Investment Q&A

Q: I hold HCG and MFA in TFSAs at 1.4 and 1.8 percent, respectively, of my & my husband's total portfolio. (combined calculation as recommended by 5i!) They are both down close to 30% since I bought them. Given their percentages, should I just leave them, or should I take my loss in one or both, and move on? Thanks for your help and support.

Q: Hi Peter and Team,
What is your view on Baytex Energy buying production assists in the Peace River Region of N. Alberta in a deal worth 65 m?
Is it positive or negative in terms of their operations and financial status. To my understanding their debt level is high.
Your comments appreciated.

Q: Hi Team,
Yamana Gold,has published a rights issue today- are these generally a good idea to participate in for the average investor?

Q: Between CNR and CP, which one do you recommend today and going forward in the Trump era, and reasons as to your preference.
Does it make sense to own both Telus and BCE?
Thank you,

Q: Greetings and best wishes to all. I have a small position in Niocorp (NB. I like the companies project, but I do not know enough about the industry to know if they can successfully develop the property by themselves. I would appreciate your thoughts on how this might proceed. Are they a buyout candidate, if not, can they successfully become a profitable operation? Thank you

Q: Dr seems to have broken down after a nice run. Can you give me your thoughts going forward

Q: Is BDI a good value play at these prices? How risky is investing in BDI at this point?

Q: Is HNL positioned to withstand continued weakness in the oil patch activity should that persist well into 2017 ?

Q: When does PUR report Q4 earnings?

TIA

Q: Can you presently name three Canadian large cap companies you like long term that you can say are cheap right now? Thanks, Bill

Q: Further to my previous FYI post re ENERCARE and your response (thanks!).

I have since received a response directly from Enercare indicating that "they are building cash to deploy in their regular growth program (to build out the rentals and also the sub-metering business). It’s not necessarily to pay down debt in the short-term."

This just for further clarification directly from the company. To me this is better than issuing new shares directly into the market as it rewards current Shareholders with the 5.0% discount which to my knowledge is a fairly generous discount as compared to other discounts in the 2% - 3-% range.

Q: With reference to the new DRIP that was instituted. In your response you thought it was to pay down debt. The dividend was raised 16% in early 2015. If paying down debt was the priority why approve the raise in the first place. Is this new program indicative of a change in managements assessment of the company. Seems to be confusing signals. What would your take be on this move.
As always your considered opinion is greatly appreciated.
Mike

Q: I would like to add a growth stock to my TFSA. Looking at your growth portfolio I narrowed it down to one of SHOP, KXS, DBO, PLI, TNC or ZCL. In today's environment which one of these six stocks would you add? I am relatively diversified across all sectors, so sector is not an issue at this time.

I was originally leaning towards either SHOP or KXS. If you didn't select one of these from the six stocks listed above, which one out of these two would you pick?

The funds to purchase the growth stock will come from the sale of IPL or WCP in my TFSA. Of these two which would you sell to get the funds for the growth stock? p.s. I also own IPL and WCP in a non-registered account and plan to keep those.

Paul

Q: Great job on establishing a stock picking contest for high school students! I think it's a wonderful way to stimulate financial interest in the younger generation.

Q: On Nov.22 James asked you a question about gains of $200,000 vs loses of $50,000. He wondered if he should be concerned with this situation and if the federalistas would ever suddenly surprise him. When you answered you said the feds will not care etc.
When he and you mentioned the feds were you talking the USA or Canada Revenue.

Q: Any comment on the ECN preferred shares announced today? Will they be rated by the rating agencies?

Q: I currently have a half position in TOY and am up 12 percent. I want to buy the other half but I've read that most of their sales are this quarter for christmas. So does that mean the stock will be much lower in January and for the next three quarters? I guess I'm wondering if I'd be buying at a high and should wait until mid next year?

Q: Is this a good time to buy? do you see more risk from this point on?
thank you!!!

Q: I have a number of CBL shares and have received a must respond letter from my online brokerage. The offer is for CBL shares at $16.50 but the current price is above $18. The literature is slightly confusing in that it implies unless I tender the shares I might miss this opportunity and generally the company may become private. The tone is my shares would then be worthless. Can you comment? I really have no intention of surrendering my shares for below what the stock trades at currently. Thanks so much. Dave T.

Q: Just couple of points as an FYI to 5i Members who hold Enercare (ECI):

1) Evelyn Sutherland (CFO) has just been named as an WXN (Women"s Executive Network) 2016 Canada's Most Powerful Women: Top 100 Award Winner.

2) A new DRIP program will be instituted (with a 5% discount) effective with dividend payable on December 30th, 2016....

TORONTO, ON--(Marketwired - November 18, 2016) - Enercare Inc. ("Enercare") (TSX: ECI) today announced that it has adopted a Dividend Reinvestment Plan (the "Plan"). Canadian resident shareholders will be entitled to register for the Plan effective with Enercare's monthly dividend expected to be paid on or about December 30, 2016.

The Plan will give Canadian resident shareholders a convenient means of increasing their investment in Enercare by electing to receive common shares ("Shares") instead of cash dividends on some or all of their Shares. Plan participants will benefit from acquiring Shares at a discount to the prevailing market price, and without having to pay any commissions, service charges or brokerage fees. Under the Plan, Participants will be issued Shares from treasury at a 5% discount to the then prevailing market price, unless Enercare notifies shareholders that it will satisfy the issuance through open market purchases, in which case Shares would be issued at prevailing market prices. Shares acquired under the Plan will be automatically enrolled in the Plan.

Enrollment in the Plan is optional and will not affect a shareholder's cash dividends unless they choose to participate in the Plan. Further information on the Plan is available on the investor relations section of Enercare's website at http://www.enercare.ca. Shareholders who hold their Shares through a broker or financial institution and wish to enroll for the Plan should contact their broker or financial institution directly to learn more about the specific procedures and deadlines for enrollment in the Plan applicable to them. Registered shareholders may enroll in the Plan online through Computershare's self-service web portal, Investor Centre, at www.investorcentre.com.

Enercare also announced today that, in connection with the Plan, it will change its policy of determining the record date for shareholders eligible to receive a dividend such that the dividend record date will be on or about the 15th day of the month in which the associated dividend payment is made. This change is being made to facilitate the administration of the Plan and will be effective with its dividend payable on December 30, 2016. It will not affect Enercare's previously announced dividend payable on November 30, 2016 to shareholders of record on October 31, 2016.

I assume the savings to the company will be used to pay down debt?

Scot