Investment Q&A

Q: Hello 5i,

I bought VSN before Xmas on a analyst report from RBC. I have a good return so far, but I know you are not very fond of this company. Therefore I would like to replace it with something more attune to your thinking and values.

My question is what do I replace it with. Possibly ALA.r?

I do thank you all for your good work and valued opinion.

Rick

Q: Good afternoon!
In looking at your comments on Veresen (VSN), I can’t quite pin down reasoning for what seems to be a change in viewpoint here.
On Dec 12th you state: “Because JC was already rejected once, we would not view this as overly significant, and is likely already embedded in the price (after Friday's drop). The company can still grow, and there will be other projects in the future.“
On Jan 5th you state: “We remain quite comfortable with VSN for income, primarily, with some growth. Good earnings growth is expected in 2017.”
On Feb 6th the perspective differs, and you state that you are “... not very big fans of VSN”
On Feb 6th and on the 14th you also now imply that the Jordan Cove rejection is NOT built in to the price, and that the valuation is high. You also stated that revenues are expected to decline, but my brief research into the company, suggests otherwise, particularly their February guidance presentation indicating $1.4 billion of projects in the works, accretive on a per-share basis, quite a bit of growth for a company of less than $4.5 billion in market cap. In a recent Globe and Mail article (published on Stockhouse, also) the following spoke to valuation based on EBITDA: “According to Bloomberg, the stock is trading at an enterprise value-to-earnings before interest, taxes, depreciation and amortization (EBITDA) multiple of 10.5 times the 2017 consensus estimate. This is below the five-year historical average of 13.2 times and below its 10-year historical average of 11.1 times.”

Could you elaborate on what gave you this apparent change of heart, especially in conjunction with your comments about the ‘pro-pipeline’ Trump viewpoint?
Looking forward to your thoughts.
Thanks
Paul

Q: Will CLF fall if US rates rise in March or June?

Q: Hi,
Just wondering what you think of this deal, not much upside to the current price.
Can you suggest a replacement stock? thanks Clare

Q: Hello 5i.
I was contemplating how being part of 5i has brought me to an investment arena that for me is sometime uncomfortable; volatility.

So then it goes to say I have 5i to thank for showing me an investment like Tio Networks. With the PayPal Offer on the table it makes experiencing some extra volatility worth the inclusion in a Portfolio.

You do offer an excellent resource for Investors.
Thanks
Dave

Q: Appreciate your thoughts on Pro/Con. of holding IXP for long term (10+years) in my RRSP that is well diversified and 50% US equities. Hold BCE in cash account
Thanks
Cec

Q: What is your outlook for US biotech sector for the next 2 years? There are concerns about drug price negotiation by the Trump
administration. Do you think this is already priced in? I plan to take a position using IBB.

Q: Hi; I read an excellent article in the Globe this weekend regarding Robert Schiller's CAPE valuation ratio. It implies that the US is significantly overvalued. It also implies that Russia is a deep value investment with a CAPE ratio <6. Is there a Russian ETF that you would recommend to provide exposure and perhaps benefit from this. Thanks for your excellent service.

Q: Hi 5i team, not clear in the press release, is the offer 3,35 $cad or 2,56usd? At what relative spread to the price offer would you recommand to sell considering this investment is in my margin account and the closing is forecasted in h2-2017? Thank you for your collaboration, Eric

Q: Hello 5I Team
What do you recommend for the investor that holds Tio now that it has been bought out ?Do we hold on to the stock or sell it and move on to another stock ?
Thanks

Q: any chance of a better offer for tio, or is 3.35 as good as it is going to get. dave

Q: After the end of today's trading TNC.v was halted.

Lol. I initiated a position just last week. Oh well.


From https://www.wsj.com/articles/paypal-to-buy-bill-payment-firm-tio-network-corp-1487107500?mod=yahoo_hs&yptr=yahoo


"PayPal Holdings Inc. has agreed to acquire Canadian bill-payment company TIO Networks Corp. in a roughly $233 million deal designed to broaden the digital-payments company’s reach among consumers who lack traditional financial accounts, the companies said Tuesday."

Q: HI, never been faced with the situation where a company i own is taken over. Do i sell the title in my trading account or wait and everthing is done automatically? or sell now pay the transaction fee and relocate that cash in an other stock? thanks.

Q: hello...I already own 3.5% of my portfolio in ala does it make any sense to move some of that to ala.r...thanks

Q: Any reasons why these two junior uranium stocks are doing so well lately? Are they speculative buys at this time? Thanks for your insight.

Q: Is the dividend portion of this investment (Altars receipts) paid monthly or at some later date. If it is not paid monthly does it accrue and become payable if the investment is sold ?

Q: Hi:

If I make a charitable donation, for example 200 shares in kind, of a stock with a capital gain of 300% there would be no tax payable. If I purchase the same stock within 30 days, what, if any, are the tax ramifications?

Ron Vandendriessche

Q: Hi 5i Team,

This is a general question on your balanced model portfolio. After making some significant gains in the oil sector over the past couple years, I'm entirely in cash now and looking to establish a safer portfolio for the longer term (I'm 41). I see that you set March 31st as the start date for the portfolio, does this mean that you will select a new set of stocks at this point based on the best value available, or does the list remain the same. I'm not rushing in to anything at the moment, so would be willing to wait until March 31st if you reevaluate at that point. I'm new to your service and find all the information extremely helpful.

Thanks!

Q: HI...what company pays the highest dividend ?? And is Canadian.. Thanks..

Q: In an answer to a member's question yesterday about Canadian stocks with high dividends, you said: "Looking at names with a market-cap above $100M, we see NBZ (13%)...".

Northern Blizzard cut their dividend in half in early December; it's now .24 cents per year, paid monthly. At the current share price of CAD $3.63, the div yield is actually 6.6%, not 13%.