Investment Q&A

Q: This is not a question- but a challenge to all 5I members who have not yet contributed to Peters ride. If you have benefited from your membership here & the advise you have received please contribute what you can! Peter has raised 88% of his goal- lets not let him come up short!
Les

Q: Hi Peter and Team:
Regarding CSS - cash offer:
I bought at $15 and cash offer is $14.60.
should I sell it at 15.25 now or wait?
I called RBC direct invest. they told me if majority agree cash offer, I have to accept it. Or majority rejected, they may make a new offer.
I think I bought at price too high. Maybe I should sell it now.
Appreciate your advice very much. thank you so much.
Adriana

Q: Hello Team. Thank you for the updated reports. I am trying to figure out how you come up with the month % returns (not incl dividends)?? Some work out exactly and some not! EG: VNR bang on but WSP not so. (as well as others across both PFs) Please clear this up for me. Good luck Peter on your brave ride across our wonderful Canada!

Q: Pipelines:
In looking to add pipelines to a balanced portfolio what is your preference when it comes to company size,looking at growth first and income second. I.E. ENB/TRP vs IPL/PPl. If chosing one, which would it be? (or other suggestion) Also how do you feel SCL fits in to the mix. As a supplier of pipeline coatings, is it a redundant play or a stock with different qualities/prospects than pure pipelines?
Thanks very much as always!

Phil

Q: A group of 8 Pipeline and Midstream companies analyzed by a broker has a 2015 forward PE of 28.4, after removing a high outlier, VSN. To me this number seems quite lofty and I'd like to know how it compares historically, say in the group's last cycle peak; after all how much growth can this group generate? I know the analysts say that growth is visible years out but it seems N. America is presently awash in oil with an average 250,000 BPD being imported by Eastern Canada from the U.S. so if shale oil continues to expand production, and there's no consensus on this prospect, would that be a catalyst for the group to stumble or accelerate growth? It seems likely that the growth number should be far less than 28% too, hardly justifying the PE.

And it seems the group is analyzed on its AFFO yield (like REITs) of 6.3% for 2015. Should interest rates rise would the group be hurt by the rise? Current stock yield averages only 3.6%. In the group I hold ENB with smaller positions in IPL and ALA; stock prices have been on a 45 degree climb for several years now - time to take profits or just watch closely? Thanks, J.

Q: Please give an update on RME. I am told there has been some insider buying but cannot confirm this thru sSedi

Q: Hi 5i, In my GARP account I have full positions in 3 REITs, TOU, and CGX, and half positions in AGU, TPX.B, BNS, TD, BCE, WJA, AIM, CAE, CEU, AQN, NIF.UN. I have cash to top up half positions. should I start now or let Sept, Oct play out? What order should I top these up? Should I sell any?

Q: Can you please give me your current thoughts on ten peaks coffee (TPK) based on their latest quarterly results (August).Seem to be pretty good on the surface.What is the dividend payout ratio?
Thanks for your excellent service!!!

Q: Hello Peter et al.

I was wondering what your viewpoint is on INA.V after the latest news release on their 2nd Q results. They own a portion of a great asset in Huntington in the North Sea and it has great potential but always seems to run into hiccups due to bad luck or outside forces. It did some financial maneuvering with their calls and Puts with BP concerning future production and the stock got killed on Friday. I still hold the stock and hope they can somehow reach their potential but it appears that they are always at the mercy of outside upsets (BP's CAT gas export pipeline - another planned shutdown in November for a month). The financials for the next two quarters do not seem like they will improve so will they survive until 2015 for me to see some return on my investment?

Also it is coming to the week after Labour Day and most times it appears what ever way the market goes during this upcoming week is a foreshadow for the rest of the year (I.e. The big boys are back from their summer holidays in the Hamptons). Do you subscribe to this point of view?

Look forward to your response.

Brendan

Q: Hi Peter/Team,

Good luck on your ride Peter. Come back safely - we really need you here! ;-)

I have a question about some US funds I read about on Seeking Alpha. I know you focus on Canada but would appreciate any general or specific comments about these funds.

I paraphrase the description by a poster: "...funds are around half US stocks and around half foreign stocks, and write covered calls against some of the shares in the portfolio and have payouts over 8-9%."

Here is the list:

EXG.US Eaton Vance Tax-Managed Global Diversified Equity Income Fund
IGA.US Voya Global Advantage and Premium Opportunity Fund
IGD.US Voya Global Equity Dividend and Premium Opportunity Fund
IDE.US Voya Infrastructure Industrials and Materials Fund
BOE.US BlackRock Global Opportunities Equity Trust

The poster also mentioned the following fund that "...writes call options against some of the shares in the portfolio."

GNT.US GAMCO Natural Resources Gold & Income Trust

Any thoughts or advice you may have would be greatly appreciated. I am looking for long term income with low to moderate risk. I suspect these are high risk though.

All the best, Michael.

Q: Hi Guys, since joining in January, I have transformed my portfolio into the 5i model, thanks for the guidance. I just found some extra money, do I;
1) increase my half positions in PKI, DSG or Ciniplex
2) buy a full position in QST, DHX or.................
3) hold cash
I am long term investor, 5 years +
Good Luck Peter with the ride, be safe and enjoy the journey!
Jim

Q: Morning Peter & Team,

I am looking to gain exposure to the following three sectors/industries for my dividend portfolio:

- Energy
- Pipelines
- REITS

What would be your pick if I were to buy full position for each next week?

Cheers,

Richard

Q: Rogers & Shaw just announced Shomi to compete with Netflix. I wonder would ESP or NLN benefit from this product launch?

Q: VII.US/AVO
Are VII and AVO in direct competition? As per a quote from VII's statement, "highly regarded brands within the security industry allows us to bring a compelling and completely proprietary video solution to our customers”, does one have better security solutions or do they each have specialized niches? I would appreciate your opinion and if possible a brief evaluation/comparison of VII. I'm also considering owning both for a combined full position. Reasonable? Thank you.

Q: Thank you to Dennis. I have registered for the three day money show in Toronto.
Helen

Q: ENB has strongly lagged the other pipelines ytd, as well as in August. Why? Is this likely to continue? And do you still prefer ENB over IPP, TRP and PPL. If so, why?

Q: Hi,
It,s been a few months now since your last take on Sensio, SIO.VE, would you be so kind as to share your thoughts on this company and it,s future prospects.
Have a great long weekend!

Q: Hi Peter and Team,

I am currently an owner of American Tower (AMT.US). I bought this sub $60 based on people I know in the business who believe the demand for Tower Space will be strong over the next foreseeable future. There are a lot of naysayers out there on this company but I cannot find anything in their financials or results that would cause me concern. Am I missing something. I like both the growth and yield on this one.

thanks for all you do!

Q: While I was aware of Buffett back in the mid eighties- $6,000 a share blew me away- I woke up and got some Ffh earlier this year. Any other ambitious type manager out there in a public company with a similar strategy that you see out there??

Q: Hello Peter and 5i Team,
I have a general investment question regarding interest rates and how they affect the market sectors.
I have done done a significant amount of reading and some research on the topic ( not to mention office debates) but find conflicting information.
I know this is a complex topic but I'm sure some of the members would like to read your perspectives on the affects of increased interest rates on the market sectors such as the Financials and 'Life' insurances companies.
Thanks,
Paul