Q: What is your reaction to the large fall in Qly profit and, in particular, the "asset impairment charges"?
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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: I would like to start by stating that you are very patient, answering similar questions about same stocks over and over. My question is no different. I have been considering a position in Enbridge and have been hesitating for some time now.
Its price has decreased quite dramatically in the recent past and this may (or may not) be a buying opportunity. From all the posts I`ve read, and there are many, it is clear that this is a buying opportunity (but so was it at $50+). Some concerns that I have follow:
Debt. How much debt is too much? I've made (big) mistakes with GE and others. I am trying to learn from my errors, from your input and from the community at large. My understanding is that the leverage ratio is quite high. Interest rates are on the rise. Debt (with the exception 2015 to 2016) has continuously increased during the last 5 years (where it is almost twice as large today as it was 5 years ago). In 2016 the company increased its cash balance by approximately $1B (vs prior year) but still has about $65B in debt. How long will it take to possibly pay this off and with rising interest rates are we at risk of potential default in the future? I am a long term investor and would hope to avoid surprises down the road.
Retained Earnings. This number has dropped consecutively over the last 5 years. I do not think this is a positive sign.
P/E ratio. In my opinion, this is not a growth company and has quite a high P/E ratio. Albeit net income and cash flow have increased, revenue has not really changed much over the last 4 years. At end of 2016 its revenue was a bit higher than 2013 but lower than 2014. Numbers should increase at both the bottom and top.
Any additional commentary, over and above that already expressed in numerous other similar questions you've responded too is appreciated. We must be missing something. You must see something that we don't see. It is also possible that we are over analyzing this. I mentioned a few concerns above (ex. P/E ratio) and could have found other concerns but you may be looking at specific ratios/mgmt/new business/..., otherwise every company would probably have problems. Finally, would you be a buyer of this company at this time and/or would you be buying a competitor in its place/why?
Thanks again. I am quite sure there are many people like myself that read your input, use it to make investment decisions but even more importantly, we use it to further our own abilities to make sound investment decisions, and we thank you for that.
Its price has decreased quite dramatically in the recent past and this may (or may not) be a buying opportunity. From all the posts I`ve read, and there are many, it is clear that this is a buying opportunity (but so was it at $50+). Some concerns that I have follow:
Debt. How much debt is too much? I've made (big) mistakes with GE and others. I am trying to learn from my errors, from your input and from the community at large. My understanding is that the leverage ratio is quite high. Interest rates are on the rise. Debt (with the exception 2015 to 2016) has continuously increased during the last 5 years (where it is almost twice as large today as it was 5 years ago). In 2016 the company increased its cash balance by approximately $1B (vs prior year) but still has about $65B in debt. How long will it take to possibly pay this off and with rising interest rates are we at risk of potential default in the future? I am a long term investor and would hope to avoid surprises down the road.
Retained Earnings. This number has dropped consecutively over the last 5 years. I do not think this is a positive sign.
P/E ratio. In my opinion, this is not a growth company and has quite a high P/E ratio. Albeit net income and cash flow have increased, revenue has not really changed much over the last 4 years. At end of 2016 its revenue was a bit higher than 2013 but lower than 2014. Numbers should increase at both the bottom and top.
Any additional commentary, over and above that already expressed in numerous other similar questions you've responded too is appreciated. We must be missing something. You must see something that we don't see. It is also possible that we are over analyzing this. I mentioned a few concerns above (ex. P/E ratio) and could have found other concerns but you may be looking at specific ratios/mgmt/new business/..., otherwise every company would probably have problems. Finally, would you be a buyer of this company at this time and/or would you be buying a competitor in its place/why?
Thanks again. I am quite sure there are many people like myself that read your input, use it to make investment decisions but even more importantly, we use it to further our own abilities to make sound investment decisions, and we thank you for that.
Q: Hi 5iResearch Team,
I have held a position on ENB for 4 plus years now and it has been a disaster these past couple of years. I am thinking of swapping ENB for AQN and would like to have your comments on this intended move. Much appreciated.
I have held a position on ENB for 4 plus years now and it has been a disaster these past couple of years. I am thinking of swapping ENB for AQN and would like to have your comments on this intended move. Much appreciated.
Q: What is happening to ECN. It keep going down. At current rate it will be a 3$ stock by the end of Feb.
Thanks
Thanks
Q: Based on the news for $EFN, how do you think this will affect Investors in $ECN.
Thanks Valter
Thanks Valter
Q: Couple items. Large financial release - your comments please? Cannot find the dividend amount. Have they released that yet?
Q: Hi folks,opinion please on Nutrien ntr/t on Q results,guidance for 2018,and,would you rate a buy,hold,or sell. Stock hit new 52wk low,is it a good entry point. Thanks as always, jb
Q: Peter & Associates
Using Enbridge Inc. as a bellwether, yearend numbers from 2000 to 2009 produced the following averages: A mean P/E of 16.5, (several years in the 13 range) a growing dividend with an average yield of 3.1 % representing 50% of earnings and 75% of 10 year TBs when they ranged from 5.4 to 4 %. A check of a recent brokerage report places its debt level at 60% which seems well in line with those over the referenced period.
