Investment Q&A

Q: Hello 5i team,
My RRIF portfolio is fairly diversified. I have room to buy a position in either AVO (Technology) or BAD (Infrastructure) even though they are in different sectors. My exposure to the tech sector is 13.6% of the portfolio and comprises CSU, ESL, CGI, MDA and OTC; that of Infra. is 6.5% and comprises BIP.UN, SJ and STN.
Your opinion is, as usual, most welcome
Thanks
Tony

Q: Greetings
Regarding the Contrans (CSS) purchase offer. I just received instructions from TD and in bold print and underlined it clearly states 'holders who do not wish to tender their shares need not submit instructions' It provides for only one option that is to tender. Post this at your discretion.
Tim

Q: CSU Rights are trading at ~$0.59 and for every 21.192 Rights held, the holder of such Rights will be entitled to subscribe for C$100 principal amount of Debentures, exercisable at a price of C$95.00 per C$100 principal amount of Debentures purchased. Am I correct in thinking that the effective cost of buying the debentures is then $0.59 x 21.192 = $12.50 + $95 = $107.50? Are you still a fan of these at that price?

Q: Good luck Peter ... happy cranking... Ryan I am about to add a rather substantial amount of pension $$ into my account. I am completely covered in the Model Portfolio with existing RRSP's ...should I just step into purchasing Income Portfolio at the 5% allotment giving me 39 stocks in my total portfolio. Can you give me some direction please. TY.

Q: Hi guys,

With BKW stock continuing to climb in the last week I'm wondering what I should do with my 200 shares of THI in my TSFA? Your thoughts are appreciated.

Good luck on the ride.

Thank you,
Brent

Q: Peter - there are 2 stocks that I have owned in the past and which are now in doghouse with investors. One is AVO and the next is ACQ. Now AVO is well documented in terms of its history and its CEO. I have read your comments in the past. But this scenario will change. will the change be sudden with news of a purchase or the next set of earnings. Have we hit bottom and will the re-evaluation be sudden.
ACQ has not made any serious mistakes as far as I can tell. They have grown dramatically and taken on debt however. The CEO appears to have a vision and is carrying it out.
In 1year is it likely that these 2 stocks will be dramatically higher than now. Is it a good idea to start to dabble

Q: KBL
I am a new subscriber to 5I and nicely getting into the detailed info.
I have been a long time holder (Oct 2009) of this KBL position and need to sell a half position to offset a capital loss.
What can you recommend to purchase (2 or 3 choices)that would provide similar growth and dividend.Yield has slowly decreased from 8% to~3%. Thx

Q: CFN - dropping. Is it still a buy/hold?

Q: Canexus is down hard on the NR regarding a dispute with MEG. Do you have anymore insight into the dispute? Why would MEG refuse the tie in? I do not own it but follow it.

Q: Do you currently have any stocks on your radar that you consider bargains being overlooked by the street. Thanx Robbie

Q: Hello Peter,
I cannot seem to find the next earnings release from DHX media. Any idea and where would i find it? I did go on the website and perhaps did not see it. Also, i have been looking at the news and do not see why Amaya gaming went up so much on sept 2. Thanks very much.

Q: MFC is a cheaper stock and lower P/E than SLF, so why would you prefer SLF

Q: Hi Peter, could I please have your view on Fiera's acquisition of Propel capital.
Thanks and enjoy the bike ride.

Q: AYA, Amaya: Has a decision been made on whether they will have an additional listing on the London exchange or the New York exchange,or both exchanges or neither. Cannot find any news on this. Thanks.

Q: Hi Peter and Team:
Regarding CSS - cash offer:
I bought at $15 and cash offer is $14.60.
should I sell it at 15.25 now or wait?
I called RBC direct invest. they told me if majority agree cash offer, I have to accept it. Or majority rejected, they may make a new offer.
I think I bought at price too high. Maybe I should sell it now.
Appreciate your advice very much. thank you so much.
Adriana

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

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.

Q: Hi 5i, In my GARP account I have full positions in 3 REITs, TOU, and CGX, and half positions in AGU, TPX.B, BNS, TD, BCE, WJA, AIM, CAE, CEU, AQN, NIF.UN. I have cash to top up half positions. should I start now or let Sept, Oct play out? What order should I top these up? Should I sell any?

Q: Hi Guys, since joining in January, I have transformed my portfolio into the 5i model, thanks for the guidance. I just found some extra money, do I;
1) increase my half positions in PKI, DSG or Ciniplex
2) buy a full position in QST, DHX or.................
3) hold cash
I am long term investor, 5 years +
Good Luck Peter with the ride, be safe and enjoy the journey!
Jim

Q: VII.US/AVO
Are VII and AVO in direct competition? As per a quote from VII's statement, "highly regarded brands within the security industry allows us to bring a compelling and completely proprietary video solution to our customers”, does one have better security solutions or do they each have specialized niches? I would appreciate your opinion and if possible a brief evaluation/comparison of VII. I'm also considering owning both for a combined full position. Reasonable? Thank you.