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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: Regarding utilities falling prices, you have answered in a couple times in the Q&A: "The main issue is that US tax reform is going to reduce earnings due to lower tax recoveries." Can you expand on this? What is the percentage of reduction? I looked for an article and couldn't find one explaining this. I am looking to add to AQN, FTS and BEP.UN for their growing yield, but I can't determine a fair price or if they're under/over valued because of the US tax reform and am hoping you can help me make my decision. Thanks
Read Answer Asked by Curtis on February 16, 2018
Q: Good morning,

I notice in today's Q&A you mention the addition to Reliq Healthcare to one of your portfolios. When such changes are made to portfolios, are the intra-month additions and deletions announced somewhere on the site, or only visible in the month end portfolio update publications?

Also, can you comment on Reliq's patient onboarding process. In your view, are there risks with this process (delays on big contracts) or with a large competitor entering the space.

Thank you
Read Answer Asked by Jason on February 16, 2018
Q: I just read a contrarian report on Seeking Alpha regarding these two companies. Can you comment on the debt levels of each and their respective survivability in a prolonged long low price nat gas environment. In an RRSP, could they be considered decent ‘flyers’ for a small (1%) stake?

DON
Read Answer Asked by Donald on February 16, 2018
Q: I see you have removed SYZ from the balanced portfolio. As a thin trader, would you expect the stock to go down as some/many of your followers will 'rebalance' to match your moves? If it does move down, is this a lesson for subscribers to be careful in investing in recommendations that trade thinly? Of course, it works the other way when a thinly traded stock is first recommended.
Read Answer Asked on February 16, 2018
Q: Hi,
This is a follow up to your answer regarding my original question on Feb 14th regarding ETFs in the US Aerospace and Defense sector. Your answer focused my attention on the expense ratio as the main factor in choosing among ETFs with a similar theme, and you offered that 5 year average returns should also be considered. However, I am wondering if the dividends paid should also be a part of the decision? If yes, then as a general rule, ETF dividends would be considered only if all else is equal? Between the three ETFs, PPA pays .2504, XAR pays .0938 and ITA pays .3205. All are listed as quarterly payments. Thanks for helping out with my learning curve!
Dawn
Read Answer Asked by Dawn on February 16, 2018
Q: Hi team,
It is February and time to use another credit. I think I will ask a more general question rather than a stock specific one as most of my equity questions are asked by other subscribers, which is good thing.

I have U.S. accounts that augment each of my Canadian accounts (Cash, RRSP, TFSA). From time to time, I want to transfer some more cash to one of my U.S. accounts. I hesitate at times because of the approximately 2% FX charges that I incur from TD. I suspect most banks charge around the same rates.

I think I recall a few months ago a Q&A on the same subject but I can’t locate it. I think there was a strategy of buying a major Cdn stock such as a bank (where I am typically heavy, along with tech) and offsetting it with another transaction. I am not looking for any exotic approach, as I like to keep things simple, but if it saves me from incurring some FX charges I might consider it. Please advise.

Thanks again,
dave
P.S. Welcome Barkha.
Read Answer Asked by Dave on February 16, 2018
Q: I have a full position in my TFSA, in all of these except COV. They are all up except for ENB. I have $12,000 to invest, would you add to the existing stocks or can you suggest others. Thanks for your input, great site. thanks Dorothy
Read Answer Asked by Dorothy on February 16, 2018
Q: What are your favourite 3-4 high growth companies right now?
Read Answer Asked by Arthur on February 16, 2018
Q: Hi 5i
I have been considering buying kbro linen as a portfolio stabilizer with 3% div income.
Your previous comments ant stock price movement indicate stability; to the point of boredom.
Would you please confirm or comment on expectations and below thoughts?

Efficiencies should be increasing with positive effect on margins
New plants will enable growth with increase in capacity
Dominant industry position should enhance contract win potential
Scotland acquisition will add to earnings
Eventually all this should show up in earnings and stock price

As a final Q, sentiment has weakened recently (small volume). Any thoughts on likelihood of negative sentiment will outweigh positive fundamentals whereby drive stock price down through 38 dollar support?

Thanks for your input.
Dave
Read Answer Asked by David on February 16, 2018
Q: Hi there, thanks for the updates on your portfolios! I mostly follow your Balanced Equity Portfolio with a few swap in towards growth (ie: KL, SHOP, PHO, PEO, COV, GSY, DOL etc) - in other words I dont' mind risk, but not on the extreme end of the risk spectrum. I like the names like PBH, KXS, SIS, TOY as well. That being said, If I wanted to buy 3 of 5 names that were added to the BE and Growth Portfolios, which would be best suitable for me: RHT, WEF, TCK.B, VB, LIQ

Thanks so much!
Read Answer Asked by Michael on February 16, 2018
Q: I own NTR as a commodities play on the possibility of a weaker US dollar (among other reasons). I also follow BE. Your recent portfolio changes suggest a move from NTR to WEF might make sense for me. I have no particular love for NTR (and agree about dragging their feet on the dividend), and always like to reduce my non-BE holdings where appropriate. I regret not selling NTR at 65, but investing is about future prices, not past. My question for you is do you think near term total return will be better with WEF or NTR? I would appreciate some analysis as to why, and if you don't like to make near-term predictions please provide your thoughts on a switch from NTR to WEF. I know they are in different spaces but they would I think fill a similar role in a portfolio--non-metals, non-energy commodity exposure. I would appreciate your views. Thanks!
Read Answer Asked by Chris on February 16, 2018
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