Investment Q&A

Q: I have a question related to inverse index ETFs and payments of dividends.

I hold 100 shares of the New York-traded ETF "PROSHARES SHORT QQQ", ticker PSQ, which behaves in an inverse way to the NASDAQ index. Last week I received a dividend of US$4.01. Although this is a modest amount, I am very surprised that I would receive any dividend at all ! How can this be with an inverse ETF? (If anything, I would expect to have deducted the dividends of the underlying shares, as is the case with a "short" of an individual stock.)

Thanks for any clarification you can provide!

Q: Hello:
With all of the news of trade wars, is it an appropriate time to sell SIS and MG due to their volatility related to this topic?

Q: Hi, What would be a fair market price for the new 4.65% $1000 new debentures, based on 7 years term, discounted cash flow and conversion price of $182.51 per common share, in view of shares trading at current level ? Thanks

Q: Looking at insider trading, I have noticed numerous sales classified as "sales under company plan". I do not know what this means and is it something to be concerned about? Thanks, Bill

Q: I am doing a bit of spring clean up on my portfolio. My question relates to insurance companies. I have a 3/4 position in Sun Life and 1/2 positions in Manulife and Power Financial. Manulife was purchased for its Asian exposure and Power Financial for its European exposure and its dividend. What insurer would you eliminate and is there a reason to keep more than one Canadian insurer?

Q: Hello 5i:
We currently hold about 4% of our portfolio in CSU.DB; bought first about 3 years ago with subsequent additions. It's been a very good and stable performer (thanks for the tip as in addition to the excellent dividend, we also have capital gains). Can you provide another name, possibly A ranked company that would have a similar fixed income contribution? Or, should we merely increase our weighting in CSU.DB?
btw, we also hold CSU (the regular equity) at about 3% of our portfolio.

thanks
Paul L

Q: Hello 5i Team,
I'm curious on what your thoughts were regarding these two overlooked companies. If they do not interest you would you have any recommendation for small technology companies and/or diversified alternate asset management company?

Thank you!

Q: In an April 2nd answer pertaining to a question about PBH, you stated that it is not cheap at 27X earnings. Both TD WaterHouse & 5iResearch’s company page states PBH’s P/E ratio is about 44X. Does the 27X figure refer to the forward P/E. If it does, from where did you obtain that figure & is it possible for 5iResearch clients to have access to companies forward P/E ratios. Thanks … Cal

Q: GGP has indicated that BPY could be required to pay a co reverse termination fee of $1.2 B in certain circumstances. What are those circumstances and how likely is that to happen? BPY was sharply down on Monday. Is the termination fee part of the reason for the decline? When is the takeover likely to be completed?

Q: Gentlemen: Would you recommend SVI as a good investment for my RRIF over a period of 5 years? Do you feel they have too much debt?
Thank you
Ken Beatty

Q: Gentlemen:
I notice some preferred shares have an option to convert to another issue and are also redeemable on the same day. Can you exercise the option or do they redeem them?
Thank you
Ken Beatty

Q: At what point does 5i acknowledge the severity of the problems at these companies, including reducing their 5i stock ratings? Both of these companies have been severely punished for very good reasons. Too much debt. Cant get the prices they wanted for asset sales. Cant sell shares into the market for a decent price. Interest rates are rising. They have backed themselves into a corner and have really damaged themselves, ENB more so then ALA. ENB future dividend increases are a fantasy, a cut is more likely. Yet still rated an A- ?

Q: I can't see any news on Boyd to account for a 4% jump on a dreadful day. Any insight?

Q: Your analysis of the deal today. It looks attractive but is it too
large? What does the balance sheet and P\E look like pro forma

Q: 5I Team,

Can I please get your thoughts on Venzee Technologies Inc. V.VENZ

Thank you

Q: BLN recently announced Q1 revenue increased 51%,& loss of 0.5 which beat expectations. Your thoughts on the results & going forward,Is it ok to buy some?Txs for u usual great services & views

Q: Thank you 5i for helping me realize it is time to refocus my investment philosophy.
Ignorance is bliss. In more recent times, my bliss has turned to self scrutiny full responsibility for my investment decisions. Thus I signed up with 5i because what I see offered is good common advice, not hopeful returns.

About a year ago I was in a blissful state and followed some advice to invest in these companies as potential Canadian 10+ baggers: TSO3 INC, CRH MEDICAL, SUNOPTA, EXCO TECHNOLOGIES, PIZZA PIZZA ROYALTY CORP, MEDICAL FACILITIES, MAJOR DRILLING GRP INTL, WESTAIM CORP, CORBY SPIRIT & WINE-A, TRICON CAPITAL, and AUTOMOTIVE PPTY REIT
Consequently, I invested about 5% of my total portfolio in the hopes of winners. One year later all are down 10% or more with a combined loss on paper, ytd, of almost 20%.
Thankfully, the majority of my stock investments are in ETFs. I am not opposed to owning individual stocks. Based on your views of these companies, should I sell off all or any of these and make some wiser, less speculative choices? Any other sage advice would also be welcomed.

Q: Added positions in SIS and SJ today on the dip. Any other really good buying opportunities off the list in the portfolio (dont need energy or financials) with the current volatility. SIS and SJ where on my add next list and hadn't really made a plane beyond those...

Q: We are divesting our last mutual fund worth ~$82K. It is currently providing ~$6300/yr as mainly ROC with a high MER. Not impressed. I am mainly an ETF purchaser having 88% of our total portfolio in ETFs and the 1 mutual fund. In comparing our holdings to the Canadian MoneySaver ETF portfolio we have about 15% in fixed income to CMM 20%, are low in utilities but generally our allocations correlate. I consider us conservative investors requiring income over growth as we are unemployed and needing to use income generated from investments. So not interested in holding US growth ETF. Realized that we do not hold any technology or consumer discretionary ETFs. In wanting to replace the mutual fund I have looked at 5i Income Portfolio and am thinking that taking about 1/3 of funds from sale into each of KWH.UN, ET and ECI. This would result in about 2%-2.5% allocation to utilities, consumer non-cyc and technology. This would bring our utility alloc to CMM ETF % and give more direct exposure to consumer and technology then small percentage that occurs in ETF holdings. What %/$ allocation would you consider appropriate for a sector overall? This allocation would provide ~$5600/yr income, the decrease is ok if consider that may get some growth over time. Intention is to not use capital for expenses for next 15 years. Have no pension plans. Would you consider the above as conservative direction to generate replacement income from fund or are there other alternatives in your opinion that could generate this level of income that may be a better option?

Q: Hello,
I have another (very) small cap stock question.
Do you have any information on Pascal? Seems interesting from a couple of perspectives.

From their website: "However, Pascal is the first to identify a mechanism in which cannabinoids may provide a direct benefit in immunotherapy."

Thanks!

Brian