Investment Q&A

Q: In light of the big pipeline announcements today by the liberals could you please group the above stocks as to the winners and losers. e.g Big winner, Winner, No Effect, Loser and Big Loser. This is very topical and stave of some questions and be worthy of an article. I look for to your answers and advise as always.
mike

Q: We depend on dividends for half of our income so I would like to get your take on SPB. BNN gives it 3 strong buys, 2 buys and 1 hold, while BMO gives it 4*, 3 buys, yet ranks it as overvalued and bearish. I'm thinking of 1500 shares for a half position. Opinion please. Thanks - ted

Q: Good Day - What are your top 5 income stocks right now for long term (with distribution of approx 5% and above)?

Q: Looking for yield with some growth and would appreciate your opinion of each of these.Would appreciate your ranking in order of preference.

Q: Hello I5, my cash position is over 25% and would like to reinvest some of it. I would like to have your help to choose the ones with the least downside effect in case of interest rate increases, safest with some growth. Also, would appreciate your assessment of the Manulife (MFR and MBK)ones. Many thanks, J.A. P., Burlington

Q: How would you compare SPB and AQN for growth and dividend sustainable going foward ?

Q: Would appreciate your analysis of Superior's third quarter financials.
Thank you.
G

Q: I submitted this question last Thursday and received the auto response that my question had been submitted but since I haven't received a response I will try again.
My question relate to the income portfolio. We own many stock from the 3 portfolios but now that we are about to retire, we are trying to mimic the income portfolio. I understand that if one already owned ET, SPB, VNR, and DH that we should stick with them however, if one was constructing an income portfolio today can you suggest substitutes for these names? Also, given the dividend that ZCL pays, would it be suitable for an income portfolio?
Thank you.
Maggie

Q: Do all above companies fall under Industrial? My total weight is 13% Is this too high? I feel that I have too many companies in this sector and may be better to have only 4-5? STN and WSP are similar so would it be better to sell one of these and add to the names that are listed. I am also thinking of selling ET and taking the proceeds to add to the other names now leaving me with 5. Is this a good approach?

Thanks
Dolores

Q: SPB just announced the suspension of its DRIP plan. What is rationale for any company, like SPB here, to do so?

I always thought a DRIP plan is a good way for a company to conserve/manage its cash flow while the additional share dilution is really at the expense of its existing shareholder base. Hence it is to a company's advantage to have a DRIP.

What is your view on the pros and cons of a DRIP? Please enlighten us. Thanks.

Q: I have been trying to decide between SPB and CHE. My own thinking concerns an improving outlook for the chemicals industry. Do you agree that CHE would benefit more than SPB in this regard? Or do you think I should just look elsewhere entirely for growth in the chemicals sector? And can you comment on how SPB looks post-earnings? Thank-you very much.

Q: What do you make of the SPB Q2 reported results? I am so lost trying to decipher what it all means and have to stop before I bend my head totally out of shape. Please help explain that in plain simple English. Thanks.

Q: Good morning Peter and Team,

Superior announced the following today:

TORONTO - Superior Plus Corp. (TSX:SPB) is selling its construction products distribution business to a U.S. company for the equivalent of C$420 million.

The US$325-million agreement was announced Tuesday by Toronto-based Superior, a few days after the collapse of a proposed takeover of Canexus Corp., a Calgary-based chemical company.

Superior Plus has a diversified business in three industries, including propane distribution and specialty chemicals.

It says the divestment of its construction products business will simplify Superior's organization and provide cash to reduce debt.

What is your take on this? Do you think they'll achieve their goal of debt reduction? (SPB has been a frustrating stock for me, as I bought it at $11.75, and it closed yesterday at $10.94. However, the yield of 6.75% is nice, given that I hold SPB in my RRIF.)

Thanks as always for your valued advice.

Q: As a long time holder of Superior, I was disappointed when they bid for Canexus, just when they were improving their debt situation. What is your opinion of SPB if the Canexus deal goes through, compared to if it doesn't. Which would be better for the company, long-term? Do you consider the dividend reasonably safe in either event?

Thank-you

Q: Both USA and Canada anti-trust organizations have supplied opposing recommendations as far as the merger goes. How do you interpret this information going forward?

Q: If no one else has asked yet, what do you think of SPB's update on the status of the Canexus deal?

Q: I have the following 4 companies in a conservative, "steady-eddy" portfolio: T, SPB, SLF, and BNS.

I have cash to add two more Canadian companies. What would you recommend in order to add some diversification to the above 4 but to maintain a conservative portfolio?

Thanks,

Q: Do you have an update on the approval process of SPB acquiring CUS? The last news on it was this will be known before Q2 of 2016. Can I assume that the decision will be handed down on or before June 30, 2016?

By the way, thank you for your blog on this merger that led me to take a position in these two companies (60% SPB, 40% CUS). This combo is currently up 24% in about 3 months time. Not bad. Since I have unusual high risk tolerance when it comes to investing, do you see the combined company (if approved) will be a viable long term hold?

My own investing philosophy is that you have to have commitment in a stock (you're either in, or out, and no sell half and wait and see). If I don't see it as a long term hold possibility I really should cash out now since I'm sitting on a good size gain for such a short time.

Your advice is much appreciated.

Q: Good Morning Peter, Ryan, and Team,
Presently I have a full weighting of Parkland Fuel (PKI-TSX) in an income oriented retirement account. Most of the other equity holdings in this account mirror your 5i Income Portfolio. I have been watching Superior Plus (SPB-TSX) for awhile and it appears to have bottomed with energy prices firming a bit. SPB looks to be a cheap stock even with the recent upward move in share price. Do you think owning PKI and SPB in the same income account makes any sense ??? Also if you were to assign a grade to SPB what would it be ??? PKI is presently a "B". Thank you for your sage insights. DL

Q: I couldn't find any announcements on my brokerage website, why the big spike in price? With CUS as well?