Investment Q&A

Q: I haven't used stop losses in the past but with the uncertainty of the US election coming up ,I am considering putting stop losses on my stocks should there be a quick sell off.

What are your thoughts on stop losses and using them especially in uncertain situations.

Thanks

Q: I have a 5% position in Alaris and am significantly under water. Earlier this year I sold CJT at a nice profit so I am sitting with a nice capital gain. I am thinking of selling Alaris for the loss and to offset some of the capital gain with Cargojet, As I like Alaris and it's dividend I would most likely buy it back after 30 days. My question is do you like this strategy and if yes would you execute it before or after Alaris reports next week ?

Thanks Ken

Q: Hi 5i. In April of 2015, you discussed Cdn Dividend ETF's, and suggested that because CDZ (iShares Cdn Div Aristocrats) focused on Co's that regularly increase dividends, that it outperforms other Cdn. Div. ETF's, particularly over the long term.
Do you still consider this view to be valid, particularly as it compares to XDV (iShares Cdn. Select Div. ETF) and ZDV (BMO Cdn. Div. ETF). Thanks T.

Q: Dividends paid in US dollars: I am wondering if there are any caveats about buying Can. stocks that pay dividends in US dollars. Any, which types of accounts are they best suited for, or does it matter?

Q: Peter & Team, I picked up from your Q&A SHOP and ENGH have new tickers and so does CIGI. There seem to be a few of them changing today (I hold CIG and ESL). So why the change? Nothing in the ENGH web site and CIGI simply state change follows US ticker. Are these securities still as liquid and is the change at TSX request or company request? There is no grey market or junior listing on the TSX is there? Appreciate reply. Thank you.

Q: My question is sort of on CXI. I use stockwatch.com to get online quotes and noticed that there are a few different quotes for (I think) different exchanges. Usually these different exchanges only differ by a few cents, but for CXI today, the difference was quite significant. My question is what are the exchanges (TSX, Chi-X, CX2, Omega, TriAct) and why is the price so different? Is there an arbitrage opportunity?

Q: PRACTICALLY SPEAKING, ASSUMING I AM IN THE MONEY, HOW DO I GO ABOUT EXCHANGING WARRANTS I HOLD IN COMPANY XXX FOR SHARES IN SAID COMPANY?

Q: Hi,

I asked a question yesterday about fixed income investments. You recommended a couple of ETFs that I will look into.

My question is the merit of ETFs vs actual bonds. I understand that individual investors can't get the same diversification with bonds as with an ETFs, but ETFs never mature unlike actual bonds and you could end up with a loss. What are your thoughts?

Jason

Q: I have read the various guestions and answers on dates for dividend , yet am still confused, so I will ask another way. What is the last date you must own a stock to get it's dividend-ex div date, record date, or something else?
Thanks

Derek

Q: Where can I find out whether any of my stocks are being attack by short sellers? How can I tell whether there's a lot of shorts and at what price? Are any of the stocks in the 5i portfolio under short attack? If so wish ones?

Q: I am by no means an expert, but I certainly am an observer of circumstances.

Since joining 5i one of my key observations is, when one of your companies is under a short attack, be amongst the first to leave.

If the ship stays afloat, you're still safe, having abandoned ship. If it sinks you're off and alive to fight another day.

My observations are based on CXR, HCG and of course today's DH. Certainly this strategy would have worked on all of these.

Perhaps a good strategy for those investors with a risk averse bent.

On to fight another day!!

Sheldon

Q: Concerning the DH previously asked about. Can you provide a source where maturity dates and coupons are shown? My Bmo investor line account shows neither

Thx
KR

Q: After reading one of your blogs I am wondering if you can provide a list of companies in the past year that have instituted a dividend for the first time or have increased it by a considerable amount like savaria has done. And that will not cut a dividend just instituted. Thanks.

Q: Hi guys,

I recently read the intelligent investor and it gives several metrics by which Benjamin Graham would analyze stocks. Given that the book was written so long ago, are the metrics still relevant or have they evolved?

I'm specifically referring to a few, such as:

1- Current assets should be at 2 time Current liabilities

2 - Uninterrupted dividend payments for at least 20 years

3 - P/E Ratio of not more than 15 times when using last 3 year avg of earnings

4 - Long-term debt should not exceed working capital

While a lot of the information is helpful, it seems some of these criteria are nearly impossible to meet in the current low interest rate environment where companies are leveraging themselves to buy back shares or do other things. While we need to keep a close eye on long-term debt, net debt to EBITDA or net debt to total capitalization may be better tools to use?

Thanks,
Jason

Q: Regarding Tom's question on Oct 26 can you explain what you mean by "If one has securities, then registering them provides the utmost protection "
I have all my securities in a CIBC Investors Edge account. Are these considered to be registered?
Thanks
John

Q: Can you provide any feedback regarding the content of the following link and its author? thx http://www.canadiantimes.ca/ct2/index.php/columnists/dr-mcvety/2274-trudeau-s-bail-in-now-law-to-allow-banks-to-confiscate-your-deposits

Q: Re Stan's question on Scotiabank's website the following is a link to their "Investors & Shareholders page:

http://www.scotiabank.com/ca/en/0,,915,00.html

Q: Hi guys,

Quick question: if I have a $500,000 portfolio with $400,000 in equities and $100,000 in bonds. I have a $25,000 position in TD, is it considered a 5% position when compared to the portfolio as a whole or a 6.25% position when compared to the equity portion? I presume it's a 5% position but I just wanted to verify.

Jason

Q: Would you comment on the advantages and disadvantages of using covered call ETFs like ZWU, ZWB and ZWH to increase your yield? Are these covered call ETFs offered by other institutions other than BMO? In a down market does this type of instrument reduce your risk?

Thanks for your advice!!

Q: I own a number of DRIP with SPP companies in a registered plan through a discount broker. How do I participate in the individual company's SPP plan? As it stands now the discount broker only reinvest full shares. Is this something I can only do owning shares directly with the company through a non-registered plan?
Thanks for the great service!