Investment Q&A

Q: How many utilities are enough and where? I have AQN in TFSA and , BEP, BIP, FTS in cash account (along with BAM.A and BBU.UN - total Brookfield is 8.91%). My spreadsheet indicates I have 3% space left in utilities sector to add but your PA says I am over. Sold all of H (was largest utility holding) due to political risk of current chaotic provincial government. Looking at a replacement for H. Don't really need the income for living , looking more for safety and some growth. Looking for your view on how you would rank above prospects or should I add to existing, or stand pat?

Q: How does their debt compare to their revenue

Q: In light of where we are in the business cycle and the trend of lower interest rates, I’m doing a review of my portfolio, $620000.
Recently reduced my position in ENB by half going from 10% to 6% and subsequently bought PPL. I’m looking for a second opinion. I’m an experienced investor familiar with the volatility of the market. Just looking to position myself for the next 6 maths to a year.
Price quoted is cost also % of portfolio.
CPX- 29.77 -4%; ALA - 19.38-6.45%;ECN.PR.A-23.56-8.5%(total return is positive);VGG-43.07-4.38%;CSH-UN-15.57-4.2%; NWH-UN-11.10-3.6%;ENB-42.16-6.2%; EIF-29.66-6.4%;VET-36.11-5.7%; WMT-98 US-4%; PKI-37.41-4.3%;AD-20.39-3.5%; CHR-6.79-4.5%; SIS-13.51-1.4%;AQN-14.23-5.7%; NFI-33.08-2%; PPL-49.50-3.7%.
Use whatever credits necessary. I find your answers given to your clients very valuable. Great unbiased opinion . Thank you. Supplementary to my question I have 8% cash and a quarantined income of $50000.

Q: Further to my prior question about allocating stocks to multiple sectors, how would you assign the following? I know this is 'not a science', but I think it will give me a better idea of my sector distribution.
TCL.A Cons Disc:Industrial
CCL.B Cons Disc:Industrial
NFI Cons Disc:Industrial
MG Cons Disc:Industrial
LNR Cons Disc:Industrial
TFII Cons Disc:Industrial
EIF Industrial:Financial
AQN Utilities:Energy
EMA Utilities:Energy
MX Mining:Energy
T Telecom:Healthcare
PSK Mining:Financial
TRI Financial:Cons Disc

If you think that other sectors should be included here, please add them.
Thanks again, and please deduct questions as you see fit.

Q: I manage a TFSA for a 26 year old relative, with the following stocks:
GSY, CSU, PHO, KWH-UN, COV, GOOG

With the cash coming from KWH, we are looking to buy. So two questions:
1. Is there any obvious "hole" in terms of sector that we should try to fill?
2. She has indicated a desire for a renewable energy stock. We are considering BEP.UN, AQN, NPI, RNW - which you you choose, or is there another you would suggest instead?

Thanks for your excellent service!

Q: My question on AQN. is that from some other sites give a 12 month $12.50. With its current price of $16+ , and a PE of 37.5, does that mean one should sell at current and buy back later? Thank you again

Q: Kenneth asked this morning about moving AQN from the U.S. side of his RIF account back to the Canadian side, at a 2% exchange rate. Is it correct that one must pay FX fees when moving a stock between sides? I had thought that this is another facet of Norbit's Gambit that would eliminate the fees.

Q: RBC Direct Investing has a fair value of $13.61 and a Morningstar rating of a single star.
This low rating has been reported for several months.
I would like to add to my TFSA $6,000.00, however, hesitant because of the low rating by RBC.
Would you recommend this stock at the current price or have others you would prefer. Five year hold as an investment.

Thanks for your advice.
Hal

Q: I hold aqn in my us rif with td waterhouse. With the Canadian dollar seeming to gain would I be wise to switch back to the Canadian side and pay the 2% exchange or hold ? Your thoughts on the dollars direction

Q: Enb in my portfolio has a book value of $42.16
And a yield of 7%. It now represents 10% of my portfolio. This my largest position in a portfolio of $630000. I generally buy for dividend and growth. Maybe I should reduce my position in ENB and take a 5% position in another dividend paying stock with growth potential. eg. CM or other opportunities. Any suggestions.

Q: aqn closed at 16.16 down the last few days. Div of 14 cents ex tomorrow you would think would have had a stronger closing. Is this to do with the declining us dollar as referred to in the Boyd question. Recommend to stay with the stock ? cheers

Q: What stocks would you focus on acquiring if a recession is around the corner?

Q: The board election results for AQN were recently released. Vice chair Christopher Jarratt had 11.9% withheld while the rest were elected with 2.4% or less withheld. Any idea what the issue is with this fellow and shareholders. thanks.

Q: SIS is in my TFSA for a couple of years. It is 4% underwater. I put it there for growth. Do you think it is dead money for a long while or do you think I should hold on to it? Is it too late to switch it to AQN?

Q: Hello, Within a long term hold rsp account, would there be a benefit to adding FTS to a portfolio with ENB and AQN already owned? Thanks

Q: After AQN's recent acquisition CIBC published a report predicting minimum growth from the current stock price; Canaccord's target price is actually lower than the current price. Now analysts are wrong more often than not. Your view of AQN's prospects? Thank you.

Q: What do you think about the recent acquisition of the Bermuda assets? Do you see a dividend raise in the near future as a result?

Q: My wife only wants to invest in environmentally friendly companies ( eg renewable energy sector etc). I have bought for her QST. I would like to put her in solid larger companies that pay a dividend. Could you recommend your top 5 picks?

Q: Hello 5i,

We are looking for advice on stocks that should be held in a US account rather than a CDN account. Our RBC RRSP has both CDN and US funds available. After reading several questions and answers it is clear that we are very confused about this topic. We are hoping questions below can help us grasp a general rule of thumb on which currency should we purchase and hold stocks for our RRSP's.
e.g.
1. should stocks that pay dividends in US funds be held in the US account or CDN account if they can be purchased in either currency? i.e. AQN, BAM
2. if we buy a stock such as Google (no dividend) to hold for a long time should this be purchased with US funds or CDN funds. Is this a stock that should be in a TFSA instead of an RRSP?
3. if we buy and sell lows and highs on stocks without dividends such as AMZN, and BABA, (2-3 transactions per year) should this be purchased on the US or CDN side of our RRSP.
4. if we are to purchase an ETF that pays a dividend in US funds should this be purchased and held in US funds?

Thank you for your help.
Debbie and Jerry

Q: Good Afternoon,

I am looking at raising some cash. Of the above, which 3 would be your sell preference, in order of 1st, 2nd & 3rd.


Thank you.