Investment Q&A

Q: I am trying to understand dividend payouts and their implications.
A fund manager on BNN who is shorting Enbridge claims that they don't cover their dividend adequately using profit parameters. He also assumes that they will need to raise cash to cover the capex needs that might prove difficult to raise from the market.
In an article by Tim Mc Aleenan ( http://seekingalpha.com/analysis/investing-income/all) he talks about BP having enough PROFIT to cover the divide: " unlike many peers BP still has enough Profit to cover the dividend"

Questions :

1.Please explain payout ratio's as to different parameters and how they can be evaluated.
2.BP: is it a wise investment if you feel oil will recover reasonably in a year or two ?
3.comments on Enbridge, its div., balance sheet and Capex.?
4. ( BNN person claims that cash flow can be interpreted in many ways while Enbridge claims their payout ratio is 50% of cash flow ??? ) what say you ????

I understand that it is a long question and may be answered briefly here. You may use it as a subject for a wider presentation (webcast ?) as many seniors like me seeking income, depend on Dividends and may have been burned ( like me) running after yield without knowing the dangers.
thanks
Yossi

Q: Wow...a lot of talk about pipeline recently at i5R. I have a 5% sector position in Pipelines, equal parts of ALA, IPL, KEY and PPL...plus the start of a full position in ENB, all in a registered account. Seeing how KEY has momentum, I am pondering replacing ALA with KEY. And also seeing the differential of p/e metric for PPL and IPL, I am considering replacing PPL with IPL. Another consideration is to concentrate in fewer positions, aka cutting down on the number of positions to monitor. What say you about these two ideas?.....Tom

Q: Merry festive season! I am pleased with BIN, and am wondering if you know of 4-5 Stable Canadian companies who have European exposure with dividends and growth as a long term investment.
Thank you

Q: Accordindg to morningstar, fund companies and institutions own 66% of stock of SYZ and insiders own 11%. This does not leave much of a trading float. maybe 5 million shares or so. Is this good for a company usually. Most larger INVESTORS cant buy SYZ in size. Would a stock offering be advisable by the company again if they can put the funds to good use.

Thx

Q: Has SIO gone bankrupt? If so, is there any hope of recovering any money. Thanks.

Grant

Q: Hi, I'm sitting at about 4% BCE and 2% Telus of my total portfolio. I'd like to add a bit to Telus but I'm concerned I'm already at a full weight for telecoms. Can I add some more and, if so, how much? Thank you.

Q: I hold a large position in North Quest Ltd, a junior gold explorer. Nordgold (LSE: NORD)owns 52 % of NQ and has announced that it will be making a takeover bid, offering $0.253 per share. NQ has just released the results of a glacial till sampling program that identifies a large, high grade gold anomaly in a previously unexplored part of the claims.
I feel that, because of this new anomaly the shares are worth far more than what Nordgold has offered.My question is this - if I refuse to sell my shares at the present offer is there any scenario where I can be forced to sell them?
Thanks.

Q: I hold in my margin account stocks that are down:
BYD.UN (-4%)
CXI (30%)
MG (9% )
DOL (10%)

Can I transfer on January 4th.2016 this stocks in kind from my margin aacount to my TFSA account and have at the same time tax loss selling for 2016 apply to my margin account.

Q: Hi Peter and Team!!! Hope everyone had a great Christmas Holiday. I have been religiously contributing to my kids TFSAS . They hold the following...ATD,BMO,BNS, ZWN, FTS, GWO, HHL, CBO, KPT, NFI. When the new year hits, I am ready to deploy the 5500$ allowed. I am looking at growth...Shopify maybe? What would you suggest? Have a Healthy and Happy New Year. Cheers, Tamara

Q: Please let us know your thoughts on "Principal At Risk" notes, specifically the CIBC Cdn. Banks Auto Callable notes recently offered.
The offering documents make them look very attractive with the potential for high single digit returns appearing to be almost a certainty.
Also any general comments on PPNs and "Principal at Risk" notes would be most appreciated.

Q: Merry Christmas and happy new years.Thanks for sharing your knowledge with all of us. I just read a book by Marin Katusa titled The Colder War about world oil market. What is your view on the future of petrodollar ?

Q: In a portfolio it is generally recommended that you avoid a weighting of more than 5% per equity. My question is as follows. Assuming your total portfolio is 1M. The split 60% equities and 40% fixed income. On the equity side this would imply 20 stocks at an average value of 30K per stock to meet the 5% guideline. On the fixed income side does the same rule apply or can you say 2 ETF's at 200K each. Say 200K of CBO and 200K of ZSU as an example . It brings the weighting to 20% each. Notwithstanding one could probably go to a product that gives you the entire bond spectrum and put 400K in one ETF. What is your opinion and recommendation.

Always appreciate your incite and all the best in the new year.

Q: Since your last review the CEO has bought a lot more shares. Could you please update your analyses of this co. Harry

Q: If I sell an equity when the market opens on Dec 29th would it qualify for tax loss selling?

Q: Could you please comment on $CXR for a medium term hold, thanks Valter

Q: Which companies have CDN expenses but get mostly paid in US funds that you like?

Q: Hi team, I have to sell about half of position of one of these stocks to liberate some emergency cash. Do you have advice about which one I should let go of? All the best for a restful, happy Christmas to everyone at 5-i !

Q: If Oldford group is the last in line as to responsibility and there is already $ 300 million in escrow it would seem to me that Amaya should come out of this whole. They are required to lead the fight for Oldford and then collect from them. Does it follow that the market needs to determine if there is a collection issue with Oldford and discount that risk and not be discounting against the size of the lawsuit. Do you agree and is there any information as to the risk of collecting in full from Olford if the costs exceed the amount in escrow.

Q: Happy Holidays,

Agree with others who compliment your service. I feel it fills a nice niche for DIY investors who are looking for more information on investment decisions.

My question, having gone through the short report on IT, I am amazed at how "amateurish" it is in many ways (use of language, graphics, etc…) I still do not fully understand how it is legal for companies to release reports like this with no accountability. With the rash of these types of reports lately, do you feel we are getting near an inflection point where regulators will attempt to do something about this behaviour?

Regards,

Robert

Q: Hello,

This is general question based on the response you gave R Warren on Dec 25 regarding the accuracy of analysts opinions and estimates.
Your response (that I totally agree) was that analysts pretty much cherry pick based on how much it heps their (brokerage) case and that's the reason why you don't endorse them.

So my question is: Do you think a proper (not biased) analysis can give an accurate future price target?
Because if it can, I think 5iResearch should be in the perfect position to offer it, because you non affiliation with companies, brokerages and your independent status.

Thank you
Happy New Year!

Marious