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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: Greetings 5i,

As a generally conservative investor with a long time horizon (I am 36), I am very partial to "less exciting" blue chip stocks with a high potential for long-term stability. And while I am in no rush to add any single positions at this time, I would like to ask your opinion of two large cap names to augment my research. Please feel free to deduct as many credits as you deem appropriate.

Could I please have your opinion on UPS and MMM as potential "buy and hold" names for a long-term time frame?

Thank you.
Read Answer Asked by Lucas on May 28, 2018
Q: My wife and I are in our 70's with RIFs mainly focused on income producing stocks.

Our annual withdrawals equate to approximately 10% of our investments, so currently, we expect to be able to live our lives out without running out of funds.

As part of my financial sector, I have a 3% position in PWF, which has been underwater for quite a while, but currently pays a 5.31% dividend. I know you tend to favour SLF, and I wonder if it is worth switching into SLF, even though it only pays a 3.44% dividend.

Your thoughts and comparisons between the two over the next five years please.
Read Answer Asked by John on May 28, 2018
Q: My 25 year old son has some money to invest (equivalent of a full position) in a self directed RRSP and I am looking for some advice on this as well as a little TFSA portfolio maintenance.

His TFSA has 10% in Cnd banks, 10% in EQB from previous employment, full positions (5% each) in CSU, ECN, KXS, MRE, PHO and SHOP and 1/2 positions in SIS, TOY, TECHY, BYL, CHE.UN (keep???), and CXI.

I am thinking he should sell his EQB as his Cnd Banks are likely a safer way to play the Cnd mortgage market at this point in the cycle - do you agree? Should he move on from CHE.UN as well?

This would leave him with the equivalent of 20%+ to reinvest - 10% in his TFSA and 10% in his self directed RRSP. Should he top up current positions (if so, which ones) or add a couple new ones (if so which ones). Your advice for investing these funds is most welcome!

Many Thanks
Scott
Read Answer Asked by Scott on May 28, 2018
Q: What do you think about the planned dual listing for this company on the Hong Kong Stock Exchange in 2018? Word on the street is they are looking to raise $20M CAD through GF Capital. I have heard that it is looking for $2 CAD/share @ a 20 P/E. If it got to the $200M cap range, would we see more volume & interest?
Read Answer Asked by Wayne on May 28, 2018
Q: With the proposal of ENB to take out ENF at 29$ ( deal timeline for end of Q4) what are the risk associated with an arbitrage position by collecting dividends at around 8% and buying ENF at under 29$ and waiting for the stock equity swap date to happen. Two option are offered , having the optionality to A) sell ENF at 29$ while collecting the income ( would drip still be in place during that waiting time ) or
B) to swap ENF shares to ENB shares and at what ratio $ value per $ value or share for share fixed ratio at date of announcement ?
What impact will of a rising interest rate will have on ENF shares during that waiting time as ENB shares would probably fall further during those coming months
Thank you
Jean
Read Answer Asked by Jean-Yves on May 28, 2018
Q: What is your view at this time of Canadian bond proxy stocks versus Cdn dividend growth stocks, and their valuations relative to interest rates?

If you are of the view that dividend growers are more appropriate at this time, can you provide three growers that you recommend, and 3 bond proxy stocks that you would suggest to stay away from, to better understand the types of stocks that fall into this category. Thanks.
Read Answer Asked by Kirk on May 28, 2018
Q: The gaming space seems to be very hot One Company that has caught my interest is QIC
Could you please explain how the corporate structure works for this company

They mention LuckyBucks as a indirect Company which they control, It mentions that all the equity is held by the parent company Does
management have any investment in the Company

What is your opionion on a long term purchase Is this an investible company

When are they due to report there next quarter

Thank you for great service

Paul W
Read Answer Asked by Paul on May 28, 2018