Investment Q&A

Q: Hi Team,

Currently rate reset prefs have been completely hammered (for obvious reasons). However, at this point should they be considered more compelling over the long term? Even though interest rates could certainly go lower, over the next 5 years I would expect the average interest rate to either be at or above where we are today. If that is a realistic expectation, then should there not also be some capital gain potential with these type of prefs?

Q: Hello,could you please explain the amplitude of the 125 high P.E on BEP.UN this is the case in few of your picks.
Thank You
Dan

Q: i understand why reset preferreds have generally taken a beating for the last year or so but I don't understand why those with generous reset rates such as Efn.pr. at 4.71 points above the bank rate also get dragged down. I would have thought this would have lessened the blow somewhat. Can you educate me on this?

Q: For fixed income, 5i often recommends CBO but rarely CLF. For example, there have been 6 questions this February for CBO but none since last November for CLF. And yet, it strikes me that CLF is a better value. Over the last year, when you consider the decline in NAVs and average the distribution yields, CBO has returned about 0.6% to CLF's 1.4%. When you consider the better quality holdings (only AAA in CLF), isn't CLF a better choice for fixed income?

Q: I do not understand-to buy Enbridge now or wait? Thank you.

Q: if you had to pick one utility mainly for growth and income second which would it be and please include in your pick companies like boralex or transalta renewables etc.but just one pick. thanks. dave

Q: Do you think this is a good time to take a position in TSO3? The share price is up since the recent press release. Thanks.

Q: I noticed CSU has bounced back from the recent sell off while ESL is languishing. Does that place a question mark over ESL? Is it the time to lighten up?

Q: Hi,

I have a small position in VRX and am down 60%. Things don't seem to be getting better and mayt get worse. Sell or hold?

Q: In a response to a recent question, you said that you could see Cannacord increasing by 50% or more in value with better capital markets. My question is this. Do capital markets usually improve before the price of oil increases (as I assume CF is largely dependent on activity in the oil patch) or after an increase or could a continued lower price also stimulate activity as the strong take out the weak? Guess I am wondering what type of catalysts to look for when deciding whether to continue to hold this.

Appreciate your insight.

Paul F.

Q: Your thoughts on the recent purchase.

Q: What do you think of this US bank. Ron

Q: Any thoughts on today's decline? And would you initiate a position in this company today? Thanks as usual.

Q: I noticed the CEO has announced retirement today, and would like to know your thoughts on the matter. I own the stock and it is down 16% from where I bought it. Should I take my losses or wait to see what the new CEO plans ? Thank You

Q: Hi Peter and Team,

I enjoyed Sylvia's question and your answer about Constellation CSU and other "high-tech" stocks. I realize that Sylvia didn't include Kinaxis KXS in her question, but I found a link to a Canadian Business article that describes the type of technology that KXS is involved with, and lists some of their high-profile clients. Perhaps Sylvia and other readers may benefit from the article.

http://www.canadianbusiness.com/lists-and-rankings/most-innovative-companies/kinaxis/

Q: Hello 5i team,
It was very thoughtful of you to send us your special report on the above securities; however, I fail to understand your rationale for doing so, as per your quote: "we wanted to notify members of an interesting and potentially time sensitive analysis on Canexus, Superior Plus and Amaya. It is currently only for members (so logging in may be required) but we will be making it public in due course".
I thought 5i Research's research and analysis was for the exclusive use of the members and not to be disseminated to the public at large.
Please clarify,
Antoine

Q: Were Endo's earnings THAT bad. I see mixed reports. It is my only health care stock, which I own only because I owned Paladin. Perhaps I should have switched to Concordia when you put it in the Growth Portfolio. Is it too late to do that, or would you recommend that I just hang on. Endo's one-year chart looks absolutely brutal, and seems to be getting worse. Need guidance. Cheers

Q: The price of Transat is up. Do you think it would be a good time to sell. Ron

Q: Because the CAD $ is steady at a 40% Discount to the US$, I just can't get myself to buy some good opportunities in US stocks. Am I wrong? If I buy a share @ $100US, it is costing me 140CAD......so the stock will need to appreciate by 40% just for me to break even!

Thanks

Q: Peter; Thank you for the reply re the Enbridge new issue. I am having a problem figuring out the difference between a short seller going short a stock - which happened in Canada last year quite a bit- and then issuing a derogatory report to drive down the stock and cover his short position. Then you have major Canadian dealers going short ENB in the full knowledge they are going to be doing a new issue at a huge discount. They have no risk as they can buy the new issue to cover their short position- plus they get fees to do the deal. Why is this not insider information? What am I missing- is this just the way all new equity issues are done in Canada- and the U.S.. Seems like a deal to me- but not if I bought stock from the Enbridge dealers at $45.00. Can you explain the difference to me- and maybe other members? Thanks. Might be two questions in here so you can ding me for them. Rod