Investment Q&A

Q: Regarding your earlier response concerning rate reset preferred shares with a minimum reset of 5% (ALA.PR.I, BPO.PR.C, BPO.PR.E, ENB.PF.I, PPL.PR.K, BIP.PR.B), what is the tax implications of the Brookfield ones noted above? Is it foreign income? Are they treated as eligible dividends? Any withholding tax from a U.S. partnership that cannot be recovered would impact the advertised yields. Thanks!

Q: Your opinion of HUZ please.Thanks.

Q: Hi
Can you please comment on the fundamentals of this stock and whether there are any reasons to explain why it has fallen since its apparently good July earnings were released.
Many thanks in advance for your sound views, which I definitely appreciate.

Q: What is the current p/e on Great Canadian Gaming and forward p/e? What are you expecting for growth over the next 5 years and is there any concern for their debt levels? thanks

Q: Wondering if I could get an updated opinion on the company since their recent news release...please and thank you

Q: With NFI hovering around a 52 week low and with a 6.67 dividend yield, maybe it is time to take a chance and purchase the stock. Insiders seem to think so with three insiders purchasing a total of 96500 shares since May 30th. You would think so or would you think otherwise. Thanks, Bill

Q: Which gold miner would you bet on? Please explain the reasons for your choice. Thank you.

Q: In an answer to a previous question you stated that the value of vet was five times its cash flow so I did some due diligence on its cash flow but with little success.What is its current cash flow & its fair value? It closed today at $20.39. Is that above or below its fair value. Thanks , as always, for your help.

Q: Hello. Which of these do you prefer, and why? (Or do you prefer another large-cap Canadian oil company?) Can you tell me which has the strongest balance sheet, and the safest dividend? Also, I was going to buy them on a US exchange with US currency. I assume the dividend will be paid in US dollars, and I will still be eligible for the Canadian dividend tax credit, correct? Thanks for your help.

Q: When I look at the latest Q&A from Feb. of 2019 on the CSU website Mark Leonard makes reference that it is difficult to find acquisition companies like CSU that have high ROIC but when Leonard did a screen for CSUs board he was able to find 6 companies out of 4000 with ROIC comparable to CSU. Any ideas how to screen for these companies or what companies Mr. Leonard might be talking about? Thx

Q: Hi Guys,

My question is about VCI, or Vitreous Glass. The company has the exclusive right to buy all glass deposited at Alberta bottle depots, and then crushes it and sells the product to fiberglass manufacturers. My understanding is that the glass 'cullet' they produce is a significantly cheaper input to the fiberglass manufacturers than raw glass would be, so the three Alberta fiberglass manufacturers buy all cullet that they generate. The only restriction for this business is supply, not demand.

I know there have been questions in the past where your main concern is liquidity, but I keep getting drawn back to the name given it's high 10%+ dividend (all earnings are paid out as dividends), debt-free balance sheet, and earnings consistency (I tend to drink wine and return the bottles in good times and bad).

An argument for substantial price increases could be made given that their product is the cheapest option for fiberglass manufacturers, which would help grow the top line quite quickly. Why is this not a target for a leveraged buyout? It's easy to see how this could generate 20%+ with a bit of leverage.

Just a bit of rambling over what I feel is an undiscovered gem for income investors!

Q: I am wanting to buy some mid cap Canadian energy companies, preferably with a good dividend. I am looking for ones with strong balance sheets that could ride out the poor prices, decent reserves, etc. What would you recommend? I am thinking about VET (but will the dividend get cut?), ARX, WCP, and on the smaller side, CJ. Also, for non-dividend, I am considering MEG, ATH, BTE, and CPG (very small dividend). I would appreciate your thoughts.

Q: What conditions in Canada would need to change to cause a significant upward trend in the Canadian dollar? Thanks.

Q: I noticed that SU and ENB were mentioned by your team as safe in capital preservation and dividends. Some analysts do point out that ENB has a high debt and therefore they conclude it is not as safe. Is this correct ?. In terms of safety, and long term investment (at least 5 years) which one would you preffer ?
Would you allocate 5% to each in a conservative porfolio ?, or less than 5% ?,
thanks

Q: Any reason for drop today when the Tsx & US markets are up nicely & a recent decent Q? Txs for u usual great services & views

Q: I am new to 5i but I hold many of your A & B -rated stocks, so I am trying to figure out what's happening with NFI and to decide whether to sell it at 20% loss or not. They had decent quarter and the stock was up during Wed massacre. Yet, it was down 6% yesterday (in neutral market) and down again today when everything is up. Do you have any idea what is going on? I have well diversified taxable portfolio with NFI at 3%, would you recommend holding, selling, or adding more?

Q: What is your current view of Profound Medical? They have received clearance from the FDA to market Tulsa-Pro. Is this not huge news? Are there further FDA approvals pending? Although up a few cents (at time of question) it is still not back to July 2018 level of $1. Would you hold?

Q: Hi 5i,
I have $70,000 CAD to invest for 3-5 years and tax is not an issue. I am thinking of ETFs : 40% Canadian Stocks, 32% American stocks, 8% Global and 20% Bond.
Would you please advise what to buy? or if you have better combination.
Thank you.

Q: Realize VIAVI is US but can you comment on earnings and on decline today after reporting good results yesterday. After hours yesterday stock was up. So what happened today?

Q: in a rate reducing world now where do you see this going? thanks jim