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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: Peter and His Wonder Team
I have heard several analyst on BNN say that no one cares about the oil and gas sector...that there is absolutely no interest in this sector. Therefore if there are no buyers the stocks will stay at rock bottom. Can you see any hope for long term investors of this sector? Thanks?
Read Answer Asked by Ernest on April 16, 2018
Q: My wife and I currently have 6.8% of our combined retirement savings invested in ENF. As we have made this acquisition quite recently, we are neither up nor down on this investment. We've just received the company's 2017 annual report and I'd appreciate your confirmation of a key financial metric, I see noted within the information we've received.

On page 4 of the 2017 Annual Report I see an indication that the company's Dividend Payout Ratio climbed from a level of 86.9% in 2016 to level of 96.1% in 2017. My first question is: Am I correct in understanding that the firm therefore paid out 96.1% of all it's net income in 2017?

The reason I ask that question is that the information we received includes a very clear statement of the company's intention to continue to raise their already very generous dividend by 10% in each of 2019 and 2020. They point to planned future projects, they seem to feel should make those targets eminently achievable.

If they are already paying out 96.1% of their net income, won't they likely need to grow that income by at least 10% in any year in which they might wish to increase their dividends by 10%; if they wish that dividend level to be sustainable over the longer term?

How likely do you feel their targets for income growth and dividend growth might be?
Please know that we can tolerate substantial swings (declines) in the price per share of this holding, provided we believe the dividends are both sustainable and likely to grow at least at the rate of inflation, going forward. Thank you!
Read Answer Asked by Richard on April 16, 2018
Q: Hi Peter
Please help me understand.
In your column in the Post today you claim “our model could care less about the TSX” and as independent investors we are “ free to see to our portfolio far more diversified than the Canadian market”.
So why does the Income Portfolio only have 7 % outside Canada?
Thx Frank
Read Answer Asked by Frank on April 15, 2018
Q: Hello Peter,
On your april 9th reply to QSR, the dividend that was indicated was above 3 percent; I am seeing a dividend of 1.9 percent on google. Any idea? Also, I am planning to keep QSR , GUD, SIS, ADW.A, Shop, and Spot as long term holds. Any concerns here? My weights range from 2 to 4 percent. Lastly, I I know you have had lots of questions on Knight, but from a shareholders perspective, are we not waiting along time to get some results that are meaningful to increase stock price? What are the analysts saying about Knight as I am sure their clients are not happy with the stock price. Thanks again for the great input.
Read Answer Asked by umedali on April 13, 2018
Q: Gentlemen,
In your answer, there is a typo on the first SJ, I understand it is MX ?
We like SJ and it is showing excellent momentum. It might be a takeover target and earnings growth looks good. But.....it will act very differently than SJ and will likely be far more cyclical
Thanks
Best reagards
Read Answer Asked by Djamel on April 13, 2018
Q: As a follow up to the Greenblatt's formula for selecting value stocks from earlier today, can you please provide a shortlist of your favorite large caps meeting or coming close the "value" requirements and are listed on the TSX?

Thanks
Read Answer Asked by Graham on April 13, 2018
Q: If I am correct, insiders own a lot of absolute software. What other companies would you recommend buying based on how much stock insiders own which would align them with shareholders and that is good value right now.
Read Answer Asked by Helen on April 13, 2018
Q: Shaw reported a $164MM CAD loss in Q2 2017 due to restructuring. And $200MM CAD revenue from their wireless unit (+93500 new subscribers). It's been reported, so far, business is up 12% in 2018. Stock price is up today (Apr 12) more than 9%. Two questions: How much of this improvement is primarily attributed to management's actions? And, what is your opinion of this telco as an investment vehicle going forward? Thanks!
Read Answer Asked by RANDALL on April 13, 2018
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