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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: Please comment on PPL's announcement pertaining to the building of a new petrochemical plant. In December 2017 IPL announced a similar project and since then the share price of IPL has noticeably under performed their Canadian pipeline peers. How different is PPL's project from IPL? Do you know much about their Kuwait based partner? How will this impact the PPL balance sheet? Do you expect they will need to issue more shares to finance this project? PPL is one of my largest holdings and I invest in it because they have shown to have good management and have the steady cash flow from the pipeline businesses. Does this transaction change that thesis in any way? The project feels like an unnecessary bet and all of a sudden a riskier holding for a conservative income investor.
Thanks
Rob
Read Answer Asked by Robert on February 04, 2019
Q: What are your thoughts on the partnership with with Petrochemical Industries ("PIC") of Kuwait, to construct a 550,000 tonne per annum integrated propane dehydrogenation ("PDH") plant and polypropylene ("PP") upgrading facility, expected to be in-service in mid-2023 and expected to generate annual run-rate Adjusted EBITDA of $275 to $350 million, net to Pembina?

Impact to balance sheet, cash flow, and growth? Thanks.

Read Answer Asked by Robert on February 04, 2019
Q: Is there an etf that can be purchased in Canadian $$ which gives an investor broad international exposure except to Europe? Thank you, Bill
Read Answer Asked by Bill on February 04, 2019
Q: Good afternoon 5i,
On Dec 5 Terry asked this question:
Which company would you recommend for a proxy to SLF tax loss selling? IAG or GWO? I dont like MFC because they cut their dividend in 2008.
Thanks

I don't mind mfc that much and besides, I will only be holding it for a month. Can I get your updated view on what would be a good placeholder for Slf, no conditions of any kind applied?
thanks
Read Answer Asked by joseph on February 04, 2019
Q: Can i get your opinion on plus, it trades on the cse around 6 dollars thanks harris.
Read Answer Asked by Harris on February 04, 2019
Q: Hi 5i team,
I would like to purchase a US equity ETF in C$ fund for my TFSA. For a conservative investor, would a dividend growth ETF be more suitable? What would be your top pick ETF for this purpose, hedged and unhedged? Is the dividend income subject to tax withholding? Or should I be looking at HXS, though the swap fee may cancel out the tax advantage? Thanks
Read Answer Asked by Willie on February 04, 2019
Q: Which of these would be a more profitable spot to drop $15000 into?
Thank you for your guidance
Read Answer Asked by Sharon on February 04, 2019
Q: Hello,

With the recent positive earnings from Facebook and ServiceNow, would you recommend buying at this point? I'm also a long time holder of Visa (stock is down based on yesterdays results), would it also be a good idea to purchase MA at this time as well?

Thanks,
Raj
Read Answer Asked by Neeraj on February 04, 2019
Q: Good Morning 5i,

Looking for a bit of guidance in adding to my CDN portfolio. Bit of a long-winded question so please deduct credits as appropriate.

I have 27 positions. The smallest positions are at about 2.75% (FTS, NTR) and largest are at about 6.5% (ENB, BNS).

Sector Allocations as follows:
Financial - 20%, Energy - 20% (almost entirely midstreams/pipes - ENB, KEY, IPL - Vermilion is the exception), Industrials - 12%, Materials 5.5%, Cons. Cyc - 7%, Cons. Defensive - 3%, Telco - 8.5%, Utilities 14%, Healthcare - 4%, Info Tech - 5.5%

Holdings are almost all 'boring' names, dividend payers/growers even though my risk tolerance is high and we are in our late 30's with no intention of touching this portfolio for decades. There are a few growthier co.'s in there that have come from your suggestions - GC, KXS, SIS, for example.

We have funds for 3 new positions - 2 in cash account, and 1 in a TFSA after contributing this year's limit, each position worth roughly 3.5%

I've been leaning towards BAM, as an all around well run company and exposure in things like real estate and infrastructure that is currently not in this portfolio.

Can't settle in on the other 2 positions, although my sector allocations scream at me to add more Technology. I simply cannot figure out what would be good buys here - I keep going back and forth in my head between growth options (PHO) and more boring options like Evertz.

Can you give me your opinion on this? First of all on whether (based on my current allocations) I should be looking at tech or somewhere else. Second, on the specific names to recommend (given a timeline measured in decades). Third, on the addition of BAM? Finally, on where you would add the positions (TFSA or CASH)?

Again, multiple part question so please deduct as appropriate.

Thank you so much,
Ryan
Read Answer Asked by Ryan on February 04, 2019
Q: Thank you for your work on these stocks. Interesting!

With regard to ACB, I see a market cap of $9B an $50M in sales. I guess their 25% participation in CLIC comes from an equity raise ? If so, how did they justify the dilution to their shareholders ? I suppose having a retail platform ready to go and 25% of an operating company is a positive although bought with very expensive stocks... I am interested in your comments. Not sure if my reasoning is correct. Also, with 25% ownership of CLIQ, are they now in charge ?
Read Answer Asked by Pierre on February 04, 2019
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