Investment Q&A

Q: We are retired, elderly, and need the dividend income we get from our portfolio as below:

Pipelines, 8.51%: PPL, TRP
Utilities, 12.52%: BEP.UN, EMA, RNW
Telcoms, 9.11%: BCE, T
Banks, 22.47%: BMO, BNS, CM, RY, TD
Reits, 13.38%: CUF.UN, HR.UN, MST.UN, SRU.UN
Industry, 22.81%: BIP.UN, DH, NFI, NWC, PKI
Cash, 11.2%

I would like your opinion on adding one or two steady eddys that pay a decent dividend along with some growth potential. Would FTS and TRI fit our needs, or do you have better suggestions. Thanks, Ted

Q: How can a company have a negative debt to cash flow ratio?
What debt ratios do you use when evaluating a company? I use debt/equity, debt to cash flow, and debt to ebitda. For different industries do you use different standards for debt and where would a person find what ratios to use on what industries? Thanks

Q: Hey folks, you have an update out on AFN rating it a B. Could you please compare AFN to AGT. Which is more stable? Which has more growth? With AFN at B, what would you rate AGT? Thanks for your comments.

Q: My question has to do with how to determine if I am doing a good job with my investments and am, in fact, outperforming in some way. I am wondering how I should go about establishing a target rate of return for my portfolio, assuming you think that is a good idea. I know that many use the S&P TSX Composite as a proxy but that doesn't really represent the make-up my portfolio so I may be comparing apples to oranges, I currently hold a mix of most of what is suggested in the various 5i portfolios, as well as some international things as well.

Is is best to stick with the TSX, simply because if I can't beat it I should join it or is it best to go through the percentage makeup of each area I invest in and use a weighted average percentage to arrive at an overall number?

My concern is that even if I may "outperform" the TSX but on a risk-adjusted basis, I may actually be underperforming.

Really appreciate the insight.

Paul F.

Q: Hello Peter and Team,

Could you please advise me on couple of good websites/places where an individual investor could get earning estimates and how much does it cost on an yearly basis?

Best regards,
Febin

Q: Hi Peter and 5i Team,

I am interested in buying KO. I have never purchased American or international stocks, so it is all new to me. Am I better off purchasing it in my TFSA discount brokerage accounts or in my non-registered (regular) discount brokerage account? What are the tax implications for both scenarios?

Thanks for your help,

Terri.

Q: Hi Peter, How do you feel about the railroads right now? Which if any would you buy at these prices?

Q: If Canada's bank rate goes down on the 15th I am assuming Cdn bank stocks will go down and Reits will go up. How do you think it will affect the various sectors on the TSX?

Q: Hi guys,

I'm looking at adding a growth stock with a modest yield to my RRSP over the next few months before October. Why would you recommend at today's prices from the following: Constellation Software, CCL Industries, Brookfield Asset Management or Magna. I know the companies and sectors are all a bit diverse, but I have room to add to all of these sectors without being overweight. I'm leaning towards Magna, but I wanted your opinion.

Thanks,
Jason

Q: Good Morning 5i team: I'm hoping you can enlighten me in regard to the way in which rate reset preferreds are priced at the time of reset. Specifically, the calculation of the 5 yr GOC bond rate (assuming that's the benchmark involved, which it is in all of my preferreds). An example may help. The prospectus for ala.pr.e says that at reset (12/18)the rate will be reset to "a rate equal to the sum of the then five-year Government of Canada bond yield plus 3.17%." So, my question is this: Is the GOC 5 yr bond yield a fixed number, or does it float with trading? Thanks for your help.

Q: Whatever happened to Legumex? I seem to recall a few years ago (2012?) that a few analysts were all over this stock as a growth company with unbounded potential. Ever since, there has been hardly a peep or a pea bean out of them. Why is it failing so miserably, given the (presumably) untethered growth in this sector -- i.e, pulses. I never owned it, and was always waiting for something to happen. Is it likely that anything will ever happen with this stock? Thank you.

