Investment Q&A

Q: Hi guys,

In terms of value and dividend growth, which top three Canadian companies are you liking currently. Any sector is fine. With emphasis on good value and good dividend growth. Long term investor.
Thanks again

Q: Other than Tourmaline and Peyto, what would be your three top picks for a three year hold in the energy space?
Thank you.

Q: Hi guys,

What's your view on POT as a longterm investment, and what do you think of its current price? Do you guys consider it cheap at its current price?
Thanks again.

Q: Hi guys,

Looking to invest in the U.S. Markets, Can you recommend 3 growth companies with a good value entry. Large cap preferably. And a company that has paid an increasing dividend for 10 plus years.
Thanks.

Q: I piled into GNW.us just days before management confessed to large capital shortfalls causing shares to fall off a cliff. Management would have known about the significant deficit in reserves months ahead of releasing results, yet I see no actions pending against them by US regulatory bodies.

I compounded my buy error by anchoring on my much higher cost, a logic error well documented in behavioral economics. I thought GNW.us owned a chunk of the Canadian company Genworth (MIC.to) . I could not confirm whether GNW.us still owns a significant percentage of Genworth Canada. I browsed your two earlier comments on GNW.us but things are said to have changed since then.

Is it best to sell and salvage what’s left? Or do you now see some benefit in waiting? Is it wishful thinking that the remaining value is now less likely to evaporate?

Q: Baker Hughes (BHI.us) has agreed to be bought by Halliburton (HAL.us) for consideration that includes HAL shares plus cash. Notwithstanding the takeover by HAL, BHI often trades well below the value of the proposed takeover price. Is it best to sell BHI.us now and move on? OR : In your opinion, is it better on balance to wait for the merger to close before taking action, if any. I am not looking for a perfect answer . Just want to try to minimize the number of my embarrassing sub-optimal decisions.

Q: I’m hoping to add to some positions in the next couple of months with summer-time volatility. About a year ago I started a long-term position in Altagas at about $45.75. I’m hoping to add about 50% more shares to fill out this holding, and – with ALA’s chart continuing to slope downwards, as well as the possibility of a U.S. interest rate increase in September – I picked a bid price of $35.86. Is it realistic to think ALA has a little more to go down or am I just getting too cute in the bid process?

Q: For a long term hold of 5-10 years who would you currently prefer between CEU and Newalta and why? Thanks again for this amazing service.

Q: We are retired, elderly, and need the dividend income we get from our portfolio as below:

Pipelines, 8.51%: PPL, TRP
Utilities, 12.52%: BEP.UN, EMA, RNW
Telcoms, 9.11%: BCE, T
Banks, 22.47%: BMO, BNS, CM, RY, TD
Reits, 13.38%: CUF.UN, HR.UN, MST.UN, SRU.UN
Industry, 22.81%: BIP.UN, DH, NFI, NWC, PKI
Cash, 11.2%

I would like your opinion on adding one or two steady eddys that pay a decent dividend along with some growth potential. Would FTS and TRI fit our needs, or do you have better suggestions. Thanks, Ted

Q: How can a company have a negative debt to cash flow ratio?
What debt ratios do you use when evaluating a company? I use debt/equity, debt to cash flow, and debt to ebitda. For different industries do you use different standards for debt and where would a person find what ratios to use on what industries? Thanks

Q: Hey folks, you have an update out on AFN rating it a B. Could you please compare AFN to AGT. Which is more stable? Which has more growth? With AFN at B, what would you rate AGT? Thanks for your comments.

Q: My question has to do with how to determine if I am doing a good job with my investments and am, in fact, outperforming in some way. I am wondering how I should go about establishing a target rate of return for my portfolio, assuming you think that is a good idea. I know that many use the S&P TSX Composite as a proxy but that doesn't really represent the make-up my portfolio so I may be comparing apples to oranges, I currently hold a mix of most of what is suggested in the various 5i portfolios, as well as some international things as well.

Is is best to stick with the TSX, simply because if I can't beat it I should join it or is it best to go through the percentage makeup of each area I invest in and use a weighted average percentage to arrive at an overall number?

My concern is that even if I may "outperform" the TSX but on a risk-adjusted basis, I may actually be underperforming.

Really appreciate the insight.

Paul F.

Q: Hello Peter and Team,

Could you please advise me on couple of good websites/places where an individual investor could get earning estimates and how much does it cost on an yearly basis?

Best regards,
Febin

Q: Hi Peter and 5i Team,

I am interested in buying KO. I have never purchased American or international stocks, so it is all new to me. Am I better off purchasing it in my TFSA discount brokerage accounts or in my non-registered (regular) discount brokerage account? What are the tax implications for both scenarios?

Thanks for your help,

Terri.

Q: Hi Peter, How do you feel about the railroads right now? Which if any would you buy at these prices?

Q: If Canada's bank rate goes down on the 15th I am assuming Cdn bank stocks will go down and Reits will go up. How do you think it will affect the various sectors on the TSX?

Q: Hi guys,

I'm looking at adding a growth stock with a modest yield to my RRSP over the next few months before October. Why would you recommend at today's prices from the following: Constellation Software, CCL Industries, Brookfield Asset Management or Magna. I know the companies and sectors are all a bit diverse, but I have room to add to all of these sectors without being overweight. I'm leaning towards Magna, but I wanted your opinion.

Thanks,
Jason

Q: Good Morning 5i team: I'm hoping you can enlighten me in regard to the way in which rate reset preferreds are priced at the time of reset. Specifically, the calculation of the 5 yr GOC bond rate (assuming that's the benchmark involved, which it is in all of my preferreds). An example may help. The prospectus for ala.pr.e says that at reset (12/18)the rate will be reset to "a rate equal to the sum of the then five-year Government of Canada bond yield plus 3.17%." So, my question is this: Is the GOC 5 yr bond yield a fixed number, or does it float with trading? Thanks for your help.

Q: Whatever happened to Legumex? I seem to recall a few years ago (2012?) that a few analysts were all over this stock as a growth company with unbounded potential. Ever since, there has been hardly a peep or a pea bean out of them. Why is it failing so miserably, given the (presumably) untethered growth in this sector -- i.e, pulses. I never owned it, and was always waiting for something to happen. Is it likely that anything will ever happen with this stock? Thank you.

Q: Is it safe to hold on to Baytex BTE?