Investment Q&A

Q: Hi 5i: Just an additional comment on the discussion speculating on the rational connection between dividend yields and interest rates. It is important to remember that stocks don't trade off of their yields alone, even though income investors may be particularly interested in comparing the net benefit of different kinds of income streams. Low interest rates don't only make dividend yields relatively more attractive. They also mean that those dividend paying businesses are themselves operating in a low-cost debt and capital environment. That is the ideal business environment for many dividend paying companies. So when interest rates rise, it doesn't only mean that debt compares more favorably as an investment. It can also mean that those dividend paying companies are going to have to generate their cashflow and maintain growth expectations in a relatively more difficult economic environment. This impacts people's perceptions of the potential future value of the companies.

Q: If you bought a stock like IPL.UN in 2009 and have a hugh gain why would you sell it now since the chance of re purchasing it close to the original purchase price is very small. I know that buy and hold is not always the best system but where would I get this kind of return on my money in the current market.

Thanks

Carolyn

Q: Hi Peter & 5i: It looks like the smoke is clearing after the trustee elections at Partners REIT (PAR.UN). What are your thoughts on the outcome and its current valuation? Thanks!

Q: Hi 5i team,
Thanks for all the help, much appreciated! My question is a general one based on your reply to an earlier question regarding dividend payers:
In a rising rate environment where rates hit, say, 4% and a stock pays the same; would not the dividend payer still be generally a preferred option due to the dividend tax credit as opposed to the 100% tax treatment on interest income? Shouldn't there be a built-in differential before a given interest rate would hurt a specific stock? So, if a stock pays 5.5% dividend and interest rates look to rise to 4.25%, why should that particularly hurt the higher paying dividend stock to the degree it likely would? While I recognize it is not as simplistic as I make out, I would think there would be a smidgin of validity to my argument.....

Q: Would you kindlly give me your opinion on Killiam Properties. Thank you very much.

Q: AAR.UN-T is dropping. Is the dividend safe? Should I hold or sell. Thanks

Q: thinking of buying Lightstream Resources (LTS)
any opinion?
Thanks harry

Q: Hi there,

Regarding Reitman's (RET-A), four to five years ago I bought this stock at about $14. Its dividend has steadily increased to an uncomfortably high level while its share price has dropped to around $8. Should I hang on to it and wait for a recovery or dump it now?

Thanks,

Steve

Q: Hi! What is your view of BNK?

Q: VG -Veris gold. Announced that they achieved 18,000 ounces of gold for May.Is this right, because stock is only around 0.60.Would it be worth it to buy.I can spend around $1,500.or is there something better

Q: Peter,

TIVO just announced a $490M settlement and the stock went down. What are your views on this and is it a good buy with so much cash on hand and a big buyback.

Q: Hi Peter, Just a quick update if you have on MDF. Did you like the recent purchase and what are your thoughts going into earnings?

Thanks so very much Peter; great work and value for the average investor. Best,

Q: Re CPX: On April 13 you answered "Capital Power will likely be completed after the next quarterly report, on April 26." When do you expect an update? What's your opinion on the stock - to hold or sell at loss? I am down about 14% after the recent drop.
Thanks.

Q: I was considering adding some further euro exposure to my portfolio. would you consider buying "brands" that I use and like as a general concept? Im looking at LVMUY and their brand portfolio is impressive. Thanks.

Q: Hi team. I heard on BNN today that the reason for the drop in B2Gold (BTO-T) yesterday is that the Philippine gov't is considering raising the taxes B2 pays from 2% to 10% in July. Have you heard this and does it change your opinion of the stock? Thanks!

Q: Fortis (FTS)--re the attempt to acquire Central Hudson. There are disturbing reports of Fortis' behaviour concerning their work in Belize and other overseas areas. Do you know how much truth there is to these claims? Or are the CH people just so against the use of fracked shale gas that they'll say anything to block Fortis in their area? This could influence my retaining (or not) of my stock in Fortis. On a strictly financial basis, would you keep Fortis at this point?

Q: Good Morning, MND (Mandalay) is reporting insider trading this morning. Will this have a negative impact on the share price. I bought in 1.15, should I take my losses and sell based on the latest news on this stock?

Q: Could you please comment on the suitability of the covered call option ETF'S offered by the Bank of Montreal; in particular the Utility, Banks and Dow Jones Funds, ZWU, ZWB and ZWA respectively - thank you in advance for your feedback.

Q: I can imagine 5i is inundated with questions pertaining to stocks you don't recommend compounded by questions of stocks you do. Perhaps getting ahead of the curve would be beneficial addressing press releases from companies you do recommend (B+ and above) before questions are asked. HR REIT announced an acquisition and Aya announced a partnership to wit I am sure many users of this service are very interested in your thoughts. Just my 2 cents...

Thanks for the great service, I just hope the questions don't outweigh the resources limiting the effficacy of what you are trying to achieve.

Eric

Q: Hello,

What are your thoughts on using the PEG ratio as an added metric to analyze growth companies? I'm looking at Kulicke & Soffa Industries (KLIC), the fundamentals that are available to me look decent, low P/E, no debt, high growth. This stock has a PEG of .44, would you take that ratio into consideration when deciding whether to invest or would your decision be based only on the fundamentals.

Thank you.