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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: I heard there was a study published a few months ago by Royal Bank that concluded investing in REITs was more favourable than purchasing residential real estate directly. I find this hard to believe if you factor in the benefit of leverage. Would you be able to provide a link to this study?

Also, based on a recent TD Research report CAR.UN and MRG.UN are recommended as buys for residential REITs. I like that they have relatively low exposure to the Western provinces with MRG.UN having US exposure. Please give me your opinion on these two REITs.

Thank-you.



Read Answer Asked by Albert on June 23, 2015
Q: HI - your analysis of the proposed financing please. It appears that insiders are willing to commit and the majority of funds will be prefs? Is this better from a dilution position and how is debt affected? Worth a punt if the raise is more than 2.5M? thanks
Read Answer Asked by Scott on June 22, 2015
Q: Hi Peter

re: ALA versus IPL

Here is what globe and mail data shows

near 52 week lows; both
dividend yield; both >5%
HISTORY OF DIVIDEND CUT ALA YES; IPL NO ?
P/E ALA > 40; IPL >10
payout ratio ALA > 50 % ; IPL > 80 %
size IPL : ALA is about 2:1 based on market cap

Your opinion between the two.

1. is my data correct ? in particular the payout ratio
2. which of the 2 would you say is "safer" in the present climate and why ?
3. Is there anything else I should consider before choosing between the 2 or would you recommend an alternative utility ( I already own BEP and TRP ; only 1 % each)


many thanks

Ernie
Read Answer Asked by Ernest on June 22, 2015
Q: Hello 5i,

I have owned this company for about a month, just lucky and wanting a stable dividend player with some growth. My experience tells me hold for the remainder of a run-up and sell. Then wait for a conclusion.

What do you think,

Much appreciated as always,


Read Answer Asked by Mark on June 22, 2015
Q: Good Morning,
Can you please comment on RNX hiring Swedbank to help in raising $600MM in a potential bond issue? Without any cash flow how would RNX make the interest payments? Could it be structured like a stripped bond? Thank-you.
Read Answer Asked by Chris on June 22, 2015
Q: the price of AFN just keeps falling. Do you think this is overdone or is there some fundamental reason for it. Thanks.
Read Answer Asked by wendy on June 22, 2015
Q: CHC Student Housing offered new shares yesterday, at a yet-to-be-determined price within the range $8.50 - $10.00. They also announced the implementing of an approx 5.2% dividend. This offering sold out very quickly (10 min on my iTrade account) and so I did not have time to buy any of the offering.

This morning, I note that it is trading at $8.42 (albeit with very low volume), below the lowest value of the range. Since the offering seems to have been very popular, I would have expected trading at a much higher price.

Is it a good buy today at $8.40 - $8.50?

Thanks!
Read Answer Asked by Gregory on June 22, 2015
Q: My daughter does not have a pension plan nor will she be making enough money to make an RRSP worthwhile.She has a TFSA but is not that familiar with stocks.She will be invested for at least 25 years. Can you suggest some long term investment companies for her?She already has a dividend fund from RBC that has a lot of financials in it. This money is locked in until she is retired .I've been trying to help her but could use some advice myself.We've been considering Crombie Reit but are worried about rising rates.As always your help is appreciated,
Read Answer Asked by Dave on June 22, 2015
Q: Theres a lot of speculation this will be sold between $200-$350 US. The insiders seem to be selling. Is it just hype? alot of shares are trading. Thanks
Read Answer Asked by hal on June 22, 2015
Q: I have held CAE for a couple of years and while is has gone up, it is does not appear to be set for any kind of dynamic growth. It has been particularly frustrating because it appears that it should - well capitalized, good backlog, growing area, unique technology among other advantages.

Would you consider switching this for MDA? I don't want to give up on CAE too early and there is nothing wrong with 10%+ growth annually but I am wondering if MDA could offer the same but within a "growthier" storyline.

Appreciate the insight.

Paul F.
Read Answer Asked by Paul on June 22, 2015
Q: Coke is up 11% this week, 20% this month, and 50% this year. This stock hasn't risen this fast in 30 years. Any idea what the heck is going on and would you buy into it at this point?
Read Answer Asked by John on June 22, 2015
Q: Do you know what is currently happening with CEB down significantly today on no news? Thanks for your help.
Read Answer Asked by David on June 22, 2015
Q: At 14x PE, American Express seems like a value, attractive buy, do you agree?
Read Answer Asked by Eugene on June 22, 2015
Q: Dear Peter, Would you please give me your assessment of this stock-to keep or not to keep? Thank you for your honest work!
Read Answer Asked by M Anne on June 22, 2015
Q: From time to time I run across a small cap that looks interesting. What fundamental and/or technical metrics do you use to evaluate a small cap? Can an individual access any/all of these?
Regards, Charles
Read Answer Asked by Charles on June 22, 2015
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