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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: You've commented favourably about LIF several times earlier this year. Since then it's dropped like a stone. Given it's record of conservative management would you still recommend it? Do you see these moves as reactions (or over reactions)to events in China as well as their trade situation with the US? My understanding is that they produce high quality pellets that command a higher price on the market. This may insulate them somewhat from global events but there may also be material supply problems like Vale resuming production in Brazil.
I'd be interested to hear your take on this. I like the way you stand by your recommendations if you still believe in them or kick them to the curb in a second if you don't.

Read Answer Asked by Larry on October 02, 2019
Q: I read your update on : Fallen Momentum Stocks with Growth Potential.
Are there Sleep Well At Night companies that you would suggest to replace Valener? I m am 66 and am mostly in Banks 25%, Communication 15%, Gaz and pipelines 15%, Public services 20%.
Thanks
Read Answer Asked by Serge on October 02, 2019
Q: Good afternoon,

I need to diversified investments from the Finance sector, which I am little bit over expose. I have no investment in the Material sector. This is in my RRSP Portfolio and the investment will not exceed 5% of my total portfolio. I am a long term investor and looking mainly for income. Which of these two companies do you recommend Chemtrade or Labrador Iron Ore?

Thank you.
Read Answer Asked by Paul on October 02, 2019
Q: Dear 5i,
I am interested in speculating on this company with $1,000 to $2,000 which I am prepared to lose. Should I purchase this in my TFSA or NonReg account so I can use the tax loss if necessary? Can you explain your rationale for choosing one account over the other. I purchased Prometics awhile back and it did not turn out well. Would you say "ATE" has the same risk level as PLI?

thanks
Read Answer Asked by Ian on October 02, 2019
Q: While the conversion may improve marketability and market value, won't it reduce distributions by virtue of tax at the issuer level? As a retiree holding in a RRIF and relying on cash distributions, I am concerned. By reason of tax, is the following statement correct (which you quoted): "it will not result in any underlying change to aggregate cash flows"?
Read Answer Asked by Carl on October 02, 2019
Q: Hi 5i
Recently sept 17/2019 NMX announced a court application for discharge of security securing $350M senior secured bonds...later sept 25/2019 they announced that they had received notice from Nordic Trustee AS regarding the $350M senior secured bonds and the passing of a bond holder resolution to refrain from the bond prepayment. Could you briefly explain what all this means and is this a negative for the stock or not? Does this affect the hopefully eventual completion/financing of the project?
Thx as usual for your help.
Read Answer Asked by jim on October 02, 2019
Q: I would appreciate a recommendation on 6 Canadian dividend paying stocks with a growth element to them.

Read Answer Asked by Donna on October 02, 2019
Q: I have a 6% position in NPI and am happy with what the company is doing. But I am interested in any comments you may have regarding this article. Do you see this as a net negative for companies trying to raise money in Canada or for us retail investors?
Thank You

"The Globe and Mail reports in its Monday edition that Northland Power ($25.26) raised $346-million in a stock sale this month to pay for an acquisition in Colombia. The Globe's Andrew Willis writes that Northland plans to spend $1.05-billion on an electrical distribution network that serves 1.3 million South American customers. Northland's portfolio already includes wind farms and solar-power facilities in Canada, Germany, Taiwan and Mexico. To pay for the acquisition, Northland sold $346-million of subscription receipts and will borrow the balance to buy the business from Brookfield Asset Management. A string of equity offerings of late have been poorly received. Banks struggled to sell shares of New Gold, Corus Entertainment and Green Organic Dutchman Holdings. The lack of investor appetite for what Corporate Canada is serving up feeds into a larger debate over the relevance of ordinary, retail shareholders in a market that is increasingly dominated by passive investors, such as index funds, and private sources of capital. Mr. Willis says investment bankers are wringing their hands over a steady slide in public market offerings. The value and volume of equity financing in Canada is dropping steadily".
Read Answer Asked by Robert on October 02, 2019
Q: Hi 5i, I do not have any real estate exposure in my portfolio or own any real estate assets. My portfolio includes a range of stocks such as SHOP, MELI, PYPL, SQ as well as BNS, DIS and BIP:UN, CNR as some examples.
It seems like there could be a lot of future growth in Atlantic Canada and I am wondering about KMP.UN. I have a small portfolio so would appreciate any suggestions you have for some real estate exposure with growth. Thank you!
Read Answer Asked by Laura on October 02, 2019
Q: Retired, conservative dividend investor. I hold the above securities as well as annuities, Fisgard Capital, CPP, OAS (very soon) and a company pension.

When I screen CSH by the usual metrics (P/E, P/BV, P/CF, P/S, ROE) and look at the technicals, it does not give me a lot of confidence to continue to hold. It seems stuck in the $14 to 15 (16) range. I understand the intention is for CSH to provide stability to the portfolio, especially if/when the market decides to head south.

#1 = Please build me a case to continue to hold or add to CSH.

#2 = If the retirement industry outlook looks good, but a different company (like Sienna) looks better, should a switch be the better option.

Thanks for your help...much appreciated...Steve
Read Answer Asked by Stephen on October 02, 2019
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