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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: One more question on Crius and it relates to the capabilities of the management. Given the sell off and the recent results it would seem that the decision as to whether to hold or not has to do with whether management can be believed. If the outlook for adjusted EBITA of $100m annually is to believed, this seems quite positive since annual distributions would be $36m. In fact management says it makes the distribution sustainable.

However, this is the same management that a year ago was positive about the solar division, and municipal aggregations (even though they acknowledged the latters lowering effect on gross margins). In fact they were sufficiently sanguine that they even increased the distribution.
This year they are exiting solar and divesting municipal aggregations. The new strategy is to go back to focus on the original deregulated energy business. They acknowledge that the customer count will continue to decline over 2019 and the costs to obtain the high margin customers in the deregulated business is high. How long will it be before they get to their $100m?

In case you think these are the comments of a short seller I am in fact a shareholder who is wondering if this emperor has any clothes. Your opinion would be much appreciated.
Mike
Read Answer Asked by michael on November 16, 2018
Q: BPY has been range bound for 4 years - between $24-$29. At $24.70 today, it is essentially at the same level as in Jan'15. Would appreciate your views on why you think this is happening? Do you see any signs of corporate changes on the horizon that would be positive for price appreciation? Is it financial performance? An issue of management capability? Of Street expectation management? The rising interest rate outlook is a relatively recent negative. I had expected that with the Brookfield reputation for management excellence, a DY of ~6.5% and an annualized DGR of >5% we would see a 5% to 10% annual share price appreciation over the long term. Thanks.
Read Answer Asked by rajiv on November 16, 2018
Q: Hi,

SHOP has held it's own very well wondering if it would be a good idea to reduce SHOP to small position from full position. And buy SIS, BNS, NFI or PBH..for safety and growth when the markets decide to rebound...Your thoughts and sage advice welcome.
Also I am surprised at SIS sharp drop for a small miss...Should I be taking advantage of this?

Thanks. Shyam
Read Answer Asked by Shyam on November 16, 2018
Q: Good day!
I am an income investor, living on dividends. On Oct 24th or so I sold 50% of my full position in ALA for tax loss reasons, planning on buying it back late November in an ideal world. I sold over $21, and it is now at $16 or less.
However, I also have a 50% position in Chemtrade and also a 50% in American Hotel. All have somewhat larger dividends over the 10% mark. I have 'reasonable' confidence in a long term hold for all three, and see the great dividends as being very well paid to wait.
Anticipating a possible dividend drop for ALA, I might consider deploying partially or even fully into one of the other two, thinking their dividend payment is more likely to remain where it is in the short term, and yet the upside in each might be as good as ALA. I would appreciate your comments on these thoughts, and any guidance you could muster as to which direction to go.
Thanks!
Paul
Read Answer Asked by Paul on November 16, 2018
Q: These are a list of my stocks that I may sell for tax losses. I would like to have your opinion if I should sell and rebuy these in 30 days.
Read Answer Asked by stephen on November 16, 2018
Q: Oil/Gas companies should be near their bottom [!?]. I am considering a bundle consisting of CJ, KEL, TVE, ARX, TOG, WCP, TOU as a group for the best bounce if conditions improve. Please, delete/add if you have other ideas.
Read Answer Asked by Emery on November 16, 2018
Q: Good day,
Thanks for all of your insight lately during this market volitility. Im looking at putting some new money to work in a TFSA, with no regard to sectors or diversification, what two or three companies would you be a buyer of today? Thanks
Read Answer Asked by Darby on November 16, 2018
Q: I’d like to invest in companies with excellent balance sheets, a clear catalyst for growth, and which are trading at a discount to their historic valuation. I’m hoping you can provide a list of stocks, both domestic & foreign, that meet these criteria. Are there any sectors or countries with an abundance of such companies right now? If so, please suggest some appropriate ETFs. Thanks very much.
Read Answer Asked by Brian on November 16, 2018
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