skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

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

Q: I owned this one a fair bit ago and sold at $22.00 because it was not a huge dividend grower even though they do have special dividends from time to time. I was thinking of buying again at current price; however, concerned about business: know they have their own brands; but, licence agreements to distribute for other companies. How solid are these agreements? Of course, the other issue is trading volume - but, can live with that - buy a small position of 3 to 4K shs.
Read Answer Asked by James on August 20, 2019
Q: Regarding your earlier response concerning rate reset preferred shares with a minimum reset of 5% (ALA.PR.I, BPO.PR.C, BPO.PR.E, ENB.PF.I, PPL.PR.K, BIP.PR.B), what is the tax implications of the Brookfield ones noted above? Is it foreign income? Are they treated as eligible dividends? Any withholding tax from a U.S. partnership that cannot be recovered would impact the advertised yields. Thanks!
Read Answer Asked by Derek on August 20, 2019
Q: In an answer to a previous question you stated that the value of vet was five times its cash flow so I did some due diligence on its cash flow but with little success.What is its current cash flow & its fair value? It closed today at $20.39. Is that above or below its fair value. Thanks , as always, for your help.
Read Answer Asked by Dave on August 20, 2019
Q: Hello. Which of these do you prefer, and why? (Or do you prefer another large-cap Canadian oil company?) Can you tell me which has the strongest balance sheet, and the safest dividend? Also, I was going to buy them on a US exchange with US currency. I assume the dividend will be paid in US dollars, and I will still be eligible for the Canadian dividend tax credit, correct? Thanks for your help.
Read Answer Asked by Donald on August 20, 2019
Q: When I look at the latest Q&A from Feb. of 2019 on the CSU website Mark Leonard makes reference that it is difficult to find acquisition companies like CSU that have high ROIC but when Leonard did a screen for CSUs board he was able to find 6 companies out of 4000 with ROIC comparable to CSU. Any ideas how to screen for these companies or what companies Mr. Leonard might be talking about? Thx
Read Answer Asked by blake on August 20, 2019
Q: Hi Guys,

My question is about VCI, or Vitreous Glass. The company has the exclusive right to buy all glass deposited at Alberta bottle depots, and then crushes it and sells the product to fiberglass manufacturers. My understanding is that the glass 'cullet' they produce is a significantly cheaper input to the fiberglass manufacturers than raw glass would be, so the three Alberta fiberglass manufacturers buy all cullet that they generate. The only restriction for this business is supply, not demand.

I know there have been questions in the past where your main concern is liquidity, but I keep getting drawn back to the name given it's high 10%+ dividend (all earnings are paid out as dividends), debt-free balance sheet, and earnings consistency (I tend to drink wine and return the bottles in good times and bad).

An argument for substantial price increases could be made given that their product is the cheapest option for fiberglass manufacturers, which would help grow the top line quite quickly. Why is this not a target for a leveraged buyout? It's easy to see how this could generate 20%+ with a bit of leverage.

Just a bit of rambling over what I feel is an undiscovered gem for income investors!
Read Answer Asked by Michael on August 20, 2019
Q: I am wanting to buy some mid cap Canadian energy companies, preferably with a good dividend. I am looking for ones with strong balance sheets that could ride out the poor prices, decent reserves, etc. What would you recommend? I am thinking about VET (but will the dividend get cut?), ARX, WCP, and on the smaller side, CJ. Also, for non-dividend, I am considering MEG, ATH, BTE, and CPG (very small dividend). I would appreciate your thoughts.
Read Answer Asked by Donald on August 20, 2019
Q: What conditions in Canada would need to change to cause a significant upward trend in the Canadian dollar? Thanks.
Read Answer Asked by BRYAN on August 20, 2019
Q: I noticed that SU and ENB were mentioned by your team as safe in capital preservation and dividends. Some analysts do point out that ENB has a high debt and therefore they conclude it is not as safe. Is this correct ?. In terms of safety, and long term investment (at least 5 years) which one would you preffer ?
Would you allocate 5% to each in a conservative porfolio ?, or less than 5% ?,
thanks
Read Answer Asked by Alejandro (Alex) on August 20, 2019
Q: I am new to 5i but I hold many of your A & B -rated stocks, so I am trying to figure out what's happening with NFI and to decide whether to sell it at 20% loss or not. They had decent quarter and the stock was up during Wed massacre. Yet, it was down 6% yesterday (in neutral market) and down again today when everything is up. Do you have any idea what is going on? I have well diversified taxable portfolio with NFI at 3%, would you recommend holding, selling, or adding more?
Read Answer Asked by Alex on August 19, 2019
Q: Hi 5i,
I have $70,000 CAD to invest for 3-5 years and tax is not an issue. I am thinking of ETFs : 40% Canadian Stocks, 32% American stocks, 8% Global and 20% Bond.
Would you please advise what to buy? or if you have better combination.
Thank you.
Read Answer Asked by Tom on August 19, 2019
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!