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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: Hello Peter and the 5I team

A Bnn guest brought this company (ISV) to my attention. Apparently this company has a monopoly in the province of Saskatchewan for registry information service's. It has plenty of cash on hand, a 5.4% dividend. What are the pro's and cons of this business? Where would the growth come from? Do you see it buying other such business's in other provinces? Any info you have on this company would be greatly appreciated. I am wondering if this company would be a good fit in a income driven portfolio???

Thanks
Read Answer Asked by Darren on April 26, 2016
Q: I am curious what your current thoughts are on ABM given the year end reporting that just occurred last week? There were some interesting comments that could be looked at in different ways with respect to potential for litigation with Syncrude finally getting resolved (or not) and also the possibility of a buy out scenario being in the mix now as well. The company had a fairly significant loss reported (over $7M) and yet the shares surprisingly didn't go down after the news release and actually gained some relatively minor ground. In your view, is this because the share price is so depressed already or possibly because some of the a/n considerations - potential buy out and/or resolution with Syncrude - may be factored in or maybe the worst days are behind them with oil starting to show signs of recovery? Any thoughts you can offer on this company would be appreciated as I'm considering selling some or all of my position that I hold. Thanks.
Read Answer Asked by Mark on April 26, 2016
Q: Although the market has had a good run lately, many companies are simply beating reduced expectations. I saw an analyst on BNN this morning note that top line revenues will be down about 7%. The economy is coasting along and showing no signs of a big jump. My intuition tells me that this may be a good year to "sell in May and go away." Or at least lighten up. Since you rely on more than intuition, I would be interested in your opinion on this.
Read Answer Asked by Ken on April 26, 2016
Q: I am a dividend growth investor and invest for the long term. I currently hold Altagas, but would like to increase my weighting. In the past many analysts were projecting good growth for this company over the next few years.

With the stock languishing recently relative to others such as Enbridge, Pembina, etc., do you see any issue in adding on to my 2% position?

It appears that you believe their dividend is relatively safe with their current payout ratio. Do you see continued growth of that dividend looking towards the future?

Thanks.

Jim
Read Answer Asked by James on April 26, 2016
Q: Hi,
I have taken up a few half positions in stocks with the following details in my portfolio:
Full position = 4% of total portfolio = $6400
Half position = 2% of total portfolio = $3200
Transaction fee = $9.97

For full positions, my strategy as been to consider trimming them if they get $2000 or more above a full position. I will consider adding to them if they drop at least $1500 to $2000 below a full position. This keeps my transaction fee at about 0.5% to 0.75%

This same strategy with half positions will cost me more on a percentage basis. Should I ignore this and just be happy I'm diversified, or would you employ a different strategy? My current half positions are HCG, CXI, GUD, and PHM.
Read Answer Asked by Mike on April 26, 2016
Q: Followup to recent Q. on BEP.UN. Distributions can be taken in US or C$, default is US, so if held in a C$ account broker will convert at their exchange rate. To receive in C$ you must instruct broker you want this option, I estimate it's worth at least 1% of the distributions received, not much, but better in my pocket than broker's.

The above comment was posted and I am confused by it. What exactly would I tell my discount broker? Would it be better to get the distribution in US$? Would I need to move my shares to the US listing in order to get the distribution in $US or can I just request to be paid in $US even though the stock holding is on the TSX? Would this be a good way to increase US$ over time?

Thanks
Dolores
Read Answer Asked on April 26, 2016
Q: Having bought some at much higher prices ($18) and given your recent comments around it's low valuation and that IT is trading at significant discount to it's peers would this be a good price to pick up some more and lower my ACB? I know if the company is sold it unlikely to be at a price that's a double from here. IT is an insignificant part of my portfolio but is in my tfsa so i can't use the loss.
Read Answer Asked by Richard on April 26, 2016
Q: Good Morning
I hold 4 Canadian banks CM, TD, RY and BNS in an unregistered account. The bank stocks comprise just under 20% of my portfolio and each has approximately a 50% capital gain. My only other financial stock is a 2.5% position in PWF. Capital gains in my account this year will likely be taxed at 15%. I am considering selling one of the bank stocks (perhaps CM) and investing the proceeds in SLF. I have chosen SLF for it's relatively low valuation and secure dividend.
Is reducing the allocation to Canadian banks appropriate, or does the tax which has to be paid cancel the benefit?
Which bank would you sell?
Is SLF a suitable alternative or is there another company that you would prefer. I already have full positions in CNR and BAM.A.
Thanks
David
Read Answer Asked by David on April 25, 2016
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