Investment Q&A

Q: Hi 5i Team

I'm primarily an income oriented investor. I'm uncertain about where interest rates will go over the next year. I think we're close to a plateau but who knows. I don't currently own any fixed rate preferreds but am thinking of buying some (maybe up to 10% made up of 5 holdings with different reset dates). I like the dividends and see them as a kind of interest rate hedge against the dividend paying commons. My thinking is that, all else being equal, resets are supposed to increase in price with rising interest rates while dividend payers tend to decline (subject to their ability to increase their dividend).

I understand that other company/market influences may move both preferreds and common in the same direction, I'm just thinking of the interest rate issue at this point. Your thoughts?

Thanks, as always
Peter

Q: Hi 5i,

Is there risk that the financing won't go through? Why would someone pay 154 a share at this point? Are the brokers who participated in the deal obligated to purchase the shares at 154?

Thanks!

Q: Hi 5i,
I have a full position with SRU.UN in my income portfolio.
I'm planning on selling half and buying another reit for more diversification. Could you provide a reit suggestion that would work with SRU.UN?
Or 2 reits suggestions and sell SRU.UN?

Thanks Steve

Q: PLEASE RATE THE BELOW IN ORDER :
A; AS PER DIVIDEND SAFETY
B; AS PER VALUE COMPARED TO CURRENT SHARE PRICE
KWH.UN (Crius Energy Trust)
VET (Vermilion Energy)
ALA (Altagas)
HOT.UN (American Hotel Income Properties REIT)
BEP.UN (Brookfield Renewable Energy Partners)
CJ (Cardinal Energy Ltd.)
DRG.UN (Dream Global Real Estate Investment)
IPL (Inter Pipeline Fund)
PPL (Pembina Pipeline)
DR (Medical Facilities Corp)

THANKS YOU
yossi

Q: Is this a good time to build a long term position in Largo Resources?

Q: Thinking of buying IIPR. May I have an updated opinion.

Q: Would you provide me with your view on LADR, the space/sector, and whether or not you have alternate suggestions that you would prefer.
Best of the Season,
Terry

Q: CGI Group has been a fantastic long-term investment even holding up really well this year. Would you take profits and reallocate to a different Cdn tech stock or continue to hold? I also have CSU , OTEX and KXS.

Q: Hello,
As I feel to be using more and more your company profiles, I am interested to know how quickly all the metrics are changed (share count, P/E, balance sheet etc...) after a new metric is published from the companies that I am looking at.
Thank you
CDJ

Q: I just signed up for Money Saver then noticed the Mutual Fund/ETF offer. I had assumed that Money Saver would provide the mutual fund and etf information I was looking for including 'best of' tables. Can you explain the difference please.
Thanks Peter.

Q: Who knows, with the recent news on Costco and JNJ which one would be better going forward today for the short-term?

Q: I believe JPM is your preferred US bank based on a prior question. I'm wondering if you can compare and contrast it to Wells Fargo and make the case for one over the other? I'm curious as P/E difference seems insignificant between the two. The Buffet backing of Wells Fargo is interesting as well. Can you comment on why he prefers it? Take 2-3 credits as needed! Thanks

Q: Investor moving from funds to ETF this tel's me that this stock will struggle to recuperate,we are now close to 2008 bottom at this point we to navigate under water and wander for how long the divi will keep us going till we sink.I'm 75 with and with few ecceptions i match the 5I Income Portfolio.
Thank You
Daniel

Q: YOUR OPINION FOR BUYING THIS STOCK AT THIS IS APPRECIATED.
THANK YOU

Q: GC--Any reason for recent decline? CLIQ--what's u take now after termination of div resulting in a big drop(some 22%) in a day.In my opinion,management is terrible. Thanks for u usualngreat services & views

Q: Hello -

Being aware that you don't necessarily cover US stocks to any great extent, are you able to tell me what UPS's valuation is compared to it's past, on metrics you find useful?

Is debt concerning to you for this type of industry?

This company's stock has dropped off a lot - likely some to do with current market conditions and partly with Amazon supposedly taking over this industry, and the rest of the world while they're at it :)

Thanks.

Jim

Q: Hi I’ve read that markets are fairly valued based on forward PE of 15 or so. I’d like to look at this from a bigger picture, the total market cap to GDP ratio, the so-called Buffet Indicator. In the past 100 years, this is showing extreme over-evaluation currently 151% exceeded only by the 2001 Tech bubble, 161p. If rates continue to creep higher I can’t see how this will end very well. Then again, if the they peak and then fall, the over evaluation is at least buffered, Your thoughts ?

Q: what is your outlook for 2019 and which share to buy, the A or B?

Q: Further to my question and that of Marios, I tend to agree that when a stock continues to fall as it has, one does get concerned that something is happening that we do not know about. Perhaps poker popularity is diminishing or perhaps debt reduction is not being taken seriously enough?
Based on your analysis of the company what are your projected revenues/ their forecasted this year and the next? Has the company made any comments/projections regarding how internet gambling is trending? Also you mentioned their debt levels. Has debt been increasing this year and are there any tangible signs that the company has plans to reduce the debt load.? What have they said in their conference calls regarding the industry and their plans to cope with their debt levels? Do they have the cash flow that would allow debt reduction?
It seems obvious that the market is concerned about something re this company. When I see a company trading at about 10 times next year's expected earnings and people continue to sell the shares day after day then one starts to question the validity of the projections and their ability to continue as a viable company with excessive debt! Not too long ago there was a drug company with all kinds of rosy projections that fell to junk status from very lofty levels. And debt, I seem to recall was an issue. Hopefully we do not have a similar situation with TSGI?!

Q: An analyst from Citi has warned that “debt service ratios for non-financial firms” in Canada are very high, and a crisis is possible within a year. Is it safe to assume that none of the companies you recommend would have any trouble servicing their debt (TSGI, SIS, PBH, COV, TOY, etc)? Do any prominent names come to mind which might be at risk? Thanks for your thoughts.