Investment Q&A

Q: Hi there,

Regarding Reitman's (RET-A), four to five years ago I bought this stock at about $14. Its dividend has steadily increased to an uncomfortably high level while its share price has dropped to around $8. Should I hang on to it and wait for a recovery or dump it now?

Thanks,

Steve

Q: Re CPX: On April 13 you answered "Capital Power will likely be completed after the next quarterly report, on April 26." When do you expect an update? What's your opinion on the stock - to hold or sell at loss? I am down about 14% after the recent drop.
Thanks.

Q: Fortis (FTS)--re the attempt to acquire Central Hudson. There are disturbing reports of Fortis' behaviour concerning their work in Belize and other overseas areas. Do you know how much truth there is to these claims? Or are the CH people just so against the use of fracked shale gas that they'll say anything to block Fortis in their area? This could influence my retaining (or not) of my stock in Fortis. On a strictly financial basis, would you keep Fortis at this point?

Q: Hi,

I am fairly new to the trading game and with the recent talk of rising interest rates, many analysts are saying it will have a negative affect on pipelines and utilities?

I don't understand the correlation between the two. Could you please provide your comments.

I currently own IPL.UN, Gibson and Arc Energy. Small weighting in my portfolio.

Thank you.

Q: Could you please comment on the article in today's Globe and Mail titled "Dividend investors: Say no to banks".

http://www.theglobeandmail.com/globe-investor/inside-the-market/dividend-investors-say-no-to-banks/article12363147/

Thanks

Q: Good morning 5i,

I got shares in IPL.un, BEP.un, BCE, and BA which are all stocks that are in the mix of selloff these days because of their divident payout. All together these stock would give me a small gain if sold. Am I better off keeping them or sell them?

Q: Hello Peter and 5i. You last answered a question on DCI May 17th and as it continues to pullback I am hoping you can supply a buy, sell or hold rating for the stock. Thank you. Barb

Q: Thanks for all the info and insights. Understand that some costly executive changes are about to occur (or have) at IPL.UN. Does this presage the end of the 'party' in terms of share price appreciation? or will it just be a short term blip?

Q: My wife would like to know your thoughts on buying Algonquin (AQN). It is down slightly so she is interested.
Gary

Q: Any update on Easyhome EH? Your last report was March 2012. I'm interested in investing given good Q1 results, dividend and outlook, but would like to get your opinion first. thanks. John.

Q: A couple of answers recently have mentioned 'sector rotation started last week'. Could you elaborate on this?

Q: GEI -Gibson Energy seems to be experiencing a bit of a pullback. Would this be a good time to get in and do you still like it? Thanks - you guys are the best!

Q: Peter, Brookfield Renewable is down again this morning. I bought more last Thur and will buy more today if you are still an A- on it. Buying for div. and cap. appreciation. Ken

Q: PPL :Pipelines, Utilities and REIT's declined sharply last week, presumably due to fear of rising interest rates, sooner than later. It all started after recent US Fed comments. After remarkable gains in these sectors over past few years, do you think, we could see a major correction in these sectors in near term? Is it prudent to cut back these positions now? Also, which pipeline stocks are most vulnerable? Thanks for your valuable insight.

Q: Peter,

Further to your response below re: companies / sectors to own in a hypothetical rising rate environment, and more importantly, what NOT to own (Utilities), "you could see some big stock drops, and investors might be surprised". You have Enbridge in the portfolio, as do I, I know you say its early (which I lean towards as well), but at what point do you start reconsidering the thesis that "its early" should an Enbridge consider to slide given its high PE?

Would you instantly advise your members when to sell something in the model portfolio?

Thanks team, great work.

Q: Peter please excuse my lack of knowledge with this question.
A guest on BNN said the FED have turned the equity market into a bond market with QE and these low interest rates - HOW SO?
- The FED keeps interest rates low (lowering yields)
- Older bonds will go up in price as yields drop?
- Treasury buys up the mortgage assets and or bonds from the banks to re-capitalize them and put money back into the economy and try to force a rotation of money out of bonds.
- Companies (equities) can borrow cheap, increase: revenue, earnings and dividends, and stock prices go up - like bonds??
Is this what the guest was talking about?
Is it creating a bubble in high paying dividend stocks?
When will it burst?
I'll let you decide if you want to post this.
Thank you.

Q: Hi 5i Team. Do leasing companies like Element EFN and Chesswood CHW make more or less money in in increasing interest rate environment? If you can comment on how a rising interest rate environment may impact there stock price that would be great

Cheers
Darcy

Q: Hi Team,
I require a fixed income investment. Bonds and GIC's just aren't worth it! I was thinking of buying a preferred share from GMP (GMP.PR.B) The yield on the preferred is around 6.70% plus capital appreciation. My decision comes down to weather GMP will survive long enough and have the resources to pay out the preferreds when they come due in 2016. What would be your thoughts on this company and investment.

Regards
John

Q: HI TEAM 5I , WHAT IS YOUR OPINION ON ATCO (T:ACO.X)
THANK YOU

Q: Good morning! You state there is a sector rotation going out of stocks/utilities this week. What causes such a shift? Are there "typical" sector rotations that happen annually?
Am I correct is assuming that, in general, nothing has fundamentally changed with these companies, and if a company like ENB was suggested before the price drop, I'm just getting it at a better price? I've already purchased some and wonder how much more the price can decrease...
Thanks for this fabulous service --- it's great for do-it-yourself newbies like me!