Investment Q&A

Q: Peter and Team,

I am 30 years old. I currently have 14.6% of invested funds in cash and the remainder is all equities. Of the total portfolio, I have 10.7% in utilities split between IPL.UN (3.2%)and TransCanada TRP (7.5%). With TRP hitting $50 today, I was thinking about switching some of that common stock into the Preferred stock. Can you please give some guidance on the quality of this move and if you recommend a particular TransCanada Preferred or if there is some other vehicle you'd recommend totally?

I am thinking I could use some diversification from common equities but in a general sense, I am scared of buying bonds for a few reasons: I worry that while you may get your coupon, you may get hurt by either significant capital losses or by devaluation of currencies. Because Bonds are typically priced against US Treasuries, I am scared a run on the government credits could put pretty much any bond at risk of big capital losses. Is preferred stock a good way to go?

Q: good evening: any idea what is driving trp. seems to reaching a level of irrational exuberance. time to flee? thanks m.r.

Q: Would like your opinion on buying CAE at this time?

I hold TRP(trans canada pipeline) and would rather not take profit now but hear some say it will probably head lower,your thoughts please. Thank you

Q: Hi Peter any thoughts on Obama passing the northern leg of the Keystone Pipeline and the impact on TRP either way? I have significant gains on my TRP and thinking of booking profits in case Obama plays politics and doesn't pass or delays the pipeline once again. If I do sell any other names you would suggest I switch into with similar attributes,i.e stability, nice dividend etc..thanks.

Q: As someone approaching retirement I am looking at tilting my portfolio towards income. What metrics would you use in evaluating an income stock for a long term hold? In particular is it a red flag if the dividend is not covered by the free cash flow? Even if its well covered by earnings. This appears to be the case for Trans Canada (TRP).

Q: Hi Peter/team your opinion about TRP.PR.B please thanks.

Q: Hi Peter,
I just became a memeber this week but I am very impressed by what I have read on the site so far. So here is my first question.
My broker called me today recommending that I sell trans canada pipeline and buy huskey. He has suggested this several times over the last year or so but I've been relunctant to sell trp given that i bought it at a low price so it pays me a 6% dividend. i have the cash to buy huskey without selling trp but I'm not sure it is a growth stock and I don't want to buy it just for the dividend as I prefer capital gains. can you give me an opionion on these two companies given the current market conditions?
Thanks Peter.
maggie

Q: Hi, and thanks so much for this great service. I bought TRP in February and since then it hasn't done much. The dividend is not enough to maintain my interest -- do you any upside in the offing? Thanks!