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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: Our 32 year old daughter has $30k for initial positions in her TFSA. She’s looking for balance + growth with a timeframe of 3-5 years. Could you suggest some of your preferred companies at the present time.
Read Answer Asked by Warren on March 05, 2019
Q: Hi, Transcontinental Inc was added to Income Portfolio in June, 2018 at $31.58 for 4% position and later beefed up by additional 1% in October. The thesis was a solid dividend yield of 2.50%, high growth expectations based on transformative Coveris acquisition and a low PE multiple. Stock, however, failed to perform as expected and price fell off the cliff within a short period and never recovered since then. Two subsequent quarters have been disappointing and Coveris integration ( acquisition closed May, 2018) is nowhere in sight. Management has also not been able to address the issues and market concerns, effectively. Company legacy business is already declining. Most analysts have cut their estimates and price targets drastically. One analyst also commented that due to these issues, compnay may even lose some contarct renewals and recurring revenues. Even if we are optimistic and Coveris acquisition issues are resolved by end of 2019, it could take another 2 years, before stock goes back to $31.58, in order to just recover our principal.
So, while the stock is trading at a low multiple and company just increased its dividend 4.6%, keeping its tradition, is it worth the wait (and take the risk) or there are better opportunities to use our capital ? We have gone through a similar scenario with TSGI, only worse and in that case even after almost a year and 55% loss, there seems to be little hope. Thank You
Read Answer Asked by rajeev on March 05, 2019
Q: We hope to (should) be debt free by the end of May this year. I will receive a substantial inheritance in June. We have zero investments outside of our property/business.
My wife and I operate a guest house and live on the property (mortgage free). This business provides us with enough income to live the lifestyle we choose. We are in our mid 40s with no kids.
I will be looking to invest $300,000 in the market that will remain there for at least 20 years. I will reinvest all dividends.
Please provide the 10 names you would purchase if it was your money. Any other advise is welcome also!

Read Answer Asked by Lorne on March 04, 2019
Q: Hi Team,

I love the work you do. I was just wondering what you would recommend purchasing when KWH.UN gets bought out? I am looking to replace it with another utilily. I owned Enercare, but when that got taken over I didn't replace it with another utility (but a bank stock). I am really looking for a good utility company. My investment style is that I try to be balanced. I like a combination of growth and dividends and hold my stocks for a long time. If you currently like a few, could you rank them in order and tell why you like them?

Thank you for all your hard work,
Terri

Read Answer Asked by Terri on March 04, 2019
Q: Telus and BCE. TransCanada and Enbridge. I generally try to aim for 5% per holding but I had a concern of too much overlap of these respective stock pairings, so I've reduced the total of each pairing to 8% from 10%. Is this still too much? On a the other hand, would 5% of all four make any sense? When it comes to diversifying in Canadian bluechips, variety is unfortunately limited if one wants dependable dividend growth.

Thanks.
Jim
Read Answer Asked by James on March 04, 2019
Q: I know 5i is disappointed with the performance of TCL.A and it is likely under consideration for removal from the Income Portfolio. However I would like to know if you have a different take on this analysis by TD research:

... despite the soft Q1/19, our overall investment thesis remains
largely unchanged, as we believe that TC shares remain attractive at current
levels on a sum-of-the-parts basis. While TC is certainly facing some challenges in its legacy printing business, we believe that it has additional levers to pull to mitigate the impact of the ongoing secular declines in many of its verticals.
Additionally, roughly half of TC's revenue is now generated from Packaging, which is an attractive platform for future growth, in our view.

(They still have a Buy rating for shares but lowered their Target Price by $4)
Read Answer Asked by Jeff on March 04, 2019
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