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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi there, regarding the following you answered today, isn't this exactly the right time to start picking away at real good names that are well managed in the energy sector, specifically higher dividend paying names that have top quality management/board and good balance sheets, that are just being thrown away with the bathwater? Getting paid well to wait after so many years in a down cycle, ie Vermillion, VET. (they performed well in previous down cycle, and have proven themselves).

Is this not what Warren Buffet tells us to do, start adding when no one cares or wants them at all? Especially after four/five years of a down cycle already in the sector!

Income Portfolio Question;
Isn't this the right time to add something like VET to your income portfolio with cash on hand, 2% starting position, considering it seems way better then when you had Crius, KWH.UN, in there as a risky income play?

Even if they cut the dividend in half, it still seems like a good return for the income portfolio, and for them to use the funds to pay down debt, while also supporting their shares, with a normal course issuer bid buying back even more shares?

Thanks!

Q: Peter; Do you think selling all your energy stocks now is a typical “retail” investor panicking at the bottom- conversely is this a contrarian’s dream? Thanks. Rod

Asked by Rodney on June 13, 2019
5I RESEARCH ANSWER:
Probably; we do not think we have seen the 'capitulation' volume where everyone just wants out, but it still 'feels' that way without the volume. Oil is up 3% this morning so it will be interesting to see if anyone cares about the sector. We would still suggest more than a 0% weighting, but don't think an investor needs much of the sector right now.
Read Answer Asked by Hussein on June 14, 2019
Q: I understand that Beyond Meat's valuation is "beyond" believable ... but I'm wondering if there isn't something there. While I see that both Tyson and Maple Leaf are getting into the game, the question is: are these other products even edible?

I have not tried any of them, but it seems to be the consensus of the younger generations that Beyond Meat is beyond believable -- and the other products are "spit them out now before you choke". These other companies, while they may have a similar product, don't have the magic of Beyond Meat.

Do you not think that that might be a moat in itself -- and that Beyond Meat is buyable? I'm not saying back up the truck, or even a full position, but it certainly would seem eminently investable, given the quality of its product. Sometimes you pay for the name, while you wait for the valuation to catch up. Agree or Disagree? Your thoughts would be much appreciated!

Read Answer Asked by Sylvia on June 14, 2019
Q: What kind of EPS growth do you forecast over the next 1-5 years? The estimates that I have seen are similar to the past 5 years, ie quite good.

Morningstar and others have been and continue to be negative on this company, due to the highly competitive environment which is only expected to get worse. Yet, the company continues to put up good numbers. I’m confused.
Read Answer Asked by Greg on June 14, 2019
Q: good morning:
enbridge dropping quite a bit again and hitting 3 month lows. realize this is about bad news always from new pipelines being postponed. do you have any idea how much of enbridges income is regulated and would you say that dividend is safe and will grow even with all the pipeline delays; but I know they have steady income coming in from sources and this is what I meant if you know how much it is as a percentage of revenue. I thought it was something in the order of over 80% but not sure.
hope you understand what I am saying and feel free to change question so everyone understands [brain fart]
Read Answer Asked by hans on June 14, 2019
Q: Have the above stocks in a TFSA. Would like to add 3 stock to the collections. Suggestions or should I just add to the exiting stocks. Long term hold 5 years plus. Thanks
Read Answer Asked by David on June 13, 2019
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