Investment Q&A

Q: 10:25 AM 5/29/2014

Hello Peter
I have been watching Canadian Oil Sands COS for a long time. I am looking for a regular income from another very stable low-risk company with a dividend yield in the 5% to 6% range, for a permanent hold. I already own 4 big banks and SLF and GWO, PSK, BDT, BTE, ENB, ENF, PKI, EMA, FTS, TRP, and PPL.

COS has a low debt/equity ratio of 34% and a forward P/E of 12.9 according to Morningstar.
The Company has steady revenue and margins, slowly rising dividends, and a payout ratio of about 82%.
The Company has only about 25 employees so the overhead must be extremely low. Their only job is to contribute their ongoing share towards their 36.74% working interest in Syncrude Ltd.
COS's only product is light sweet crude so that is eminently saleable and always commands premium prices

So my question is: Why is 5i so cool on the stock? I know it doesn't have strong growth ahead compared to some but the company has a very stable business, sells a product in high demand and has many decades of reserves...... so what's not to like?

If I don't buy COS then the only other possible "Stalwart Core Holding" Alternatives that I don't already own seem to be :
MKP, FRU, FN, CTY, AW.UN, GH, KMP, BEP.UN, and AD, but most of these have individual flaws of some sort or are less likely to be able to maintain or grow their dividends in the event of a major market correction.

My guess is you may prefer BEP.UN to COS despite BEP's terrible payout ratio, but it is just a guess....I am open to any comments and suggestions you can make, and any other stocks to consider, and to your informed opinion on COS.

Many thanks......... Paul.

Q: I asked a ? the other day about where to access insider trading info on companies & 5i did not have an answer other than to say call my investment bank, which I did. Sedi.ca, click on no. 5 option-takes you to another page where in top left you click on the info you want to access. FYI..JP

Q: Hi Peter and team,
I have a 5% weighting of gold and silver stocks in my portfolio.
These include BTO,MND,FVI and FR. With this sector taking a continued beating and some analysts saying its over for precious metals should I lighten up or exit entirely. In particular I would like your opinion on FR.
Thanks
Peter

Q: Thanks for all your information, it seems to me you are the only place you can get an honest answer with know hidden agenda. What ETF's would you suggest for a 10% weighting in Europe with a little UK or would you play an international one? It is for an RSP. How would you play the US market for about 20%? Thanks

Q: Please let me have your thoughts on Lockheed Martin Corp. LMT.NYSE.US. The dividend is reasonable, but I don't know whether it is growing and although the share price has moved up in the last year, is it likely to rise going forward?

Learning so much here. Thank you.

Q: Hello, can you share your thoughts on Empire Industries Ltd. (EIL). It's been going up lately.

Thanks for the good work.

Q: I am looking at getting back into gold and am considering both Argonaut Gold (AR) and B2Gold (BTO). Could you please tell me which of the two you would favour going forward over the next 12 months. Thank you 5i.

Q: BAD has fallen every week since the end of March, down 17% now, and continuing down. What catalyst would reverse this process and is it likely to happen any time soon?

Q: Great West Life GWO has been falling lately. Is it because of lower bond yields? Is it a hold ,sell or buy? Thank you very much.

Q: Hi Peter and 5i team,

Can you recommend a good ETF for good dividend growth? I plan to hold it for a longer term.

Thank you for all of your work. Your reports and the answers to all the questions are helpful.

Best wishes,
Terri

Q: SQP Strongco. got rid off all real estate for cash,
as a stock holder is good or bad news?

Q: Hi Peter,

Very much appreciate the Q and A service.

Would you recommend selling GMP to buy FSZ for a long term hold? Which one offers the best prospects for dividend growth and capital appreciation?

Thank so much.

Q: Hi Peter and team, what are the 2 or 3 best Canadian investment conferences you would recommend to attend? Thanks, Gervais

Q: for a long time macro was one of your choices for aggressive growth,in their current quarter after looking at the balance sheet it seems that their account receivables are growing faster than revenues.the stock is way way down.would you buy macro now, or do you like petrowest or enterprise better, would you own all three, which is your favorite. thanks dave

Q: Hi 5i,

What are your thoughts on Ensco (ESV) for growth and income?

Q: My gold and silver made up 5% of my portfolio and are now down to 3%. Is this a good time to buy more to bring them up to the 5%? I currently own Goldcorp and SLW. If it is to time to buy more should I just add to these or get some more diversificatioon through something like Franco Nevada?

Q: In response to John about information on preferred shares, I would suggest prefinfo.com, a free site by J. Hymas who also has a fee-based pfd share information service. I don't think this site lists everything out there, but the basic info for many pfd shares is listed.

Q: Peter and team
I'm trying to decide between sgy , tou , and rrx as an investment into the oil and gas sector . Which company do you feel will have the best earnings particularly accelerated earrings over the next two to three years ?
I currently don't have any exposure the this sector . Also open to other suggestions that you might rate better then the three I've just mentioned .
Thanks again and as usual great job !
Bill C

Q: Hemisphere Energy Corporation (TSX VENTURE:HME) ("Hemisphere" or the "Company") is pleased to announce its expanded capital expenditure plans for the remainder of 2014 as a result of the recently closed $10 million financing. Is this a good entry point for stock
God Bless

Q: Hi there
I was wondering what your thoughts on Athabasca Oil Corp (ATH.TO)are. I have owned for a while now and have been waiting patiently for results but they seem have difficulties making progress on all their projects.
Thanks