Investment Q&A

Q: Noticing the pull back in interest sensitive stocks recently, such as the utilities and the telecoms, I was wondering whether it would be a good time to bump up my allocation to these sectors? Or, is there more loss yet to come? I know you don't have a crystal ball so I am not expecting absolute predictions. But, you do have insight into market movements and therefore worth consulting. Currently my holdings are
7% in utilities when I think you recommend about 15% for someone at retirement.
and
7.7% where your recommendation is 10%

I hold the usual Canadian suspects plus BAC in the US.

If you think it would be right to fill up, would US or Canada be better? As I say, I most of these sectors are in Canadian.
thanks

Q: what is your opinion of this stock at todays price ????

Q: when will pte next report and what does the street expect...tkx pat

Q: Hello ,
I currently own PLI in my TFSA account for one year and I'm very disappointed by this stock. What do you thing about the last Prometic's announcement : Realignment of its Clinical Program Priorities for 2018?
Thanks,

Q: Hi Peter and company,

I have a small TFSA ($9,000 invested in: SLF, AQN, ABT, PHO & PEO). Will be adding $20,000 within the next couple of months and $10,000 in each of the next 3 years, which will take me to age 65, which is when I expect to retire. I will have a comfortable pension when I retire.

Would appreciate your suggestions on where to deploy the $20,000.

Thank you.

Larry

Q: I purchased ECN after seeing it as a top pick on BNN. I'm down 14% on it. Should I move to something else or hold? Thanks

Q: Any possibility of an onex, kkr, or even an Avis style buyout of EFN. Buy or hold at these levels?

Q: May I have your thoughts on AAOI's quarter and prospects going forward at today's price?

Q: Hi team,
I am back to TTD again. I bought a 3% position (small for me) a couple of weeks ago. I was tempted to up it just before earnings but held off as U.S. tech can be very volatile and who knows how the market would react. Well, I guess the market approved as the stock jumped 20% on Friday. Hindsight is a wonderful thing! The U.S. analysts are very positive on the story and see a long runway of growth ahead. I think you guys also like the space but were cautious on perhaps someone like Google taking a serious run at programmatic advertising. What I am reading by the U.S. guys suggest that TTD has a competitive advantage over GOOG, FB, AAPL or MSFT as it is unbiased over what advertising platform it would recommend for a client while the big guys would direct advertising just to their own platforms. Would you agree with this thesis or are you still cautious on TTD from pushback from the big guys? I am thinking of topping up to 6% or so if the price settles down again.
Thanks again,
dave

Q: Do you think Pembina would be a good investment at this stage of the cycle?
Thank You

Q: I'm considering buying a 5% share in CC & would appreciate your input on the company. I'm concerned about the debt which was quite high last year.The debt is $2.6B with a net leveraged ratio of 1.8 times on a trailing 12 months basis. Is this coming down or increasing?
The businesses, all three, seem to be doing quite well.Do you agree?Will there be further share repurchases or is it finished.What is the EPS & the free cash flow based on the US tax reform? Is it a buy or should I pass on it?

Q: I hold the following in my TFSA: dol, dsg, gud, kxs, pbl, pho, sis, toy and byd.un. I have cash to add another position or increase some of the current holdings. All current holdings are less than 5% of total equity holdings. According to TMX dol and dsg are the lowest rated as low moderate buys and pho is not rated. I expect TFSA holdings to at least double and without crazy volatility. Please advise what I should do. Any changes? Thank you.

Q: How is it legal that insiders have been selling stock in their co. during the quiet period, knowing that the results would be poor?

Q: Morning..just looking to rebalance...my financial weighting is 22% of portfolio (BNS 4.6, SLF 4.4, Tricon 3.8, G&S 3.4, TD 3.2 and ECN 2.2%)...was thinking of selling Tricon and ECN ...I am down on both also G&S..but like the dividend for G&S...any thoughts...

thanks

Q: Is this a good entry point for Alamos Gold? Thanks

Q: I have a general question with regards to stock splits. Why is it that companies don't seem interested in doing stock splits any more? I realize that stock splits don't change the value of a stock - you just get more shares at a lower price. But isn't there still logic in a lower stock price being more affordable to individual investors?

Q: What is your reaction to the executive change today. The market has spoken (a board down) I don’t like to react to quickly but the direction is continually down. Is it to late to sell. I like their business they have some good products and it is inexpensive to dub into different languages. What has gone so wrong?

Q: Hi,
After the recent correction, US banks recovered (JPM, GS, C, BAC) but other finance sector stocks did not (AMP, MFC, AIG). Will future interest rate hikes will not benefit annuity business? At this pull back could AMP:N a good buy if I have some funds in RRSP to invest this year? I do hold TD:T and USB:N and MFC:T.
Thanks

Q: Hi Peter,

In light of Enbridges current price of ~ $43.00, I took the opportunity to take a look at historical yields on Enbridge, as I’m currently contemplating buying more. I was able to source data back to 1995, which turned up a few interesting things, specifically:
- The long term growth rate of the ENB dividend has been ~ 11%
- The current yield (6.3%) is one of the highest yields in recent years.
- The yield has traditionally bounced between 2% to 5% since 1995. The period from 2016 onwards (weakness in energy sector) has seen the yield “fatten up” significantly.

With this information in mind, it’s my opinion (which could be wrong!) that for a longer term investor who is patient, Enbridge is simply a waiting game. The current public sentiment towards energy infrastructure (pipelines) pretty much guarantees that nothing new can be built, but also guarantees that what is in the ground will remain full, as I can’t see consumption of hydrocarbons/energy falling off a cliff anytime soon. Over a 5 year period, even if one ratchets down ENB dividend growth to 5% annually, and one assumes that the future yield comes in at the high end of 6%, this suggests that the future share price of ENB would be somewhere in the neighborhood of $57.00 ($3.42 dividend/ 6%). While this doesn’t suggest a massive gain, it still entails a compounded annual ROR of 5.8% over this period, and this assumes a “low end” scenario. On the other hand, if ENB can maintain dividend growth of 8% (which is still less than their guidance of 10%) and the yield corrects to something closer to a historical average (4%) then this would suggest a future price in five years of $98.40 ($3.93 dividend / 4%), a compounded annual ROR of 18% over a five year period. The risk in all of this is that something catastrophic happens, and ENB chops their dividend, much like TRP did back in ’99 (or 2000?).
My request is therefore simple – let me know what the flaws in this thesis are, or if you believe it to be sound, let me know that it is. Thanks.

Q: Do you have an example of a stock moving from the CSE to the TSX?
Would this result in an increase in the share price?