Investment Q&A

Q: I am looking at CAT in US which is down but always seems to come back strong. I have bought and sold it a few times for decent profit. Do you think the wait will be extra long this time or have other concerns? An alternative could be CBI which took a beating lately but seems very strong with a pipeline of orders. Do you think the worst is over and it has much upside?

Q: Hello 5i team,
There is a lot of talk about deep discounts inflating auto sales in North America, thus suggesting a peak in activity.
What is your take on this ? I hold a little LNR and a little MG (3% of portfolio) and was thinking of adding a little XTC (another 1%)
Thanks,
Antoine

Q: I own a few rate reset preferreds that I should have sold a long time ago but didn't because I thought all the downside was already priced in and they are paying high yields. Hah! Was I wrong about the downside. Anyhow, I own BRF.PR.A , ENB.PR.N , and PPL.PR.E. These are now priced at 14.25, 13.91, and 16.85 and yield 6.3%, 7.5%, and 6.4% at the current prices. Their face values rose quite a bit in the market upswing on Friday so they seem to be affected by the overall market sentiment. What would be your advice on what to do with these now? Also, I own some CPD which is yielding 6.4% at 11.60. These were all supposed to be part of the fixed income part of my portfolio but have done worse that most of my equities.
Thanks!

Q: Hi Peter and team ! I hold a little bit of capstone mining company, and even though the commodities have fallen on hard times, I was wondering if Capstone's balance sheets warrant me holding on to it until things perk up. Thank you for all you do! Cheers, Tamara

Q: I have read recent article about currency regime change and one of recommendation is to stay diversified. Are there any diversified model/income/etf portfolios recommended or published by 5iResearch?

Q: Does the dividend on this pref. look secure, for a hold, at ~11%?

Q: Peter,I raised some cash recently(not that I was fearfull of the market),but there looks to be an opportunity to pick up some Blue Chip stocks with enhanced yields!I recently purchased ALA,IPL and already own AQN and 3 or 4 apt. reits.I soon will be 63 and I will need some income from my investments in a few years,so I view this as an opportunity.First of all do you concur,and if so any Blue Chip names with increasing dividends that fit this strategy

Q: Is BDT a good place to put money?
The dividend looks good but is it a true div. or a distribution? (they call it a div)
Thank you
Lillian

Q: Do you have any information on this company, prospects, value, risk, potential. Thanks

Q: What is the reason for this stock to be on a continuous downward spiral. What will make this stock go back to the highs of 24 or higher where I unfortunately bought it. Also can you comment on PNT (CPI Card group) as they have released at least one quarter of their results. Thanks

Q: Your opinion is appreciated, many thanks.

Q: Hello, thank you for great service! I made good money after split and now I am thinking is CIG & FSV are still keeping good potential to grow? I have them in my TFSA portfolio. Is it good time to sell and to invest in some potentially faster growing names?

Q: Hi, I have owned this stock for a long time and I highly respect Marc Leonard's disciplined approach to growing Constellation to a CAD$ 11 billion company over years. However, since late 2015 and more recently in past few weeks, stock appears to show signs of exhaustion. After reaching a high of $595, a few times in 2015, stock price seems to be range bound between $495 and $525, with a day time low of $485 during January 18 market sell off. I do not wish to reduce/sell my position, but trying to figure out why this stock has been a laggard, recently. Even on the days of market rallies, while many good stocks (several from portfolios) have shown strong bounce back, price action of CSU has been only lukewarm, at best. Do you believe market is grossly underestimating its potential and stock is very underpriced at current levels? what is the short interest in the stock ? Any other comments will be most appreciated. Thnaks

Q: Recent downturn the health stocks went down farther than the average other groups. In fact, CXR went from $57 to $38. Now with this rebound, the health stocks seem to be lagging including CXR. On my I-Trade account, the most recent update with CXR in January, they have it listed as a sell. Prior to that, they had it listed as a buy. Do you know why this stock is underperforming considering it's been a pick of BNN several times and is in your model portfolio?

Thank you. Your answer will be well appreciated as I have a fair amount of CXR.

Dennis

Q: My question is about valuation. The stock is down about 40% from its highs adjusted for exchange which seems mostly due to poor results in the last quarter. The company is in multiple real estate type businesses, there's a lot of moving parts and non-producing development properties and, while the story seems attractive, I wonder how, with all the stuff going on with this company, you go about estimating future performance well enough to get to a valuation and rating.

Q: I have a decent holding in this co. and read your recent comments on Stella-Jones. There appears to be no logical explanation to sharp drop in stock price from a high of $54 to a low of $41.50 within a span of 4 weeks. Even on market up days, stock's advance is fairly muted. I feel that 20% decline could not be entirely market related. My suspicion is that market is punishing the stock due its association with railways. What percentage of its business is from railway ties? Utility polls business should be stable ? Is there a large short interest ? How is its valuation on current and forward basis? Do you believe it's an excellent time to add at current levels? Thanks

Q: PAR Value: 5,000
Security Type: Corporate Bonds
Issuer: IPE
Maturity Date: 14 Jul 2028
Coupon: 6.1%
Approximate Annual Yield: 4.679%
Approximate Semi-Annual Yield: 4.626%
Rating*: BBBH/Baa2/BBB+
Amount of Inventory: 291,000
Special Term: CALL D+16
Approximate Price/100 CAD: 113.84 CAD
Hi, I dont have much experience in buying fixed income corporate bonds. What do you think about this one as a part of my fixed income allocation. The bank charges a $50 commission so a $5000 par value comes to about $5,703.85 CAD at todays rates. My other fixed income buys are etfs like VSC, BXF, VAB for about 15% of my portfolio. Thanks very much. Have a great cruise! Cheers, Shyam

Q: Greetings and my best wishes to all. BRB recently set a new high. I am interested on your outlook for the future and your opinion as to whether a takeover is likely. Thank you, and my best wishes to you, your families and friends.

Q: Back in August, you mentioned that there is likely an opportunity cost in owning Badger. Given more recent results, with a greater move to the US and management delivering on everything they said they would, do you still believe this to be the case?

In an otherwise diversified portfolio, I currently have about 8% in industrials (WSP, NFI), and am looking for a third company to boost the allocation, with a mix of some dividend and growth. Do you think BAD would be a reasonable addition? I have also been considering MDA.

Thank you.

Alan

Q: What is your opinion re Algonquin Power (AQN)? It has a good dividend and rising stock price over the last few quarters but the Price to earnings looks high (about 28/1).