Investment Q&A

Q: Please comment on Enbridge's recent asset sale. I am thinking about adding them to my portfolio and think that this can be a strong outperformer once the market starts to have a little more buy-in again. I am looking at both ENB and CGX and want to add one for a combination of both growth and income. I just feel both have been beaten down so much and are presenting great value right now. Would you prefer one of the other? Or do you think they are going to be in the dog house for a while longer? Thanks.

Q: currently have only a 2% position would it be okay to ave down to make it a 3% position?

Thanks

Q: How was their 1st quarter? thx

Q: Hi,
I have read recents reports suggesting continued weakness in Cineplex’s share price could attract interest from either private equity or Canadian telco providers. Your thoughts on whether Cgx would fit strategically with a Canadian telco?
Regards,

Robert

Q: Hi, Could you please shed some light on your current views about Cineplex. They announced 100 F/T job cuts, which company tried to downplay but obviously market did n't buy it. As per one of your earlier comments, even at current levels, stock continues to be expensive. I have a feeling that there could be more downside and just wondering if it is time to cut the losses and move on. Globe mentioned that Gordon Pape finally threw the towel and decided to sell all their holdings in the Income Balanced portfolio. Your thoughts are most appreciated.

Q: Although Cineplex (CGX) has lost about 35% of its value in the past year, the debentures (CGX.DB.A) have not. I would have thought the debenture value would follow more closely the stock value. Is that not usually the case?

Q: Hi Peter, Ryan,and Team,

The Motley Fool had an article called "3 Canadian Dividend Aristocrats With Dangerously High Payout Ratios".

They cite current and 2018 payout ratios for these three stocks:
CGX: 150% and 144%
ECI: 182% and 124%
PKI: 340% and 329%. (yikes!)

They end the article with this statement:
"It’s important for investors to understand the sustainability of a company’s dividend. These aristocrats all have a history of raising dividends, but their high payout ratios are reason for concern. This does not necessarily mean they are bad investments, but investors looking for sustainable dividends may be better off looking elsewhere."

Should this article be taken with a 'grain of salt'? Are their payout ratio numbers valid? What about the Motley Fool in general? Is it worth reading their articles?

Thanks as always for your level-headed and pertinent advice.

Q: With the precipitous decline over the last 9 months, I can understand that your answers to recent questions on CGX are a little less than enthusiastic but I note you still include it in the Income Portfolio and still rate it at A-. Do you think the dividend is at all threatened or do see any other major negatives on the horizon?

Q: With re balancing in my cash account I have a capital gain of $25,000 in 2018. If I were to sell my CGX, ENB and GUD I would have a loss of $14,000. My thinking is that this loss would offset the capital gains.

I intend to re buy these 3 stocks after the 30 day period,

Does this make sense?

Thank you

Sincerely

Mike

Q: I have 2% in CGX and down around 20%. Stock seem to have consolidated since last earning around $30. Is it good point to top up or should I wait till next earning for more visibility.

Q: I used to own for years in the income trust days and eventually sold on price appreciation some years ago. What do you think of it now for income - safety, any growth etc. Thanks

Q: CGX had quite a run up yesterday ,fell back to below even then finished the day with no gain. Was this due to the drop in attendance & does it signal a time to sell? Would it be a buy at these levels after its drop from $54.00 ? Comments on the dividend would be appreciated. Your ideas & suggestions are always much appreciated.
Dave

Q: Not sure what happened earlier but I had identified MG AND CGX in earlier question but only received feedback on MG

Q: Please comment on CGX's precipitous decline since last July. What is the primary cause of the decline? Rising interest rates? The stock was hardly fazed by the '08 financial crisis. I am considering adding it to my income portfolio. It isn't cheap on a valuation basis but is on an income basis.

Q: Earnings next week, good time to buy in or wait after earnings. Most analyst are positive on the stock with a target range of around 40$.
What is your view now ?
Have a nice family weekend !
Thanks.

Q: I am looking for one income stock. How would you rank these three at today's prices, and why?

Thanks

Q: Hello team,

Do you think the sell off on these fine dividend payers is done? I want to buy some blue chip dividend payers (I have none) but I wonder if the impact of future rate hikes is already/completely priced in for these types of stocks. What do you recommend: wait a bit longer or just buy now? I am afraid of buying now and watch them go much lower than their current price. At what price(or multiple) each of these would be a pounding-the-table buy? Would you please order them in terms of your preference for a very long-term hold.

Thank you very much indeed!

Q: Hi Peter & 5i group.
The CEO of CGX was interviewed the other day, (which seemed to me to quite positive), if you happened to catch the interview, what is your opinion on taking a full position now.
Thanks,
Ken

Q: Hi there, I watched a guest on market call yesterday (Jason Mann) discussing CGX and he was saying the payout ratio was over 100% and expected a dividend cut. Is 5i looking at different numbers and if so what payout ratio do you come up with. If it is over 100% would it not be a candidate for removal from the income portfolio?

On GUD you just answered a question from Brian approving of a move to transfer GUD from a regular acct into his tfsa to shelter future gains, which makes sense, but also to "crystalize losses". I thought the 30 day rule would apply in this case, would it not? I don't believe his loss would be allowed if he did this move. I know if he had a gain , he would have to report and pay cap gains on it. Funny how it only works one way in the govt's favor.

thanks Tom

Q: Hello
Stock analysts are predicting a dividend cut. Here are the comments of one analyst: " It was always viewed as a steady dividend payer but it is over 100% payout ratio now. They have a slowing growth business and will have to cut the dividend. If you saw a dividend cut that would probably be the day to buy it."

What are your views? Is there a dividend cut coming?
Would you recommend holding or selling?
Thanks