Investment Q&A

Q: Hi! I'm researching midstream companies. They all have a lot of debt given the capital intensive nature of the business. How do you evaluate if it is too much debt. All the ratios seems high, but they're like that for all the companies. For example, PPL has LTD of $10 billion and total equity of $14 billion, almost 70%! KEY has LTD of $3.7 billion or there about and not equity since it is in a deficit position. Help please!

Jason

Q: I am considering investment in HHL primarily for the Dividend but it has also pulled back in this market, so potential growth as well. Is Healthcare and Dividend ETF's fairly safe in this current market? Is there another ETF with good income and some potential for growth. Thanks

Q: Good day team,

First things first, thanks for your steady advice during this downturn. A calming voice is very much appreciated.

My portfolio so far is adequately diversified. Believe it or not it is still up on the year. I have some play money which Im planning on using to make a bet against commodities, in particular copper and/or oil and gas. One idea comes to mind is buying puts against TECK. Any other suggestions? Either stocks or ETFs?

Q: MU was a sell according to https://seekingalpha.com/article/4518385-micron-demand-and-pricing-declines-on-the-way?mailingid=28065169&messageid=must_reads&serial=28065169.372026&utm_campaign=Must%2BRead%2BJune%2B15%2C%2B2022&utm_content=seeking_alpha&utm_medium=email&utm_source=seeking_alpha&utm_term=must_reads
Time to sell or do you think there is more upside?

Q: I am thinking of investing in these three ETFs because I believe we are getting near the bottom of the market and all three of these ETFs have good growth prospects over the next 2 years. Would you agree with my thinking?

Thanks. David

Q: I am considering HTA for my RRIF. I understand the higher than dividend income received is because of their covered call practice.
Is their covered call income impacted by the recent sector decline and how so ? Does this income vary depending upon their practice and if so, how do they maintain their consistent distribution? HTA has been touted as an investment vehicle safer ( less decline) than owning the individual stocks because of the covered call strategy , has this proven to be true ? Thanks Derek

Q: Hi Ryan,
Several years ago I engaged with 5i for a portfolio analysis. I'm a recently retired investor. 5i strongly encouraged me to include a fixed income component to stabilize portfolio fluctuations and lower volatility.

With that advice and for tax purposes I purchased XBB, CLF, and PMIF into my RRSP. Now that the interest rates are marching steadily upwards I'm in a significant capital loss situation on my portfolio's bond allocation.

At this point do you suggest I just hold through the cycle and absorb the loss or should I sell and reallocate funds? Perhaps into some solid Canadian dividend payers? (eg. GWO?)

As always, much appreciate your advice and guidance in these unprecedented times. Thank-you.

Q: Hi! Looking for 2 midstream companies for my dividend portfolio. I will use ENB for one pick and would like your recommendation for another option with a good dividend and some future dividend growth.

Thanks,
Jason

Q: Hi team,

If inflation is actually such a problem (and not just supply chain/staffing issues) why do you think gold has not performed far better?

Q: I know you're not a fan of DFN but could you explain why it has held up perfectly as everything else in the market has been crushed...all the while paying a 15% yield?

Q: Is there a REIT or two that provides high growth potential and high dividend yield. Given the current market circumstances, I might be able to get something at a deflated price.

Q: I presently own Surge Energy and Tamarack Energy. Both are up multiples from their 52 week lows. Surge is starting a 3.5% dividend on July 15th.
Both are down a bit during this selloff. Would you add to either or have they gone up so much in the past twelve months that it is a bit greedy to expect either/both to continue rising. Josef Schachter said Surge could go to $13 (it did), then possibly $20 and eventually $40 in 2-3 years.
Tamarack is more solid but has had an awesome year, as well. Are they peaking now?
Thanks.

Q: Hi Team,
TOI has had a rough couple days. Today as of writing down another 5%. At $62 a share today would you consider this a great buy? Is there any news that is making the stock drop extra bad today compared to some other tech stocks that are rallying some today? Also...even though oil is more in favour in todays market, would you consider selling some of either WCP, BTE, or TVE to buy into TOI weakness? And would you consider TOI a better long term hold than an oil stock?Thanks

Shane.

Q: SPY is down over 20%QQQis down over 30% ytd.BAM is down over 25% ytdMSFT is down over 25% ytd.Do you think now is appropriate to enter into any of these names…and if so how would you rank each one to enter?Kim

Q: I would like to capture a tax loss on Otex. Would Engh be a good proxy while I wait to decide whether to rebuy Otex. As always, thanks for your help.

Q: TOI is at a 52 week low despite having a good quarter on its latest report.
It is dropping on higher volume than normal.

Yes it is a tough market for growth stocks but the high volume scares some.

Thanks

Q: ? Over a 5 day period this stock has went from $75 to $64 as of June 14.
Thanks

Q: Hi 5i - at current prices, how would you rank the following Canadian tech stocks: SHOP, KXS, TOI and LSPD?

Thanks, Neil

Q: Everyone, well the feds raised rates and will raise again next meeting. Are the rates increases what the market was looking for? Clayton

Q: I have seen in several answers you say you are encouraging tax loss selling in this market. Why? I don't see the reason to do that.

Let's use a hypothetical example. Last year I bought $10,000 of stock XYZ. It's fallen 50% so my paper loss is $5000. I sell the stock for a capital loss of $5000. I buy the stock back in 30 days (at the same price I sold it at), or I buy a proxy stock using the $5000 from the sale. Lucky me, one year from now stock XYZ has doubled and I now have a paper capital gain of $5000 (or the proxy stock I bought has doubled, and I have a $5000 gain). I sell the stock XYZ (or the proxy) and have a capital gain of $5000. The loss I generated from tax loss selling offsets the gain I made one year later. Net effect is 0, other than trading commissions.

If I had simply kept the stock XYZ, one year later I would be back at breakeven, no gain or loss.

If you believe in the stock as evidenced that you buy it back 30 days after selling it, or you buy a proxy and keep that, I don't see the point of tax loss selling for the sake of it. If you buy something completely different, that's a different story. But reading through the Q&A must people intend to buy the stock back in 30 days.

For this example keep in mind that the financial situation doesn't suddenly change; my tax bracket remains the same during this example.

Please explain why you are encouraging tax loss selling at this time. I don't see the point of doing this if you intend to buy back the same stock, and you remain within the same tax bracket. If you are relying on the stock being lower 30 days later when you buy it back that is market timing.

Paul