Clearly the dynamics have changed. Might what is playing out in industries which traditionally need constant access to new capital, be it common or preferred shares are seen as better planning tools providing them with greater option flexibilities than fixed income alternatives? Whereas interest payments must be made, dividends must be declared? With concerns being expressed, a 10 year rate over 3% could do more harm than good, is ENB oversold and at this price too good to be true? It would seem rates would have to rise a lot to actually come into competition with the yields ENB equities offer.
If someone were investing in an ENB for yield, it would seem logical to suggest they would also seek moderate capital risks, far less than what this one has experienced. Is a projected forward P/E of 20 and a dividend over 6% which ENB claims will increase, warning signals? Assuming it is a good bellwether security, how much more downside could this stock potentially see and/or how likely/ risky the need to eventually cut the dividend ( common)? Albeit a very different industry and dynamics, energy stocks had to make cuts to reflect their financial realities; even non CAD banks went through well documented challenging times. The point, no industry is immune from economic realities and their balance sheet realities. Concerns over debt are being expressed as rates rise.
Having a well balanced portfolio is a protection but, so called bond proxies are found in multiple sectors and collectively can add up to an important exposure. There is an expression, things tend to eventually revert to their mean. That said, might we be seeing the start of that occurring since these are not generally seen as growth stocks where earning growth is the offsetting factor to deal with these high ratios?
Would very much appreciate your insight. Thank you.
Mike
Using Enbridge Inc. as a bellwether, yearend numbers from 2000 to 2009 produced the following averages: A mean P/E of 16.5, (several years in the 13 range) a growing dividend with an average yield of 3.1 % representing 50% of earnings and 75% of 10 year TBs when they ranged from 5.4 to 4 %. A check of a recent brokerage report places its debt level at 60% which seems well in line with those over the referenced period.
Clearly the dynamics have changed. Might what is playing out in industries which traditionally need constant access to new capital, be it common or preferred shares are seen as better planning tools providing them with greater option flexibilities than fixed income alternatives? Whereas interest payments must be made, dividends must be declared? With concerns being expressed, a 10 year rate over 3% could do more harm than good, is ENB oversold and at this price too good to be true? It would seem rates would have to rise a lot to actually come into competition with the yields ENB equities offer.
If someone were investing in an ENB for yield, it would seem logical to suggest they would also seek moderate capital risks, far less than what this one has experienced. Is a projected forward P/E of 20 and a dividend over 6% which ENB claims will increase, warning signals? Assuming it is a good bellwether security, how much more downside could this stock potentially see and/or how likely/ risky the need to eventually cut the dividend ( common)? Albeit a very different industry and dynamics, energy stocks had to make cuts to reflect their financial realities; even non CAD banks went through well documented challenging times. The point, no industry is immune from economic realities and their balance sheet realities. Concerns over debt are being expressed as rates rise.
Having a well balanced portfolio is a protection but, so called bond proxies are found in multiple sectors and collectively can add up to an important exposure. There is an expression, things tend to eventually revert to their mean. That said, might we be seeing the start of that occurring since these are not generally seen as growth stocks where earning growth is the offsetting factor to deal with these high ratios?
Would very much appreciate your insight. Thank you.
Mike
Q: Hi 5i,
Can you please comment on the ER this AM?
Thanks!
Can you please comment on the ER this AM?
Thanks!
Q: Hi there, I purchased some shares of COV based on your recommendation and it has done extremely well since. Would you be inclined to take profits at this point? I have about a 50% gain. Or would you let it run further? Do you foresee it continue to run up based on your metrics?
Thanks so much!
Thanks so much!
Q: Hello, in my last question you recommended CLS as an addition to the technology part of my portfolio. Could you explain the reason? From what I see, it's share price is at the same point than 2 years ago, no momentum, no dividends. Are there some interesting developpement in the business? What rating would you give it? Thanks.
Q: Hi Team, Re: AVO what other company could make a bid for it and how much better could the offer get. Within reason how much would another company offer based on AVO's valuation. Thanks, Nick
Q: Considering the big drop is a great buying opportunity, which would be your top picks from the income portfolio ?
Q: I currently own GPS at only a 1.65% weight and in a loss position and wonder if I should buy more to bring it up to 2.0%-2.5%. My weight in the technology is good.
Thanks
Thanks
Q: Hi All, is the dividend safe here with all the debt the company has?
Q: If someone is sitting with cash to invest and does not have very much in the market currently which 5 to 15 (or more) companies would you suggest? Please consider the recent sell off. Also consider picks from your various portfolios with emphasis on your balanced portfolio or even other stocks that are not in your portfolios.
Q: ITC and stream tv networks agree to a 60-day extension of secured promissory note from Feb. 1/18 to April 2/18. What does that mean? Does ITC owe stream tv networks money and their cash balance is not sufficient to cover it? I note insider buying. Could itc be a takeover target?
Q: Considering the big drop today is a great buying opportunity, which would be your top picks from the balanced and growth portfolio ?
Q: Can you outline the process forward if the deal is completed. If we hold the shares until closing what happens then.
Thank You
Thank You
Q: I am following the BE portfolio. In tech, I already own Constellation, Kinaxis and Photon. If I want to add to technology, which of CLS or SYZ should I choose at the moment? Any particular stock with good momentum? Last time you answered AVO but I was too late in purchasing. Thanks!