Investment Q&A

Q: Hello: I have been reading the last ROB and the Invest like a legend article. I find it interesting most of those interviewed mention broad index funds. You have mentioned these many times but hope you might address these funds again with a portfolio of index funds. Thank you in advance. Barbara

Q: Hi team,

I don't see any questions on this company Cardiol Therapeutics Inc. (CRDL) that did a recent IPO on TSX and hit a 52 week high today. It seems they are in a (speculative) cannabinoid arena with some drugs coming into phase 1 stages in 2019.
What is management history (CEO, CFO, etc.), board of directors, ...ie are they a solid team?
They had a string of announcements (LOI's, exclusive agreements, etc) in 2017 but no real follow-up news in 2018 wrt these signings.
Does their product pipeline seem promising?
How might it compare to Cannimed wrt therapeutic applications?

Is it a company to just watch for now given it's very recent IPO? So many IPO's flop in the first 6 months thus the caution.

Appreciate your insight!

Cheers,
SteveMc

Q: after reading your recent market update, it appears Canadians really aren’t looking to slow down their borrowings, even thought the debt to income net of taxes is an all time high, as this ratio is now like 170 compared to 100 a few years ago.

with regulations getting tougher with the big banks, some Canadians can look to get funding from alternative lenders like Equitable Bank (EQB.TO).

in this economic environment, do you think the timing is right for EQB stock price to stream roll upwards, like bigly over the next few years?

Q: What didn't you see?
TSGI still seems to be thought of in a positive note by your firm however it's lost quite a bit in the last 6 mos. What were the signs that caused the decline that you (all of us) failed to notice? And, contrary to that, what are the signs that make you think the company has good growth potential in the next 6 to 12 months?

Q: I currently own ECN for a total weight of 5.3 % , I am thinking to make it a 3.5% weight and put the cash into VB. ECN is held in non rrsp account so I would be paying taxes on capital gains or just keep ECN as the momentum is good at the moment and analyst are increasing their target prices. At what weight would you sell some? I already own SLF and BNS for financial sector.
Thanks
Dolores

Q: Is the dividend for IPL safe?

Q: My son is looking to add a financial company to his TFSA. He is 21 years old so has a long investment horizon. Which do you like better GSY or ECN? His only financial holding is BNS which he holds outside his TFSA.

Q: Peter,
As far as dividend sustainability do you look at dividends as a percentage of free cash flow or operating cash flow?

Thanks

Paul

Q: A presenter on BNN Bloomberg displayed a chart showing that bond prices are rising while preferred share prices are declining. He claimed the divergence was due to most preferreds being rate resets and the changing outlook for interest rates was dashing the hopes and expectations of preferred shareholders for a better rate when they reset. However, since the rate resets are tied to 5-year bond rates and provide a premium over that rate, I would expect them to trade in the same direction as bonds. What do you say?

Q: The 5% interest rates from Co-Power Green Bonds is very tempting. How safe are these investments?

Q: would you invest in junior oil and gas stocks at this time, and if so, what would be your top 3 or 4 choices? Thank you

Q: I have been reluctant to invest in the cannabis industry as there did not seem to be much understanding of the industry as a whole or little (if any) rhyme or reason as to valuations. While acknowledging that things are still far from stable, I do sense that a greater understanding of the industry is developing since legalization in Canada occurred. I am now seeing some thoughtful reports on potential annual demand, analyses of corporate cost structures, critical discussion of common industry issues and a separation of the better companies from the laggards

Would you agree with this assessment? If so, do you feel that enough solid fundamentals and information are now in place to warrant investing in this ETF?
It is up over 50% in the past month so are we witnessing irrational exuberance and a probable bubble or reasonable expectations based on real growth prospects?

Appreciate your insight.

Paul F.

Q: My daughter holds the above cannabis stocks in her TFSA all,of which are offside between 13% ACB, AUSA 87% and GENE 40%. Are any of these worth holding or should she bail?

Q: I purchased these ETF's a little over a year ago as my first outside of North America holdings. Just wondering what your thoughts are about these. I do have a long time frame.

Q: I know you do not officially cover any U.S. names, but are there are any large cap dividend payers that would garner a "B" or higher rating using your methodology and you would consider worth a look at current levels with a long term holding period in mind

Q: Hello 5i,
Let me say first of all that I thank you for venturing out beyond simply stock analysis and providing many of us with answers and advice to broader financial questions. This may not even be in your mandate. But, it is certainly appreciated.
Following the good words is such a question:). I have always loved making what looks like free money on dividends. But, I have been wondering lately whether I might be better off moving to a capital gains strategy, instead. I am only at the beginning of this inquiry and wondered whether you might be able to steer me in the right direction.

I have been looking at swap based etf's as one possible way of doing this. Would this be the best way? what recommendations might you make?
I also don't know quite know where to start in determining whether this would be a better strategy for me. I am wondering if in your portfolio review whether you would from time to time, look at the tax consequences, as well as the asset allocaton?

thanks as always

Q: Could you give me your take on its latest acquisition. It is partially funding this through new stock issuance, and the market has reacted to that. What I would like to know is whether this is a better reit at this price than it was yesterday before the deal at its previous price.

Q: In the past, 5i has often made reference to a falling stock's "floor value" as a barometer to judge future risk/potential. In the case of SNC for the value investor, what would your estimate be as to how much of the 407 ETR asset is represented in the current stock price? I imagine this is one of Ontario's most attractive infrastructure assets. Are markets pricing in any stock value beyond the 407 asset?

Q: Please recommend 1-2 Canadian companies ( I have KXS) do you recommend that derive revenues/earnings mainly from cloud computing?

Q: I am up on ABBV but think it is time to move on. What are your views on Stryker (SYK)? Any recommendations on other US Health stocks would be appreciated.