Investment Q&A

• ECN Capital Corp. (ECN $3.08)
  • $3.08 P/E (TTM): 37.74X Cap: $867M
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Q: Enc.pr.a

Hello 5i
Thanks for the informative service.

I have owned this ecn capital pref share for a while with original purchase price below the $25 issue. I am surprised to see the price back down to this level again given it is a rate reset with a minimum yield% reset.
Has the risk level of this pref or the company increased recently?
The volume is very low. Is this just simpathy selling associated with Efn poor performance and lowered outlook?
Your though on what is up with this share is appreciated.
Dave

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Read Answer Asked by David on February 12, 2018

• Manulife Financial Corporation (MFC $46.47)
  • $46.47 P/E (TTM): 15.56X Cap: $78.89B
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• iShares S&P/TSX Canadian Preferred Share Index ETF (CPD $13.82)
  • $13.82 P/E (TTM): 6.96X Cap: $1.06B
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• BMO Laddered Preferred Share Index ETF (ZPR $12.47)
  • $12.47 P/E (TTM): 5.91X Cap: $1.51B
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• CI U.S. & Canada Lifeco Covered Call ETF (FLI $10.82)
  • $10.82 P/E (TTM): 0.02X Cap: $79M
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Q: Over the last little while I purchased the above securities because of a rising rate environment. All have performed as expected except ECN.pr.A. Is there any particular reason for this. Would it be wise to average down . I’m still thinking that with rising interest rates their will be more demand for their services. What about the margin will this increase, decrease or stay the same ?

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Read Answer Asked by Roy on February 08, 2018

• iShares S&P/TSX Canadian Preferred Share Index ETF (CPD $13.82)
  • $13.82 P/E (TTM): 6.96X Cap: $1.06B
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Q: What do you think of Manulife's rate reset preferred MFC.PR.R:TSX it seems to have held up very well recently. Are there other rate reset preferreds you would recommend.

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Read Answer Asked by Douglas on February 08, 2018

• Plaza Retail REIT (PLZ.UN $4.28)
  • $4.28 P/E (TTM): 62.14X Cap: $486M
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Q: I’m having trouble getting details on the D debenture beyond the 100.10 last trade price. I can’t find out if it pays a divvy or how it converts to shares and when I have never owned a debenture ... please educate me.
Thanks
Bryan

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Read Answer Asked by Bryan on January 30, 2018

• Toronto-Dominion Bank (The) (TD $128.10)
  • $128.10 P/E (TTM): 10.52X Cap: $216.13B
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Q: I am looking for a preferred that can be expected to hold its' value over time. I understand that it should be a decent credit rating, have a fixed reset rate and be non-convertible. Does this preferred meet that criteria, or could you recommend one ?

Thank you,

Tim

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Read Answer Asked by Tim on January 24, 2018

• Miscellaneous (MISC)
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Q: Are preferred shares a better investment for someone hoping to live on dividend income during retirement?

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Read Answer Asked by Henry on January 15, 2018

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Q: I have a reset preferred that has done quite well for me this year.I would like to add another but i am struggling to find a resource on the internet that gives me "current" listing,pricing,rating,duration,etc. Could you help me out.
How do preferred shares perform in a stock market decline?

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Read Answer Asked by Randy on January 12, 2018

• Aecon Group Inc. (ARE $42.29)
  • $42.29 P/E (TTM): 426.0X Cap: $2.72B
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Q: I have a $20,000 C.V. 5.5% Dec 2018. In view of the proposed takeover of Aecon, should I exercise my option to convert to common shares, and if so, when would be the appropriate time to do so ?

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Read Answer Asked by Harold on January 12, 2018

• ECN Capital Corp. (ECN $3.08)
  • $3.08 P/E (TTM): 37.74X Cap: $867M
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Q: Do you think the preferred share for ECn( ECN.PR.A) would be a good investment if the company does well. This will be held in an RESP.
Thank you for your answer.

