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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: Good morning 5i team,

I was wondering what your view would be on the changes that the drop in a utility like enbridge might be finished or whether there is more to come. It is an attractive price at the moment. But, there are a number of rate hikes coming in the coming year. Would these already be written in, or is there more carnage to come? Just looking for an educated guess.
thanks
Read Answer Asked by joseph on March 09, 2018
Q: I would appreciate insight as to when international bonds should be considered as part of the fixed income portfolio, as presently my fixed income is largely Canadian (VAB) and US (VCSH, VGIT). I have an interest in having non-Canadian exposure to balance the risks to the Canadian economy posed by NAFTA changes and high Canadian household debts which could present the possibility of a lower CAD. The number of developed market international bond ETFs seem to be limited. Is there value as a portfolio stabilizer in being invested in a fund such as BNDX-Q to gain international government bond exposure, and are there better options to investigate?
Read Answer Asked by Jeffrey on March 09, 2018
Q: Hello 5I
Linamar (LNR) and Magna (MG) have had significant gains in the last year and are both near their all-time highs.
I got in both at much lower price and was wondering if this is a good time to sell and take the profit or do you see both reaching new highs in 2018?

Thanks
Bob
Read Answer Asked by Bob on March 09, 2018
Q: I read the news release and liked their last Quarter also. However the outlook has me considering selling this stock on valuation versus go-forward growth potential.

From the outlook: "they expect gross product sales to be in the mid to high single digits in the next year ". So they now expect growth going forward to be less than 10%? This is a company that has been growing revenues of over 30% and I expected that they still had enough new regions to grow into to keep revenue growth high.

So if they now expect growth to be less than 10% per annum, can we assume they are transitioning from a growth company to a more stable income generating company? Nothing wrong with this of course, but it does then bring into question the current valuation: at about $1/share in earnings the current PE is about 60. If growth is 10% wouldn't a PEG of 6 be considered very high, even for a high quality company?
Read Answer Asked by Kel on March 09, 2018
Q: I have significant tax loss on PHM, losses that are not usable. I have reduced my position but still have a large quantity of shares such that a penny makes a difference to me. Is it worth to wait and see (ride it out)? Does PHM.ca even have a PULSE or was this whole thing a scam? Very difficult to find info on PHM and they don’t want to respond to questions on next date it will report results.

Is it worth keeping VMD.ca the split-off company – Viomed seems to have some activity but if the same people are behind it , is it vulnerable or does it have some reasonable prospects for future growth?
Read Answer Asked by Adam on March 09, 2018
Q: Hi 5i,
I have some STB.DB.A debentures, which have popped up to around $25 above face value on the news of the takeover bid. How would you suggest I handle the position in the current circumstances? Ultimately I would like to put the proceeds into a convertible debenture from another issuer but I’d like to do as well as I can in disposing of the STB debentures first. Do you have any suggestions to consider as possible replacement debentures? I would prefer a maturity of 2022 or later. I would be using them primarily as a fixed income position and I view the possibility of a premium to purchase value at some point along the way as just a bonus. Thanks for considering.
Read Answer Asked by Lance on March 09, 2018
Q: I am in a quandary as to what to do with my energy holdings. Due to the growth of my portfolio from other sectors, the energy portion had now shrunk to about 3% as represented by the above 2 companies. It is my understanding that I should rebalance from time to time which would mean trimming a little, primarily from tech, and buying some pipelines/utilities and energy. I am comfortable with the first two sectors as I feel they do represent good value and pay a great dividend too but I wonder if energy holds the same promise. Should I hold my nose and buy more VET/WCP to come up to a minimum 5% or might this be a time to get out of a sector altogether? Is it possible that oil just won't be coming back, at least for several years?

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on March 09, 2018
Q: Hi Peter: How would u rank these oil companies in terms of its future growth. RDS seems to have a high dividend yield and IMO is at its 52 wks. low and a low dividend yield , and XOM is somewhere in the middle. I'm approaching retirement in a couple of years, trying to build a portfolio of dividend and growth. Any other suggestion not in the list above? Thanks.
Read Answer Asked by DAVID on March 09, 2018
Q: Any insight why DF T is down lately given it holds a lot of bank stocks? Would you recommend selling at this point or continuing to hold?

Thanks
Read Answer Asked by Kim on March 09, 2018
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