Investment Q&A

Q: Hello -
There are two recent articles on Seeking Alpha regarding each of BEP.UN and BPY.UN by the same respected contributor.

Although I wouldn't expect you to necessarily read the whole articles, do you generally agree with their bullet points?

Three other points within the articles that jump out at me for both are:
- long runway / future growth - BEP.UN (good),
- good current valuation - BPY.UN (good)
- large amount of debt - Both (not so good).

He states however that much of the debt for both is non-recourse which he claims is less concerning. Would you agree with that statement -especially if we were to run into some sort of global debt crisis?

https://seekingalpha.com/article/4228344-brookfield-renewable-partners-king-global-green-energy?ifp=0

https://seekingalpha.com/article/4227404-brookfield-property-partners-berkshire-real-estate?ifp=0

Thanks.

Q: Hi Peter,
Please deduct as many credits as you see fit. I have some losers (some big) as per below:

Margin account
CLIQ down 52%
PHO down 37%
MX down 20%
TFII down 23%
ECN down 13%
NFI down 11%

TFSA
GUD down 17%
CLS down 20%
DOL down 38%
TSGI down 47%

RRSP
DOO down 43%
COV down 26%

Here are my questions.
1- Should I claim the capital loss with CLIQ and PHO and repurchase in 30 days?
2- Are there any names there that I should just sell and move on to something else? What would be your top 3 replacements for the removed names in that case?
3- My initial thought was to inject new money in CLIQ, PHO, DOL, TSGI, DOO and COV to bring these names back to my initial weight. Would this be a good move in your opinion?
These names are part of a diversified portfolio and don’t need the funds for another 10 years minimum.
Much appreciate your service. Your responses to this market volatility have kept me from panicking as I did in 2008. I thank you for that.

Q: I am trying to consolidate my U.S. TFSA into ETF's. On the tech side I own AMZN( nice profit) NVDA ( down 38%) and SPOT (down 4%) I am thinking of selling them and buying QQQ ETF instead.
On the financial side I own JPM (down 2.7%) V (down 1%) and SQ (down 6%) Thinking of selling these and buying DGRO ETF.
Your thoughts on this? Also if there are other ETF's that you think would be better for tech and financials, please let me know. Please deduct two credits if you deem it necessary.
Thanks for your great advice,
Jen

Q: Moody’s withdraws all ratings of Great Canadian following redemption of rated debt. What does that mean? Is that bad, good, neutral? I don’t understand what that means for GC Or ME—the investor!

Q: Hello,
I know from reading your answers to member questions and the set-up of your 3 portfolios that you stress the importance of allocating capital to all sectors for proper diversification.
There are sectors that are very volatile and using your expression, there are good companies in a bad sector. I am talking specifically about the energy and the mining sectors but I could name others. The companies in these sectors have little or no say in the price they get for their product.
Given this, is there a case to be made, if an investor find the volatility to high to not own companies in these sectors and be less diversified? I know you often mention that sector allocation is a personal decision but is it better to live with the ups and downs and stay diversified across these sectors rather than avoiding them altogether?
If one does have holding in such sectors do you have any strategies to use to take advantage of the ups and downs?
For example, I own WCP in the energy sector (only holding). I am down big time. So I have one of three decisions to make. I can buy more (which I favor to get my average cost down and get more dividends) to get my % to what I originally had, to do nothing and hope the sector rebounds (I have 10 to 15 years before retirement so I can wait) or I can just sell and say so long to this sector.
I know there are a lot of questions in here so please deduct credits as you see fit.
Thanks,
Dan

Q: What is your outlook for OLED? Buy Hold or Sell?

Q: Could I get your opinion on POW? On any length of chart this blue-chip dividend (growth??) company looks poor. Why? Perhaps this Europe exposure? I have had a position for 10+ years and and am back to the starting line. Like the dividend but wonder about future growth of both the company and the dividend.

Q: Hi,
For the Industrial portion in my RRSP account, I am considering the above companies. With RTN, I wanted to diversify outside of Canada with a large cap stock. Do you see any issue with this company at this time? Is there something else you would prefer? I know you don't cover the US but respect your opinion.

