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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: AT&T (T.US)

Hi Team, I know you don't specialize in US stocks, but I was hoping you could give me an opinion on AT&T. It appears to have a very low P/E of 10.7 TTM and pays a dividend of 5.06%. The payout ratio is 39.7%. The main negative I can see a potential forecast for lower earnings per share. Do you think this stock is worth owning for income long term?

Thanks. Michael
Read Answer Asked by Michael on July 31, 2014
Q: Brookfield Global Infrastructure Securities Income Fund (BGI.UN)I am trying to look into this and am having trouble finding much on it. It has hit new highs the past 2 days and has a 5+ dividend. You haven't commented on it since just after its IPO just over a year ago. What does it do; why is it hot now.
Bryon in Elmira
Read Answer Asked by Bryon on July 31, 2014
Q: Brookfield asset management has a lot of subdivision.Is it better to own BAM for growth or different subdivision ( power,real-estate and etc.)?Thank you,ebrahim
Read Answer Asked by ebrahim on July 30, 2014
Q: Hello Peter,
Thanks for your prompt replies and expert advice. I was listening to BNN last night, and interesting points were made. I have two questions:When companies buy back stock, the EPS goes up which is good for the stock; however, does it not reduce the book value. I was looking at CNR and the stock is trading over 4 times book. If this is the case, how is it that CNR keeps ticking higher (is it because it has a high barrier to entry and investors feel there is safety in the stock). Second question that came up is that the bank stocks have not hit a top. What metric would suggest a top in the banks? Is it if the PE goes over 15? Thanks again
Read Answer Asked by umedali on July 30, 2014
Q: Hi Sir, My question is about Exchange Income Fund [EIF]. This stock has taken a huge fall from +-$32 to +-$19. Are you aware of any problems and is the dividend safe? Thx Colin
Read Answer Asked by colin on July 30, 2014
Q: Good Morning Peter, It would be appreciated if you would provide your views on MAL, MX LRE, POU and SPE three months and three years out. With thanks, Colin
Read Answer Asked by Colin on July 28, 2014
Q: I am looking to add BDI, which is in your model portfolio, to my portfolio. The share price has been dropping quite steadily since mid June and is down almost 9% in that time frame. It is down 1.5% to-day. Are there developments I am unaware of which are causing this significant downtrend in a market that is up (a bit)? Or is this a buying opportunity?
Read Answer Asked by John on July 28, 2014
Q: Good afternoon,
I would appreciate your view upon the outlook for Telefonica (TEF). My only other holding in this sector is Telus.
Thank you.


Read Answer Asked by Peter on July 28, 2014
Q: I have held Premium Brands for a few years and been happy with the results. What are your thoughts going forward with this company? Thanks for the great service.
Read Answer Asked by Brenda Jean on July 28, 2014
Q: Hi Peter & Ryan,
I hold 100 shares of Keyera in my TFSA and it is up substantially. I am curious as to whether you think it might have the potential for a stock split should the share price continue to climb and what impact that would have on the dividend (since I bought it for the dividend in the first place). I know the Canadian banks are not adverse to stock splits and we also saw it with Badger. Not too sure how Keyera would view such a move. Any thoughts?
Thanks as always!!
Cheers,
Mike
Read Answer Asked by Mike on July 28, 2014
Q: Hi 5i: Previous governance issues aside, it seems to me that Enercare’s management is looking like a combination of clever and lucky. Presumably they were working on the details of the announced business acquisition from Direct Energy for the past few months, while watching the ECI share price working its way above the $12 level. They get to a deal they like the look of: immediately accretive to earnings and growing the business in a reasonably logical way. While all that is going on they get an overture from TSSP with a low-end valuation of $13.50 and when that news is released their currency for the Direct Energy business purchase (i.e. their share price) jumps up above 13.50 and they immediately sell out a $310mm financing at $13 per share to fund it. Now that Direct Energy deal is looking just that much more affordable and hence that much better; they have a bunch of new shareholders in at $13 and expecting a profit from that level; and they just made ECI into an even more valuable entity to sell to TSSP or whoever else may be interested. Initially they had responded to TSSP by saying we aren’t even interested in talking to you at $15 per share (which appears to have been a number TSSP put into the conversation). So where does it go from here? Would you consider it to be a good idea to add to a partial position (about 3%) at the current market price? To balance out my little sketch, can you please highlight the main risks for investors? Thanks!
Read Answer Asked by Lance on July 26, 2014
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