Investment Q&A

Q: Hi Team
What are your top american banks
Will this new tax bill help them

Thanks Mike B

Q: I presently hold this reset preferred which I bought at $16. I see the chances of interest rates rising not great. So I’m cashing in this investment to buy a minimum rate reset preferred. My object is to supplement my income with reasonable preservation of capital. I’ve had a good run on equities, the market is expensive, I don’t want to be caught offside. My portfolio is a dividend portfolio.

Q: Hi, I work for one of the big 5 Canadian banks. I have the majority of my portfolio in shares of the bank I work for. Simply through unvested and vested shares. Some are paid via performance and others are through an employee share plan. I want to manage risk so should I sell the shares as they become vested and put elsewhere or leave them be. Seeing I work in banking I understand the business moreso than other sectors so there is a comfort factor here. Has Peter experienced such a dilemma at any of the previous companies he worked for and how was it managed? thank you

Q: Good day. Any particularly interesting stocks that have been getting hit hard through what would appear to be tax loss selling? Thanks!

Q: Good morning Gentlemen.
I need to re-balance my Industrial sector.
Actual holdings BAD 1%, ATA 1.5%, SIS 3.3%, and WSP 3.4%.
By selling BAD (1%) I will have 5% to add to the sector.
Can you please suggest 2 or 3 Can or US solid mid-cap stocks for at least 5 years.
Thanks
Best Regards

Q: is there a good etf of cannabis stocks that you would recommend, regards from tom in kelowna

Q: I'm trying to diversify a bit more and sell a quantity of banks and utilities Would you consider WSP as a long term buy and hold. Would I buy a full position now or stagger the buys. Thanks

Q: I'm looking to diversify outside of US/Canadian stocks, as this represents the bulk of my portfolio. Can you recommend any international or developing market etfs? Any international etfs with a value investing model? Thanks.

Q: Is it a good time to to invest in Japan?
If so, which do you prefer? CJP, CJP.A or WisdomTree fund or other?
It would be a small part of my portfolio and for growth.
thanks very much. Helen

Q: Kinder Morgan received a favourable ruling yesterday. Yet KMI.PR.H dropped.
Can you explain?

Q: Hi Peter and Team,
I recently read an article on bitcoin. In this article, the author identifies a number of companies as equity proxies for bitcoin. Square (SQ), Advanced Micro Devices (AMD) and Goldman Sachs Group (GS) are 3 of the companies mentioned in this article.
Would you please enlighten me on the connection between the 3 above-mentioned companies and bitcoin. Your comments, as always, would be much appreciated.
Cheers,

Q: In response to a recent question you said that VXUS is a very attractive possibility for stocks outside the US. I already own VWO and was wondering whether it would be a compliment to that, or whether there would be redundancy? Isuppose I could ask the same question of a European ETF?
thanks for the great help

Q: What do you think of the acquisition by Xylem?

Q: Six questions regarding pipelines:
(1) I understand that Enbridge finances most capital expenditures by way of debt or new equity, not retained earnings. I am thinking that this would be OK if its GAAP earnings per share are keeping pace with dividend increases and its debt service coverage is stable. Do you agree with these comments?
(2) I assume that the prospects for ENF are tied to ENB. Do you agree?
(3) Do PPL and IPL have the same policy as ENB regarding the financing of capital expenditures?
(4) Do you have preferences among ENB, IPL and PPL and, if so, why?
(5) If I am correct, ENB is mostly pipelines, PPL is mostly other midstream and IPL is somewhere in between. I have this idea that pipelines are more stable than other midstream activities. Is this simply wrong or an over-simplication?
(6) ENF, IPL and PPL represent 10% of my portfolio. Would you suggest lightening up? (I am retired and my portfolio is geared to income.)

Q: Peter and His Wonder Team
Please give your current assessment of BXE. It has crashed since the 5 for 1 consolidation and also hit with tax loss selling. Would you rate this a hold because it may be over sold or just sell and take the loss even though it does not qualify as a tax loss. On the other hand would it be a reasonable contrarian play going into 2018 with more optimism concerning global growth?
Dr.Ernest Rivait

Q: Hi 5i team,
If I buy shares in a dividend paying stock the day before the dividend pay date, would I still get paid the dividend, or is there a minimum amount of time you need to own shares before you get paid the dividend?
Thumbs up on the new website!

Q: Depending on the source, I see TRI categorized as Financial, Industrial or Consumer Cyclical. Your thoughts please.

Q: I am a little overweight in Canadian financials and worry about the new stress testing the banks will use for determining eligibility for mortgages next year.
Would it make any sense to take a little off the table and buy one of the life co's given expected rising interest rates and if so which of the above three?
Thanks
Jeff

Q: I remember, maybe 5 years ago or so Peter recomended First Service corp because it had initiated a divident, he suggested the initation of a dividend was one of the better buy signals. It made sense to me and i bought the shares at that time, and it has been a great investment

Two part question
1. Please share your thoughts on div initiation as a buy signal
2. Please share a couple of tickers that have recently initiated a dividend and could be bought today

Thanks

Kuldar

Q: In their Second Quarter Report 2017 at page 9 and Note 3 CQE took a $96,200,000 "Impairment Loss". Presumably no company wants to conduct impairment tests and publish the results, so I assume IFRS or TSE or CPPIB (lender) is the driver. The future price deck shown in Note 3 seems to me to be quite optimistic and minimize the amount of impairment, and they do state that a 10% decrease across the deck would produce further impairment of $107,000,000! A partial reversal therefor seems unlikely. So the questions - 1) Is CQE really the only O&G so challenged that it has to do impairment tests - I haven't seen any others? 2) in your view is bankruptcy more likely than a takeout?