Investment Q&A

Q: Peter and Team, I raised cash progressively by trimming a few different positions from my stock portfolio (basically mirror of Balanced Equity Model Portfolio) over the last 6 months to reduce risk a bit as I have been and am still concerned about the markets (high debt levels, rising rates, very high P/E's, etc.). I put some of the proceeds in HFR. I currently have approximately 5.7% of my overall portfolio in HFR. I also have approximately 21% of the portfolio in straight cash. I want to put this money to work in something that won't crash with the markets (if they do) and recognize this means low return/low risk. How much should I be comfortable in putting in a single ETF like HFR? I've also been looking at running a small 0 - 90 day fixed income book to generate approximately 1.15% annually or so. Ideally, I'd just drop a bunch of cash on my mortgage but my significant other is concerned about taking that cash for that reason and not keeping it invested for the long term.

I digress. Thoughts on concentration risk with HFR and other low risk, low correlation ideas to make some return on my cash position would be greatly appreciated.

Q: i would like your opinion on Melcor. Sell or hold? thank you.

Q: This company nearly winked out in the energy downturn, but it has recently "returned to profitability". Also, the sale of Calgary Tunnelling, once completed, will apparently eliminate the debt. Is the sale a good move ? Is it time to put this stock on the buying radar ?

Q: What are your thoughts on CEO Don Walker and COO Tommy Skudutis disposing of a fairly large block of shares this week? Cause for concern?

Q: Q: What are your thoughts on ECN? Is it a reasonable buy at this time? Are the dividends of the prefered shares, series A and C reasonably safe? I very much appreciate your expertise and insight.

Howard

Q: I have approximately 2% of my portfolio invested in MMM in a RSP and with decreased share price and current outlook of industrials would it be a better choice to sell and add to either SPY or VIG for the long term ? I would appreciate your opinion.Elizabeth

Q: So I'm at the point where our rrsp will be in withdrawals-mode to fund our living expenses moving forward and therefore a shift from the balanced portfolio to income seems appropriate. There is no urgency in this shift however. With the income portfolio down around 5% year to date do you think this is a good time to begin this process in earnest. Would your recommendation be to move gradually into the income names from the balanced equity names or to "just do it." Also we have an increase in cash coming from mortgage investments in our rrsp's being paid off over the next 18 months. Would you recommend buying the income portfolio names as the cash arrives or some more staggered approach. I know you don't have a crystal ball and that you might suggest this is an individual choice for us to make but nonetheless I am seeking YOUR call on these 2 issues. I appreciate your input.

Q: I would appreciate an updated opinion on Second Cup. Thanks!

Q: Would you be comfortable with a 3% position at this time (new position) or should I wait until it settles a bit ? Also, can you please comment on the payout ratio, sustainability of the dividend and the quality of the management team. Will the current share price make it be harder for them to make new profitable acquisitions ? Thank you.

Q: Hi 5i team
What would be your opinion of the Callidus review by Lawrence Delevingne and John Tilak issued today. I have held this stock for a while and I am down on it enough to feel uncomfortable but I can hold on for years if that's what it takes. I feel the picture painted is one sided in this article but the stock does not have any support, so this does back up the reporting. I was going to wait to see what earnings come out like. Maybe I should cut my losses and move on now and admit to myself that this stock was a misstep. Also what do you think of Mr. Glassman's management style/history is it worth the risk for reward. What type of buyer would be buying this stock at todays prices in your opinion. Thanks for your help. J

Q: It seems counter productive and counter intuitive to me that a company would pay a dividend when their profit margin is so low. For example, CSH.UN (1.63%)? Is it because it is a REIT? Or PKI (0.86%)? Are these profit margins healthy? In general what is considered a healthy profit margin, regardless of the sector? Thks

Q: I own shares in a small company, AFE if it is relevant, and today it is trading in what appears to be some form of automated fashion. Can you explain the logic and meaning, (if any), of this to me. I have seen it before with other issues as well.

Thanks

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Q: Good morning 5i
While skimming local media this morning the article in globe business caught my attention; Acasta.

Taking the article at face value highlights the benefit of not being rushed to put capital to use. Mistakes can be costly; overpaying and large debt levels.

I don't like seeing Gud underwater but I know it is not permanently impaired nor priced for destruction.

Pg b17. Globe business. Mar. 24

Thanks for the service.
Dave

Q: Can you please give me your figures on long and short term debt for ENF. Looking at data from Morningstar, Enbridge Income Fund has a market cap of $4.7 billion and a tiny debt of only $400 million. Are these numbers correct?

If indeed there is very little debt how does the company "buy" drop-down assets from ENB. Is it done through issuance of shares. If there is very little debt, and it's pipelines likely to run at or near full capacity for years to come would you agree that the dividend is quite secure for the future.

What percent of ENF is owned by ENB?

Do you have any other concerns about owning ENF as a long tern income holding.

Thank you.......... Paul K.

Q: Hi 5i

In 2017 I sold everything in my RBC margin account, and I have made Totals Gain of $127,000 as per RBC Direct investing statement for 2017.
I have also Unused Net Capital Losses from other years of $55,500.

Please tell me how much maximum of my Unused Net Capital Losses from other years of $55,500 can I use to offset my gains in 2017 income tax return.
Andrew.

Q: HXS is a swap based ETF and VFV has a traditional ETF structure.
If these are held in a non-registered account I understand that the VFV
adjusted cost base likely changes every Year due to distributions and
creates "tax tracking" paperwork. Am I correct in assuming the adjusted
cost base base of HXS will not change every Year because there are
no distributions and hence "no tax tracking" paperwork?
I essentially want to buy HXS and hold for the long term and
not have to concern myself with annual changes to ACB
usually associated with ETF's.

thanks in advance

Q: I have a 1% position in RHT that was purchased at a recent high { momentum ? }. I am down 15% and I am considering adding more or cutting my losses and moving on. The stock is in my TFSA where I expect reasonable growth over 3 years . Is doubling down at $2.00 a wise move ? Thank you.

Q: Assuming the current spat with China escalates into a full blown trade war, which securities would you advise taking shelter in, and which ones would get hit the hardest? I realize that’s a broad question, but are there any stocks in particular that come to mind as ones to avoid/buy, especially among the prominent names in US industrials, tech & consumer sectors? Are there sectors you would avoid completely? If rates are set to rise, would it be unwise to take refuge in utilities and other defensives? Thanks very much.

Q: if i purchase a stock and sell it for a profit is the 30 day rule to repurchase in effect?

Q: Your analysis of Micron's results would be appreciated. Thanks.