Investment Q&A

Q: Hello
Stock analysts are predicting a dividend cut. Here are the comments of one analyst: " It was always viewed as a steady dividend payer but it is over 100% payout ratio now. They have a slowing growth business and will have to cut the dividend. If you saw a dividend cut that would probably be the day to buy it."

What are your views? Is there a dividend cut coming?
Would you recommend holding or selling?
Thanks

Q: Please comment on their results. The stock is down sharply. What do you think the prospects are over the next 2 to 3 years.

Q: Hello 5i Research team,
I am always suspicious when a company does not provide or comment its quarterly results in its press release. As I do not think there is some seasonality, I am comparing q4-17 vs q3-17 : quarterly revenue growth dropping from 58% to 27%; gross margin dropping from 54% to 36%; sales and marketing as a % of revenue increase from 14% to 22%; administration as a % of revenue increase from 19% to 30%; operating cash flow before changes in working capital was negative 0,2 M$ vs positive 1,5 M$ for the first 9-months.
Echelon forecasted 2,8 M$ in revenue, 0,6 M$ in EBITDA (very large miss). Could you comment on my analysis? Could you comment on management and board members quality and credibility? Is it a classic case of a growing company having some growing (pains) expenses before some more revenue growth or is this the first signs a management team that is bad at manage expenses? With a year-end of September, the stock has been under presssure since mid-October, it looks like some knew about weaker results, and traded. Would you agree that trading looks suspicious since mid-October? Is PTE still worthy of being included in your growth portfolio or the small cap basket allocation of your clients? Immediate sell order or they invested for future growth?
Thank you for your collaboration, Eric

Q: Results

Q: Hi Peter and Team,

Just read your answer to Stuart. We keep a spreadsheet on Google Sheets that automatically "captures" price data from Google Finance, and unfortunately Google Finance doesn't provide Aequitas prices. Any ETFs or stocks listed with Aequitas have to be manually entered. :( Other than that, I suppose that Aequitas is "okay".

Q: Good Morning 5i

Globe and Mail WEED article this evening - "Bank of Montreal became the first major Canadian bank to lead an equity financing for a public company in the medical marijuana sector, underwriting a $175-million stock sale for Canopy Growth Corp. Story (Jacqueline Nelson).Your thoughts on this development?

Your view of significance of this move of a Big 5 bank to invest in cannibis business.

Appreciate your advice as always.

Q: Hi 5i team. My RIF account has only ETF's except for ENB which is 8.8%. I have 15%EM, 21.3%INT, 21.3%US, 31.5%CDN, and my Fixed Inc. at 4.6% in Pimco PMIF. I am thinking of selling half (or more) of ENB and increasing PMIF or should I put into Pimco IGCF (not in your database) or some other you suggest.
As usual I appreciate your views and suggestions. I am 80, healthy and fully retired. Thanks.

Q: Explain to me why they would raise money on the market in the past and not put it to use, why not just raise it when they need it? Does it not cost them money when they raise money?
Thanks

Q: I purchased shares in this company at $17.98 a while ago and it is steadily going down - what is happening to the company - should I buy more, hold or sell?
Your advice would be greatly appreciated. Thank you Hanna

Q: Just to note that there was also a ratings upgrade on CSU per Globe Investor on Tuesday:
Scotia Capital analyst Paul Steep upgraded Constellation Software Inc. (CSU-T) to "sector outperform" from "sector perform." Mr. Steep increased his target to $850 from $740. The average target is currently $750.

Q: Have insiders been buying stock ??

Q: To be truly diversified should one hold commodities in a growth portfolio? If so can you suggest an ETF that would meet this requirement?

Q: I am curious if you are aware of a high yield Japanese market ETF that is available in Canada? Thanks. Peter

Q: I'm down 25% in XAU, I suspect because of the MENE Spin Off? When will I see the MENE shares in my account?

Thanks!

Q: With interest rates on the rise, and box stores leaving malls, would it be prudent to shift REIT exposure towards residential, rather than commercial exposure? Thinking of Boardwalk in Alberta, or Northern Property.

Q: Hi 5i - which stock (PKI or CGX) would you add at today's price for the current yield and long term capital appreciation? Or is there another stock in the portfolios you would add before these two? Thanks, Neil

Q: I am retired living on dividend income. Over the past 4 months I have bought 1/2 positions in the following stocks because they are in the 5i portfolios, and they are down (some substantially). My question is should I add/hold/sell the following stocks:
CGX -20%!
GS-6%
KWH.UN -6%

Q: I would appreciate your opinion on ZIC.U as a "safe" investment for yield. Thanks. Peter

Q: The question is in relation to a Cash Acct. which collectively yields sufficient dividends to support all necessary expenses on a yearly basis. The makeup includes the following:
AQN, DRG.UN, LNR, WSP, PKI, EIF, RBC Dividend Fund(all Cdn.. Bks), RBC as well as KEY & PPL which have been held for over 8 yrs. A large capital gain will result if either is sold but will be mostly offset by old losses. My question is which of the two do you recommend selling & suggestions for at least 2 GROWTH dividend yielding replacements. Thank you.

Q: BNS is the worst performer of the big 5 plus NA.It ranks #5 on 1yr return @ 6.1%,last on 3mo.@ 2% & 1mo @ 1.5%(as @ Jan 11/18 per TR).Recently a $2.9b acquistion of BBVA's Chile franchise.It is a fact that the above 6 banks takes turn to lead.So it is time to buy some BNS.Thanks for u usualgreat services & views.