Investment Q&A

Q: Which of the above stocks would you consider having the greatest growth potential within the next one to two years with the least amount of downside risk? Can you please provide your rationale for your choice.
Thanks

Q: I have a small position in Rocky Mountain Dealerships. I saw recently a regular increase in value. Since I now make a small profit, I would like to know if I should keep it or change for something else. What would be the benefits and the perspectives of keeping it? and if you think that it would be preferable to change for something else having more value, what would be your suggestions for replacement?

Q: Like it or hate it, the GOP has passed their tax cuts. I have been doing some research about where to invest if this happens. It seems that US banks, both the big ones as well as the regional players stand to gain. Do you think this becomes a good time to invest in the US bank stocks? Is there another sector that you think benefits as a result?

Q: can you please give me your opinion about POW, is it a sell or hold?

Q: I am looking at these two stocks for income and growth, 3-5 year hold. They are different sectors, and either one fits into my portfolio balance wise. ABT seems to be on a downward trend since it was your top pick, would you still recommend? Would you suggest a full position in one or the other, or half in each? Thanks as always.

Q: Can you recommend a Canadian mutual fund provider that mimics the Mawer funds excellent performance and metrics? I have an rbc direct account that does not allow Mawer funds. I am looking for a global balanced fund with a reasonable mer. Thanx.

Q: Is it a cause for concern that the monthly dividend keeps slowly being reduced? We are at 6 cents a month now.

Q: What are your thots on this ETF on retail stores. Online long/stores short. It seems like an interesting concept

Q:




Hi 5I , Your thoughts and recommendations on Purpose ETFs symbols PID and PDF in a managed account. Or do you have other ETFs you would prefer instead. We are seniors late 70s.
Thanks MF

Q: I would appreciate your take on - The cracks in the Enbridge dividend story by David Milstead in the G&M dated Dec 3, 2017. Some of the key points in the article include (all CAPS from the article):

- ENBRIDGE EMPHASIZES 'AVAILABLE CASH FLOW FROM OPERATIONS' TO INVESTORS WHEN IT TALKS ABOUT THE SUSTAINABILITY OF ITS DIVIDEND. IN CALCULATING THIS MEASURE, IT IGNORES MOST OF ITS CAPITAL EXPENDITURES, DEDUCTING ONLY 'MAINTENANCE' CAPEX TO ARRIVE AT THE NUMBER. THAT HAS LEFT BILLIONS OF DOLLARS OF CAPEX OUT OF THE MEASURE OVER TIME. WHEN ALL OF THE COMPANY'S CAPITAL EXPENDITURES ARE DEDUCTED FROM OPERATING CASH FLOW, ENBRIDGE POSTS NEGATIVE FREE CASH FLOW IN NEARLY EVERY YEAR. STILL, THE COMPANY PAYS DIVIDENDS — AND ISSUES DEBT, AS WELL.
- For the third quarter, Enbridge reported $360-million in maintenance capital expenditures. Total capex was $1.95-billion. Depreciation, a measure of how much of the company's property, plant and equipment was "used up" in the period, was $848-million.
- In the last 10 years, from 2007 on, it was only in 2016 that Enbridge actually posted positive free cash flow, a paltry $83-million. The 10-year total is a staggering $24.1-billion in negative free cash flow. That's before paying out $7.4-billion in dividends. Perhaps not coincidentally, the company issued almost $25.6-billion in net debt over that decade. It now has $65-billion in debt on its books, including the tens of billions it took on in the merger with Spectra Energy Corp. this year.
- https://www.theglobeandmail.com/globe-investor/inside-the-market/the-cracks-in-the-enbridge-dividend-story/article37172663/

I would have expected that maintenance capex would be inline with the depreciation expense. Is Milstead highlighting one of the risks in ENB - ie., that the dividend is solid as long as the market has confidence in the Company and it can raise additional capital each year.

What mid/large-cap companies in this sector would you would recommend that have more conservative financials?

Thank you.

Q: Is there a Canadian ETF that covers the Dow Jones? I am aware of BMO'S ZDJ but I would prefer one not hedged to $Cdn.

Q: On Nov 28,BNS reported EPS of $1.65 vs $1.66 expected(e) plus offer to buy BBVA for $2.2b.For comparison purposes,CM(2.81 vs 2.59e),TD(1.36 vs 1.39e),RY(1.92 vs 1.87e) & NA(1.40 vs 1.38e).BMO reports on Dec 5.Reportedly,these banks are spending heavily on technology,& at the same time cutting costs.Heard through the grapevine that CM is revamping its system in order to increase both top & bottom line. Please comment on aforementioned offer by BNS.Is BNS still your top pick of the Canadian banks?Thanks for u usual great services & views.

Q: Your recent report on SaaS players excluded ABT as a "top pick" yet it was a top pick by Peter on a recent BNN appearance. I have been in the red substantially ever since purchasing ABT on that recommendation. What do I do?

Carl

Q: I own pretty much all the stocks in your model portfolio (other than GC, PKI, SJ, and SYZ) and about 1/2 of your growth portfolio. I also own a number of ETFs, including VXC, VCN, VAB, CDZ, SPY, XAW, and VXUS. I was doing a review of my portfolio and noticed that the ETFs above now make up 20% of my portfolio. A couple questions:
1) Are some of these ETFs redundant in my case?
2) What sector allocation would you suggest for 2018?

Q: Many investors expect big tobacco to get into Marijuana stocks. Perhaps liability issues might deter them, but they will need to make up for lost sales and diversify.

I seek your opinion on whether it is worth buying one of the following :
British American Tobacco , Phillip Morris (PM.us), or Japan Tobacco.
I am looking for a company with minimal exposure to the US market. I wonder if PM now has significant adverse exposure to the domestic US market after its acquisition of Reynolds.
I’d be thankful for your insight on which ( ---IF ANY---) would be a good choice for dividend growth over 3 or more years.
If you believe none are worth it right now, I would appreciate your thumbs down , if applicable.

Q: Good morning. I would like to add an insurance company to my income portfolio. I'm having trouble deciding between SLF and MFC. Your insights would be appreciated.

Thanks, John

Q: Please comment on the David Milstead article in today's ROB. He claims that ENB shouldn't be paying a dividend.
Thanks
Frank

Q: Good Morning.
Further to my question about US $ etfs in the financial sector, which one would focus on mid sized financial institutions? And do you have a preference over mid cap vs large cap?
Thanks, cathy

Q: I bought SMP.us as a dividend grower. I am down about 9%. The company APPEARS to have good metrics including dividend growth and ROIC over 11.5%. But now I am not so sure. Is SMP worth holding on to?

Q: Per the G&M today, Absolute has "...withdrawn a resolution for its upcoming annual shareholder meeting...in order to secure the support of Institutional Shareholder Services to recommend that shareholders of the company vote 'for' all matters to be considered at the meeting." Do institutions hold a significant number Absolute's shares and does this note indicate the company is being "encouraged" to modify its stance in order to retain institutional support? I'm holding a small position at break-even and am wavering on continuing to do so. Your insight would be helpful.