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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: Could you comment on the Hydro One IPO available now at some brokerages. Do you think the price range is reasonable (very annoying when it is not specified exactly), and do you see any growth in the proposed dividend. Do you think it might be better to just wait and buy on the market, if at all.

Thank-you
Read Answer Asked by grant on October 13, 2015
Q: The IPO for Hydro One was announced. Any reason not to go for an Indication of Interest to try for some shares? Thanks.
Read Answer Asked by Ann on October 13, 2015
Q: 11:31 AM 10/10/2015
Hi Peter:
The article in the Oct 10, 2015 Globe and Mail suggests that the Hydro One IPO will come out very soon with a suggested price range of $19 to $21 per share and with a suggested yield of 4.2%

How would you value Hydro One when compared to other utilities with comparable yields such as Brookfield Infrastructure [5.36%], Algonquin Power [5.33%], Emera [4.35%], Fortis [3.86%]?

Will Hydro One be burdened with debt and, looking ahead, will it need to raise money for ongoing operations?

Would you be buying Hydro One at it's IPO or would you prefer one or more on the other utilities which have proven operating records and strong growth, most with rising earnings and dividends? Which would you buy for regular income?

Thank you....... Paul K
Read Answer Asked by Paul on October 13, 2015
Q: Could you give your out look on the company's balance sheet (short term/ long term debt and cash) and revenue growth going forward. I am holding this for the upgrade cycle which many analysts think will either start in Q1 or Q2 of 2016 and continue going forward. I see no other alternative if the rail industry still wishes to move crude and dangerous materials through areas of high concern. I see $1.80 as the holding point and if it breaks would you see $1.00? Thank you for your help. Jason
Read Answer Asked by JASON on October 13, 2015
Q: GIL-Quite a lot of insider selling especially by the co's ceo since Sep 1. On Oct 6 BNN reported that as a result of either Trans-Pacific Partnership or IMF downgrade of Canada's growth( to 1% from 1.5%) & global growth,the following 4 stocks are victims:-1)CCL.B(was down to $183.49 & closed @ $169.23 on Oct 9) 2)GIL $38.72 & $39.13 on Oct 9) 3)ITP & 4)DH. Your comments on GIL & CCL.B.Appreciate your usual great services & opinions.Thanks
Read Answer Asked by Peter on October 13, 2015
Q: Noticed a number of articles recently on a suggested threat to traditional banking business from emerging technologies and new 'fintech' startups, including an article in today's online Globe Investor. Any thoughts on this? Do you think the big Canadian banks have the ability to respond to the possible scenario? Thanks.
Read Answer Asked by Thomas on October 13, 2015
Q: could you comment on tmc,seems like a gradual decline over time.
Read Answer Asked by terrance on October 13, 2015
Q: In your response to me you state "Our preference to dividend appreciation stocks is based on fact, however. Stocks that consistently grow dividends have been shown to be far far superior on a risk adjusted basis to any other category of the market." Can you please provide the facts (data) using ETF's to validate your claims. My data shows:
VUN 2 years = 46.6% versus
VGG 2 years = 37.6%
Thanks and I do appreciate your service.
Steve
Read Answer Asked by Steve on October 13, 2015
Q: I have held Brookfield Property in my RRSP since 2013 and have never seen a withholding tax: the Sept.30 distribution was a full 34.9 cents C$ per unit though you may elect to receive this in US$. Since the company is Bermuda domiciled, like BIP, it probably escapes US tax, but if owned in a cash account I'm sure it would attract a T5013 to complicate your life and probably some withholding tax from some tax entity.
Read Answer Asked by Jeff on October 13, 2015
Q: Rob today asked for your recommendation on an ETF that tracks the broader US market, that he can buy with CDN funds. Your recommendation was VGG a dividend appreciation etf with 1 year return (as of yesterday) of ~ 18%. You have recommended this etf on various other occasions today and in the past. You should be aware the tempting 18% return is due to currency because the hedged VGH return over the same period is a mere 1.9%. I cannot understand why you continue to pick these "niche " etf's especially when someone asks for a broad index. The broadest US index with lowest mer in US $ is VTI and in Canadian $ VUN. And VUN has 1 year return of 22.6%. VTI/VUN over various cycles outperforms these "niche" etf's tracking some subset of a market and this is what etf's were originally designed to do anyways so just recommend the broadest index to maximize investors returns.
Steve
Read Answer Asked by Steve on October 13, 2015
Q: I have half positions in Kinder Morgan (KMI) and Williams (WMB).

I am primarily interested in secure income and they are currently very attractive yielding 6.12% and 6.01%.
At their current prices, they also seem quite attractive for growth.

What are your thoughts on KMI and WMB as a buy right now? And do you prefer one over the other to hold for income first then some growth for the next 5 years?
Read Answer Asked by Curtis on October 13, 2015
Q: KCK is being bought out today at a 47% premium. Any other companies in the oil and gas sector that are candidates for takeovers.
Read Answer Asked by blake on October 13, 2015
Q: I see that SPB has a bought deal of common stock to cover the CUS acquisition. When I look at this comp. I see very inconsistent earnings, huge debt., very low ROE and crazy Payout Ratio. Unfortunately I own 2500 shares of CUS and will be getting a co. with a poor balance sheet and poor fundamentals: price taker subject to commodity prices like CUS. I realize it is too early to do the math; but, how can they sustain their dividend and make consistent dependable profits?
Read Answer Asked by James on October 13, 2015
Q: Lumber made some excellent gains the past few days, and OSB is also climbing well. Do you think it is time to get into either WEF or NBD for a medium to long term hold? Which would you prefer?
Read Answer Asked by Jim on October 13, 2015
Q: Can you please give us an update on this company. Still a long term hold? Thank you
Read Answer Asked by Pierre on October 13, 2015
Q: I bought this stock for safety waiting for oil to stabilize so I could get back in. I am even incl. the dividend - so, treading water so to speak. According to my trading site CIBC IE they never seem to publish Q EPS? I know they are expanding in the USA - so, probably incr. costs and no special dividends this year - has been a common practice. Any info you could give me on this co. would be appreciated. Trying to decide whether to keep as a diversifier or sell?
Read Answer Asked by James on October 13, 2015
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