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Investment Q&A

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

Q: I've been sitting on some cash in my NR lately and would like to pick up some new companies, presently, I am holding CSU, BNS, SYZ, FSZ, BEP and SJ. (equal weights + or -). I'm looking at AYA, ENB, ET,STN,DH,SLF,CPD and SPB. I'd prefer to buy something on sale with a dividend but primarily, I only want to hold high quality companies. Proportionally, I should be able to pick up approx. 4 new positions. Thanks
Read Answer Asked by Robert on November 25, 2015
Q: I need to add to utilities sector to re-balance my portfolio. You have been recommending Enbridge as the best bet in utilities, is it still the case? In fact, I can add either CDN or US company (have free cash in both accounts), so I am also considering KMI.US - I like the dividend and the stats seems to be better than for CDN utilities. If you had to choose one utilities stock in Canada or US based on a combo of dividend and growth, which one would it be? Dividend is not that important for me at the moment, but it's always nice.
Read Answer Asked by Michael on October 15, 2015
Q: I would appreciate your comments on the following analysis that may explain recent weakness in the price of it shares.

The majority of investment analysts following Enbridge Inc. rate its stock a buy. But short sellers have a large position in the Calgary-based pipeline operator and natural-gas distributor. Why the divergence?

Enbridge has been on the Toronto Stock Exchange’s “Top 20 Largest Short Positions” table for more than a year. And during the two weeks ended Aug. 31, its short position recorded the largest increase of all the companies on the table, jumping 25 per cent.

Enbridge’s shares also trade on the New York Stock Exchange. There is a short position there, as well (that has increased). Adding the level for Aug. 31 to the Canadian position brings the total to 30.2 million, or 3.5 per cent of shares outstanding.

One of the few analysts to advise selling Enbridge shares is Darryl McCoubrey of Veritas Investment Research Corp. Why the sell advisory? “Specifically, the marked decline in crude oil prices … could undermine Enbridge’s growth profile and investment appeal,” he notes.

Enbridge’s revenue doesn’t depend directly on commodity prices but it does depend on volumes – similar to road toll booths. Mr. McCoubrey thinks the volumes could drop as oil producers shut down wells in response to low prices.
Read Answer Asked by John on September 16, 2015
Q: I have a non stock specific question but Enbridge is a good example. Can you explain how stocks balance out across borders when they trade in different national markets in different currencies. In the case of a stocks like Enbridge for example how do the various markets reconcile say a rising interest rate environment in the U.S. versus a falling or steady interest rate environment in Canada? There is the currency question but there is also some intrinsic different potential reactions to a steady dividend payer in these different rate scenarios. So how does the Mr. Market "know" what to do? If there is any literature you can point me to that would also be much appreciated. Thanks once again.
Read Answer Asked by Alex on August 13, 2015
Q: Today Paul asked a question in which he included the following statement: [Plus I have PPL, ENB and IPL which you consider as utilities; all in very positive territory.]
Could you please confirm that you do in fact consider PPL, ENB and IPL to be utilities? Even if they are, I notice that their price tends to have close correlation to the price of oil.
Thank you.
Read Answer Asked by Dennis on July 31, 2015
Q: We are retired, elderly, and need the dividend income we get from our portfolio as below:

Pipelines, 8.51%: PPL, TRP
Utilities, 12.52%: BEP.UN, EMA, RNW
Telcoms, 9.11%: BCE, T
Banks, 22.47%: BMO, BNS, CM, RY, TD
Reits, 13.38%: CUF.UN, HR.UN, MST.UN, SRU.UN
Industry, 22.81%: BIP.UN, DH, NFI, NWC, PKI
Cash, 11.2%

I would like your opinion on adding one or two steady eddys that pay a decent dividend along with some growth potential. Would FTS and TRI fit our needs, or do you have better suggestions. Thanks, Ted
Read Answer Asked by Edward on July 13, 2015
Q: I recently added a position in ENB on the latest price dip. This morning Patrick Horan guest speaker on BNN says that he is shorting ENB. Claims that ENB cannot grow dividend, Interest and High evaluation and that ENB missed earnings.

I would like to hold ENB for the longer term but would not want to go through a major down cycle.

Can you comment overall and address you position on shorting ENB - I would have never looked at ENB as a short...

Thanks Kindly,
Mark
Read Answer Asked by Mark on June 12, 2015
Q: As a guest on BNN, Patrick Horan has been given the opportunity to discuss his short position on Enbridge for a number of months now.

It occurs to me to ask: Is this merely Mr. Horan being permitted to 'talk his book' regardless of any perceived conflict, or is there a genuine concern with Enbridge's valuation and its financial structure as Mr. Horan suggests. Thanks.
Read Answer Asked by Michael on April 02, 2015