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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: Good Evening 5i,

I am a retired income investor with very little knowledge of and exposure to bonds.

Looking for your thoughts/opinions and suggestions on aggregate bond funds.

These funds apparently give exposure to government and corporate bonds, and to bonds maturing in the short, medium and long term.

Is there something worthwhile here?

Thanks very much.
Read Answer Asked by Dave on December 14, 2022
Q: Dear 5i team.

Please give me your updated assessment of latest financials results reported in early Nov. I do not see a question on this and the stock price seems to be oversold and good value? Appreciate your help to better understand current numbers, and future prospects.

many thanks,
Read Answer Asked by Arthur on December 14, 2022
Q: My 26 year old son has some funds to invest in his RRSP. He also holds a TFSA and Cash account and between the 3 accts, he holds, BEP, ECN, BNS, VHI, BAM, GSY, KUT, PBH, TOI, ENB and SLF. We would like to add a couple new names and on our list are TD, MFC, TIXT, GOOG, AMZN and EQB.....if you were advising your son in this situation, how would you rank these 6 stocks for addition to his RRSP? If you could add some colour as to your ranking, that would be much appreciated.

Many Thanks for the great service and advice

Scott
Read Answer Asked by Scott on December 14, 2022
Q: hi,
following up on question/answer on CM recently. you mention CM has a way of getting into trouble eg 1990's. are you saying you see trouble in CM specifically somewhere now? excluding dividend, CM is up 15$ over 10 years( 37%), and over 5 years CM is down 3$ and change(-7%). BNS is up $10 over 10(16%), down 14$ over 5(-16%). at least over these specific time frames, CM "outperformed". depends on timing for sure. but I am curious about your comments? do you have faith in the CM CEO?? is there a wave of loan losses coming??
I own both presently.
cheers, chris
Read Answer Asked by chris on December 14, 2022
Q: The new additions to the growth portfolio appear very conservative. Especially after past picks such as xbc, qst, and mrs. Has the methodology of the growth portfolio changed? Big bounce potential? STN is near ath.
Read Answer Asked by Curtis on December 14, 2022
Q: Hi, I own a number of preferred shares from various Canadian issuers and came across a recent article from Seeking Alpha which is concerning, except below. What is the possibility delisting of preferred shares could occur in Canada as well for the reasons outlined? Thanks.

“Preferred stock can be a useful and important part of a diversified fixed-income portfolio, even with the decline in all segments of fixed income in 2022, however, recent events related to preferred stock delistings have put to the forefront a risk that needs to be taken into stronger consideration by investors. While the matter of delistings is certainly not new, these recent events have heightened our concerns on this risk, and we also call on the SEC to take up the issue to protect investors.

Earlier this month Höegh LNG Partners LP (HMLP) announced that it will delist its 8.75% Series A Cumulative Preferred Stock units (HMLP.PA), effective January 2, 2023, to save legal, audit, and other reporting costs associated with the preferred stock listing. While the company intends to continue to pay the distribution, the withdrawal and effective loss of liquidity for unitholders is a major negative event that led to a sharp 33% plunge in the price from the low $21 range to $14.25 as of this writing, as seen in the chart below.

HMLP-A Price Chart 2022

While some may find value in what is now a 15% current yield, the lack of liquidity creates massive uncertainty for unitholders going forward, and it's unclear what investors should do next. HMLP management has affirmed that it does not care about its preferred investors who handed over $176 million in cash to the company in good faith, expecting that the public listing of the preferred stock would remain stable and tradable as expected when initially issued. The proper action would have been to redeem the issue as the parent company Höegh LNG Holdings Ltd. did when it acquired HMLP and paid common shareholders in cash.

The action of delisting preferred issues and disrespecting preferred stock investors is not just a phenomenon of smaller and obscure issuers. The same thing is happening to the preferred issues of PS Business Parks (PSB) Series X, Y, and Z (PSB.PX) (PSB.PY) (PSB.PZ) totaling $755 million of combined face value. PSB has been reliably issuing, paying and redeeming preferred issues since 1999 when its Series A preferred was issued. Series X was issued in 2017 as a solid investment grade issue (rated Baa2) yielding 5.25% - presumably a perfect fit for a long-term, conservative income-focused investor. PSB-PY was also issued in 2017, and PSB-Z in 2019.”
Read Answer Asked by Gary on December 14, 2022
Q: Hi:

Are you able to list a few factors that let Costco trade at P/E of ~37X while TD Bank trades at ~9.5x and pays a superior dividend to Costo? It "feels" like TD is a bargain but obviously day after day someone / some algorithm feels Costco stock provides equally good value.

Thank you!
Read Answer Asked by Marilou on December 14, 2022
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