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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Can you tell me anything about CIBC Enhanced Income Fund ? Good Bad or Indiffernt?
Read Answer Asked by Keith on September 03, 2019
Q: I sense that you have a somewhat negative bias toward CHR. Would you pls. explain in some detail your rationale for this bias, particularly in light of the recent renewed contract with AC and what seems a low payout ratio. Because I respect your opinion I don’t like to buy stocks you’re not favourable toward without understanding your perspective. I will add only that there have been at least 2 guests on BNN recently who have described it as their largest holding and are (predictably) still very positive about it.
Read Answer Asked by Donald on September 03, 2019
Q: I am trying to maximize both share price growth and dividend yield while at the same time keep as high a degree of certainty as possible regarding earnings growth, dividend sustainability and the "survivability" of the business going far into the future. With this as a backdrop, how do you feel about me switching out of Andrew Peller for Sienna Senior Living? Is the difference between the two, in total return, too small to make it a constructive move?

Lastly, do you have a "favorite" stock, mid to large cap, that offers a 3%+ dividend and an eps growth of 10%.

Thanks.

John
Read Answer Asked by john on September 03, 2019
Q: Hi Folks,
I have half positions in AGF, DOL, PLC, PKI, RUS and SIS. I'm thinking of gradually topping up to full positions over the next month or two. For gradual accumulation, what order would you acquire? Are all worthy of full positions or would you keep some at half or even sell at this time?
Thanks,
Dennis
Read Answer Asked by Dennis on September 03, 2019
Q: The exchange-traded fund Invesco S&P 500® (Symbol RSP) and SPDR® S&P 500 (Symbol SPY) both track the S&P 500. Their historic charts are nearly identical, as one would expect.

SPY units trade at about $300 while RSP units trade at about a third of that.

Why the difference?
Read Answer Asked by Milan on September 03, 2019
Q: Hey,
What do you know about (dates, price etc) and what are your thoughts on the Peloton ipo?

Thanks
Read Answer Asked by david on September 03, 2019
Q: Peter; Eric is on the BNN soap box and he is always talking about stocks trading at “ 10-15% free cash flow”. How does this relate to the actual dividend yield and why is it so an important benchmark ? With tax loss selling looming wouldn’t any oil rally be drowned out by sellers? Thanks . Rod
Read Answer Asked by Rodney on September 03, 2019
Q: After that 70 million convertible debenture financing. I believe it works out to about 14.3 million shares at a conversion price at $4.87.
Would this be a considerable negative factor on the stock ever getting above the conversion price considering its roughly a 80 million market cap?
thanks Gordie
Read Answer Asked by Gordon on September 03, 2019
Q: Good Morning 5i,

So on this fine Friday long weekend morning, I'd like to pick the brains of people who've "been there and done that" much longer and more successfully than I, and have seen some things in the financial world first hand that I have not.

I want your opinion on oil and gas. Are we not watching one of these classic "blood in the streets" scenarios you always read about as investors and wish you'd had the fortitude to plug your nose and dive in? The shares of almost every publicly traded company in the space are being thrown away for nothing. The good ones, the bad ones, the ones making money, the ones losing money, good balance sheets, bad balance sheets - it's almost irrelevant. If they're in the space they're being slaughtered.

So if the thesis is:

a) it will take a lot longer to power the world with worm casings, pixie dust, and unicorn farts than some would have us believe (i.e. hydrocarbons are not going anywhere in the foreseeable future)

b) a surprising number of these companies have solid balance sheets

c) a surprising number of these companies are earning profits hand over fist, doom and gloom aside

If a, b, and c are indeed true, you'd have to believe a lot of these companies trading at historic lows will eventually make investors a lot of money. Like buying Florida real estate in 2009.

What am I missing? What holes can be shot in this thesis, looking at it objectively?

I take the point that there is no catalyst to change things or excite investors in this space (although I do get surprised from time to time that the fact that a company can throw off ridiculous amounts of profit and return it to shareholders via dividends and buybacks doesn't itself become a catalyst, but I digress...)

I also take the point that these scenarios can persist for a lot longer than people think they can before things change.

Single-company risk is always there, I understand that, but I reject the idea that all of these companies are headed for bankruptcy.

Aside from patience and the stomach to watch your investment get hammered in the short term - where exactly are the risks?? This seems like such a great buying opportunity that I feel I have to be missing something.

Thank you for whatever insight you can share, and happy long weekend to you and your families!

Ryan






Read Answer Asked by Ryan on September 02, 2019
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