Investment Q&A

Q: Have held RNW for about 6 years, and seen it go up, then down, then way up and way down. At the moment I am up a couple percent on the stock price (not including dividends). I know they had some issues with their off-shore turbines, and recently I have read some comments about them probably reducing the dividend in the near future. Could you comment on RNW in general, and the dividend issue in particular. Do you think it might be better to take a small gain and move on, or just sit tight?
Thank-you, Grant

Q: Prize targets, Analysts issue price targets were there is a financial benefit, potential or real, to a company. What value do you give to those targets? Has there been any research on the accuracy of targets? Clayton

Q: I haven't seen any recent comments on FXI. I would appreciate your thoughts on its current trend. Also, I didn't see the MER on this fund in the profile so could you please tell me what it is. Finally, are there any issues I should be aware of of holding this in an unregistered account? Thanks!

Q: I would appreciate an updated opinion on StorageVault, particularly in light of their recent successful $100M convertible debenture issuance at a relatively low 5% interest rate.
Thanks!

Q: Looking for an up to date opinion on ANRG. Do you think they can put it together and become profitable? If they can meet guidance, is this a good entry point ?

Q: I am interested in your comments about PKT. In late 2020 they seemed to wake up and start what appeared to be a pretty aggressive growth strategy, The market responded and the stock price went from $.10 to $1.77 in a 4 month stretch. It has since lost steam and has been hovering around $1.00 for a long time. In the past 12 months it looks like insiders have executed 70 BUYS and 0 SELLS buying over 8m shares or 3.55% of the float (if I am reading your data correctly). My questions are:

- how would you rate their financial stability?
- how would you rate management?
- how would you rate their recent acquisitions?
- management seem to be fully committed and must see the stock as a screaming buy but as they load up on stock is there a danger that they could take the company private at a huge discount while the market is ignoring the stock.......I am interested in how do you read this.

Love your comments and insights

Scott

Q: I follow most of your balanced portfolio. Other names in my portfolio are ones you recommend highly.
I have 15% of portfolio in VGG, 2% google, 2% NIVDA
The rest is in Canadian equities and I am looking for advice for percentages in each sector..
4% Materials
7% Consumer Staples
6% consumer Disc
18.5% Financials
19.5 % Industrials
22.5% Tech
6% Utility
7% Energy
If you look at my percentages of Canadian equities please indicate areas I am too high in and areas I need to increase my exposure in.
I realize this question may take a little time. Please take as many question credits that are needed. Thanks for your excellent service over the years.
T Steve

Q: your thoughts on harvest group of funds for income

Q: I am looking to add to the consumer defensive part of my portfolio, I already own Loblaws (L:CA) and Costco (COST:US). What other stocks do you recommend based on low debt/strong balance Sheet, secure and growing dividend, and some growth.
Many Thanks

Q: Peter; Could you updates your thoughts on BLUE ? Thanks
Rod

Q: I am looking to build a corporate portfolio (i.e. ~40% tax on dividends and distributions), and will be adding a position monthly, then topping those holdings up on a monthly basis ongoing. My timescale is 30 years, and really the only important thing is amount of money at the end. What holdings would be reasonable for such an account? Any preference as to order I add them?

I grew up with Money Saver magazine, so my gut feeling is just to buy a set of big, well run companies that pay dividends. However, the current popular zeitgeist seems to be to just buy an all-in-one fund, like VGRO, and not overthink it.

Please take as many credits as needed to answer this question as completely as possible. Thank you!

Q: Been a while since you provided feedback on CES (ticker CEU). I am a long suffering holder of ESN and considering a swap if ESN results don't improve after the next report. What are your latest thoughts on ESN? Thoughts on this swap (ESN for CEU) or do you have another preference if I swap out ESN ... if so, why?

Q: Hi there,

I've been reading up on the US vs International stock cycle as of late. It appears as the cycle of under and over performance tends to happen in cycles. Obviously no one can predict the future, but do you think International will outperform over the next few years considering where are are in the economic cycle, rates, valuations etc? Can I please have your thoughts?

Thanks!

Q: If you had to choose between John Deere and United Rentals for two to three year growth which would it be?

Q: What are your thoughts are on STEM, the business, and whether it is a good buy and hold company? Clayton

Q: Hello, Thank you for your answer to my question on adding to my rrsp stocks. Can I ask the same of my husband’s rrsp - in what order would you add new money to the listed 6 stocks?

Thank you, Doris

Q: I would like to get 5iR thoughts on the Trans Mountain Pipeline. Which companies do you think will benefit financially when the pipeline is completed. Thanks … Cal

Q: I am looking at selling HR,PMZ , AD , ( 10% total weighting) keeping CRR and buying KMP(2.5%); all held in my RRIF.
Halifax ( where I live ) is booming ,has a strong rental housing market and KMP has a significant presence there. With continued high immigration and constrained construction the metrics look good for this sector. Some markets have rent control. While concentrated in Atlantic Canada, they are also growing in ON, AB ,and BC.

Your thoughts on KMP and on this portfolio change would be appreciated. Better rental reit suggested ?
Thanks
Derek

Q: Can you please comment on the takeover of magnet forensics? Only a 15% premium…
What does this mean for me as a shareholder, and so you see any competing offers? Should I hold, or sell and re-invest the capital elsewhere?
Thank you for your insight

Q: Hello,

I am a recently retired individual. Over the past few years my wife and I have moved the majority of our investments into various income generating shares and units. (CDN Banks, Utilities, Pipelines and other higher yielding investments). One of our higher yielding investments is a holding in EIT.UN. We currently have about 3.2% of our combined retirement savings invested in EIT.UN. I'm hoping that you might be able to help me better understand how that vehicle is able to pay out an approximately 8.75% yield, on an ongoing basis? The dividend of $1.20 per unit appears to have been paid out continuously, since August of 2009.

I believe that a portion of the $1.20 that is being paid out per unit each year, is a Return of Capital but I have no clear understanding of what that might actually mean? Is an investment that is returning an investor's capital to them able to do so indefinitely? Wouldn't they eventually run out of capital to return to the investors and would that then necessitate a precipitous drop in the annual payout?

While we are enjoying the current dividends we don't wish to be blind to a potential decrease in those distributions and/or an accompanying drop in the principal value of our investment. Lastly, as it may apply to any tax considerations, please be aware that all of our retirement savings are held in various registered plans (RRSPs, LIRAs & TFSAs).

Thank you!