Q: I notice BEP.UN is raising approximately $325 million this morning at $31.70 per share. Do you know what the money is needed for and would you recommend purchasing at the new issue offerring.
Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: Peter & Team, I'm down 10% on AGU. What is your advice/habit when in this position? Is there a chance it could rejuvenate in 6-12 months? Thanks.
Q: Prairie Sky Royalty came out it instantly gapped up 32% yesterday ( unfortunately they only gave me 400 shares of my 1000 share order . Would taking a profit and waiting to buy it later an unwise decision ? /// or should I put this one away and collect royalties forever ?
Thanks
Thanks
Q: Peter. You have Brookfield renewable ranked very high on you ratings and I have followed your advice on that. I am looking for guidance on Brookfield Infrastucture. Would you rate it as high? Would you buy it before Emera, Telus or Fortis? Looking for long term safety with moderate growing dividends. Thank you , Ken
Q: 10:25 AM 5/29/2014
Hello Peter
I have been watching Canadian Oil Sands COS for a long time. I am looking for a regular income from another very stable low-risk company with a dividend yield in the 5% to 6% range, for a permanent hold. I already own 4 big banks and SLF and GWO, PSK, BDT, BTE, ENB, ENF, PKI, EMA, FTS, TRP, and PPL.
COS has a low debt/equity ratio of 34% and a forward P/E of 12.9 according to Morningstar.
The Company has steady revenue and margins, slowly rising dividends, and a payout ratio of about 82%.
The Company has only about 25 employees so the overhead must be extremely low. Their only job is to contribute their ongoing share towards their 36.74% working interest in Syncrude Ltd.
COS's only product is light sweet crude so that is eminently saleable and always commands premium prices
So my question is: Why is 5i so cool on the stock? I know it doesn't have strong growth ahead compared to some but the company has a very stable business, sells a product in high demand and has many decades of reserves...... so what's not to like?
If I don't buy COS then the only other possible "Stalwart Core Holding" Alternatives that I don't already own seem to be :
MKP, FRU, FN, CTY, AW.UN, GH, KMP, BEP.UN, and AD, but most of these have individual flaws of some sort or are less likely to be able to maintain or grow their dividends in the event of a major market correction.
My guess is you may prefer BEP.UN to COS despite BEP's terrible payout ratio, but it is just a guess....I am open to any comments and suggestions you can make, and any other stocks to consider, and to your informed opinion on COS.
Many thanks......... Paul.
Hello Peter
I have been watching Canadian Oil Sands COS for a long time. I am looking for a regular income from another very stable low-risk company with a dividend yield in the 5% to 6% range, for a permanent hold. I already own 4 big banks and SLF and GWO, PSK, BDT, BTE, ENB, ENF, PKI, EMA, FTS, TRP, and PPL.
COS has a low debt/equity ratio of 34% and a forward P/E of 12.9 according to Morningstar.
The Company has steady revenue and margins, slowly rising dividends, and a payout ratio of about 82%.
The Company has only about 25 employees so the overhead must be extremely low. Their only job is to contribute their ongoing share towards their 36.74% working interest in Syncrude Ltd.
COS's only product is light sweet crude so that is eminently saleable and always commands premium prices
So my question is: Why is 5i so cool on the stock? I know it doesn't have strong growth ahead compared to some but the company has a very stable business, sells a product in high demand and has many decades of reserves...... so what's not to like?
If I don't buy COS then the only other possible "Stalwart Core Holding" Alternatives that I don't already own seem to be :
MKP, FRU, FN, CTY, AW.UN, GH, KMP, BEP.UN, and AD, but most of these have individual flaws of some sort or are less likely to be able to maintain or grow their dividends in the event of a major market correction.
My guess is you may prefer BEP.UN to COS despite BEP's terrible payout ratio, but it is just a guess....I am open to any comments and suggestions you can make, and any other stocks to consider, and to your informed opinion on COS.
