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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: My earlier question on ala.pr.u was not answered. Can you please advise?
I am resending the question:

ala.pr.u is a rate reset preferred share in US denomination. The rate will reset in 2017 at 3.58% plus the 5 year US Government bond.
While the steep decline of the Canadian Preferred rate reset shares is understandable because of declining Canadian interest rates, the decline of ala.pr.u from $25 a year ago to $17.30 today is puzzling.
Can you please provide some insight as to why this US dollar preferred share has lost 40% of its value if the reset rate will depend on the 5 year US Government bond which is 1.46% today vs .57% for the respective Canadian rate??
Thanks
Read Answer Asked by Terry on January 20, 2016
Q: In each of the past 4 years, this stock has risen very substantially in the first 3 or 4 months of the year, to a high between $12 and $14. Currently its price is close to last year's low, (though not quite as low as the $7 price in January 2014). Debt ratios seem consistent with prior years and revenue seems to be increasing. In 2016, won't this stock benefit hugely from the low Cdn dollar ? (Poloz presumably would expect so) Do you expect that in 2016, this stock will perform in a similar manner to previous years and will rise substantially ? What are your thoughts and rationale ?
Read Answer Asked by Don on January 20, 2016
Q: COULD I HAVE YOUR VIEWS ON SPECTRA 7 PLEASE. THEIR PRESENTATION IN DECEMBER AT THE CIX INVESTOR DAY WAS VERY IMPRESSIVE. THANK YOU
Read Answer Asked by George on January 20, 2016
Q: I am looking for 5 examples of long term buy and hold CDN equities that with dividends reinvested along with regular dividend growth will act as compound interest vehicles over time.

These will be held in a TFSA by a millennial friend of mine and have a 25 to 30 year run to her retirement.

Thanks in advance,
Greg.
Read Answer Asked by Greg on January 20, 2016
Q: hello team 5i: could you please tell me how my 2400 shares of cos will convert to suncor? thanks Larry
Read Answer Asked by Larry on January 20, 2016
Q: Is it good time to initiate position in the agriculture sector? which of these ETFs would you recommend (COW, MOO or SOIL)?
Thanks
Read Answer Asked by satish on January 20, 2016
Q: What is your current thinking on Urbana Corp? The discount to NAV seems to have increased substantially (although I wonder how accurately NAV can be determined on the private holdings).
Do you have any opinion regarding the investment in the Bombay exchange? Thanks,
Read Answer Asked by Peter on January 20, 2016
Q: Good Afternoon
Would you consider the new PPL minimum rate reset selling at $1.00+ below issue a good TSA income investment, or are there previous utility issues selling at greater discounts without as favourable a reset more appropriate?
Thanks to all
Read Answer Asked by Warren on January 20, 2016
Q: Hi Team, Any thoughts on why, in the last month(Dec 19 to Jan 19), BTO has declined about 35% while the sector has gone down by less than 5%. Is it more than just the Burkima Faso effects? Ed
Read Answer Asked by Ed on January 20, 2016
Q: Today, the gold price was flat, but junior gold miners were down almost 5% and gold explorers were down almost 8%. Do you know why such a steep drop?
Read Answer Asked by Michael on January 20, 2016
Q: I want to buy PHY.U on the TSX (in US dollars) for a position in gold. In time if gold goes up, which means the dollar will likely go down, do I just break even or am I missing something? Is this too risky a trade?
Read Answer Asked by Ed on January 20, 2016
Q: What is your opinion about this exchange traded fund of all can
Read Answer Asked by ebrahim on January 20, 2016
Q: Please provide your top few favourite REITS (CAD & US) for comparatively safe income and your view on H&R for long term income hold, would it be wise to add at this level?

Thanks
Read Answer Asked by Steve on January 20, 2016
Q: For income generation for the next 3-5 years, is there one or 2 sectors to overweight on or is it still better to diversify across sectors?

Thanks
Read Answer Asked by Steve on January 20, 2016
Q: Hello. How do you think Enbridge will fair over then next 1 to 2 years? Do you think it likely the volume of oil moved through their pipelines will decrease (tied to the possibility that Canadian oil producers reduce output from more expensive sources)? It certainly seems like a bad time to sell or trim ENB, but that only remains true if there is a hope for a turn around in that 1 to 2 year timeframe. Thanks so much.
Read Answer Asked by Robert on January 20, 2016
Q: Do you have any thoughts on why DRT continues to slide. Is short selling causing this. There seems to be no news.
Read Answer Asked by wendy on January 20, 2016
Q: I was thinking of buying this security for my RIF? It seems to have a high PE of 17x - concerned if we go into recession? Would you consider this a safe investment for income? Also, where are they going to get grwth in sales and income going fwd.? Unfortunately not a lot of choices here in Canada -trying to diversify with a consumer discretionary.
Read Answer Asked by James on January 20, 2016
Q: When does the deal close buying CUS? Will they be able to get and cost saving synergies with this acquisition? When I look at my data supplied by CIBC this company looks like a stay away from stock; however, when I read your analysis from Dec. 11 it looks like it is o.k. to buy -I was thinking for my TFSA?
Read Answer Asked by James on January 20, 2016
Q: Good morning. After owning this stock for the past several years and having taken a severe bath, would you advise to sell now that the purchase has taken place? It would be a substantial hit on my portfolio. Yes it could be used as a tax writeoff, but I have plenty of those now. Please give me your thoughts. Thank-you
Read Answer Asked by Denis on January 20, 2016
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