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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: I am looking to add to either my Utilities or Industrial's.

My industrial weighting for Industrial is 11.8% which might be a bit light, and I can add to CAE or NFI.

Or,

Add to my Utilities is also quite low at 4%. I have BEP and ENB there. Should I add to ENB at this time?

As always thanks for the great advice

Lastly, the only REIT I have is a Small Position in Chartwell. Which i have put in Healthcare. I do have Financials at close to 15%, but should I look at my home as a big investment in real estate and not worry about it?
Read Answer Asked by Colin on November 29, 2017
Q: I recently bought ZCL based on 5i recommendation. Then after a missed quarter you drop ZCL from the growth portfolio, so I'm left holding a stock you no longer follow.
However for GUD you continue to recommend quarter after quarter based on no news or developments and a declining stock price?
Read Answer Asked by Curtis on November 29, 2017
Q: We own approximately 4000 shares in ALC composing about 2% of our portfolio. We have held the shares for a number of years and have certainly experienced the ups and lately downs of any commodity based stock - even though the company is supposed to be in the industrial sector. We are currently negative on the stock but their fortunes seem to be improving as the price of iron ore seems to have stabilized. Of course it is hard to trade the stock when times are bad since they are such a thin trader. A "haircut" is a certainty if one really wanted out. Now ALC seems to be offering to buy back shares through a "Dutch Auction". Since the buy back will be prorated I suppose we won't be able to tender all our shares. I don't really mind that we are negative since I like the dividend and 2018 may bring better times. (The mantra of any "buy and hold" investor)! My guess is that management thinks that 2018 will also see improving revenue. I wouldn't characterize the offer as "low ball", I believe it to be fair but maybe 12 months too late to really be taken up. ALC doesn't have much float so they may have trouble taking up too much stock. Any float they do take up will make the stock even more of a thin trader than it was previously. If we were to tender I would tend to purchase SQM as a replacement even though the dividend is lower. Our material sector exposure is on the low side - just AEM having a 2.5% weighting. Our industrial sector weighting is 23% (NFI, WSP, SIS, MAXR, LGT.B and ALC).
Any suggestions on what to do? If you think we should consider taking up the offer what ask price should we go in at? The ask needs to be between $13.80 and $14.75. If we go in at $13.80 do you think there is a chance we could sell all our stock? I realize this is a complex question so please deduct as many credits as you think appropriate.
Thanks
Jim
Read Answer Asked by James on November 29, 2017
Q: I have more of an overall financial question, that you may be able to answer.

I own my own business and have been thinking about buying a building in the near future, but I have a few concerns.

Many business people I talk with state that buying the building they were operating in as the best investment they made, or I talk with others that have regrets that they didn't.

What is a better investment: Stocks or Real Estate?

To buy a building I may have to liquidate my portfolio as it would be a major purchase. I would then have a My House, My Business, and a Building in Calgary. That seems like a lot of eggs in one basket if the Economy Slows or if Oil is no longer needed. ( I know this is a long ways down the road, but is a possibility)

Can I assume if the Lease Rate matches the Interest Rate Payments on a Commercial Mortgage that you should look into commercial real estate as you aren't losing anything? If this was the case less money would be put into a portfolio as some would have to go towards paying down the mortgage?

I know this isn't a regular stock specific question, but I figure with your knowledge you may have a good advice. I also am leaving this public as I believe many others on your site may have similar thoughts.

Thanks.
Read Answer Asked by Colin on November 29, 2017
Q: It just dawned on me that with the endless fighting over softwood lumber and US pulp tariffs and controls that maybe KP Tissue/Kruger is getting caught up in the turmoil. Maybe that's why it is down 12.7% from what I paid for it about a year ago. The current yield is 5.22%

On October 31, 2017 you said : "KPT really has not created much value, and the stock was higher in 2013 than it is today. For income we would consider it 'so so' and certainly think there are better options out there. We prefer dividend growth, and the dividend has not changed in five years."

I am currently overweight in Financials, Telcos. Utilities, and Pipelines, so would you advise selling KPT or just holding for income.

Since you think there are better options out there I would appreciate your suggestions of several other consumer sector companies with dividend growth and with a comparable dividend yield.

Thank you........... Paul K
Read Answer Asked by Paul on November 29, 2017
Q: Could you please give me your opinion on the etf's FNG and FINX. I am thinking of taking a half position in each. Do you prefer one over the other or do you think splitting between the two a good idea. I currently do not have any exposure to tech other than PHO and OTEX but with the huge gains in tech over the past year I am reluctant to stock pick at this time.
Read Answer Asked by Susan on November 29, 2017
Q: I am doing some research on PTG and I am somewhat amazed to see that the companies market cap is about $100 million, but revenues clock in at over $1.3 billion. It would seem to me that they have a large degree of leverage to any cost savings they can wring out of their operations. Even a 1% reduction would equate to a significant % of their market cap. I was also thinking that this could make it attractive as a takeover candidate. I note, as well, that in a recent response you indicate that the fairly attractive dividend appears safe. I am looking at building an investment "thesis" if you will, and was wondering if you could add any comments as it does sound as though you have had access to management recently.
Kind Regards.
Read Answer Asked by Robert on November 29, 2017
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