Investment Q&A

Q: I have traded a number of investment-grade preferred shares (fixed-resets and floating-resets) over the past 9 - 12 months, and have generally done quite well despite the BoC rate cut in January. One major exception however has been the ENB preferreds, where I have lost quite a bit of money.

When ENB announced their plans to drop down assets into Enbridge Income Fund and US entities, the credit agencies put ENB on negative review, leading to a big drop in ENB.PR prices (they trade now like Pf-3(high)/Pf-3 rated prefs).

This is very disheartening: I buy investment grade prefs in order to avoid such non-interest-rate-related losses.
In your view, what is the danger that other "utilities", such as TRP, FTS, etc., might also institute similar changes to their capital structure (and hence credit ratings), leading to precipitous drops in their pref shares?

Thanks!

Q: Espial's acquisition of Bluestreak looks like a perfect fit not only to expand its offerings and market, but to allow it to bulk up with the technical resources to deliver on its contracts to its Tier 1 (and other) customers. In short, the message to the industry is that the previous commitments by Espial have been de-risked considerably and ESP is now open to taking on more challenges. Your thoughts?

Q: Hi, what would your top three or four company's be with the best overall balance between growth and income, or in other words, the best of both worlds, thanks?

Q: Hello Peter
I am wondering at current prices is fairfax a good investment for 3 to 5 years

Kevin

Q: Could you suggest 2 or 3 US small to mid cap stocks that you are excited about their growth potential?

Q: I have my next years TFSA cash contribution sitting in a "high" interest savings account but am thinking of parking it in my non registered account and buying and holding a REIT (d.un perhaps?) until Jan 1...which do you recommend or perhaps I should play it safe and go with shares in one of the Canadian banks?

Q: What is your opinion of split corp preferreds as a medium term income investment? LBS.A yields 4.75%, matures in 3 years or so at par and appears to be protected in value by the Class A shares. There aren't many other 3 year investments that offer anywhere near this sort of return. What are the downsides? Thanks.

Q: I am wondering if it is time to sell ET and move. The volume is so low. Is it a value trap or would you advise patience ?

Q: I am planning to add international equity exposure via US ETFs. Could you please recommend US-based ETFs for the following:

Broad US exposure (is there one that covers small and large cap or do I need two, like IWO and VFV?)
Broad world exposure (VXUS?)
Additional weight in China (FXI?)
Additional weight in India (?)
Additional weight in Japan (?)

If you see any concerns with this approach I'd would be interested to know. Also would be interested to know if you think Latin America would be underweighted in the above and if so, your recommendation on a US ETF. Thanks as always.

Q: will companies such as BEP.UN and BIP.UN be hurt with any rise in U.S. interest rates or are they safe long term holds for growth and dividend.

Q: Article in Globe today re above, they will be moving to TSX. How will that affect the current shareholders, if at all.

Many thanks

Q: Hello 5i: I am slowly building the Model Growth portfolio. I now own AVO, DHX.B, EFN, and GUD. I have enough money to add either 3 small positions or 2 full positions. Can you help me decide which stocks to pick next.

I will then probably add 2 per month until portfolio is complete. I realize this is a tough question because it should be viewed as a portfolio, but unfortunately I must go according to cash available. Thanks for all the good work you do.

Q: For a 10 year hold, which company would you consider a better buy right now (WSP or BIN)? Thanks!

Q: Is AW.UN a good choice for my TFSA?

Q: Good Morning
How do you think the following announcement by Brookfield Renewable Energy Partners will affect the price of their preferrd shares?
I am currently holding two issues:BRF.PR.B (rate reset) and BRF.PR.E.(perpetual). Although I am making some money on BRF.PR.E , BRF.PR.B is down from $20 to $17. Can Brookfield Renewable Energy Partners force a holder of BRF.PR.B to sell at $17??


Brookfield Renewable Energy Partners L.P., proud (indirect) issuer of BRF.PR.A, BRF.PR.B, BRF.PR.C, BRF.PR.E and BRF.PR.F, has announced:
that the Toronto Stock Exchange (the “TSX”) accepted notice of Brookfield Renewable Power Preferred Equity Inc.’s (“BRP Equity”) intention to commence a normal course issuer bid for its outstanding Class A Preference Shares (“Preferred Shares”). BRP Equity is a wholly-owned subsidiary of Brookfield Renewable. Brookfield Renewable believes that in the event that the Preferred Shares trade in a price range that does not fully reflect their value, the acquisition of Preferred Shares may represent an attractive use of available funds. There are currently five series of Preferred Shares outstanding.

Q: Good Morning All,
I've been watching MSI for quite awhile and was wondering if now was
a good entry point, what do you think? Many thanks to all, Bob.

Q: I am wondering what you think of the news today on Tweed's acquisition of Bedrocan? Also, what do you know about the management of Tweed and are they making profits or just revenue at this point?

Q: Curious if you have any comments on the upcoming Sleep Country Canada IPO. At first glance they seem to have had success with the strategic initiatives they put in place in 2012. Thanks for your insights,

Q: Hi! Any plans to update your report on Richards? Would you still rate the company C+?
Thank you.
David

Q: How do these two companies compare with respect to risk, current valuation, quality of management and growth prospects.