Investment Q&A

Q: In our unregistered, income account I recently sold LIF and have decided not to return to that stock after 30 days. Instead, planning to buy more of one or two of the existing stocks.

Since this is an income account, yield is important and also quite happy to see total account balance steadily increasing whilst tapping off the cash.


I need some help deciding which ones to add to, and have 3 criteria:
1. Best yield
2. Current portfolio weighting
3. Best value over next 5 to 10 years

1. From highest to lowest yield:
TCL.A, BCE, AQN, EIF, BNS, CPD, T, SLF, QSR, ZRE, RY, LNF, FTS, BEPC, NTR

2. From lowest to highest weighting:
ZRE, LNF, TCL.A, QSR, AQN, NTR, BEPC, SLF, CPD, T, BNS, EIF, BCE, RY, FTS

3. Can you please help me to rank these stocks from highest to lowest value / growth prospects, or if that is to big a task. Please recommend overall best 3 selections given my criteria.


Thanks,


Jim

Q: I have TCL.a in a tax-deferred account and show a significant loss — 50.1% below my cost. I cannot use the tax loss. I follow only US shares , and 95% of my folio is in US-listed companies. I do not follow Canadian markets at all and was therefore wondering why on earth I bought this awful entity.

I have no clue EXCEPT since I would buy Canadian shares only if suggested by 5i or if the security appeared in the 5i portfolio.

Was this company EVER in the 5i folio? (I do not check the Q & A section; too many questions contain a bewilderingly long—very long— list of symbols that make it tediously difficult to read).

On TCL.a I checked reports from RBC-DI , iTRADE, Thompson Reuters, Research Team, StockCalc, StockReports, CFRA and several others. RBC is the only analyst that does NOT hate it.

When I took a closer look at TCL.a , I find it has a horribly, outdated business model. It has done nothing for years, and share price has gone only down. No analyst seems to have a clue how this ancient business model can ever work.

What do you think of TCL.a ? It does not matter that I find it maddening, meaning please disregard my prejudices and my frustration with myself for buying, then holding, something I didn’t take time to review. I am looking for a fresh independent opinion.... a very FRESH opinion from you, AFTER it reports tomorrow (June 8).

Q: Hello 5iR,
What is your opinion of the latest earnings and of the stock. Would you consider it a buy? Thank you. Cheers

Q: I have an unregistered account which we use to generate long term dividend income. There are currently 9 holdings in the red, and 9 still in the black.
I am debating whether or not to sell some of the losers to capture capital losses. Then, in 30 days reasses - either repurchase same or redirect cash elsewhere.
In order of biggest to smallest loser, based on $:
LIF, SYZ, LNF, QSR, TCL.A, ZRE, AQN, BEPC, EIF

In general, I'm quite happy with the performance of this account in this declining market environment. Although the capital has declined a bit, the income stream has been quite stable.

Question 1: Please comment on the merit of this idea. Lose one or two dividend payments now for sure versus banking a loss for future tax benefit sometime. (retired, no earned income)

Question 2: Would you consider any of the 9 names above unsuitable for this account?

Question 3: Which of these 9 names are most likely to have further to fall?

Q: Hi Peter and team,
I currently hold Transcontinental and could increase my position to a larger holding. Alternatively, thinking about selling for small loss (not crucial to do so) and switch to TFII (the sell off price is tempting).
I am low on industrials and could easily add another full position. I own Brookfield infrastructure at full position.

Do you think TCL will remain stable with relatively safe dividend? switch to TFI or add to TCL instead.
Focus is more on income, so also considering addition of EIF as I am low on industrials. I like the high dividend.
Would appreciate your comments/suggestions.
Thank you.

Q: I have been following KUT for some time and am wondering if now is the time to pull the trigger and buy some for my small cap portfolio. Yesterday's results appear very good to me - EBIDTA up 55% and Revenues up 42% YOY (52% constant currency).....how do these results compare to expectations and any reason you can see for the weakness (albeit on very small volume) after the Q announcement?

Could you also comment on TCL.A's continued weakness and if it is worth holding in my income portfolio. The dividend is nice and I don't mind holding if its safe and there is a reasonable expectation that the stock will be higher in 3-5 years.

Thanks for the support and all the great insights over the years

Scott

Q: Follow up to your answer to Greyhair on TCL.A Are TCL.A days numbered in the income portfolio? Bought a position after the drop last fall but the slide seems to continue. Yields is good but is it time to move on?

Q: Hello,

What happened to TCL, is it a good entry point or we need to let the dust settle.

Thank you
Ed

Q: Hi Peter
Will the city of Montreal opt-in decision significantly affect TCL ? If the stock drops further on this news, is it worth buying at this level?

Q: Hello,
Have the earning been consistent and are they still on there long term growth plan.
If positive, would it be good to add to one's position since the yield seem to be solid.
Thank you
Ed

Q: would like your view on transcontinental tcl.a
many thanks

Q: Thoughts on recent quarter please, dividend safety, outlook for the remainder of the year, and if one could add here once reaction to the earnings disappointment settles.

Q: This stock is included in your income portfolio, purchased at $30.00 ish and now trading at considerable less. Are you still a believer any way?

Q: The multi voting shares trade at a ~5% premium to the subordinates, is there a coattail provision for the sub shares in the event of a takeover/privatization and how likely is this considering the family ownership?

TCL.a is in the Income portfolio at a 2.5% weight and 38% reduction from purchase price, would you consider the weight appropriate, and with an event such as a takeover would you expect a premium close to what was paid for the shares or could it possibly be a takeunder?

Q: Looking for income other then growth. Thinking of replacing CAE.CA with TCL.CA is this a sound move?

Q: I used the recent weakness to add TCL to my portfolio a few weeks back when I felt the slide had ended. Starting to feel like I jumped in too early with the further drops in the past week... Are you still strong supporters of TCL in the income portfolio? It does have a good yield so not an issue if you still like the company long term.

Q: Hi Peter
Couple of days ago, there was a news item about "Advanced coating". Is this a new business that Transcontinental has entered into? Is this the reason why the stocked dropped by over 3% today?

Thanks

Q: How do you see this company managing in an inflationary environment? Do you see this as a good entry point? Are there other names in this sector you would prefer right now? Interested in dividends. Thank you!

Q: Can you give me a list of 5 Canadian and 5 US stocks that you would recommend with yields above 3%.

Q: You recently said in an answe to Gerry’s question that you didn’t see transcontinental as a growth stock. Please don’t take this as a criticism, but I remember a couple of years ago or so, that you recommended it because of the promise it’s new packaging acquisition offered. At that time I understood that you thought it had some wind in it’s sails. Just trying to understand if you think that this didn’t pan out. Or, if perhaps you offered it as an income stock at that time.
Thanks as always for your great assistance