Investment Q&A

Q: Is there any way for a retail investor to trade WCS crude directly as a commodity? If this low price continues for the next few months, are there any companies that will go bankrupt?
Please deduct as many credits as needed. Thanks.

Q: Any concern on their dividend? Looking at their annual report for 2019, payout ratio is close to 70%. If this is correct, doesn’t leave much room to increase the dividend or re-invest back into the business for growth.... I would hate to see an equity raise in the near future or see then use their cash balance for a dividend increase. Your thoughts would be appreciated. Thanks.

Q: One would think that taxes will go up in a big way to pay for the stimulus. In that sense, richer canadians are effectively paying more for this, with their future income. It is a transfer of wealth from the richer to those who are leveraged, from landlord who has 3 properties on maximum leverage, to the new grad who bought that 600k condo and lost income.
This is still what I think will happen, but I'm curious if there is an economic mecanism that could make this not happen. If all developed countries are coordinated in their stimulus (they seem to be) and all spend about 10% of their GDP on their system, could government bond credit remain UNCHANGED? This would mean that the cost to service government debt would effectively not change (since credit is a relative metric), and taxes would not need to go higher. What do you think?

Q: Hi Guys
Morningstar show DEC 2019 short term debt at $395 Million and cash at 60 million
Do you know what the short term debt was used for, an if Canfor has the credit facilities to handle there debt. I was thinking on taking a small position in this stock at current price levels, after all if Pattison was willing to offer $18 or so a share.
Thanks Gord

Q: What is your opinion of this company ? It had a good growth rate in the last year. The stock is beaten down at 16$ from a high of 63$ Do you think they can manage their debt ? Maybe wait for a dividend cut before investing ? Thanks

Q: Hi 5i Team,

I own both stocks and both are heavily under the water. Would you recommend to average down at this price level? How long these two names will last if Oil price keeps at current level.

Thank you,

Q: I just reread through your report on this company. How can you do a report on a company without even talking or acknowledging their debt situation. How can we your clients who are relying at least partly on your advice reports etc. on some of these companies in your portfolios and now in a lot of ours fully trust some these reports. I fully realize times of changed dramatically very quickly but this seems to me like a very important fundamental that needs to be in all reports. I look forward to your response.

Q: Where would IPL,KEY and GEI stand with the collapse of energy prices and are they sustainable.

Q: I understand that the market is forward-looking. What has been difficult for me to ascertain, especially in these tumultuous times, is how forward-looking they are. I realize no one knows the future so we all have to decide for ourselves how long we think COVID19 will continue to roil the markets. But is there any way to know (guestimate) how far out the market currently thinks this will last? For example, I am writing this question on Sunday and wondering how the markets will react come Monday. Personally, I feel the increase in cases and apparent disarray in the leadership in the US is unfolding as I anticipated it would. Would a steep downturn in the markets Monday morning suggest analysts had it wrong or would it not really tell us much regarding the anticipated future? I guess I am looking for an indicator like the percentage chance that is assigned as to whether or not the Fed will change interest rates. Don't know where that percentage comes from but it always seems rather accurate.

Appreciate your insight and for your wisdom. It's helping me to keep off the proverbial ledge!

Paul F.

Q: Hello Peter
Has the covid 19 fully or near fully priced in the market? I look at the log graphs for new cases and deaths and it is still on the rise.
Is the market in North America forming a base or is there another sharp leg down coming? What is your opinion?
Regards.

Q: How would you rank these in an Oil Recovery? thanks!

Q: I have a letter from Chartwell/ Gibson LTC at Steeles & Bayview.
They have residents with Corona on 3 of the 4 floors.
The patients are very vulnerable. I wonder what this means to the operations & profitability of Chartwell & the other nursing homes?

Q: hello team,
is this a good time to step in at hexo?
Fundamentally strong enough to survive the storm?
thanks so much

Q: Hi hope your can help - when the btm fell out of the market I had $1.3 million in stocks presently sitting with $800 (90 % cash) - did not start selling until the market hit 20,000 on the Dow then it was a race to the btm needless to say I also missed last weeks rebound question is how to go from here to start to rebuild. I am retired so too much risk would not be desirable PS I have enough in another retirement account ($500,000 to last 5 yrs Any help you can offer would be appreciated

Q: Given the current environment, which do you foresee having a good recovery from today's lows. How would you rank these companies listed to purchase today to deploy some cash. Which would you rank this list for risk from high to low. (not considering sector allocation.
Do you have any other recommendations outside of this list that you think might have more potential?

Q: I am a believer that pure play gas stocks will be in better shape than oil plays going forward for next 3-4 years. I have taken a position south in OKE as a registered share holder. I I need to add in Canada. What would you prefer as a pure play gas play. Maybe a ETF?

Q: In this market, is Absolute one to worry about. Is the dividend covered? Do they still have lots of cash? If there is a possibility they will cut the dividend, I dont want to see my investment cut in half with no dividend and I will bail now.

Q: RE: Bank of Canada announcement about the secondary market purchases of Government of Canada securities.

What's your opinion about this?

"The effective start date is 1 April 2020. Program details are as follows:

Purchases will begin with a minimum of $5 billion per week across the yield curve. The program will be adjusted as conditions warrant but will continue until the economic recovery is well underway.
Operations will be conducted daily.
The operations will be cash purchases conducted via reverse auctions.
Following the launch of this program, the Bank will discontinue the Government’s repurchase operations (both cash and switch buybacks) and cash management bond buyback operations done as fiscal agent. The Bank`s secondary market purchases will provide significant support to the liquidity and efficiency of the government bond market, reducing the need for these fiscal agent operations."

Q: Hello
Can you suggest an American ETF like VCSH but with a shorter duration for corporate bonds which is also less volatile?
As well, do you know of any American ETFs like SHY but with shorter duration for US Treasuries? SHY includes Treasuries of up to 3 years.
Thanks

Q: hi, dear team
i just got some money for longterm investment. how about this list ?
can you tell me at which price i can buy?appreciate!
best regard
Jacky