Many thanks......... Paul.
Q: Hi 5i,
What are your thoughts on Ensco (ESV) for growth and income?
What are your thoughts on Ensco (ESV) for growth and income?
Q: Hi team:
I am aware that Peter put alot of weight in fundamentals of a company/stock before a recommnedaton is being made
I was watching the market call on BNN recently, and the comments was made re: utilities tend to do well in the summer
I do have FTS and EMA and CU and would not hesitate to add more
Is there any particular reason from a seasonal or fundamental point of view to support this trend ?
(I do have some ZUT in my RRSP as well),
many thanks !
I am aware that Peter put alot of weight in fundamentals of a company/stock before a recommnedaton is being made
I was watching the market call on BNN recently, and the comments was made re: utilities tend to do well in the summer
I do have FTS and EMA and CU and would not hesitate to add more
Is there any particular reason from a seasonal or fundamental point of view to support this trend ?
(I do have some ZUT in my RRSP as well),
many thanks !
Q: ITP/RPI.UN/WPK Packaging stocks. Read your report on WPK and B+ rating. Unfortunately I do not own WPK but do own RPI.UN and ITP. RPI has not disappointed and on a one year return matches WPK -- throw in the divvy for more! ITP has been disappointing. Considering a large profit/ healthy weighting in RPI, a loss/ smaller weighting in ITP. I imagine I see more upside to ITP over the other two. Setting aside the dividend consideration where do you see the most upside of these 3 stocks?
Q: WN: this stock has been doing down a fair bit over the last little while & I was wondering why? Is it to do with their large purchase of a US baker or what? I would like to buy for the long term and have been watching it ready to buy at some point for a good price-I'd love to see a further drop before buying to $75 or so.
Q: (From Greg)
Scotiabank is selling its CIX (CI Financial) holding at a price of $31.60 in a just-announced secondary offering. Given that CIX closed today at $33.65, this seems to be a very good deal. What is your opinion? Should I commit to this offering through my broker (no transaction fees), or will the market price of CIX likely decline to meet this price anyway in the next few days?
Scotiabank is selling its CIX (CI Financial) holding at a price of $31.60 in a just-announced secondary offering. Given that CIX closed today at $33.65, this seems to be a very good deal. What is your opinion? Should I commit to this offering through my broker (no transaction fees), or will the market price of CIX likely decline to meet this price anyway in the next few days?
Q: XSR - Could we please have your updated comments on Sirius - another special dividend announced today, 58.5 cents, yet the reaction thus far has been somewhat underwhelming - there always seems to be a lot of selling pressure on this one
Q: Hi 5i team,
I was wondering if I could get your thoughts on WestJet (WJA). Does the stock look cheap or expensive relative to peers?
Regards,
Brian
I was wondering if I could get your thoughts on WestJet (WJA). Does the stock look cheap or expensive relative to peers?
Regards,
Brian
Q: I notice that you are getting a lot of questions regarding fixed income in a portfolio. Yesterday, for instance, someone asked about using utilities and other dividend paying stocks as a substitute for fixed income. I think the sense of the question was not really that dividend paying stocks are actually a substitute for bonds, but that under the current environment, it might be a viable option. Today, Ron asked about fixed income as and you responded that the Money Saver portfolio has a 20 per cent allocation to fixed income. I have sometimes seen 30 percent mentionned here as a reasonable amount.
I am not sure quite where to go with this, but I know that I am a little bit like a deer in the headlights regarding fixed income at this time, and I believe others are, as well. I don<t understand that asset very well. But, it seems counter intuitive to buy something that everyone says seems to have a high likehood of losing you money in the current or near future economic environment.
