Investment Q&A

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.

Q: TCL>A: notice they plan to buy back and cancel quite a few shs; I guess that management feels more strongly about their future prospects than the market? Do you have the same take?

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

Q: Is now a good time to buy Stelco and ENB? If so, what positions would you consider at this time?

Thanks for the great service!
Lisa

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"?

Q: CSW.A had reached a high of over $24 three years ago. Do you see anything holding it back from reaching that level over the next few years?

Jim

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.

Q: I would appreciate a recommendation on 6 Canadian dividend paying stocks with a growth element to them.

Q: I am pretty heavily weighted in KL and after watching BNN today I am thinking of taking a profit. Just wondering where you see GOLD short term and KL long. Thanks

Q: Any reason for the big drop in CNR today? I've held this stock for many years and it has always been profitable to buy on the dips.

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".

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!

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

Q: HI,

What do you think of this ETF ? Would you buy it now ? For income ? for growth ? Or what else would you suggest mostly for growth and some income ?
Many thanks,
Jacques, Mtl

Q: I am up 50% on BEP.un over the past couple of years. Would it make sense to sell my position and roll it into ENB? ENB performance over the same period has been very weak. In addition I will pick up significant yield.

Q: A follow up to my last question. If anyone buys publicly traded shares on the tsx after the ex-divi date they are not the party to legally receive the dividend. In this case Noverco simply purchased shares from me (on the public market) after the stated date. I feel they are just making up this rule hoping smaller investors will not challenge it. I have contacted the companies and am about to file a complaint with the TSX. Could you comment or provide guidance.

Q: BNS, and indeed all the Canadian banks have wealth management units, including brokerage units like Scotia Itrade which generate considerable profit. The announcement by Charles Schwab that it would stop charging commissions on trades seems to have hammered a number of other broker related stocks. Do you see this as putting pressure on BNS to lower or eliminate their commissions? If so would this put downward pressure on the stock?

Q: Enbridge has been a long time favorite of yours but I find myself questioning the merits of holding this company. Three and five year charts are dismal and, I think, totally out of character with the type of stocks that you prefer. Every bit of perceived negative news causes a downward move in the share price. I have to assume that the current dividend is what supports the price but if interest rates start to rise this stock has all the look of a stock that will fall further. So I would really like your rationale for holding it your portfolio. Is there not another pipeline that has better growth characteristics?

Q: Any idea on what's causing pat's nosedive the last few days?Can't find any news.

Q: Input regarding VNR rather than a question. I too expected a final payment as Sept 27 appeared as the x dividend date on several locations. After checking Sedar this morning I found this Aug 8 filing which sets Sept 30 as the x dividend date. Why the discrepancy?
Very annoying!
Brian
Montréal, August 8, 2019 - Valener Inc. (“Valener”) (TSX: VNR) (TSX: VNR.PR.A) today announced that its
Board of Directors declared, on August 7,2019, a quarterly dividend of $0.30 per common share, payable on
October 15, 2019, to common shareholders of record at the close of business on September 30, 2019.