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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: Can you suggest tools to monitor market breadth or flow of funds in and out of different sectors?

Are these criteria that you watch?
Read Answer Asked by Mark on July 31, 2018
Q: Hi Peter and Team,

My question is about what is the best strategy and behavior during a downturn in the markets?

From my reading of previous answered questions and on other posts on the internet, the advice seems to be, do not sell while the market is dropping. How can one be disciplined enough not to do it? What if one stock in our portfolio is dropping more that the rest during a downturn in the markets? At what point while the market is dropping, should we consider buying more quality stocks?

Thanks again for your good work.

Marvin
Read Answer Asked by Marvin on July 31, 2018
Q: Hi,
Have inflationary pressures become real due to the tarrifs? Do you expect this to start having impact on prices and therefore on the stock market? I suspect Trump might back pedal once these tariffs start impacting markets. What are your thoughts? Thanks.

Shyam
Read Answer Asked by Shyam on July 31, 2018
Q: Hi group I am taking a bath on tech stock both in US and Canada . Looking like market is going to value on these stock as opposed to growth. I also am losing a lot on financials like Visa + PayPal. What strategy should I use going fwd . Preserve capitol or wait out what happening or? . I know that this info is scattered info but generally what is your thoughts going fwd Thanks for your guidance
Read Answer Asked by Terence on July 31, 2018
Q: What is Blockchain Technology. How does it work ? What is the Future ? RAK
Read Answer Asked by bob on July 31, 2018
Q: I appreciate you noting the Insider Ownership in your reports. Where does a retail investor best access Insider and Institutional Ownership for CDN and US stocks. Thanks.
Read Answer Asked by Murray on July 30, 2018
Q: FYI ...
I see questions posted about where to park money for short term periods and get a decent rate of interest. GIC's are mentioned but they have minimal rates and fixed terms. Virtual banks like EQ Bank currently offer daily interest at 2.3% with no minimum timeframe and are covered by CDIC (up to $100,000). They also offer GIC's.
https://www.eqbank.ca/personal-banking/features-rates
Read Answer Asked on July 30, 2018
Q: Hi,
I apologize if this has been answered before. Occasionally I have temporary cash balances in my Canadian registered and unregistered investment accounts. However, my broker does not pay any interest on those balances. Do you have any recommendations for short-duration money-market or bond-style or alternative etf's that earn interest and either pay out or increase in value? My only objective, besides earning a return, is that the etf units should maintain their value and not be subject to declines due to credit, interest rate or other risks (understanding that there is no such thing as entirely risk-free).
Thanks,
Derek
Read Answer Asked by Derek on July 27, 2018
Q: Hoping for some education on economics here. In an answer to Terrance about portfolio weightings, you were suggesting 20% be allocated to Industrials and 5% to Materials. I would have thought Materials would have been higher in this scenario on the assumption that a strong industrial sector would boost raw material costs.

Is the reason for the suggested minimal Materials allocation because of your oft-stated concern that Material producers tend to be price takers and not price makers or is there an underlying economic reason where material costs are shown to lag production increases?

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on July 26, 2018
Q: How much influence do the various market players have in manipulating a stock price? I see Facebook is down 20% pre-market but I question to what degree if any is this manipulated or is it a true reflection of the number of buyers and sellers? I've been burned once or twice selling on a drop only to see it rebound hard. After years of investing I'm more at peace with holding for the long term as for myself it's been a losing game in the short term trying to out game short term reactions.
Read Answer Asked by John on July 26, 2018
Q: Your take on FSV's quarterly results? I've been considering increasing my holdings in this company (2.5% now) because it's been far less volatile than the market of late, a steady grower. But I'm worried it's expensive already. On that subject, I keep hearing these guys on BNN talking about this or that stock, like Enbridge, like Parkland Fuels, Constellation Software and Methanex as being too pricey, above their normal P/E ratio, and due for a pullback, and they advise not to buy. PE doesn't seem to bother you much. It seems to be your position that if a company is good you don't really care if the stock is over-priced because even if it falls 10%-20% it will recover that in a year or two and then surpass the current price. Do I have that right?
Read Answer Asked by John on July 26, 2018
Q: Comment - it would be nice to see you comment on earnings reports of all the companies that you follow as they report vs. waiting for a member to ask. Have you thought about doing this?
Read Answer Asked by Sandy on July 26, 2018
Q: Various sources are urging companies to stop issuing quarterly forecasts. What is your position on companies issuing quarterly forecasts?
Read Answer Asked by Dennis on July 25, 2018
Q: Earlier today William asked about a portfolio tracking software. After trying a few I would highly recommend Stock Market Eye. It handles all transactions types, multiple portfolios, multiple currencies, live data, basic charts, tax tracking, and more... they also have fantastic technical service.
Read Answer Asked by Anthony on July 25, 2018
Q: After many years I am deciding whether to throw in the towel on Extendicare I know the stock has never been a 5i favourite
Demographics say this should be a growth stock but Extendicare has been a dog
Do you think there is any hope for this stock Should I wait until Extendicare reports In August

Could you suggest a replacement in the same space hopefully with a similar yield
Thank you
PaulW
Read Answer Asked by Paul on July 25, 2018
Q: I am just wondering if you know why sometimes a stock cannot be traded on line when in a self directed account. For example, in order to trade MOGO finance with TD I must call them in order to make a trade. The answer I get from TD is that they do that with a certain number of stock with low trading volume or when they are high risk stocks. I don't think MOGO falls into that category anymore than many other stocks that are thinly traded and much riskier. They have no explanation as to why MOGO is one of the stocks that cannot be traded on line. Is it worrisome? Is there something wrong with the company?
Read Answer Asked by Helen on July 25, 2018
Q: Hello team,

I have been wanting to ask you this question about the relationship between share price, dividend, and yield. I am going to use KWH-UN whose current SP, annual dividend, and yield are $6.01, $0.82, and 13.56%, respectively.

Suppose I buy 1000 shares of KWH. I understand my purchase will cost me $6010.00 and I shall earn $820 in dividend after a year on this investment which amounts to 13.65% of my purchase price. Now let's say that in the second year share price increases to $8.00 and the company continues to pay $0.82/share in which case my investment yield is still at 13.65% but that of a new investor will be 10.25%. Is my understanding correct?

If I am correct then, it is no-brainer that one should buy a company like KWH or ENB when they are in some sort of predicaments but have proven reliable in maintaining their dividend over time. The reward will be higher yield for the contrarian/patient investor if the company continues to pay the same amount of dividend per share.

Hope I am getting it but I am sure you let me know wherever I am going wrong on this....Thanks as always!

Now back to reading more of the questions/answers on 5i site...

Read Answer Asked by Saeed on July 24, 2018
Q: Airborne Wireless Network (ABWN.US) has an interesting technology / concept but recently ran into financial problems. As a result it issued Convertible Notes and other instruments that has led to a "Weimar-Republic"-like share dilution. The company is still very much active.

I recently bought 250,000 shares at $0.0004 (=$100). Today I was looking at their financial statements and noticed that the "par value" of their shares is $0.001, more than twice the market value of my shares. (I have never previously bought shares at less than the par value.)
Does this mean that, in principle, I can demand the par value from the company, making a quick 150% profit? Of course, if everyone demands par value the company will go broke, so I would need to be the first :-)

I would appreciate your comments on this unusual (for me) situation.
Read Answer Asked by Gregory on July 23, 2018
Q: Do you know if it is possible to purchase U.S. T-bills via a self directed (TD Waterhouse) US$ margin account? If not, how would a Canadian resident go about purchasing a U.S. T-bill?
Read Answer Asked by DAVE on July 23, 2018