Investment Q&A

Q: Looking to bolster my income names. The pipelines/util are languishing near there lows and the price targets on the names are much higher not to mention the juicy dividends. They look really good on the surface.I have modest positions in TRP,ALA,VNR. ENB, BEPand IPL are also on my watch list. VNR is the one that has held up the best. All solid companies, But are these names good value at these levels, some still trading at high teen p/e . Or do the banks offer better risk reward?

Q: Please comment on where 5i stands as a whole in regards to the needs for pipelines and on the Fed environment department giving a green light to build an LNG plant on Lelu island (Petronas). In regards to pipelines, specifically on ‘Energy East’ and ‘Trans Mountain’. There certainly is a lot of red tape with the Fed/Prov, Environmentalists, FN’s, etc; but isn’t it time Canada “became whole” on important infrastructure (ie. pipelines/LNG) issues to move our “trapped” resource to tide water/abroad? 5i has a very savvy investor base, a moderated forum would be a good thing to “open the floor” so to speak to hear all views on a variety of issues...

Thanks and regards,
Evan

Q: What is your opinion on TRP in the short term? Should I expect some Tax Loss selling before the end of the year? Jeff

Q: I currently hold ENB IPL and PPL for a total weighting of 8.4% each having a capital loss. I am considering selling IPL outright and reinvesting an other sectors. Am also considering selling either ENB of PPL replacing with TRP. Is this a reasonable strategy and witch of ENB or IPL would you sell. Thanks!!!

Q: Been thinking about making an investment in the pipeline sector. Do you have a preference between Transcanada and Pembina Pipelines?

Q: Would you recommend either selling this stock or holding it for the 4.80% dividend. Thanks, Bill

Q: Peter, while I have several energy companies in my well-diversified portfolio, as well as some utilities, the only pipeline company I own is Enbridge (1% of total portfolio). With some cash to put to work, do you think that adding a second pipeline company makes sense - or perhaps just add to Enbridge. If so, which company would you suggest (for a 'forever' hold period)? Thanks, James

Q: I have traded a number of investment-grade preferred shares (fixed-resets and floating-resets) over the past 9 - 12 months, and have generally done quite well despite the BoC rate cut in January. One major exception however has been the ENB preferreds, where I have lost quite a bit of money.

When ENB announced their plans to drop down assets into Enbridge Income Fund and US entities, the credit agencies put ENB on negative review, leading to a big drop in ENB.PR prices (they trade now like Pf-3(high)/Pf-3 rated prefs).

This is very disheartening: I buy investment grade prefs in order to avoid such non-interest-rate-related losses.
In your view, what is the danger that other "utilities", such as TRP, FTS, etc., might also institute similar changes to their capital structure (and hence credit ratings), leading to precipitous drops in their pref shares?

Thanks!

Q: I've held TRP as a major position in my portfolio for years and it has increased only 3.5%. I always hope the XL pipeline will be approved, or the pipeline to the east coast, but I'm getting tired of waiting. Should I keep hoping or sell now and spread the $30 Gs around to better things? I also own PPL and IPL. What is your opinion on ENB? It always seems to me that the PE ratio is too frothy.

Q: Hi 5i,

For long term investment quality if you could only buy VNR or TRP which would you pick and why?

Thank you,

Michael

Q: Your thoughts on the new TransCanada Corporation 3.80% 5.8-yr Rate Reset Preferred Shares.

Thank you,

Bob

Q: I read in one of your answers that Enbridge should be classed as a Utility for sector classification and I am wondering if TRP would be considered a Utility as well.

Q: I am a dividend investor and use David Stanley's Beat the TSX system which I review each year at this time. TRP is now in the top dividend stocks of the TSX 60. Do you have any concerns about the company going forward in the short term over a year or two?

Q: One of the losers. Bought at 24.50 closed at 17.03 Dec. 26th. Will my capital ever come back or should I sell and move the money elsewhere. What happened to trigger the selloff.

Q: I currently owned TRP but would like to sell and replace with a more growth stock. I also own Enbridge but have no intention of selling this one. What would you suggest?I am looking for at least 3-5 years hold.
Thanks

Q: 1) TRP vs ENB
2) Will reversal of the eastern pipeline have a major effect on TRP
Thanks

PB

Q: Could you give your opinion on whether TRP is likely to drop dramatically in the next year due to increases in the interest rate or due to its valuation returning to a more normal level. Thanks.

Rick

Q: Hi Peter and 5i Team,

I'm curious about TRP rising like it has the last few days. I can't find any news; maybe you can comment.
Thanks for everything.

Q: Hi Peter,
Now that you have released the income portfolio and have included Valener and sold BEP.un and IPL to make room for this name would you suggest we sell our utilities/pipelines to buy this? For example sell TRP to buy VNR? Thank-you.

Q: Hi Peter/team I would like your opinion on TRP.PR.B is it worth holding .thanks for your great job!!! Jim