Investment Q&A

Q: Veresen (VSN)

Hi Team - I was hoping you could please explain the apparently high payout ratio of Veresen. According to CIBC Investors Edge, the payout ratio is 439.63%. From what I can see with FASTGraphs, the payout ration has been over 100% (sometimes well over) since 2001.

I don't understand how this can be possible over such a long time period. I've noticed this with other companies as well from time to time. Generally though, the commentary you provide suggests a low payout ratio is best.

Could you please help educate me?

Thanks very much. Michael

Q: hbc/tsx could you give me your opinion on this stock-thankyou

Q: When companies like Veresen sell subscription receipts at prices below the stock price does it impact the stock prices going forward ?

Q: I appreciate the wealth and wonderful information you have been accumulating on your site. I have a general strategy question. On building just a dividend income portfolio, using Canadian blue chip companies, there is a sense that the rise and fall in stock market price becomes back ground noise. These tend to be very long term holds however some of these companies can get some bad press which exaggerates a fall in price and then it bounces right back. Is there a critical no return price to watch for in these blue chip long term hold companies? For example would a fall of more than 15% in price be a trigger for something more than just stock market noise?

Q: Article in this weekends Globe suggests defense and aerospace is a good place to put money with countries putting in extra effort to defend against terrorists. Berman mentioned Alliant Techsystems as well as others. Would you recommend following this path and perhaps suggesting a Cdn possibility that could benefit from beefing up defense positions. As always thanks so much. Maureen

Q: Hi all. I have held AEM (Agnico Eagle) and CS Cap Stone for about 3 months and am down about 25%. They just continue to go in one direction down. If you owned them - what would you do with them? Thanks Dennis

Q: I am considering buying additional shares in Alimentation Couche Tard (ATD.A) due to the recent drop in price as a result of falling TSX. I just want to confirm that the price decline is due to general market conditions. Thanks. Gerry

Q: I currently owned Rogers and thinking of selling and buying Telus instead. I am just wondering since I do have some US$ if I should buy Verizon instead because all that is going on with telco industry and CRTC wanting a fourth carrier?
Thanks
Dolores

Q: Hi,

Can you please give me your current opinion on CanElson Drilling (CDI)?

thank you

Q: Hi Peter and gang.

Question: Shawcor (SCL). I already have a 16% position in pipelines (Altagas, Inter Pipeline and Pembina). However, Shawcor (SCL) is looking extremely attractive, in my opinion, with 2015 consensus earnings, according to CIBC, of $4.35 and substantial growth continuing in the years after.

In your opinion, do you think I can hold my 16% position in my pipelines and add a 2.5% position in SCL? My reasoning is, I can buy SCL as well as hold my existing pipelines because SCL has a forward p/e of under 13 and strong earnings per share growth to support its share price. When interest rates rise, my IPL, PPL, and ALA, may experience a decline because of their very high p/e and slower growth rate but SCL could act quite differently because of its attractive valuation and growth profile.

My other option is to trigger large capital gains and sell a portion of my existing pipelines to buy SCL.

I'd appreciate hearing your thoughts. Thanks, as always.

Q: re: FRC

Last comment was Aug 1. Revenues were up considerably and they had just purchased a fluid logistics company. Your advice was it looked good to hold which I will do until you suggest otherwise.

In the meantime, can you please comment moving forward - FRC is down 8.5% since Aug 1.

Thanks for all you do

Gord

Q: medical facilities "dr" i know you were worried about their margins stock sure has come down alot any comment tks.

Q: Hi 5I Team,

What do you think of DR? I own shares in this company and wondered what your thoughts were. It seems to be sliding down and down.

Thank you for all your hard work.

Best wishes,
Terri

Q: Peter and Team,
Could you please give me your opinion/assessment of AEU.UN. Many thanks,
Nancy

Q: I own a fairly large position in BIP.UN. It has pulled back a bit recently and I am thinking of adding to the position. What do you think of it at these levels and how will it fare re: higher interest rates. Many thanks

Q: Hi Guys any thoughts why BTE in under show much downward pressure
Kind Regards
Stan

Q: I am somewhat confused by your response to Gord as to utilities & interest rates. Are you saying that Pembina (PPL) has a relatively higher yield and little in the way of growth opportunities making it a concern when interest rates rise?

Q: Hi Team, As of writing this email, SGY (Surge Energy) has a yield of 7.9%.
Is that not to high? The share price needs to move up and we should be around a 5% div yield level which is closer to where most of the small-mid cap oil & gas dividend payers are. Could you enlighten me? Thanks,

Q: Hi,
I hold SGY but continue to be concerned about the backdrop on oil. Looks like oil is headed resistance at $86. What is your take on the mid & long term prospects for oil price & how SGY will fare in a lower oil price environment if that is what you foresee.
thx

Q: Hi Peter and Team: Hope all is well with your ride. How would you rate Surge Energy, (SGY) vs. Rock Energy, (RE), or is their another similar energy play you would rate higher.

Thanks, David