Investment Q&A

Q: Hello 5i team,
I own a full position of CHE since 2012 and my total return of over 10% compound annual is mostly yield. As of recently, I also own half a position in MX. The other player in the field is SPB which I do not own.
(1) If you had to select only one, would it be MX?
(2) Is there a case to be made owning a position in all 3?
Thanks,
Antoine

Q: Please suggest 5 stocks that you think have a potential catalyst in the next 6-12 months that could result in higher than anticipated returns and indicate what those potential catalysts could be. Not looking for any micro-cap or very high risk suggestions. Thanks, and have a Happy New Year!

Q: I want to add a bit to my energy allocation and am debating between Vermilion and Superior plus. Any suggestions? My only holding at the moment is PKI

Q: Greetings 5i,

Your thoughts on Superior Plus Corp.

Thank You and all the best in the New Year!

Q: A couple of years ago I transferred 25% of my sdrsp into a sdrif so I could set up the basic structure and start adjusting to appropriate holdings to produce a revenue stream and a bit of growth. I will transfer the remainder of the RSP in 3 years. I have gradually been selling stocks that do not seem to fit and have been moving the proceeds into some of the 5i income portfolio. I currently hold 9 of them, as follows :
ABT, BCE, BEP.UN, BNS, ENB, ET, FSZ, XHY, WSP

I have some cash available and would appreciate your suggestions for which 3 or 4 of the remaining ( ADW.A, AGU, AW.UN, CPD, CVD, ECI, L, SPB VNR, ZRE) you would suggest I acquire. Also, given possible year end/new year movement and events, could you shine up your crystal ball and give any comments on what timing might be best for those acquisitions?
Please note: I hold IPL (6%) as well as ENB (8%)– would you recommend IPL be changed to VNR ?

(I also have a fully funded TFSA with a growth tilt and a non-registered account with a dividend/growth tilt and OAS/CPP gvt pension).
As always, THANK YOU to Peter and the 5i Team for being there ... May your Christmas' be Merry and Bright !

Q: As a follow up to my question Dec 2nd about energy:
1. What is the difference between ENF and ENB?
2. My scepticism about energy, particularly upstream, is due to direct impact and volatility arising from commodity markets, in turn strongly affected by politics. This may now be compounded by low expectation of growth. Comments?
3. Philisophically, I don't like Superior Propane (SPB) much. When I bought it, it was as I recall in a single industry - propane. It since added divisions for specialty chemicals and construction products which seem wholly unrelated and lacking synergy with the core business. I vaguely recall their recently selling or planning to sell one of these unrelated divisions. In principle, I have a problem with companies expanding into unrelated businesses, unless their stated mission is to be a diversified investment vehicle. Comments?

Q: In light of the big pipeline announcements today by the liberals could you please group the above stocks as to the winners and losers. e.g Big winner, Winner, No Effect, Loser and Big Loser. This is very topical and stave of some questions and be worthy of an article. I look for to your answers and advise as always.
mike

Q: We depend on dividends for half of our income so I would like to get your take on SPB. BNN gives it 3 strong buys, 2 buys and 1 hold, while BMO gives it 4*, 3 buys, yet ranks it as overvalued and bearish. I'm thinking of 1500 shares for a half position. Opinion please. Thanks - ted

Q: Good Day - What are your top 5 income stocks right now for long term (with distribution of approx 5% and above)?

Q: Looking for yield with some growth and would appreciate your opinion of each of these.Would appreciate your ranking in order of preference.

Q: Hello I5, my cash position is over 25% and would like to reinvest some of it. I would like to have your help to choose the ones with the least downside effect in case of interest rate increases, safest with some growth. Also, would appreciate your assessment of the Manulife (MFR and MBK)ones. Many thanks, J.A. P., Burlington

Q: How would you compare SPB and AQN for growth and dividend sustainable going foward ?

Q: Would appreciate your analysis of Superior's third quarter financials.
Thank you.
G

Q: I submitted this question last Thursday and received the auto response that my question had been submitted but since I haven't received a response I will try again.
My question relate to the income portfolio. We own many stock from the 3 portfolios but now that we are about to retire, we are trying to mimic the income portfolio. I understand that if one already owned ET, SPB, VNR, and DH that we should stick with them however, if one was constructing an income portfolio today can you suggest substitutes for these names? Also, given the dividend that ZCL pays, would it be suitable for an income portfolio?
Thank you.
Maggie

Q: Do all above companies fall under Industrial? My total weight is 13% Is this too high? I feel that I have too many companies in this sector and may be better to have only 4-5? STN and WSP are similar so would it be better to sell one of these and add to the names that are listed. I am also thinking of selling ET and taking the proceeds to add to the other names now leaving me with 5. Is this a good approach?

Thanks
Dolores

Q: SPB just announced the suspension of its DRIP plan. What is rationale for any company, like SPB here, to do so?

I always thought a DRIP plan is a good way for a company to conserve/manage its cash flow while the additional share dilution is really at the expense of its existing shareholder base. Hence it is to a company's advantage to have a DRIP.

What is your view on the pros and cons of a DRIP? Please enlighten us. Thanks.

Q: I have been trying to decide between SPB and CHE. My own thinking concerns an improving outlook for the chemicals industry. Do you agree that CHE would benefit more than SPB in this regard? Or do you think I should just look elsewhere entirely for growth in the chemicals sector? And can you comment on how SPB looks post-earnings? Thank-you very much.

Q: What do you make of the SPB Q2 reported results? I am so lost trying to decipher what it all means and have to stop before I bend my head totally out of shape. Please help explain that in plain simple English. Thanks.

Q: Good morning Peter and Team,

Superior announced the following today:

TORONTO - Superior Plus Corp. (TSX:SPB) is selling its construction products distribution business to a U.S. company for the equivalent of C$420 million.

The US$325-million agreement was announced Tuesday by Toronto-based Superior, a few days after the collapse of a proposed takeover of Canexus Corp., a Calgary-based chemical company.

Superior Plus has a diversified business in three industries, including propane distribution and specialty chemicals.

It says the divestment of its construction products business will simplify Superior's organization and provide cash to reduce debt.

What is your take on this? Do you think they'll achieve their goal of debt reduction? (SPB has been a frustrating stock for me, as I bought it at $11.75, and it closed yesterday at $10.94. However, the yield of 6.75% is nice, given that I hold SPB in my RRIF.)

Thanks as always for your valued advice.

Q: As a long time holder of Superior, I was disappointed when they bid for Canexus, just when they were improving their debt situation. What is your opinion of SPB if the Canexus deal goes through, compared to if it doesn't. Which would be better for the company, long-term? Do you consider the dividend reasonably safe in either event?

Thank-you