Investment Q&A

Q: Hi Peter,
Thank you for your prompt response to my previous question on SQM. I have some follow-up questions on SQM.
1) Does the government of Chile have an ownership position in SQM?
2) Do insiders own shares of SQM and if so have they been adding to or reducing their positions?
3) You noted in response to a member question that the government of India has been pressuring POT to sell their SQM shares. If POT sells their shares do you think SQM's share price will go down or is the market strong enough to absorb the new float?
4) Does SQM carry excessive debt?
5) Does SQM have a good record of matching or beating estimates?
6) Do SQM's deposits have generally good grades or are they almost exhausted and marginal?
...and finally...
7) Do you feel investors are too early on lithium or is demand actually growing?
I realize I am asking a lot of questions on one company so please deduct as many question credits as you think appropriate.
Thanks,
Jim

Q: Could you please compare their growth potential, valuation, debt.
Which one would you buy today.Does it make sense to buy both?

Thank you.
Milan

Q: Please comment on the dividend. My online broker reports 8% yield, you report 3.5%. I guess the broker is including a special dividend. If possible, please share the regular and special dividends of the past 3 years, and share your view on the future dividend prospects. Thanks for your invaluable service. Frank

Q: Is there any reason to think this improves in the next six months or is it time to move on? I would be selling for tax loss but do enjoy the dividend and will keep if you see this improving. THANKYOU

Q: Hello Peter and team,
My portfolio now closely mirrors the BE Portfolio only missing NFI. I have cash for two full positions.
XTC’s valuation seems interesting and it has gained traction recently. Would it be time to initiate a position or wait and see how the NAFTA negotiations evolve?
Thank you, Ronald

Q: Should I trade AQN for RNW?
I am a senior dividend investor, and would ask for your opinion about this trade, along with whatever positive or negative comments come to mind.
As background, I have a ¾ position in RNW and ¼ in AQN. RNW pays 6.81% and AQN pays 4.22%. AQN is forecasting 10% growth per annum till 2021. RNW has nothing on the horizon, now that South Hedland is up and running, with nothing seen to be coming from ‘daddy’ (Transalta), so perhaps no growth in the short term.
However – even at 10% growth the dividend at AQN will only be 6.76% in 5 years, still less than RNW today even if their dividend remains the same. I surmise that both dividends are safe (would you agree?), and am really thinking “bird-in-hand” makes more sense than future promises. I do realize that if prospects remain the same, AQN may experience more growth, and I may be forfeiting some capital gain (this is in an unregistered account), but a 2.6% differential is a lot to give up for future ‘possibilities’. Since the companies are in the same business – more or less – I also have difficulty seeing any differential in risk one versus the other.
Of note, RNW has earnings on Tuesday. Would you wait until after the earnings release to make this trade, or would you make it now?
I look forward to your comments.
Also, thanks for the 2 year renewal option. I will be taking advantage of that to keep enjoying your very superb service!Thanks! ... enjoy your day!
Paul

Q: Hi team,
Great investment service. I seem to have trouble using a credit (a great problem) as when I am composing a question, I check the new Q&A and another subscriber has already asked a similar one on that security. So I get my question answered for free. I guess I will have to go outside Canada to use one.

The only time I invested in a company in China was in Sino-Forest about 7-8 years ago. It was an Action List Buy from TD. A few days later it was in freefall and I was down 25% before I could get out.

Eight years later, I am now considering BABA as another investment based in China. Most analysts are very enthusiastic about BABA as potentially having a bigger impact on e-commerce than AMZN. However, they always warn about the political risks of BABA. What exactly are the risks? Sino-Forest was a fraud. I don’t think BABA is a fraud. What else could happen? Could the Chinese Government nationalize the company or part thereof?
Also, earnings are coming out Thursday evening. I don’t usually like to step into a stock just before earnings. You could get a pop or a drop. So, what are all these political risks with BABA that the analysts allude to and would you purchase before earnings release, or if at all?

thanks
dave

Q: TD shows ZCL's payout ratio to be 158.62% What do your numbers show? Is it of any concern?

Thank You
Clarence

Q: My question is on diversification for my kids. With smaller amounts of money I find it a struggle. My daughters are 4 and 6. In one RESP there is 155 shares of DR. In the other RESP there is 155 shares of CRT.UN I also have a TFSA account where I keep there money from birthdays Christmas etc. There they have 543 shares of DIV and 90 shares of KWH.UN Cash for them is starting to add up again for them. Thinking very long term do I add a new position for them or sell all and start fresh? What do you recommend?

Thanks Jimmy

Q: I am comparing FDN, IGV, VGT,and BST - all hi tech ETFs . BST has performed the best this year and pays a healthy dividend . Aside from some Apple and Google I am barely into the US Tech sector . 1. Should I just buy "something" and hope for the best ? 2. Do you have a favourite tech ETF ? 3. Am I too late for the party ?.

Q: I note Rosenberg’s article in the globe this morning in which, among other things, he likes energy stocks at the moment. Do u agree with his assessment and if so would u purchase individual stocks or an ETF and would u focus on producers or service providers and in which geographical area? Can you provide specific recommendations. Thx

Q: Hello 5i, Can I get your assessment on Dol? It seems fully valued at this point. I have a 1/4 position and wondering when to to pull the trigger on this to buy more or should I but more. I like to hold for a few yrs or until the story does not make sense anymore. Is that the case for Dol?

Q: Sw ( Sierra Wireless) looks technically like it may haved based and might be about to take off....

Could you please give your opinion on its current possibilities for short term increase ( in terms of seasonality, technicals, fundamentals, earnings and sales as well as earnings and sales growth prospects, and competitiveness and sentiment) as well as you can determine

As well, would you please name its main competitors and rank it and them for suitability for long term long with rationale

Thanks... raelly DO appreciate your research

Q: Has the market overreacted to the recent CCO loss? I have made some decent return buying on dips the past few years and selling several days/weeks later as the stock recovers to near its pre-dip low. Do you think this is another blip I can profit from very shorterm? Have I missed something major?

Q: For a 40 year old, starting to save for retirement. Currently have in an RRSP these stocks: TOY, ATD.B SIS and TD. Now have room for two more holdings. Can you suggest 2 or 3 please?

Q: What do you anticipate as a return on the balanced equity portfolio for 2018? Reason I ask is that I still have a mortgage so I need to decide if after tax returns from my unregistered investments would be better used paying down my mortgage. As it is time to do end of year tax planning and planning for next year I need to decide what I do with my cash...Put it in equities or pay some of the principal on the mortgage. My current rate is 2.79% so not a very high bar even after taxes.

Q: What positive news , ( if any ) caused this weeks rise in price ?

Q: Trading halted today, do you know what the news is?

Q: Which would be good addition AMZN, FB,GOOG, SHOP, NVDA,NETFLIX, MSFT.Or all.

Q: I didn't know the markets were so emotional , TOY having sympathy for Toys R Us big drop today , what emotion would be attached to EIF's rather large gain today ??Confidence ? ..are short sellers finished with EIF? Have a great day.