Investment Q&A

Q: Peter,
As far as dividend sustainability do you look at dividends as a percentage of free cash flow or operating cash flow?

Thanks

Paul

Q: A presenter on BNN Bloomberg displayed a chart showing that bond prices are rising while preferred share prices are declining. He claimed the divergence was due to most preferreds being rate resets and the changing outlook for interest rates was dashing the hopes and expectations of preferred shareholders for a better rate when they reset. However, since the rate resets are tied to 5-year bond rates and provide a premium over that rate, I would expect them to trade in the same direction as bonds. What do you say?

Q: The 5% interest rates from Co-Power Green Bonds is very tempting. How safe are these investments?

Q: would you invest in junior oil and gas stocks at this time, and if so, what would be your top 3 or 4 choices? Thank you

Q: I have been reluctant to invest in the cannabis industry as there did not seem to be much understanding of the industry as a whole or little (if any) rhyme or reason as to valuations. While acknowledging that things are still far from stable, I do sense that a greater understanding of the industry is developing since legalization in Canada occurred. I am now seeing some thoughtful reports on potential annual demand, analyses of corporate cost structures, critical discussion of common industry issues and a separation of the better companies from the laggards

Would you agree with this assessment? If so, do you feel that enough solid fundamentals and information are now in place to warrant investing in this ETF?
It is up over 50% in the past month so are we witnessing irrational exuberance and a probable bubble or reasonable expectations based on real growth prospects?

Appreciate your insight.

Paul F.

Q: My daughter holds the above cannabis stocks in her TFSA all,of which are offside between 13% ACB, AUSA 87% and GENE 40%. Are any of these worth holding or should she bail?

Q: I purchased these ETF's a little over a year ago as my first outside of North America holdings. Just wondering what your thoughts are about these. I do have a long time frame.

Q: I know you do not officially cover any U.S. names, but are there are any large cap dividend payers that would garner a "B" or higher rating using your methodology and you would consider worth a look at current levels with a long term holding period in mind

Q: Hello 5i,
Let me say first of all that I thank you for venturing out beyond simply stock analysis and providing many of us with answers and advice to broader financial questions. This may not even be in your mandate. But, it is certainly appreciated.
Following the good words is such a question:). I have always loved making what looks like free money on dividends. But, I have been wondering lately whether I might be better off moving to a capital gains strategy, instead. I am only at the beginning of this inquiry and wondered whether you might be able to steer me in the right direction.

I have been looking at swap based etf's as one possible way of doing this. Would this be the best way? what recommendations might you make?
I also don't know quite know where to start in determining whether this would be a better strategy for me. I am wondering if in your portfolio review whether you would from time to time, look at the tax consequences, as well as the asset allocaton?

thanks as always

Q: Could you give me your take on its latest acquisition. It is partially funding this through new stock issuance, and the market has reacted to that. What I would like to know is whether this is a better reit at this price than it was yesterday before the deal at its previous price.

Q: In the past, 5i has often made reference to a falling stock's "floor value" as a barometer to judge future risk/potential. In the case of SNC for the value investor, what would your estimate be as to how much of the 407 ETR asset is represented in the current stock price? I imagine this is one of Ontario's most attractive infrastructure assets. Are markets pricing in any stock value beyond the 407 asset?

Q: Please recommend 1-2 Canadian companies ( I have KXS) do you recommend that derive revenues/earnings mainly from cloud computing?

Q: I am up on ABBV but think it is time to move on. What are your views on Stryker (SYK)? Any recommendations on other US Health stocks would be appreciated.

Q: SJR.B is in most of the investor portfolios. TD Waterhouse has Action List rating on this along with RCI.B. Is there anything in SJR.B and RCI.B over Telus and BCE that other investors are liking? Thanks

Q: I've owned CXI for awhile and has done nothing. I am slightly down...should I move on or be patient?

Q: Could you please comment on Cyberark (CYBR on the Nasdaq)?
Many thanks.

Q: Peter could you suggest 5 can or us stocks that have a div us I have $15000 to invest for each one
I am a conservative investor looking for div income
Thanks for your opinion
Pat

Q: Thanks 5i for your unbiased insights and for introducing me to many new Canadian growth stocks that I had been unaware of.

Question on Constellation. CSU seems to have some conflicting attributes for a typical tech stock. It trades at a very high PE ratio, 58, yet a low beta of 0.53. Can you explain why this stock trades at such a high valuation with such low volatility?

Q: Currently hold Airboss and am down 57% since purchase. Do you see any hope for this company in the next 12 -24 months or is it better to sell and move on to better candidates? Hard to watch this one continue melting away.

Q: Yesterday’s question regarding short interest for Tsgi, what is the website for short interest?
Thanks always