Investment Q&A

Q: You have indicated a preference for T over BCE based on growth. When I look at the analysts estimates, the earnings growth for T is 5.6% and BCE 4.6%. The forward P/E is T 16.3 and BCE 14.6. However the 1 year return to the analysts median target price is T 6% and BCE 16%. The analysts seem to feel BCE is currently undervalued. In your assessment do you disagree with the analysts assessment? Are you looking at a different time frame?
Mike

Q: I would confirm as well. I use TDB8150 regularily without penalties and works great.!!

Q: At the end of last week, there was an appreciable bump (~5%) in the Magellan (MAL) share price. Do you have any news on why this might be?

Q: 9:50 AM 8/30/2018
I would appreciate it if you could give me your opinion on Chesswood Group Ltd. Could you please comment on :

it's overall financial stability and growth prospects,
level of debts,
payout ratio,
robustness and sustainability of it's dividend,
rate of dividend growth,
level of insider ownership,
and how likely it is to do in a major market downturn.

How would you compare it to other companies in the same line of business and what would these be?

Would you recommend Chesswood for an income portfolio for a retiree and how large a position would you think prudent?

I see some insider sales recently in the $12.40 range and a lot of share buybacks in the $10.60 to $10.96 range. Does this mean the company thinks the shares are overvalued at present?

Thank you............. Paul K.

Q: Why the CRA is targeting some TFSA accounts in court; Should an average investor be worried? by Jonathan Chevreau Aug 27, 2018 https://www.moneysense.ca/save/investing/cra-tfsa-accounts-court/

I don't think this is something I need to worry about just yet as I only have $81k in my account and my wife has $106k in her KTFSA (I call it the Kinda Tax Free Saving Account because it's kinda ok to make some money just not too much). We both still have $7k TFSA room for this yr. but we also have plenty of RRSP contribution room. In light of this article, I'm wondering if we should hold off adding to our TFSA until more clarity is provided by the either the courts or CRA.

Like many, I'm sure we aren't using our accounts like a business but at the same time I don't know what triggers an audit. Nor do I wish to find out since I don’t have the time/resources to prove our innocents. I'm starting to think this may be concerning to more than just a handful of 'savvy' investors as the article would imply.

We appreciate your insight on this topic.
Thanks

Q: Regarding Michael question and Grant's comment this morning, I frequently buy and sell tdb8150 to park money for very short intervals and was told by TD representatives that it is like a daily saving account and there is no penalty whatsoever for holding even for just a day.

Q: I have been considering a small position in TV at around the present price. I hesitate though, after reading what is perhaps frustration with this stock's last 8 quarters and the company's management as well.
Could you provide some clarity. No matter the market or the business, nothing can destroy potential like management .

Thank You

Q: Hello, Can you suggest any other company US or Canada which is enjoying the kind of momentum and growth like SQ and would meet your general criteria as good long term stock? Thank you.

Shyam

Q: Can you please provide your opinion regarding O. Shares Global Internet Giants, OGIG ETF. O'Leary noted he is targeting the best tech companies with this fund. Thank you,
Linda

Q: All things being neutral, what would your expectations be for Covalon's 2018 and 2019 earnings per share? Also, can you give a brief history of their cash levels (maybe for the previous 3 or 4 quarters?)

Secondly, I know you are not fans of averaging down. However, if you WERE to average down, would you take your initial purchase price in trying to determine your percentage weighting, or would you take the current market price? Example, lets say I take a 2% position in Covalon, which theoretically I would want to be my maximum weighting. Shortly afterwards the share price falls 50% (for the sake of easy math). Would I prohibit myself in buying more Covalon because my initial purchase price represented 2% of my portfolio or would I grant myself the option of averaging down because now my weighting in Covalon represents 1% of my portfolio, assuming my portfolio value remained the same.

Thanks and good luck to the staff's kids for their new school year.

John

Q: Hello 5i,
I was wondering what your thoughts were on rebalancing. I am thinking of selling some emera, which I have too much of, and buying pbh, of which, I need more. The problem is that when I look at Emera and notice that the year high is close to $48 and the current price is near $41 and I figure I will have lost the potential of about $4000 on this sale. That is, if I wait for it to go back up again. But, of course we all know that it may not go back up again. Also, PBH may actually grow faster than Emera and so I may have a better chance of recouping my money on it than on Emera. I don't imagine that you go through all of these permutations of thought when you are thinking of rebalancing. I am thinking that your advise would be just to sell it now, if I need to rebalance. Would this be your advice?
thanks as always for the great service

Q: Which pipelines might be the least affected by the Kinder Morgan relapse or going forward .IPL,ENB.GEI.KEY.ALA,PPL

Q: Could I please have your views on Global Partners LP on the NYSE (GLP), do you think the dividend is safe and what are the potential risks with this company? How stable do you think the companies profits are? What are your thoughts on its future forecasts.

Thanks,

Q: Cineplex has had a quiet rally following their Q2 earnings. Do you think the rally has run its course or is there some upside left in the short term?

Q: Does this stock have potential still? I hold many shares and I'm down 70%. What would you guys do?

Thanks!

Q: Nearing retirement, and wishing to lower risk and shift out of some aggressive equities, that have considerable capital gains. The equities are in non-registered accounts, and will trigger considerable tax. How do you suggest to do this?

Q: It seems to me that most Short Attacks come from the USA on Canadian Companies . They hit Canadian Companies where trading volumes are not great and therefore easy to put downside pressure on the shares. Is there nothing that OSC or other gov't authorities can do about out of Country Short attacks ? RAK

Q: What large bank or investment coverage group (ie:Jeffries) would you say has the best track record for predicting future share price increases in the near and longer term.

Q: I am looking for a transportation company to add to my portfolio. With another delay in the TransMountain Pipeline, is now a good time to consider the rail companies, and if so, which one should benefit more from a possible increase in oil shipment?
With or without the oil shipments, is there another transportation company you would recommend instead, planning on a 5 year time frame?
Thank you
Grant

Q: Hi Peter,
I have extracted part of your reply to the question on Cronos , "The cross-border issue is one problem. It is hard to take action in other countries". I know you cannot guess or speculate, but can you shed light on why the short sellers have not been after Canopy or Tilray that have extreme valuations yet Citron was keen on issuing reports on companies like Shopify. I would appreciate you insights. Thank you.