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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: Hello 5i
Thought I would ask Investor portfolio management and psychology/behaviour question.

As I watch my profits in companies like Emera drain away 2% per day ( down $5/share since August), I wonder what the statement to investors should be when the question comes up, why did we not get out seeing clearly this stock is in a down trend and with rates moving up, is going to be out of favour and see price declines?

Waiting for an annual dividend of $2 when in four months $5 of capital disappears, just does not make good math sense or a profitable stance.

In September this was a good investment. What are your thoughts on this today with debt high, rates moving and short sellers pointing at companies like this?

Should we not have been selling at $50 instead of holding at $45.....and watch the price tick lower?

As you can imagine, it is tough watching long term paper profits in REITs, Telcos and utilities drain away.

Would you please offer your thoughts on the emotions that arise in this situation and with the stated company and sectors?

Thanks
Dave
Read Answer Asked by David on November 11, 2016
Q: When looking at BIP.UN an infrastructure stock, can you compare this stock to other infrastructure stocks like a stantec or wsp global. My feeling is that stocks like stantec are more directly involved in the infrastructure industry and will be more directly affected by the Canadian and USA infrastructure spending that are planned in the near future. Your feeling would be appreciated. Tnx.
Read Answer Asked by Jacques on November 11, 2016
Q: Hi 5i,

L-o-v-e your service.

Question. I somehow ended up with 2 pipeline holdings in my TSFA. I still wish to stay in the sector. They are PPL and IIP and looking a a PERF chart, have very similar growth performance.

If I wanted to consolidate to one, which would you prefer (looking for long term growth + dividend).

Thanks !
Read Answer Asked by Jim on November 11, 2016
Q: I have a small position in Emera. No other exposure to utilities. Just went over their Q3 earnings release. Negative current ratio, $14 billion dollars in debt, rising 10 yr bond yield, some free cash flow, but not sufficient to pay down the debt rapidly and net debt to total capitalization of close to 70%. Aside from the yield, I don't see many positives. Should I sell and move the funds into a more cyclical name?

Thanks,
Jason
Read Answer Asked by Jason on November 11, 2016
Q: Hi, Parkland Fuel stock continues to get pounded every day since its recent earnings release, losing over 10% of its value. It was mentioned as a baby Alimentation Couche Tard. Today, ATD.b stock price also showed considerable weakness. I have just started to wonder if there is a rotation out of these consumer names which have done well in past. And, if so, do you see this trend persisting, since money seems to be moving into banks, industrials and energy/material stocks. I have a small position in ATD.b but just doubled my PKI holding to overweight and feel a little concerned. Thanks for your valued advice.
Read Answer Asked by rajeev on November 11, 2016
Q: Hi Peter, Ryan, and team,

In a recent BNN "Top Picks", Daniel Lloyd recommended shorting EMA because of their high debt. He states: "Emera, having recently purchased TECO, is now saddled with $14.7 billion in debt which represents a roughly 13x debt/cash flow ratio on a stock that trades an excessive 18x earnings multiple." Not that I'm contemplating shorting EMA, but looking at a gain of 21%, would you recommend staying the course with EMA, or switching to something like FTS which you seem to like more? Or, assuming appropriate balance among the sectors, would you recommend something else entirely? EMA is presently held in a TFSA, along with CAR.UN, DHX.B, KXS, GUD, PBH, and SIS. All except DHX.B are up, and SIS is up 108%. :) Thank you for your terrific recommendations and on-going advice and insight.





Read Answer Asked by Jerry on November 11, 2016
Q: Hi Peter,
Reits, Telecoms and Utilities have not been participating in the market rallies for a while now. Just wondering when you think that the yields on these types of stocks will start to hold up the stock prices. (a few of mine are starting to get come nice yields on them now.

Thank you,
Charlie
Read Answer Asked by CHARLES LA on November 10, 2016
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