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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi! I don't have much exposure to interest rate sensitive sectors such as telecoms, utilities, REITs, etc. With rates expected to rise eventually (we think!) would it be prudent to wait since historically there seems to be a short-term overreaction in the market and a short-term sell off even though longer term the impact is negligible. Should I start building a position in these Companies now or wait for a short-term interest rate correction or half now and half later. Also, do you prefer Telus over BCE and do you think the Conservatives desire for a 4th carrier will subside eventually or only with a change in government?

Thanks for your help,
Jason
Read Answer Asked by Jason on April 01, 2015
Q: Hi 5i team. It would seem that you don't have one of the main telecom Co's under coverage. I, too, do not have a telecom in my portfolio, even though, as a retired, income invester, that is against the majority of advices. My main reason is that there are two things that affect profit negatively; competition and regulation. They have got both. It wasn't always the case. I owned BCE in the 90's and sold when Nortel (which they owned) got to over 80$ and achieved a ten-bagger. I'd very much like to know what your reasons are for not including the sector. The reason is that I'm thinking of going back in. The companies in the sector seem to have settle down and have exchange the golden goose of land-line for the golden eagle of internet/media. Even though there isn't going to be big catalysts like NT for jumps in growth, they yield a goodish dividend and give you a bit of growth. They might even end up like the banks,i.e. become a government sponsored oliopoly. Your thoughts would be much appreciated. Thanks as always. Henry
Read Answer Asked by Henry on November 03, 2014
Q: Telus has a health care division (who knew?) that is generating 5% of its revenue, employing 1600, and according to the CEO, "...we've got the tools to be a major player in that business and it's one of our fastest growing business areas now as a result." The Telus investment seems to be in the area of Electronic Medical Records where I recall the Ontario Govt. here misspent $1billion not long ago under eHealth, before pulling the plug on the whole mess, and going back to the medical IT ways of 40 years ago. (My Family Dr., in his 40s, still writes prescriptions by hand, but keeps all my records on his laptop showing he's computer savvy, and I can't contact him electronically.)

Do you see Telus Health as having the knowledge and patience to succeed here in what seems to be a high risk area? I know 5i must be working on a Telus report since the stock's been in the model P/F for 2+ years but I can't find any earnings or EBITDA numbers for this division in their financials. Do you know? I've happily owned this stock for several years and it's in my Top 5 weightings; do you see risk or reward on the horizon with the health care part? Thanks, J.
Read Answer Asked by Jeff on September 29, 2014
Q: I have held Telus in my RRSP account for decades and it has grown to be a huge part of my portfolio. I feel that I should trim it back substantially, although I'm having a difficult time trying to figure out what to replace it with. I have always liked its stability and have taken advantage of the DRIP.
My question is, when trimming should it be done all at one time or over a period of time and also, could you recommend 4 or 5 quality stocks to replace it with without regard for sectors.

Thanks so much
Read Answer Asked by Rose on September 05, 2014
Q: Hi 5i I remember Peter talking about the value of compounding using DRIPs .A guest on BNN showed the power of this using Johnson/Johnson over a number of years, very impressive! I was wondering if you could suggest 2 stocks to buy with a DRIP that I would put away in a TFSA for about 10 years. Thx for all your work. Gerry
Read Answer Asked by Gerry on August 21, 2014
Q: Peter

I have $55,000 in Bell Alliant(BA), $80,000 in B.C.E. and $30,000 in Telus which is approximately 8.5% of the equity portion of my portfolio . I will incur approximately a $10,000 capital gain if I sell Bell Alliant as opposed to exchanging shares for B.C.E. as per recent proposal. Alternatively, if I sold Bell Alliant, I could put the funds into Telus to provide more balance. What are your thoughts on this? Is 8.5% too high a concentration in telecommunications, given our present government's continuous threat to shakeup or shakedown the industry?
Read Answer Asked by James on July 23, 2014
Q: My wife and I are looking to retire in 6 to 7 years and are setting up our portfolio so that we will have investments paying approximately 7% dividends in 7 years relative to the current purchase price. Could you suggest five stocks that have the best chance of growing to a 7% yield relative to initial purchase price in 7 years and continuing to rise with inflation over time? We look forward to your response.
Read Answer Asked by Irwin and Karyle on May 21, 2014
Q: Hello Team
After spending quite some time looking at all the different fundamentals of these 3 telecom companies maybe you can shed some light on which one you feel I would do best in. Telus,Chunghwa CHT, or Nippon NTT.Being a contrarian at heart I always lean toward the deepest value which I feel would be Nippon telecom,However there ttm ROA is much lower than the other 2 However forward P/E, Price/sales,and P/CF values are much lower.The other metric which I find interesting is the Net income growth AVG over the last 3 years which Telus has performed much better over.
Thanks Gord
Read Answer Asked by Gordon on April 21, 2014
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