it that high ?

Q: Hi
We are considering tax loss selling ENB -- we've only lost about 8% on ENB. This is because of the trend towards renewables. We don't rely on the dividend, although it is quite good at over 10%. You said ENB plans to continue to increase the dividend going forward. But if the stock price doesn't rise as a result of policies of the new US Administration, or if it goes down, would that cause ENB to reconsider their high dividend? What would cause ENB to adjust the dividend? It is a nice buffer to a drop in share price.

We are also interested get concerned and and replacing it with SEDG. You mentioned on 3 Nov that you "would consider it a 'slow' buy with a partial position into the decline. The shareholder base may churn a bit on these results and it might stay week for a month or so." Do you still hold to this view?
Given the renewables trend, we are considering moving from ENB to SEDG.
Thanks once again for your very useful advice.

Q: Hi Team!

Can you advise on 4 or 5 names in the energy sector you would recommend?

Q: It looks like lots of improvements in the Sector which small cap stocks will benefit
most?

Q: Hi Peter/Ryan, I'm a 63 year old conservative investor and I've held CNQ from 2010 where I bought it at $34.00 where it's been a roller coaster since then and as you know it dropped to about $12,00 in March. I've held it for the dividend and since it's back to where I first bought it in my unregistered account I was thinking of selling it and transferring it to my TFSA and not taking any loss. How much upside do you see it having from here and do you think it's still worth holding or would you invest the money elsewhere, if so what is a good replacement for it. Thanks as always for your insight and the great service we get from you guys. Nick