Investment Q&A

Q: From your experience when does most tax loss selling end?

Q: I have $125,000 to invest, I am looking for a combination of growth and income. Would you invest all in your model portfolio or with you put a portion in US and or emerging markets, I would problably use ETF's for US and emerging market portions.

Q: Good Morning All,
This is not an investment question, but I'm hoping you can shed some light. Huntingdon Capital Corp has been sold to Slate recently & I have been viewing news releases for Slate (on TD Waterhouse site & SEDAR) stating that they have purchased 100% of the outstanding shares of HNT at $13.25 and that the shares are expected to be delisted from the TSX on NOV7, 2014. I have over 1000 shares of HNT in a TD Self Directed RRSP. I have received no notification from either TD or HNT to tender my shares. The HNT website is down, TD can't give me an answer and I can't get in touch with investor relations at Slate. I'm becoming very concerned.
Please comment on what is the protocol in this situation; in the past I have had the brokerage call me for instructions in these situations.
Thanks in Advance,
Tom Brandsma

Q: Hello Peter & Co,
I (age 71) have recently made adjustments to my RRIF portfolio (for 70% of my retirement income)
2014 ytd return 22%, yield vs book 3%, beta 0.40
Consumer discretionary (5%) LNR,MG
Energy (10%) BTE,CPG,HWO,TOU,VET,WCP
Financials (8%) BNS,EFN,HCG,TD
Health (11%) CCT,CXR,DND,GUD,RX,XHC
Industrial/Transport (7%) CHE.UN,CCL.B,CNR
Infrastructure (6%) BIP.UN,SJ,STN
Materials (3%) IFP,WEF
Pipelines/Midstream (11%) ENB,IPL,KEY,PPL
Retail (4%) ATD.A,DOL
Services/Media (8%) BYD.UN,CGX,DHX,FSV
Technology (13%) CSU,ESL,GIB.A,MDA,OTC
Util/Telco/RE (9%) ALA,BCE,BEP.UN,TCN
Cash (5%)
As 5i Research has rated many of these holdings, a general commentary would be sufficient.
Thanks,
Tony

Q: Hi Peter and Team,

2 questions for today. Firstly thank you for your continued advice - I have and will continue to subscribe to it, as I find it invaluable for the Canadian market.

My questions arise from 2 sources, firstly that my investments are currently 100% Canadian, and secondly Mr. Poloz' recent letter to the CCPPP (link below) titled "The legacy of the financial crisis – what we know, and what we don’t". I think it's time to diversify out of Canada a bit.

Here are the questions:
1) Can you recommend a US 'no conflict of interest' equity research firm similar to 5i that I could check out?
2) I take the overall message in Mr. Poloz' letter to be Diversify out of Canada. Would you agree?

Thanks!
Keith

link:<http://www.bankofcanada.ca/2014/11/legacy-financial-crisis/>

Q: Just a note of thanks for your weekend advice to sell my CRP.RT holdings on Monday morning. I sold at 43 cents, and this morning CRP.RT is trading at 4 cents! (As well, the CRP shares themselves are now at a much more interesting entry point.)

Thanks!

Q: In regards to typically Canadian commodity stocks: as the $US increases in value against the $CAD & many others, what companies will benefit the most in your opinion in the peer groups for various producers? Such as base metals, precious metals, lumber & oil/gas.

Thanks for your great service

Q: Avigilon reports Net INCOME ,EPS and EBITDA with both GAP and adjusted data. To study EPS. ROE or PEG which should a person use , adjusted or not adjusted?


Regards

Q: Markets have been in a nasty downturn for a couple months ago. This may be an easy question, but how often do you recommend the average investor monitor his or her portfolio, assuming there is sufficient diversification? It really hurts to see some declines in some stocks, particularly energy.

Q: Hello...I was just searching the website for the recommended financial books for increasing base knowledge...can you point me in the correct direction

Thanks again
Matt

Q: This is more of a tax question than a Baytex question. I sold Batex Energy on October 9th and it had a settlement date of October 15th. I sold for a loss to offset some capital gains. I sold it at $38.00 and had purchased it at roughly $46.00 On what day can I purchase it back and still get the tax loss and is there any rush to buy it back? Thanks so much.

Also this service is amazing. Thanks for the awesome research.

