Investment Q&A

Q: Given the poor performance of this Brookfield subsidiary since the spinoff do you see the possibility of BN taking it private as they did with Brookfield Properties? I believe BN felt that Brookfield Properties was not valued correctly by the market and saw an opportunity to take it back in house. Could the same scenario play out with BBUC? Thanks for the great service that you provide.

Q: Retired, dividend-income investor. I have funds available over time to invest in / top-up some of my positions to meet long term asset allocation targets. I plan on continuing to invest these funds over a number of months...as I have been over the past 8 months.

The question is = in what order do I buy the following = XST, XIT (several BNN-ers say to avoid adding to technology at this point), BCE, BNS, LIFE, ZUT.

One method is to wait for these securities to hit my price targets (based on hitting a combination of fundamental and technical targets (a little bit is kind of bottom-feeding).

A 2nd method is looking at setting the order of buying, based on where one thinks each security is relative to their historic value.

Ignore asset allocation...these are smaller amounts and the AA is reasonably good right now.

My suggested order, subject to where each security's price is at (please shoot holes in my plan):
Sept = BNS,
Oct = XST-#1 (in 2 tranches-spread out),
Nov = ZUT-#1 (ditto),
Dec = XIT-#1 (ditto),
Jan = XST-#2,
Feb = ZUT-#2,
Mar = XIT-#2,
As each hits their price target (minor adds) = BCE, LIFE.

Please state your order and why.
Thanks...much appreciated...Steve

Q: In an answer to John you stated that you would expect ZWU " would likely retain its' share price better than UMAX " . Though UMAX hasn't been around long enough for a comparison I think one can speculate on what return might be expected as fifty percent of their portfolio are utility stocks with no calls written on them . So I would think the capital gain would be fifty percent of the utilities index. For example if the index returned 8% annually UMAX should return 4% which would reflect the percentage of the portfolio that is stocks { half the portfolio }. I would think that might be a good educated guess ..... ZWU on the other hand has been around for a while. So my question is has ZWU historically beaten fifty percent of the annual return of the utilities index ? And what has their historical annual percentage been compared to the utilities index ? ......
What I am shooting for here is a way to calculate whether the difference between ZWU's return and the utilities index return is enough compensate for a 5.6% lag in yield between it and UMAX ...... Thanks Garth .....

Q: Are there ETF's that cover Canadian mining in cobalt, copper, graphite, nickel and uranium, possibly also lithium and magnesium?

Q: Hello,

Ducommun came across my radar - I know it’s small but could you give an opinion on it as a possible early-days version of Heico? Similar industry with growth potential at a more reasonable valuation, possibly?

Thank you for your insights,

Q: What is your opinion of Bird Construction? Do you think it is a good time to start a position, with 3-5 yr time frame? Or, is there another commercial/industrial construction company you prefer?

Q: Wow, 13.7 % is almost too good to be true ; is it ?
This would seem ideal for my RRIF ; a very high yield on solid Canadian companies. Will the covered call aspect make distributions fluctuate ?
I need clarification on the last sentence of your response to John today:

“ZWU will likely retain its share price better than UMAX. “

Are you saying ZWU will not go down as much as UMAX or go up as much ( or both ) ?

Thanks . Derek.

Q: These are my wife's holdings in her non-registered account. Held these for very long time. EMP.A I bought for her maybe 5 years ago when down a lot. Sitting on a fair bit of cash. Thinking of adding to banks at some point (recession?) or adding BCE and EIF? T is small holding at 2000 shs. Comments/suggestions please. Oh, own ETF ZUE for quite a while also. RRSP has other banks +++

Q: I am looking at yield opportunities in preferreds given where we are in the rate cycle. Could you please comment on buying high yield individual preferreds from stable companies such as Enb ridge as a strategy, and also why their spreads vary so much. In these two releases the yield for the same company goes from the 6 to 9% range, when the stock yields in the 7s.
Thanks!

Q: Hi, what is your opinion on these minimum raté reset prefs? An 8% yield seems interesting given the solidity of the issuers. Am I wrong to assume that they will one day go back to 25$ ? Even if it takes 5-10 years the total return potential and risk/return ratio seems pretty good (especially in a non registered account). Thanks!

Q: My BMO account shows my Lumine Group stock in US dollars with the ticker LMGIF.US. Is my assumption that this is considered a Canadian company for tax purposes correct? Thank you!

Q: Subscribers sometimes ask 5i for the current P/E versus the historical P/E range on a particular stock. Is there a reliable, free and user friendly source of historical P/E ranges on Canadian stocks?

Q: Hi,
Do you still feel CRWD may have upside potential given today's downgrade by Morgan Stanley? With earnings coming up on Aug 30th, would you continue to hold even with a negative profit in a non taxable account? In a taxable account, this decision might be easier - ! Looking forward to your insight - thanks!
Dawn

Q: Please comment Wishpond shares 2Q financials. Thanks

Q: Propel and Goeasy seem to be similar with good growth prospects .Is there advantages to owning both instead of one ,if not which one would you pick ?

Q: I keep seeing and hearing questions about interest rates going down. I'm in my 70's. I had my first mortgage in 1985 at somewhere between 10 and 12% after my family helped me scrap together the 25% down required at that time.
I think interest rates are just normalizing (see https://www150.statcan.gc.ca/n1/pub/11-210-x/2010000/t098-eng.htm) and I do not understand why anyone would think rates would go lower? Could you explain?

Q: Hello,

Can I please get your opinion of KP Tissue (KPT). Thanks

Dave

Q: Nice jump after BNS upgraded it to outperform & US$15 target price on Aug 23 after huge drop .Add(p/p $39.35),Hold or Sell.Txs for U usual great services & views

Q: Can you tell me why HPS.A has gone up so much in the past 2 years? I have to admit, it was never on my radar a couple years ago. Who are its competitors and have they gone up as much as HPS.A?

Q: If you had $20,000 to invest today for and Income with some growth investor in an otherwise well diversified portfolio, what would you pick or just add to?