Investment Q&A

Q: 5i had answered a similar question back in November, however I would appreciate it if you could revisit the question in light of today's environment. Between the Premium Brands Holdings an Maple Leaf Foods, which do you see as having better potential for growth? Is debt an issue with either?

Your answer in November had been "PBH is now bigger than MFI, is cheaper on valuation, has better growth potential, and recent earnings/outlook were far better. It would be our choice today."

Thanks!

Q: Your suggestion to not have covered calls make sense, however can you suggest ETF's to replace the 3 I have?
Also you say this is a good time to buy dividend stocks, can you please suggest some good ones.

Q: Hello Peter and Staff

Today all rental housing stocks I follow (CAR.UN, KMP.UN, IIP.UN and TCN got hammered

I would have thought they would stand up well - rental shortages and future refinancings likely at lower rates ?

Does that logic make sense?

Any reason other than someone starting a rumour about mandated rent holidays?

Thanks and have a great day
Dennis

Q: In light of the Coronavirus , what are your thoughts about US health care etf’s over the next year.
Thanks,
Phil

Q: I am a buy and hold investor with 5 to 10 years of time horizon
I have roughly 7.5% of my portfolio in a 8 different preferred shares. They are in the order of their weights: PWF.PR.F, EFN.PR.I, ENB.PF.I, TRP.PR.K, ALA.PR.K, GWO.PR.M, FFH.PR.M, ENB.PR.A. All except one (FFH.PR.M) are either Perpetual or Minimum rate reset preferred. Minimum divided rate at reset or the current rate for perpetual on the face value is from 4.76% to 5.8%. In the last few weeks, their prices have dropped considerably. I am using preferred as part of my Fixed income. Because they are perpetual or Minimum rate reset, I expected them to be much more stable or even appreciate with the cut in the the interest rate. What is your advise under the current circumstance. My guess is that their dividend is at risk and that’s why they have dropped? As you can see they all have dividend paying common shares. What is your advice? Should I sell some of them and if so which ones?

Q: goeasy just put out a shareholder update, it seems very positive.
can you comment
dave

Q: Good afternoon,
With the US$ significantly spiking up of late due to extreme market volatility, would it make sense at this time to journal US stocks such as AQN, BAM.A, etc back to the TSX Cdn exchange? This may well be a short term trade if and when the US$ drops back to more reasonable levels. As usual your thoughts and comment would be most appreciated. Thank you.
Francesco

Q: Retired, dividend-income investor. I own ZWC and ZRE and am thinking of topping them up. Their share prices have obviously taken a hit and buying more at these lower prices with magnified dividend yields "appears" attractive.

What I am wondering is related to the continuation of the dividend. By my numbers, ZRE is yielding 7.4% and ZWC 10.5% (annual dividend divided by current stock price). Am I correct that the yields are supported by not only the underlying security, but the covered call option? What happens if the underlying security reduces their dividend? I guess my real question is...is there a risk of the ETF dividend being cut?

Thanks...Steve

Q: I understand that a covered call investment is not the holding to have during a market rebound.

Instead of ZWE, which ETF would be appropriate holding to capitalize on a rebound.

Q: It has come down from a high of 120 plus per share
other than coming down with the market , are there any fundamental changes ?
is the dividend safe ?
I am thinking of adding a partial position with a 2 years plus hold and to get some
dividends; slow capital appreciation
thanks

Q: There still has to be trucking at this time-Do you feel TFII would be a buy

Q: Is QSR going to zero because of the Coronavirus? How long can it survive with restaurants closed? Is it time to sell?

Q: I expected Canadian Appartment REIT to hold-on better, since people need a place to live and debt will get cheaper for the company. My sister, a lawyer, says that courts are expected to be understaffed, and so, landlords will not be able to force renters to pay. She thinks that renters who lose income due to a layoff will prioritize their car payment over their rent. I don't like that possibility one bit. I'm still positive on my position. If that makes sense to you, I'll sell and buy the U.S index. Thank you.

Q: Which Canadian monthly income ETF would you choose XTR or ZMI? Is there another you think may be better?

thanks,
Paul

Q: BBU has fallen much more than the market in the last month.Actually over 50%.Are there any company specific attributes that would have contributed to this type of drawdown?Kim

Q: Hi 5iR Team, I'm totally confused by your recent addition of ZRE to the portfolios. It is my thought that REITS will be among the hardest hit of all sectors. Mortgages will not get paid, many small businesses will collapse, rents will not get paid, lack of mall shopping will mean some malls will go under, Sr's who depend on REIT income will be effected, etc., etc.. Why would I invest in ZRE? What numbers am I missing in this equation?
Thanks Team. Cheers, Chris

Q: Hi, what do you think of the coronavirus impact on CAE and CIGI?

Q: Looks like a good entry price here, do you feel the dividend is secure.

Q: PKI: is starting to look good "for long-term hold" at some point; however, my concern is their dividend (low P.R.) and debt (very high): if things get worse they will need to conserve cash and worry about debt. repayment putting the dividend at risk, I would think?

Comments please.

Q: Just read your March 17 Stock Market Update article regarding "Where is the bottom???" and the bear Market histories. Very enlightening.

I have been almost entirely in cash for over a month now and noted your portfolio changes. You mentioned Adding a new 4% position of BMO Equal Weight REITs ETF (ZRE) in the Income Portfolio. ZRE has been very steady since inception in 2010 gaining almost 40% over that time period until the recent unprecedented and understandable 37% drop since Jan 31.

My question is where should we park our cash while we wait out this terrible situation? Should we just leave it as cash? Is the BMO ETF a suggestion for a short term hold? I did read your Trade Rationale and was a little confused by your comment "remove some of the 'tail risks' that might be seen if there are issues at any individual company." Am I right in thinking this is in reference to ZRE being an ETF? Apologies for my ignorance.

Thanks for all you do

gm