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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: In an answer to a previous question you stated that the value of vet was five times its cash flow so I did some due diligence on its cash flow but with little success.What is its current cash flow & its fair value? It closed today at $20.39. Is that above or below its fair value. Thanks , as always, for your help.
Read Answer Asked by Dave on August 20, 2019
Q: Hello. Which of these do you prefer, and why? (Or do you prefer another large-cap Canadian oil company?) Can you tell me which has the strongest balance sheet, and the safest dividend? Also, I was going to buy them on a US exchange with US currency. I assume the dividend will be paid in US dollars, and I will still be eligible for the Canadian dividend tax credit, correct? Thanks for your help.
Read Answer Asked by Donald on August 20, 2019
Q: When I look at the latest Q&A from Feb. of 2019 on the CSU website Mark Leonard makes reference that it is difficult to find acquisition companies like CSU that have high ROIC but when Leonard did a screen for CSUs board he was able to find 6 companies out of 4000 with ROIC comparable to CSU. Any ideas how to screen for these companies or what companies Mr. Leonard might be talking about? Thx
Read Answer Asked by blake on August 20, 2019
Q: Hi Guys,

My question is about VCI, or Vitreous Glass. The company has the exclusive right to buy all glass deposited at Alberta bottle depots, and then crushes it and sells the product to fiberglass manufacturers. My understanding is that the glass 'cullet' they produce is a significantly cheaper input to the fiberglass manufacturers than raw glass would be, so the three Alberta fiberglass manufacturers buy all cullet that they generate. The only restriction for this business is supply, not demand.

I know there have been questions in the past where your main concern is liquidity, but I keep getting drawn back to the name given it's high 10%+ dividend (all earnings are paid out as dividends), debt-free balance sheet, and earnings consistency (I tend to drink wine and return the bottles in good times and bad).

An argument for substantial price increases could be made given that their product is the cheapest option for fiberglass manufacturers, which would help grow the top line quite quickly. Why is this not a target for a leveraged buyout? It's easy to see how this could generate 20%+ with a bit of leverage.

Just a bit of rambling over what I feel is an undiscovered gem for income investors!
Read Answer Asked by Michael on August 20, 2019
Q: I am wanting to buy some mid cap Canadian energy companies, preferably with a good dividend. I am looking for ones with strong balance sheets that could ride out the poor prices, decent reserves, etc. What would you recommend? I am thinking about VET (but will the dividend get cut?), ARX, WCP, and on the smaller side, CJ. Also, for non-dividend, I am considering MEG, ATH, BTE, and CPG (very small dividend). I would appreciate your thoughts.
Read Answer Asked by Donald on August 20, 2019
Q: What conditions in Canada would need to change to cause a significant upward trend in the Canadian dollar? Thanks.
Read Answer Asked by BRYAN on August 20, 2019
Q: I noticed that SU and ENB were mentioned by your team as safe in capital preservation and dividends. Some analysts do point out that ENB has a high debt and therefore they conclude it is not as safe. Is this correct ?. In terms of safety, and long term investment (at least 5 years) which one would you preffer ?
Would you allocate 5% to each in a conservative porfolio ?, or less than 5% ?,
thanks
Read Answer Asked by Alejandro (Alex) on August 20, 2019
Q: I am new to 5i but I hold many of your A & B -rated stocks, so I am trying to figure out what's happening with NFI and to decide whether to sell it at 20% loss or not. They had decent quarter and the stock was up during Wed massacre. Yet, it was down 6% yesterday (in neutral market) and down again today when everything is up. Do you have any idea what is going on? I have well diversified taxable portfolio with NFI at 3%, would you recommend holding, selling, or adding more?
Read Answer Asked by Alex on August 19, 2019
Q: Hi 5i,
I have $70,000 CAD to invest for 3-5 years and tax is not an issue. I am thinking of ETFs : 40% Canadian Stocks, 32% American stocks, 8% Global and 20% Bond.
Would you please advise what to buy? or if you have better combination.
Thank you.
Read Answer Asked by Tom on August 19, 2019
Q: Hi Gang
Great job you guys are doing
Can you give me the top 10 Canadian dividend stocks that pay 5% or more in your opinion
Thanks Mike B
Read Answer Asked by Mike on August 19, 2019
Q: I am a senior and am an income investor. I am interested in purchasing some minimum rate reset pref. Shares in quality companies. Your thoughts on this strategy as I am looking for a steady income stream. Would you recommend 3 or 4 with a minimum reset rate of at least 5% dividend rate that would qualify for the Canadian dividend tax credit as they would be purchased in a non registered account. I am also considering a purchase of ING-N shares in US funds in an RSP account. Your thoughts on the quality of this investment and the safety of the dividend and if there is any withholding tax,as this is a dividend play the fact that stock price can vary somewhat is not as relevant however capital preservation is always a consideration. In all of the above I would only start with buying a half position. Thank you, Brian
Read Answer Asked by Brian on August 19, 2019
Q: What would you expect will be the key drivers of CPD's price in the marketplace? Eg would it likely follow equities down/up (because of reliance on credit of issuers) or moreso bonds ("safe" haven for yield when equities are volatile)? How do interest rates impact it? What would it do in a recession? I'm not looking for a prediction of the future, but a simplified model on how to think about this kind of security. Thanks.
Read Answer Asked by Chris on August 19, 2019
Q: I receive a e-mail lattely to sell Alcanna, dhigh Artic Energy and Versabank that are part of the Growth Portfolio. Theses names are part of the grow portfolio, and when I look at the Growth model Portfolio, the name are still there. Any reason why?
Read Answer Asked by Martin on August 19, 2019
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