Q: Is it safe to hold on to Baytex BTE?

Q: Please comment on my logic ( or lack of ) on this. When and if interest rates ever start the up tick it would be a sound defensive position to have some funds in a preferred share ETF such as CPD that has a significant number of rate reset shares.

Any other preferred Share ETFs you would prefer? I am a middle aged investor building an income portfolio for retirement down the road.

Many thanks

Paul

Q: Peter and His Wonder Team
As you have stated... historically you told your colleagues never to let you buy BB because you could never figure this company out. Well I am in your camp...I have never bought BB for the same reason. Analysis and predictions have been all over the map which explains its roller coaster volatility. However as it is heading to a new annual low I am looking at it with interest...I know Chen has done a good job and the company still has assets and potential...I read about a possible Android type phone. Please give me your current assessment... Do you think this is a $15.00-$20.00 stock at best? Or do you think that in the end they will be sold? Or is the future of this company too unpredictable with the risk out weighing any potential gains?
Thanks for your consistent high quality service...
Dr.Ernest Rivait

Q: I have enjoyed good profits with this stock and good returns. I see there are no questions logged with 5i and would like to know your thoughts on this stock. I expect it to do well moving forward, but based on other sector stocks, am wondering if it's time to move on?

Q: You rate AFN & XTC as B and WSP as B-. Do you prefer one company over the others at the present time? Which company has the bigger capitalization and share float?
WSP has been acquiring smaller engineering companies and I heard on the grapevine that some of the "Principal" level engineers in one of the acquired companies are thinking of leaving. I am in the engineering & construction business myself. Turn-over in this line of work is not unknown however generally "principals" don't leave. (Just small fries like me tend to hit the road).
Thanks

Q: Hi Peter, TBE seem to have been doing the wright things, under the circumstances, yet it has been decimated. I am down a lot and thinking to add to average down, never done it before. Appreciate your suggestion.
regard, Joe.P

Q: In regards to William's question on July 10 regarding a portfolio tracker,

An Android smartphone App like Peak Stocks (there are many apps available) (free or a one time fee of ~$2.50 for the paid no advertising version) can provide a handy easy to use tracker. Apple has many also. I have used it for over a year now and have no affiliation with anything mentioned. It also provides live widgets to put on your phone's home screen(s) to really follow a stock(s).

It allows for creating many portfolios which can be named as you like. Each port can be in the currency you select. Stocks can be added/deleted as one likes for monitoring. Stocks can be added/deleted as buy/sells so that it monitors the $ value of each stock and the complete portfolio, 0 - 15 minutes delayed. No log in is required.

It provides charting from 1 day to 10 years+, and seems to provide the most recent and historical news for every stock in any of the ports. I often read of news on a stock before I read about it here at 5i considering that 5i is not a news outlet and does a great job of providing info and answering questions.

Within the app this is accomplished by simply clicking on the stock in a port which instantly opens a chart with price, volume...then swipe the screen left and the news page is open.

Some suggestions of port types that can be created are: (different)Sectors, Real port stock tracking, Cash Port, RSP port, TFSA, Watch List CDN., Watch List U.S., 5i's Rec's 2015, 5i's Income Rec's, All of My Holdings......

I find an app like this is very handy without the need of being at a computer, as it allows stock and bond tracking from anywhere as most people now-a-days have a smartphone with a data provision. It uses minimal data.

An app like this allows for instant tracking without having to log into a person's brokerage account.


Globe and Mail Investors, Globe Investor, MY WATCHLIST also allows for many ports to be created and provides a reasonable amount of information. It requires setting up a free account and must be logged in to access it from a computer, tablet, smartphone....

Hope this is of some value to someone.

Stan

Q: Good Morning.
On July 6, you indicated to Peter that BOS is Materials or Industrials.
TSX says it is Consumer Cyclicals.
Your final decision? Thank you. sarah

Q: Dear Peter and team: Please update your opinion re Baytex. I have been holding
quite a lot for quite a while. Thanks. I look forward to your BNN appearance
on August 4.