Investment Q&A

Q: Peter and team,

My portfolio has had a solid year overall but not surprisingly the REIT component, about 17% of the portfolio to start the year, is off sharply. For tax and 2014 cash flow reasons I need to sell one of the following. They are all good companies with now mostly single digit PEs but if you had to sell just one which would it be from:

AGNC, D, CAR, KMP, HR, CWT, REI, AX, ACC AND GRT.

Thank you! 5i is now a daily must read site for me.

Q: Hi 5i, what's your view on the auto sector and would you invest in ford, Toyota or a parts manufacturer. Darryl

Q: Your recommendations have done wonders for the new money I have recently added to my portfolio, but some of the old money is in OSK, HBM and CNQ that have not performed well. Should I get rid of these and expand my investment in what has done well?

Q: HI team:
I have a part position in both KBL and Bep.un
both have not make too much move recently
are the dividends safe /
IS IT a good time to add if i have new funds coming in?
I am looking for dividends with long term hold or 3 years or more
thanks!

Q: Hi - may I have your view on ECO please?

Q: could i have your opinion on (acc) as long term hold. thank you, great service

Q: I have owned Carfinco for just over a year and seen some ups and downs in the stock price.It is up less than 10% over that time. Although the forward P/E and R.O.E. look good, I'm considering selling and moving into AVO, CSU or FSZ for more growth. I also own Rifco. Love to hear your thoughts. Thanks Dave

Q: I was wondering about the tax situation of some of the reits like Dundee int. and some of the reits expanding into the states and other countries,Are The reits treated simiarly in the US and other countries or do i have to worry about Their rental income being taxed,Also i wonder if you could give me a guess on how high the interest rates could increase before I would start seeing distribution cuts.

Q: I have $100,000 to invest in a CCPC. With a couple hundred thousand in capital losses, I am looking for capital gains over income. I will be adding $10,000 per month for the next five years and will then draw it out over the following 10 years. Suggestions?
Thank you very much for this fabulous service.

Q: My wife's RRIF has two larger positions (BCE,GWO), one smaller position (SVC) and a group of roughly equal in between positions (BIR,BEP.UN,CTY,CAG,PKI,YRI). She has reached that age when she must start her compulsory withdrawals . Going forward, are there 1 or 2 weaker stocks here or should I just reduce some positions to raise the necessary capital? Appreciate your thoughts.
Thanks

Q: What is your opinion on convertable debentures? They do pay higher rates and could do well if the stock price does well. I am intrested in the CD's that are issued by FCR.
Thanks

Q: what are yr thoughts on RDX technologies? (RDX on the venture)

Q: Hello Peter
First I want to thank you for your excellent information, particularly on the SSL warrants. What a great research service.
I am looking for a Midstream oil/gas business because these are less dependent on oil prices and mainly just collect tariffs, or possibly a pipeline, and I checked your comments on each of the ones listed below.
I am retired and looking for good sustainable dividends over 3.5% and enough growth to offset inflation.

This is the data I get from my TD Waterhouse site:

Earn$ Div% Yield% P/E POR*
Parkland PKI 1.14 1.04 5.70 16.0 91%
Transcan TRP 2.26 1.84 3.91 20.85 81
Shawcor SCL 4.29 0.50 1.24 9.40 12
Keyera KEY 2.17 2.40 3.89 28.45 110
Gibson GEI 0.97 1.10 4.14 27.39 113
EnbridgeENB 1.09 1.26 2.84 40.62 116
Altagas ALA 1.37 1.53 3.84 29.08 117
Pembina PPL 1.12 1.68 4.88 30.71 150
CanexusCUS 0.22 0.56 9.31 26.73 248
InterPipeIPL -0.29 1.29 5.00 0 infinite
* Payout Ratio [POR] calculated by me.

Of these. the only one I own now is PKI... good dividend, lowest P/E Ratio, and reasonable payout ratio and you rate it "B".

1. Why do you favour PPL with it's 150% POR? You rate PPL and ALA well above TRP though it has a good dividend and 81% POR?
2. I don't understand why you say IPL, with negative earnings and an infinite POR, is a "favourite", though weak.
3. Only KEY, GEI, and ALA have decent dividends and PORs a little over 110% but maybe these PORs are considered ok because of large dividend reinvestment plans.
4. So my question is: What one or two should I choose, or do you have a better suggestion, and are you not worried about the high P/E ratios?
Many thanks........... Paul

Q: Hello 5i Team,
Would you think Wi-Lan [WIN] has too much risk for including in a registered account? I would want the income stream and any growth. Thanks.
Ronald

Q: Hi Peter i'm a newcomer,and based on your model portfolio i will start to establish some positions,what criteria should i use.
Thank You
Dan

Q: Hi guys, great service. Would it be possible to expand your search to include all tickers being asked about. Many people ask about 2 or more companies in the same question, but the search only looks at the one chosen in the header. Thanks, Ian

Q: DI.UN is tanking these days. Is it just interest rates & sector rotation or is there a more fundamental problem with the company? Thanks. Michael

Q: I am building a self managed RRSP and TFSA portfolio which is the model portfolio and a touch of the B+ and better rated stocks. Thank you for the great results. With a 15 year horizon I am slowly adding laddered bonds, in addition I have XLY, IBB, IWO, YUM and TAL for US holdings.

I am transferring, in kind, my BMO managed Blueprint stocks to a self trading account, some are already in the model portfolio. Should I keep any of the stocks that are not in the model portfolio or should I dump them all and buy the model portfolio?

AGU ATD.B BCE BAM.A CAE CNQ COS CP CVE GIB.A CM CNR ELD ECA WN G IGM IMO K MFC POT PWF RY RCI.B SLF SU TLM TRI THI TD TRP
US$ are EFA & SPY

I'm not attached to any of them, not concerned with the trading fees.

Q: What are your thoughts on WRG. I hold this in my grandson's RESP. The stock seems to be highly rated, but is down 12% from what I paid for it.

Q: Your opinion on AFN (Ag Growth International) and VALE (Vale SA). I do not have any exposure in either agriculture or mining. The exposure would become 10% of my portfolio (5% of each).