And even the amounts mentionned seem not to do what you would like them to do. What I mean is this: Fixed income, it seems to me, is meant to make the ride easier. You don<t go too far down, when you go down. And if there is a long term market crash, you protect some of your money. But, I am not sure how happy I would be if, say, our of a portfolio of one million, I managed to protect 200,000, or 20 percent; or even 300,000 at 30 percent. But, when you start getting to 40 or 50 percent, you wonder whether, again under the current environment, you are not being a little foolish in alloting this much to fixed income.
As I say, I am not sure where to go with all of this. But, it is a concern that I am coming to believe many here, as well as myself share. Possibly an article focused on this subject ands with explanations on the pros and cons of the various vehicles available might be an idea. I know that much depends upon the individual's situation and risk profile but the current economic situation is making it a little more problematic, I think.
I know that your work here is principally Canadian stocks but I thought I would express this anyway. So, please publish and answewr or not at your discretion.
thanks once again
I am not sure quite where to go with this, but I know that I am a little bit like a deer in the headlights regarding fixed income at this time, and I believe others are, as well. I don<t understand that asset very well. But, it seems counter intuitive to buy something that everyone says seems to have a high likehood of losing you money in the current or near future economic environment.
And even the amounts mentionned seem not to do what you would like them to do. What I mean is this: Fixed income, it seems to me, is meant to make the ride easier. You don<t go too far down, when you go down. And if there is a long term market crash, you protect some of your money. But, I am not sure how happy I would be if, say, our of a portfolio of one million, I managed to protect 200,000, or 20 percent; or even 300,000 at 30 percent. But, when you start getting to 40 or 50 percent, you wonder whether, again under the current environment, you are not being a little foolish in alloting this much to fixed income.
As I say, I am not sure where to go with all of this. But, it is a concern that I am coming to believe many here, as well as myself share. Possibly an article focused on this subject ands with explanations on the pros and cons of the various vehicles available might be an idea. I know that much depends upon the individual's situation and risk profile but the current economic situation is making it a little more problematic, I think.
I know that your work here is principally Canadian stocks but I thought I would express this anyway. So, please publish and answewr or not at your discretion.
thanks once again
Q: In my RRIF I am holding the First Asset Convertible Debenture Fund (DCD.UN) which trades at a discount to NAV and yields about 7.4%. It seems to be structured on derivatives - a forward agreement with a bank - a setup that is different from that of CVD, though the past performance looks similar. CVD trades at a premium to NAV and has a lower yield but I wonder if it is safer overall and in your opinion would you recommend a switch? Thanks, J.
Q: Need to buy pipeline stock in rsp, i know you like size of enb but ipl has not been mentioned lately would appreciate your option on buying right now
thanks
thanks
Q: Please compare the risk of CVD vs CBO. I note that CVD has a lower duration so I assume it would hold its value better should interest rates increase. Please comment on the duration and other risk factors. Thank you.
Q: Good Morning,
ARCP was recently a topic in Seeking Alpha. Could you please give me your update on this fast growing US Reit.
Thank you,
Rick
ARCP was recently a topic in Seeking Alpha. Could you please give me your update on this fast growing US Reit.
Thank you,
Rick
Q: Could you help me compare an investment in BAM versus BIP.UN,please.
Thanks
Bob
Thanks
Bob
Q: Hi Team. I've seen your responses to various questions regarding Prairie Sky. I'm looking at purchasing some of this, but I would be interested in knowing how would you compare it to FRU which has been around quite a bit longer, and also has a nice yield.
Brian
Brian
Q: Hi 5i team
I have held Power Corp (POW) in my retirement account since Jan/94. It is now trading at about the same price as it did in Jan/09 and the dividend has not increased in at least 5 years. Would you consider still holding this stock and if not what would you recommend that has a similar dividend but is not in the financial sector? Thanks.
I have held Power Corp (POW) in my retirement account since Jan/94. It is now trading at about the same price as it did in Jan/09 and the dividend has not increased in at least 5 years. Would you consider still holding this stock and if not what would you recommend that has a similar dividend but is not in the financial sector? Thanks.