As for the other three (TFII, TCL.a & NFI) could you rank best to worse buys at this time? I am considering adding 2 of the 3 to limit the number of stocks owned. My criteria are: to hold for long term (5 to 10 years), lower impact by any slow down of economy, good growth in dividends and low leverage. Is there another stock or two that would be better than the ones I am considering?
Thanks as always for your help.
All the best,
Dan

Q: I have just read about this company which trades on the Nasdaq.
see attached link:https://www.forbes.com/sites/afdhelaziz/2018/07/24/how-loop-industries-is-becoming-the-intel-inside-of-the-circular-plastics-economy/#6a5d3d1e1fd7.
I would be interested in hearing your views and whether or not you think this would be a good company to invest in. We know that we are drowning in plastic and this company seems to have the technology to do something about it.
Look forward to your comments.
Shirley

Q: I am trying to understand the ins and outs of the 11 billion special dividend from VM Ware VMW I hold the stock in my registered accounts. My thinking is that the stock will drop following the payment by a like amount, but I will be subject with US withholdings on the dividend, netting significantly less. Even though I think VMW is a good stock, doesn't seem like a good play for me. I am thinking of selling and possibly buying later. Your thoughts would be appreciated.

Q: Anything new on scr. thanx for all you do; regards Cliff

Q: With this big market downturn, I have a couple of US watch lists and these 4 stocks ESTY, CHGG, NFEC and RARK are humming along like it is still a Bull market. Could I get an opinion of these from you? They are US but I find US is the only market in the world that is still making money. Thanks Dennis

Q: This is just a share. There is a short TED talk that 5 I members and staff might enjoy. It is titled "Psychopaths in the C-suite" by Fred Kiel.
I wonder if 5-I could rate some management of 5-I covered companies that fit the: Empathy, Others First and I Screwed Up habits of virtuoso CEO's . I'm sure they are a rare breed. Perhaps a new valuation metric may come of this.

Q: I have a question about 1213 ..

With the dividend yield now over 8%, is this a danger signal for ZCL?
I know it has been on and off your favourites list and you had indicated a couple of months ago that you are not expecting a big turnaround.

But the yield is tempting....

What is ZCL's free cash flow and payout %.?
Is the balance sheet in good shape by your standards.?

I can be patient with a stock offering an 8% yield .... as long as it is not likely to be another ALA.

Thanks for your help.

Q: I've been trying to understand these markets and failing. Much of the wild swings of volatility seem to be associated with fears of China and trade woes. I understand why companies which do a lot of business with China, or source products from there would plunge on such fears. But I haven't been able to figure out why trade fears would cause grocers, REITs and utilities to plunge 2%-3%, as they did today. I mean, how is China or trade going to affect the profits of Chartwell Retirement Residences, or Loblaw, or Algonquin Power? The TSX is down around 1% but these are all down 2%-3%, as are most of the utilities and REITs. Are people just panicking and selling everything in sight?

Q: What are the tax and admin implications of holding BPY, the U.S. limited partnership, versus BRP, the U.S. REIT?

Q: I have asked before about slf but really don’t understand the reason for the big drop. Can you explain, should I. Buy a us insurer, and if so which one. Thank you

Q: What is the consensus estimate for Q4 revenue and eps please.

Q: Hi 5i, Greetings . I am holding CPD etf and some BIP.Pr.D and BEP.Pr.K as part of fixed income allocation. I always considered these to be held forever, but times seem to be changing and interest rate outlook is uncertain., Should these be held and wait it out or bail now and assess later? Thanks for the service. Ted

Q: Hi 5i Team

I'm primarily an income oriented investor. I'm uncertain about where interest rates will go over the next year. I think we're close to a plateau but who knows. I don't currently own any fixed rate preferreds but am thinking of buying some (maybe up to 10% made up of 5 holdings with different reset dates). I like the dividends and see them as a kind of interest rate hedge against the dividend paying commons. My thinking is that, all else being equal, resets are supposed to increase in price with rising interest rates while dividend payers tend to decline (subject to their ability to increase their dividend).

I understand that other company/market influences may move both preferreds and common in the same direction, I'm just thinking of the interest rate issue at this point. Your thoughts?

Thanks, as always
Peter