Jimmy

Q: Hi Guys, my self directed portfolio totals $ 350,000 over 4 accounts, TFSA wife, TFSA mine, non registered and a corporate account. Will you look at them as one (which is the way I manage them) and advise accordingly?
thanks again
Jim

Q: You announced your portfolio review service, I can hardly wait and I have signed for the service. The announcement stated that I don't have to pay until you are ready to start the analysis. I have the following questions:

- How I am going to be charged, is it based on the number of securities, on hourly basis, the size of portfolio, ...etc?

- since market conditions change continuously, the portfolio requires constant monitoring, how this is going to be done?

- Investors' situations may also change, so will be a requirement for a follow-up how this will be done?

Others will have many more questions and it looks to me that it will be a huge undertaken unless a specific structure to the service is established.

Thanks

Q: Hi,
The equity portion of my Income Portfolio contains the following with % weightings shown. Any names you would remove or add to? Any sectors you would trim or add to? Any names from your Income Portfolio you would strongly suggest I include? My average yield is 4.3%.

Consumer 1% (CTC.A)
Banks 20% (BMO,BNS,NA,RY,TD,TMC)
Insurance 11% (MFC,POW,SLF)
Utilities 8% (EMA,FTS,TRP)
Telecom 15% (BCE,MBT,RCI.B,T)
Precious Metals 6% (AEM,TCK.B,SLW)
Energy 19% (CNQ,COS,CVE,CPG,FRU,IMO,SU)
REIT 17% (CAR.UN,CHP.UN,D.UN,DIR.UN,HR.UN,REI.UN,TCN)
Technology 2% (ET)

Looking forward to your Portfolio Analysis feature/service.

Thanks for this,
Carlo

Q: Peter,
If there were 12 important items you reviewed of a company before buying a stock, where would ROE rank in this list as its level of importance? What might influence your decision to buy a company despite having a sub-par ROE?

Q: Hi Peter & Team,
Should I consider my wife's TFSA & RRSP as part of a consolidated family portfolio (diversification, % of allocation, etc)? or a "stand alone" portfolio (which may mean duplications etc)
Thanks for a VERY good service!
Morris

Q: Hello to the 5i team

I have always struggled with diversification as it relates to management of a portfolio. I understand the wisdom always being offered (including here at 5i) along the lines of ensuring that proper diversification is maintained. I read something recently that indicated an academic study demonstrated that the maximum effect of diversification is achieved with 18 positions.

My concern and understanding is this: while diversification offers the investor some greater degree of protection on the downside, it also prevents, I believe, any chance of accumulating significant wealth because of diluted positions in any given security.

There was a recent article in the G&M discussing the merits of owning a portfolio consisting only of Canadian banks. Most of the investment professionals consulted on the matter considered this to be a very bad idea. However, I think the idea merits serious consideration considering their long-term performance.

I know 5i advocates diversification but what is your take on a smaller concentrated portfolio?

Thanks very much. Your service is very much appreciated.

Q: I have a problem with fund managers who go on a TV business channel and brag that they have 25-35% of their funds in cash to keep their "powder dry"but still charge about 3% on your investments.As well the cash in the cash in the fund is actually losing money.Am I correct in this analysts.Thanks for your unbelievable service and advise.Jim

Q: I’ve been thinking about how to distribute my portfolio among my TFSA, RRSP and non-registered accounts. It seems to me that TFSA space is very valuable. Once you lose it, say because a stock crashes, you may never get the space back again. Perhaps its better to be conservative with your TFSA portfolio so you can take advantage of all its (growing) space for a very long time. As for RRSP space, I really own only about half of that space since the money is taxable when it’s withdrawn. If I take a risk in my RRSP and it turns out badly, the government will, in effect, absorb half of my loss. So it seems to me the TFSA is the best place for my fixed income assets and the RRSP is the best place for my risky equity bets, while my non-registered account is the best place for my less risky equities, especially those with good dividends that are eligible for the dividend tax credit and have some growth potential. What do you think of this perspective?

Q: This is a question about buying stocks. For example...say there is 1 Seller at $1.00 and 50 Bids at $.99 as a stock is hitting a multi year low and I want to purchase now... I want to buy a full position but realize if I Bid $1.00 my order will only be partially filled and the stock may run away quickly. Therefore I was considering putting a buy-limit at $1.03. My question is ...would I get the $1.00, $1.01, $1.02 lots for those prices or would I pay $1.03 for every lot ? Do you have any other suggestions?
Thank you for great service...Peter was terrific on BNN this week!
Dr. Ernest Rivait