Investment Q&A

Q: Hi Team,

I would appreciate your current thoughts on CRE.

Thank you

Q: I currently own a 3.5 % position in celgene. Yesterday's accouncement of a failure to proceed to a phase 3 drug trial has led to two analyst downgrades. The stock is down 6 percent pre market. Would you be comfortable, at this moment, to top up to 5%? Or do you see more downside for the company, and would prefer to let things settle.
Thank you
Karim

Q: Hi guys.

Just a follow up on Raymond's question regarding Algonquin Power (AQN) and Northland Power (NPI). I believed you stated that Algonquin has a better growth profile than Northland. However, CIBC's Invstor's Edge shows Northland eps going from $1.07 to $1.46 from 2017 to 2018, while Algonquin's eps going from 66 cents to 73 cents.

Are my eps numbers wrong?

Thanks.

John

Q: With the miss and the weakness in the stock would now be a good time to take a long term position or would you see more pain and possible div. cut.

Q: Regarding asset allocation, I need to do some trimming and adding. I need to trim RY and use the proceeds to add to ZWE. In a perfect world, I'd like to nail both dividends, so I wanted to bounce the plan past you.

The ex-div date for RY is Oct 25 and the ex-div date for ZWE is Oct 27. So that means I would get the RY dividend if I sell on or after Oct 25. I would get the ZWE dividend if I buy on or before Oct 26. Did I get this right? Thanks, Steve

Q: Hi 5i:
Thank you for the continued great advice, insight, and the opportunity to renew at the existing membership rates.
I would like your opinion on an article in the Globe and Mail last week – Scotiabank’s AT1 security a hit; other banks expected to follow suit.
BNS issued 1.25B$ internationally through a sale of a new hybrid security that has many of the attributes of a preferred share, but is legally classified as debt. This note qualifies as additional tier 1 capital, pays interest at 4.65% for 5 years and floating thereafter, has no scheduled maturity and converts into equity in times of distress. The new hybrid security also gets around the 25% tax on any passive income generated by investors who are not resident of Canada.
There are more details in the article.
If other banks follow suit what do you think will be the effect on the retail rate reset preferred share market in Canada? Would there be a probability of the banks redeeming their preferred shares currently issued when the first redemption option comes due and replacing with this new hybrid instrument?
Thank you.

Q: Peter listed Celestica as a top pick on BNN market call. Based on what was reported by BNN in text, it was not mentioned that ONEX controls CLS with 79% of all votes. Do you believe that such control affects suitablility of CLS as an investmwent?

Q: My wife and I are retired and are income investors. We are considering reducing our 35% bank exposure. These investments have done very well over the years and we do not want to reduce the quality of our portfolio, but think that perhaps a little more diversification would be desirable.

We are looking for one or two non-large-cap Canadian companies with a growing dividend/distribution preferably greater than 3.5% for a very long-term if not forever hold. We want to avoid more financials, utilities, and retail, office, industrial, and apartment REITs.

Some possible purchases we have identified are: KPT, ITP, CSH, ZCL, AGU, BIP, HLF, BEP, UFS, BPF, AND NWC.

What do you think of reducing our exposure to banks and buying some non-large-cap companies?

What do you think of our list of possibilities? Do you have any other suggestions? If you have two or three good candidate suggestions that would be great.

As always, thanks!

Q: Do you think that an overweight position in Altagas receipts and Crius energy is a reasonable way to reduce interest cost in a margin account; between now and summer of 2018?

Q: Would you please be able to tell me what Suncor's geographic distribution of revenue is? How much is from Canadian oil sands vs the US/rest of the world?

Do you like Suncor as an investment right now?

Q: I appreciate 5i does not follow the us market, but I would appreciate you comment if possible on the etf Gamr.
I am looking at a small position - reason: that gaming is a business as large or larger then the movie industry.
As a little btw - it looks like a large % of the top holdings are Canadian companies
Thanks

Q: Is it time to sell PONY? Thanks

Q: I am interested in taking a position in either Algonquin or Northland for both dividends and growth. As they have very similar dividends, which would you prefer for growth over the next two years?

Q: These stocks are making new lows.
They are not in favour right now.
Money is coming out of this sector because packaged foods are not popular etc? Growth stocks are back in favour?
Is this an opportunity?

Q: Although up overall in my balanced portfolio, I'm down close significantly, 10- 20%, in AEM, CLS, KXS, GUD, PKI, SIS. I don't yet own CCL, CAE, EMB, GC, T.

Would you suggest swapping them out now, as year end approaches, or hold and buy the remaining names as funds become available? Or perhaps keep a couple / drop a couple?

Thanks!

Q: If you hold AW.UN in a TFA,RRSP or RIFF there is no tax on dividends. Correct?

Q: Can you please give me PE and forward PE for both companies. How do they differ? Even in a economically sensitive business, wouldn't you assume cjt can still grow with simply the transition to online versus BandM.

Q: How big is the news GILD for FDA approval for Cancer drugs? I think it is significant. Can I make a case for a full or half position on this company. Currently have very limited exposure in this sector..except if SIS is considered a healthcare stock. Thanks. Shyam

Q: Just noticing TAP is getting cheap, is it a trap. What would you say about its prospects for the next few years? Is there a better choice in the sector?

Q: I bought NMX in 2015 at .36 and sold it in 2016 for 1.84 then bought it back again at $1.09. It is up 60% since July. With today's surge it has reached 10% of my portfolio. Again. But compared with similar projects it is undervalued (ie Mason LLG.X that is at 2.25 and is no where near starting production). My dilemma is do I hold on or take profit. I am well diversified and going to retire in 60 days.

Thank you for your input!