Investment Q&A

Q: Hi Guys,

I have some cash I want to invest in the “high risk” area of my fixed income portfolio.

I currently own units of Innvest REIT (INN.un). My plan is to sell the INN.un units and buy Dundee Industrial REIT (DIR.un) to upgrade my REIT portfolio while maintain my cash flow. With the cash I already have, I will purchase one of Innvest’s debentures.

What do you think of the idea? Will my portfolio and cash flow be in a superior position (read safer) after the transactions?

Thanks for the input.

Regards
John

Q: Can you please provide an update on LTS - Light Stream? Do you feel the dividend is safe?
Thanks - Lois

Q: My daily routine 7days a week.is to read your site,which improve my knowledge.Appreciate your explanation on the voliatility & volume on certain stocks due to index revision.It is very discenting to novice investors like me to see stock like CGX dropped some $1 on 250k volume @ the close. Please provide your expert opinion of the impact to additions(KEL & IFP.A were added) & substractions to the S&P/TSX index Please give us your opinion on CQE & PNE(think results recently released),which were tipped by Rob Lauzon on BNN on mar 13.Thinking of purchasing these few days Txs a lot. Peter

Q: I have two questions:

1. your outlook on US-based PFF

2. why do you thing PFF is close to an all-time high while canadian preferred ETFs like CPD and ZPR are ways below their prior highs

Many thanks

Q: Is the Dividend safe with surge ( syg ) . Why does a company which
is losing money pay such a high dividend . Do you see any positive or negative trends with inside trading . On a scale of 1 to 10 where would you rate present management . Many thanks Rick

Q: 5i has become invaluable to myself and many others but another tool that I use each and every day is globeinvestor.com's Watchlist. Recently I was ranking my portfolio by various headings in their Build Your Own dropdown box. One heading was Forward PE, in which I noticed that BEP.UN is 83.46. Knowing that different services have different numbers I thought I would run this past 5i - it doesn't seem right. Views?

Also is it possible that even after their huge runs upward, CSU could have a forward PE of 12.98 and HLF similar at 11.07 i.e they're both still cheap?

Thank you!

Q: Hi 5i Team,

On March 22 you answered a few questions about unusual last minute trading in BYD.UN, CRT.UN, NAL and ESL. There was significant increase in volume and price spike downwards in the last few minutes of trading on Friday. I was going to ask you the same question about CGX, THI, TD, and HCG. They all have the same pattern: huge volume in the last few minutes of trading, and large price drop at closing. You attributed this to the “TSX quarterly rebalancing” that occurred on Friday. I have a few questions about that.

Why were they all negative? If it is rebalancing why weren’t any price changes on the positive side? Is it normal that on quarterly rebalancing day they all fall?

In one comment you stated: “Several stocks were added to the index, such as Brookfield Renewable and Chemtrade, and others such as Atlantic Power were removed. Index funds and other funds following the index needed to make significant adjustments to their positions, resulting in a volume/block spike.” If they were added to the index I would have expected the price to increase. CHE.UN had over 2 million shares traded in the last few minutes, and was down about 0.5% for the day. BEP.UN also had a few million shares traded in the last few minutes, but was up about 0.5% on the day. ATP was down 2.3% on large volume at the end of the day.

If this is the normal phenomenon on quarterly rebalancing day I would like to take advantage of it if I was planning to buy around that time. When are the remaining TSX quarterly rebalancing days in 2014? I made some purchases on Friday, and had I known I could have waited until the last few minutes of trading.

Paul

Q: Hi 5i Team,

Will the webinar held on March 27 be available for download for members who cannot attend?

Q: Would you rank Fiera Capital(fsz), and Black Diamond group(bdi), as good steady dividend growers for the foreseeable future, thanks?

Q: Hi,

Besides the 31-Dec-18 4.5% Cineplex convertible debentures which have been mentioned on here before, does 5i have some other favourite convertible debenture issues that you could recommend?

Thank you.

Q: I am considering buying Softbank because of the coming Alibaba IPO. Is the IPO already priced in the stock?

Q: Hello Peter and Team. Thank you for your endorsement of my play on Gold holdings. I was exclusively in ETFs, but may have missed the mark on my initial selection. I recently invested in 5 issues, namely Hep.A, HEP, ZJG, ZGD and HGU. As per your recommendation, I would like to consider buying XGD and G, but as replacements to ZJG,ZGD and HGU. I was considering hanging on to the Horizon ETFs,purely for the luxury of the dividend income, which I hoped to be eventually eclipsed with a capital gain,albeit down the road. I`m also considering Primero,(P), based on some of the info that has been shared here today.Your thoughts?

Q: Hi Peter and Team,

What are your thoughts on Advanced Battery Technologies, ABAT.

Q: Hi Peter and Team,

I have a full position in Thomson Reuters (TRI) which has surprisingly grown significantly in the last ~18 months (although it has pulled back somewhat lately). It is also paying about a 3.85% dividend.

On more than one occasion you’ve said you're not overly keen on TRI. Most recently, on Feb. 12/14 you said TRI “…still faces some challenges, but remains a viable blue-chip stock in the sector, with OK long term potential. Much of its fortunes depend on capital markets employment levels, which should improve with the markets.”

I am thinking of selling it and would like to replace it with one of the 5i A- or B+ rated companies that I don't already own. I have an otherwise well-balanced and diversified portfolio based entirely on the top rated and unrated companies in the 5i portfolio and other recommendations you’ve made in the past (e.g., IWO, IBB, VIG, VXUS, SLW, FNV).

Ideally I'd like to replace TRI with something that has better than “OK” prospects for growth and dividends going forward. It does not have to be in the same sector.

Would you be able to suggest which of the following top-rated 5i companies you would recommend as a replacement for TRI at this point in the market cycle?

Badger Daylighting Ltd. BAD A-
MacDonald Dettwiler MDA A-
A&W Royalties Income Fund AW.UN B+
Black Diamond BDI B+
Boston Pizza Royalties Fund BPF.UN B+
Boyd Group Income Fund BYD.UN B+
Capital Power Corp CPX B+
Davis and Henderson DH B+
Equity Financial Holdings EQI B+
First Capital Realty FCR B+
Fiera Capital Corp. FSZ B+
H & R Reit HR.UN B+
Leon's Furniture LNF B+
Mediagrif Interactive MDF B+
Tim Hortons THI B+

Thank you for your perspective.

Michael

Q: What are your thoughts on Frontier Communications Corp, FTR on Nasdaq. Is is at a good entry point for a dividend hungry investor?

Q: Hi, I would like to add a good monthly income or dividend oriented etf to a diversified portfolio. What would be your recommendation?
Thanks for the great service.
Phil

Q: Good Afternoon 5i team; I've done very well with BDI (Black Diamond)over the last two to three years, and as a result am considering selling half and re-investing the proceeds into HWO (High Arctic). I would appreciate your opinion on this strategy. thanks,

Q: I would like your thoughts on GNC Holdings (GNC-US).

I have gone through the financials and they look great. Earnings and profit growth are strong, company is buying back shares, margins are increasing this year and I think they are in an industry that should really benefit from an aging population that is becoming more and more aware of personal health. My only concern is their use of long term debt but with rates low, maybe this is a smart managerial move? Thoughts?

Q: At the very close of trading on Friday Enghouse dropped from around 35.00 to 34.00. Any idea why.

Ed

Q: Your comments on recent YO news thanks