Investment Q&A

Q: Hello, I have just found out that you were dropping KWH from the income portfolio. I own KWH, would it make sense to wait until the end of the tax loss to sell (after Dec. 15th)? Thanks, Gervais

Q: THANK YOU FOR THE SOLID WORK IN A VOLATILE MARKET . REALY HELPS .. CAN YOU SEE SIS CONTINUING TO GROW DOES IT HAVE ROOM FOR MORE ACQUISITIONS . PAYOUT RATIO ON DIVIDEND THANKS

Q: What is the difference between shares and units? On the TSX site the June 2018 quarterly report shows diluted average shares as 75.23m. In the most recent SEDAR filing they talk about diluted average units of 56.7m and do we divide the net income of $7.7m by 75m or 57m? (units are defined as the units that are traded on the TSX)
Also in your Nov 8 reply to Peter you indicated that EPS of $0.11 and revenue of $260m were expected. In the SEDAR filing we are told that the income per unit was $0.14 and revenue was $359m. Is this an improvement over expectations, or are we talking about different things?
Thanks Mike

Q: Considering the recent moves in natural gas, could you comment again on Altagas. Dry gas has moved sharply higher while gas liquids have gone in the opposite direction.
The questions I have in mind include:
- With higher gas prices will their power generation suffer or are they hedged?
- Will higher prices effect their pipeline volumes and storage facilities favourably?
- Will their new construction project on the coast be effected?
- Do they connect to dry gas fields that have shut in wells while prices were low?
Finally, are the moves too recent with too many moving parts to even comment reliably?

Q: Dear 5i;
With regards to the latest conservative ETF portfolio ;
With the average yield of all the ETF`s being 3.23%, is this before MER`s are taken into account or after ?
Also what's your rational for using HYGH vs XHY ?
Also tax loss selling generally only applies to non-registered accounts correct ?Please deduct several points .
Thanks
Bill C.

Q: Opinion on Alta gas ....

Q: For ALA, AQN, DIV, DR, ENB, PRV.UN, what is the payout ratio for each of these companies? Is payout ratio a valuable measure of dividend sustainability? Can payout ratio about 100% be maintained? thanks

Q: Hi Peter and Ryan, I found this US health care stock (trades in Canada) trading near its 52 week high, yielding just over 7% and looking to break out, what are you views on DR, worth a look in this “crazy” market?
Thnx
Dave

Q: Please provide your opinion of GH's Q3 release. Gross revenue growth did not materialize while costs rose.

Company announced the proposed vend-in of CEO, VP and COO's Grande Prairie hotel for $12.5mm. Property looks appealing completed in 2017 with exceptional customer feedback and a 2 minute walk from Great Northern Casino. Guessing this asset could add approximately $4mm in gross revenues to GH's annual earnings, it's in one of the few areas of Alberta that has shown above-average growth and may continue as gas liquids are being developed in the Montney.

Not a game-changing transaction for the company but if they suggest that the hotel can be acquired and provide accretion for shareholders, what's good for the goose is good for the gander and gaggle of little retail investors.

GH stated that they have increased their LOC by $7mm. Do you think the company will issue common shares as part of the capital paid to Peace Country Hospitality?

I am offering up three 5-i doubloons for this in-depth query. Thank you

Q: Please provide your opinion on recent Q3 released by BEI. Thank you

Q: Hi there - down 40% on both. If you had to get rid of one, which would it be?

Q: Top 5 income stocks to initiate a new position? Seems like lots of beaten down or tax loss selling candidates this month.

Q: One more question on Crius and it relates to the capabilities of the management. Given the sell off and the recent results it would seem that the decision as to whether to hold or not has to do with whether management can be believed. If the outlook for adjusted EBITA of $100m annually is to believed, this seems quite positive since annual distributions would be $36m. In fact management says it makes the distribution sustainable.

However, this is the same management that a year ago was positive about the solar division, and municipal aggregations (even though they acknowledged the latters lowering effect on gross margins). In fact they were sufficiently sanguine that they even increased the distribution.
This year they are exiting solar and divesting municipal aggregations. The new strategy is to go back to focus on the original deregulated energy business. They acknowledge that the customer count will continue to decline over 2019 and the costs to obtain the high margin customers in the deregulated business is high. How long will it be before they get to their $100m?

In case you think these are the comments of a short seller I am in fact a shareholder who is wondering if this emperor has any clothes. Your opinion would be much appreciated.
Mike

Q: BPY has been range bound for 4 years - between $24-$29. At $24.70 today, it is essentially at the same level as in Jan'15. Would appreciate your views on why you think this is happening? Do you see any signs of corporate changes on the horizon that would be positive for price appreciation? Is it financial performance? An issue of management capability? Of Street expectation management? The rising interest rate outlook is a relatively recent negative. I had expected that with the Brookfield reputation for management excellence, a DY of ~6.5% and an annualized DGR of >5% we would see a 5% to 10% annual share price appreciation over the long term. Thanks.

Q: What's your opinion of Gluskin Sheff Q1FY2019 results. I don't see what is all the whoopla from the market.

Q: Good day!
I am an income investor, living on dividends. On Oct 24th or so I sold 50% of my full position in ALA for tax loss reasons, planning on buying it back late November in an ideal world. I sold over $21, and it is now at $16 or less.
However, I also have a 50% position in Chemtrade and also a 50% in American Hotel. All have somewhat larger dividends over the 10% mark. I have 'reasonable' confidence in a long term hold for all three, and see the great dividends as being very well paid to wait.
Anticipating a possible dividend drop for ALA, I might consider deploying partially or even fully into one of the other two, thinking their dividend payment is more likely to remain where it is in the short term, and yet the upside in each might be as good as ALA. I would appreciate your comments on these thoughts, and any guidance you could muster as to which direction to go.
Thanks!
Paul

Q: Hi 5i

What do you think of K-bro as an investment now? Thank you.

Q: What would your advice be relative to exceeding a theoretical 5% limit for blue chip Canadian companies which have been beaten down by simply market sentiment in a lot of cases? I'm thinking of increasing my holdings of some of those I have listed. I realize I can buy CDZ but have a slight preference for individual companies.

Thanks

Q: I am down approx. 30% on this stock. Would you continue to hold or move on? Thanks Clare

Q: ..what is your view on interest rates....with trade wars and the next presidential election now fully in sight, all the good news seems baked into markets. would you raise fixed income and/or utility allocations. what about moving into longer term bonds....thanks as always.