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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: Pipelines:
In looking to add pipelines to a balanced portfolio what is your preference when it comes to company size,looking at growth first and income second. I.E. ENB/TRP vs IPL/PPl. If chosing one, which would it be? (or other suggestion) Also how do you feel SCL fits in to the mix. As a supplier of pipeline coatings, is it a redundant play or a stock with different qualities/prospects than pure pipelines?
Thanks very much as always!

Phil
Read Answer Asked by Phil on September 02, 2014
Q: A group of 8 Pipeline and Midstream companies analyzed by a broker has a 2015 forward PE of 28.4, after removing a high outlier, VSN. To me this number seems quite lofty and I'd like to know how it compares historically, say in the group's last cycle peak; after all how much growth can this group generate? I know the analysts say that growth is visible years out but it seems N. America is presently awash in oil with an average 250,000 BPD being imported by Eastern Canada from the U.S. so if shale oil continues to expand production, and there's no consensus on this prospect, would that be a catalyst for the group to stumble or accelerate growth? It seems likely that the growth number should be far less than 28% too, hardly justifying the PE.

And it seems the group is analyzed on its AFFO yield (like REITs) of 6.3% for 2015. Should interest rates rise would the group be hurt by the rise? Current stock yield averages only 3.6%. In the group I hold ENB with smaller positions in IPL and ALA; stock prices have been on a 45 degree climb for several years now - time to take profits or just watch closely? Thanks, J.
Read Answer Asked by Jeff on September 02, 2014
Q: Please give an update on RME. I am told there has been some insider buying but cannot confirm this thru sSedi
Read Answer Asked by george on September 02, 2014
Q: Can you please give me your current thoughts on ten peaks coffee (TPK) based on their latest quarterly results (August).Seem to be pretty good on the surface.What is the dividend payout ratio?
Thanks for your excellent service!!!
Read Answer Asked by Thomas on September 02, 2014
Q: As a Constellation shareholder, rights have been deposited into my account and I have been considering an additional purchase of rights (CSU.RT)on the open market to participate more fully in the debenture offering. However, I have no experience in such rights offering and no idea as to how to value them. From the price action in the first week of trading ( ranging from .40 to .70 cents), I suspect I'm not alone. Any advice, suggestions, guidelines appreciated.
Thanks
Read Answer Asked by William on August 29, 2014
Q: I have set aside funds specifically for the purpose of establishing an income portfolio. While I understand your reservations in trying to time the market, could you recommend a strategy for deploying the funds giving consideration to the weak seasonal period for equities we are entering, the imminent elimination of QE, and the potential for incremental increases in interest rates starting within the next six months. Would it be wise to place the funds in money market, or even a short term bond etf like VSB or VSC, and wait till later in the year to begin the investing process? What ideas in the 5i income portfolio are buy-able currently? Many thanks.
Read Answer Asked by Rupert on August 28, 2014
Q: Hi team:
one of the recent question by an investor was the beta for the Canadian banks, it is below 1.0 (the TSX is 1.0) which is good for a conservative investor
In my income portfolio to generate dividends, I have alot of REITS as well as Piplelines such as IPL and PPL which could be classified as utilities
I wonder what the beta would be for Canadian REITS as a group
and also for pipelines such as IPL, PPL and TRP/
Many thanks,
Michael
Read Answer Asked by Michael on August 27, 2014
Q: I am looking for a higher dividend paying Financial equity for my income portfolio and would appreciate your comments on FN, MTG, MKP, AGF.B, and CFN. Which one would you prefer for a long-term hold and why? Thanks!
Read Answer Asked by Paul W on August 27, 2014
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