Investment Q&A

Q: Six questions regarding pipelines:
(1) I understand that Enbridge finances most capital expenditures by way of debt or new equity, not retained earnings. I am thinking that this would be OK if its GAAP earnings per share are keeping pace with dividend increases and its debt service coverage is stable. Do you agree with these comments?
(2) I assume that the prospects for ENF are tied to ENB. Do you agree?
(3) Do PPL and IPL have the same policy as ENB regarding the financing of capital expenditures?
(4) Do you have preferences among ENB, IPL and PPL and, if so, why?
(5) If I am correct, ENB is mostly pipelines, PPL is mostly other midstream and IPL is somewhere in between. I have this idea that pipelines are more stable than other midstream activities. Is this simply wrong or an over-simplication?
(6) ENF, IPL and PPL represent 10% of my portfolio. Would you suggest lightening up? (I am retired and my portfolio is geared to income.)

Q: Peter and His Wonder Team
Please give your current assessment of BXE. It has crashed since the 5 for 1 consolidation and also hit with tax loss selling. Would you rate this a hold because it may be over sold or just sell and take the loss even though it does not qualify as a tax loss. On the other hand would it be a reasonable contrarian play going into 2018 with more optimism concerning global growth?
Dr.Ernest Rivait

Q: Hi 5i team,
If I buy shares in a dividend paying stock the day before the dividend pay date, would I still get paid the dividend, or is there a minimum amount of time you need to own shares before you get paid the dividend?
Thumbs up on the new website!

Q: Depending on the source, I see TRI categorized as Financial, Industrial or Consumer Cyclical. Your thoughts please.

Q: I am a little overweight in Canadian financials and worry about the new stress testing the banks will use for determining eligibility for mortgages next year.
Would it make any sense to take a little off the table and buy one of the life co's given expected rising interest rates and if so which of the above three?
Thanks
Jeff

Q: I remember, maybe 5 years ago or so Peter recomended First Service corp because it had initiated a divident, he suggested the initation of a dividend was one of the better buy signals. It made sense to me and i bought the shares at that time, and it has been a great investment

Two part question
1. Please share your thoughts on div initiation as a buy signal
2. Please share a couple of tickers that have recently initiated a dividend and could be bought today

Thanks

Kuldar

Q: In their Second Quarter Report 2017 at page 9 and Note 3 CQE took a $96,200,000 "Impairment Loss". Presumably no company wants to conduct impairment tests and publish the results, so I assume IFRS or TSE or CPPIB (lender) is the driver. The future price deck shown in Note 3 seems to me to be quite optimistic and minimize the amount of impairment, and they do state that a 10% decrease across the deck would produce further impairment of $107,000,000! A partial reversal therefor seems unlikely. So the questions - 1) Is CQE really the only O&G so challenged that it has to do impairment tests - I haven't seen any others? 2) in your view is bankruptcy more likely than a takeout?

Q: Hi team,
CPX appears to be a great company but technically never been able to break out above $25 to $26 dollar range.
Can we expect anything different?
Thanks for your reply.

Q: With regard to several questions asked about tax loss selling and the 30 day rule. The usual advice is that you will lose the capital loss if you rebuy the stock within 30 days after the sale. This is not accurate. While you cannot use or claim the capital loss, if you repurchase within the 30 day period the capital loss is added to your adjusted cost base and can be claimed when you eventually sell the stock the 2nd time. The bottom line is you are best making your decisions for investment purposes and not solely for tax reasons. I hope this helps those who are anxiously waiting for their 30 day period to end while watching the stock go up. Best of the season to everyone.

Q: The closed end fund (inc.un) has declined substantially in the past month but I can find no reason for the decline. The Quadravest site has no news and a couple of the funds holdings that I looked at showed no corresponding fall. Any idea what brought about this marked decline?

Q: Example Nortel - Can I still do a capital loss after"gifting" to TDW registered account?

Q: Hi there, just a comment regarding QTRH, on Dec 7 you stated they are in search for a CEO, I believe they announced earlier in the week the following;
Quarterhill Appoints Douglas Parker as CEO, 04 Dec 2017
Quarterhill (QTRH) said Monday it has appointed Douglas Parker to the CEO post, Shaun McEwan who has been interim CEO for approximately seven months. Prior to joining the company, Parker was senior VP of corporate development at Canadian firm Open Text Corporation. McEwan will return to his prior position of CFO, effective Jan 1.

This may get interesting now, I hope!

Peter/Ryan, I believe formerly an A rated stock (formerly WIN) at 5i, and removed from portfolios, and burnt may times by former management due to mis-guidance and mis-management!
Maybe now is the time for QTRH, with new CEO, imported from Open Text!
Another two good quarters, and maybe it can try out the third portfolio, Growth! haha
Thanks!

PS: should jump up slightly today if Benj Gallander picks it again as his top pick on BNN, for members who are interested in it! I believe he fallen in love with it, picked it two times in a row already as one of his top picks! Third time the charm!!

Q: Hi

What are your thoughts on the financing deal for MOGO? Would you buy shares as they are trading closer to the bought deal amount?

Thank you

Q: Do you have an opinion on “new age farm”

Q: If I hold Agrium shares, do I need to do something with my current shares with my broker if I accept and want the conversion to the new merged company?

Q: Please give me 3 to 5 yrs. outlook for LW, SITE, MTD, CVGW, MHK.

Thanks

Q: Hello Peter,
How do you think the euro zone stock markets will perform compared to the US market over the next 6 months? My only exposure to a European company is Garmin; which i bought after reading your piece , in Globe and Mail. I have done well and am wondering if you have any other recommendations that I can use to add to my Europe exposure?
Regards.

Q: A few new issues have passed my screen lately . I seem to recall that your strategy is to give it some time to settle ... It appears that IPO issue "Software Platform Partners Corp. " is not selling as well as the recent Emera , Ag Growth, Fiera issues ... Do you have any feelings about this stock and what it does . Does one wait or does this look good to you . Thanks , Tom

Q: Further to the questions on the cease trading orders being attached to accounts, I have one company - Nortel - in a registered account that I can "gift" to TD. While I don't think this company is coming back from the grave, how can one be sure there is no possibility of further activity? I would like to get rid of it as I don't need a daily reminder of this transaction!

Great job on the improvements. Continue to appreciate your insights.

Paul F.

Q: Good Afternoon,
I have a friend that keeps talking about this company Namaste ( N), I suspect its one of these high flying Cannabis related companies I would tend to avoid. Thoughts?
Thanks