Investment Q&A

Q: On September 9 you said that DRG.UN's payout ratio was 55%. Previously on Feb16 you said it was close to 100% and yesterday on September 20 you said it's effectively 100%. I'm confused ? What changed between September 9 and September 20 ? Looking at Morningstar I see a payout ratio of 58.7%. What is the correct payout ratio ? Also if Morningstar's figure is correct or in the vicinity of correct and the PE is 7.3 this seems to me like a company with an ample cushion for the dividend. But I realize nothing is secure when looking at a dividend in the region of 9% so what would be your concerns regarding an investment in DRG.UN ?

Q: Hi team, I am looking to start a position in SYZ, I have pretty well every position in the growth portfolio. I'm thinking 3% full position in one purchase . Is it a good idea?
I am thinking about the same with ESL, and have noticed the share price is lower now than a year ago. Is a full position same as above be acceptable?
Thank you as always for the service.

Q: In your answer to my question previously about the two companies, you state the following: "This switch would, in our view, be effectively a trade off between income and potential economic leverage. With NFI owned already, we think it could still be helpful."

I am not sure what you mean when you say it could still be helpful. More helpful to retain TFI or more helpful to make the switch?

Thanks again for your advice.

Paul F.

Q: Hi team, any thoughts of Cineplex's aquisition of Tricorp Amusements. Thanks. Sam

Q: 5I Team,

Do you have any comments/analysis on Electronic Arts Inc.?

Thanks

Q: Hello Peter,

I've held PHM (Pulte group) for two years as a play on US housing and as a US consumer discretionary holding. Given RCLs dividend increase (announced today), would it be a better asset for growth and income? (also US discretionary - but I think is classified as industrial.)

PS when I search for info about Royal Caribbean (RCL) I am still getting information about Ridley (a company I know nothing about).
Many thanks!

Q: Hi: I am sitting with 5.10% of my portfolio in VNR and 3.99% of my portfolio in GEI. Wondering if it is a good idea to sell some VNR thereby reducing the holdings to 3.19% and buy GEI raising my holdings in this stock to 5.80%. By making this move I can increase my income by $1.00 a day over the present. Thank You.

Q: Hi Gang,
I'm looking to add 2 more stocks to complement my TFSA with cash availble.Current holdings are: ALA+4%;BEP.UN+5.5%;BHX.B+2%;ET-2%;FTG+15%;HCG-28%;MTR.UN+7.55;PHM-38%;PUR=1%;TNC-15%.
Would you dump PHM &HCG and take the loss and redeploy or hold for a eventual turn around which my be years?

Q: Hi Peter & Ryan,

I'm a little overweight in the Energy sector and was wondering if I could have your thoughts on Trinidad Drilling. Would you be a seller or would you hold on to this one? Thanks. Mario.

Q: I invested in a 'Global Small Cap' fund about 18 years ago. Incredibly, my return AFTER 18 YEARS is NEGATIVE 16%! (I guess this is lesson in the effects of both high mutual fund MERs and picking a lousy fund company!) Can you please suggest an ETF that would be good for the 'global small cap' space. Or another 'small cap' ETF or strategy, if you don't think a global small cap ETF is the way to go. Thank you!!

Q: I have rate reset preferred shares (bought at $25 / share) which are presently 25% in value underwater because of the Banks of Canada’s unexpected prime interest rate decrease. At the time of purchase their interest rate was 4 to 4.5% & they will be subject to a rate increase in 2019 & 2020. I your opinion what is the chance of their value returning to near $25 in the next 3 years? I am wondering if I should sell the preferred now or hope that their value will appreciate sometime before their rate reset date . Thanks … Cal

Q: Can I have your thoughts on ENV, Envestnet? Thank-you.

Q: I was listening to Charles Nenner (Research) on BNN, who you are probably familiar with, although it was a first time for me. Unfortunately while he was talking tops and bottoms I am not really sure I understood his future predictions. It did not help that the BNN reporter was really unable to bring out the issues he was talking about. It seems to me that he was saying TSX,S&P etc would undergo a down cycle in the coming quarter but when that was over we could expect a rise going thru to the end of of 2017. Are you familiar Charles Nenner cyclical philosophy and what can you tell me about it and do you give it credibility. Thank you.

Q: Baytex continues to drop on no news. Is this the time to finally sell?

Q: Hi 5i team,

Can you provide comment on ssl and if you would condone a 5% investment. Also, with gold typically being a hedge to market/economic capitulation, can you comment on the 5% weight the 5i team typically prescribes please. If the overall portfolio dropped 20%, the 5% gold holding would have to increase nearly 4x to effectively hedge the loss. In this volatile market, would a heavier weighting would be a prudent defensive position?

Q: Your comment on PHM splitting into two companies prompts a few questions:
Do you think Hoyt and Crawford had a difficult relationship so Hoyt decided to take his company out of PHM and do his own thing with the company he sold to PHM? He owns 20M shares @$1.46. Crawford now has his company that he sold to PHM for which he took 33M shares @ .33. Do you think Hoyt was squeezed out?
Dalsin, as Chairman, was toxic and the news release says he is "outgoing". Glad he's out. Is this a major plus for both companies?
Finally, PHM presently has 375M shares? Does each company retain half that number?
As a shareholder who loved the business plan "pre-chaos" I am excited about new names ridding us of PHM'S heavy baggage - and Dalsin! I say go for it and may both men win!

Q: Hello Peter & Co.
In my TFSA, I hold a mini portfolio consisting of BAM.A (fin), DH (fin tech), DHX (cons discr), KXS (tech), MSI (ind/bus serv), NFI (indust) and PLI (health) in more or less equal weights.
I am frustrated with DH (significantly down) and wish to replace it with something else; could you make 2 or 3 suggestions? I'll select one that I do not hold in my RRIF.
Thanks,
Antoine

Q: With tec taking flyer this year up 300+% and my holdings in the black is it time get out of this or let it run another few quarters. Teck seems to also spike up towards the end of the year.
Majority analysis say hold? What is 5i position on this sto k

Q: I have held TFI for the past 2 years or so and watched it go from above $30 to below $20 and now back to above $26. Despite its recent substantial rise, I am thinking it should be expected to level off until the economy in general improves. I am therefore considering a switch here to EIF to take advantage of the higher dividend and perhaps a better growth profile. Would you view this as a reasonable switch or would it be best to stay with TFI or is there another company in the Industrials you would consider switching to (I already own NFI).

Appreciate your insight.

Paul F.

Q: what are your thoughts of PHM splitting into 2 companies? what do you think is the purpose of this? is this a positive or a negative?