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Read Answer Asked by judy on January 11, 2018

• Brookfield Renewable Partners L.P. (BEP.UN $43.40)
  • $43.40 Cap: $29.56B
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Q: What do you think of this new issue?

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Read Answer Asked by Jerry on January 10, 2018

• Enbridge Inc. (ENB $73.95)
  • $73.95 P/E (TTM): 28.29X Cap: $159.48B
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Q: Hi and all the best to you for 2018! I hold some ENB.PR.U for income and believe it will stay stable for the foreseeable future as it has fluctuated within a narrow band over the past months. I would be grateful for your thoughts on this however for longer term. Cheers.

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Read Answer Asked by Gregory on January 10, 2018

• Miscellaneous (MISC)
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Q: I am currently setting up my portfolio with 30% allocated to fixed income. With bond yelds being quite low, as well as the risk of capital erosion with rising interest rates, can you provide some advise on how i should structure the fixed income portion. What alternatives should i use? Should rate reset preferreds be part of this portion? Thank you

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Read Answer Asked by Vineet on January 08, 2018

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Q: What are your thoughts on ZUP for income as a “safe” investment? Thanks. Peter

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Read Answer Asked by Peter on January 08, 2018

• iShares S&P/TSX Canadian Preferred Share Index ETF (CPD $13.82)
  • $13.82 P/E (TTM): 6.96X Cap: $1.06B
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Q: Hi Peter and Team,

Can you advise your top two reset preferred stocks and if they offer minimum resets? Also from a macro point of view is this an alright time to purchase?

Thanks
Chris

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Read Answer Asked by Chris on January 08, 2018

• TransAlta Corporation (TA $17.07)
  • $17.07 Cap: $5.08B
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Q: I am considering the purchase of some Transalta preferred shares. Before making a move, I would first like to know whether Transalta has made any progress reducing the debt on their balance sheet in the past year. Your comments are appreciated!

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Read Answer Asked by Gregory on January 03, 2018

• Royal Bank of Canada (RY $220.07)
  • $220.07 P/E (TTM): 15.08X Cap: $311.35B
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• BCE Inc. (BCE $35.22)
  • $35.22 P/E (TTM): 5.35X Cap: $32.99B
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• Manulife Financial Corporation (MFC $46.47)
  • $46.47 P/E (TTM): 15.56X Cap: $78.89B
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• TC Energy Corporation (TRP $88.34)
  • $88.34 P/E (TTM): 27.2X Cap: $87.60B
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Q: Looking to purchase some individual rate reset preferred shares. Looking for relatively early reset dates. Would you be comfortable with: BCE.PR.Q, MFC.PR.J, RY.PR.H, TRP.PR.G ?
Regards,
Robert

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Read Answer Asked by Robert on December 26, 2017

• Miscellaneous (MISC)
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Q: Season G's...How would you compare a convertible bond etf vs short term bond etf in a rising interest rate environment. Specifically regarding capital erosion and income, can they really be compared as similar investments all the best gary

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Read Answer Asked by Gary on December 21, 2017

• PIMCO Monthly Income Fund (Canada) (PMIF $18.07)
  • $18.07 P/E (TTM): 12.29X Cap: $4.46B
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Q: Is there any difference between the etf and the mutual fund pm005? Would a combination of pmif and cpd make sense for the fixed income portion of a portfolio? What percent of each would you suggest?

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Read Answer Asked by Paul on December 19, 2017

• ECN Capital Corp. (ECN $3.08)
  • $3.08 P/E (TTM): 37.74X Cap: $867M
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Q: I bought some of this preferred at 25.20. With interest rates holding steady or maybe a bias towards rising interest in Can and US is now a good time to add to my position in this preferred? I invest mainly for income.

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Read Answer Asked by Roy on December 18, 2017

• iShares S&P/TSX Canadian Preferred Share Index ETF (CPD $13.82)
  • $13.82 P/E (TTM): 6.96X Cap: $1.06B
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Q: For a retired investor, what % of your total would you deem appropriate for preferred shares and would CPD be a good ETF for this?
Thanks

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Read Answer Asked by Rudy on December 18, 2017