Investment Q&A

Q: Hello Peter....I have a few questions from reading your right-on allocation for sectors on the TSX.(https://www.5iresearch.ca/questions/category/market-strategy?page=6#sthash.OCVTk6O3.dpuf) I take it this allocation is still 'good' in the current environment..and also built around a dividend/growth approach.

This allocation gives a weighting of 10% to info tech - hardware and 10% to info tech - internet and software. I'm sizing up my info tech positions between these two splits. For hardware, I assigned 2 positions, Avigilon and DavisHenderson, with a total weighting of 4.6%. I would appreciate your suggestions to round out info tech hardware....being with Canadian or US companies.

I earmarked Amaya, CSI. Constellation, Enghouse, Open Text to info tech - internet/software, summing up to 6.7%. For these, should I be adding to these positions or are there others, Canadian or US entities?

Also is there an article on Cdn Money Saver or other source about your thoughts on sector allocation/weighting?

Again, thanks.............Tom

Q: Hello Peter....I googled "hodson allocation risk" and this is interview that starts off with "I actually bought my first stock when I was 11, in Ottawa. It was Mitel Corp......"

Though others than tune in at 5iResearch might like to read it 2. It's at http://www.myownadvisor.ca/category/authors-and-books/
..............Tom M

Q: Thank You for answering my early question but if you have a profit when selling your stocks and not a loss do you still have to wait the 30 day waiting period before buying back in.

Paul

Q: Good Afternoon,

I was interested in knowing if when I sell all of my stock holdings in a company is there a 30 day waiting period before I can buy back into it.

Thank You
Paul Bohusz

Q: Hello- regarding ETFs in general-
often Etf trade above their NAVs during the day, and sometimes for several days or longer. If the ETF issuing company is selling issuing and selling new shares above NAV, where does the extra money go?
Also, should the issuing companies not adjust the price to reflect NAV at least once/ day? I find it annoying to check the NAVS on the Horizon or ISHARES websites and find them different from the market price. Or am I offbase on this?
Thanks

Q: Hello,

I have a few stocks on my watchlist so I was observing them intraday, my platform provides news on the stocks you're watching. One message I kept seeing was "Option Volume Spike Up, Option Volume Spike down" How does option volume affect intraday price movements?

Thank you

Q: Hi Peter and Team,

In previous answers to questions you've said that 1) earnings, 2) interest rates, and 3) flows of capital (e.g., from bonds to stocks) tend to be the main drivers of market activity.

What is your take please on these drivers so far this year in Canada? Are any trends emerging?

Many thanks.

Michael

Q: Do you anticipate a substantial pullback in the market in the next while?
How would you recommend to prepare for the possibility and
Would things would you recommend to do if it should come more suddenly than rxpected?

Thanks

Q: To your list of Quebec companies like FSZ possibly impacted by a PQ win you could add BCE, IAG, ATD, PJC, POW, NA, CNR, MRU, BBD and more. I don't think the separatism issue is on the media's radar in a big way yet, but if polls next week indicate a jump in support due to the star candidate's arrival, this could change fast with the feds being mute so far. My memory doesn't go back to the referendum of 20 years ago but I wonder if it wouldn't be the banks and financials hurt most as both sides have a tug of war going on the C$ as a central theme presently, and money runs scared first, asks questions later.

Would you agree or which sector is most vulnerable? Thanks, J.

Q: For sources for information on U.S. company's, which do you find more reputable, and why, motley fool or seeking alpha? thanks.

Q: Got to say, Peter, since "listing" for 5iResearch, I'm investing in medium and small cap stocks on the TSX, much more so that in the past. Also it's like I'm more aware of stocks other than energy and big financial entities that get continuous media attention. This adds up to better diversification for a retail investor like me, including for both non-register and registered accounts. On the emotional, un-technical side of things, I'm more comfortable with what I'm doing, and holding too...plus learning what to focus on in doing my own background analysis...Again, thanks...Tom M

Q: Hello Peter and Team,
As a retired,long term income investor, I purchased WIR.U on the TSE only to eventually find US withholding tax was taken off the dividend payment.I sold immediately. How common is this for a TSE stock and how can I avoid this in the future?

Q: Peter et al
A general question if I may. Though I haven't done any research on the topic, it seems to me, as a fairly observant watcher of the market, that there is quite a strong correlation between a stock's performance leading up to its reporting and the
reporting itself. Ie. it seems with better than chance odds, if a stock does well in the few days before reporting, it's report will be positive. I appreciate that reports are not stuck in
Fort Knox or somewhere pending release and so I'm just wondering, given your considerable experience in the market, if you have noted a similar correlation. Leaks, of course, could come from anywhere, but, I guess I'm wondering if this apparent (to me at least) correlation is something one should perhaps take account of in buying/selling a stock just ahead of reporting.
I hope I don't sound like some sort of conspiratorist, I'm just wondering how level the playing field is on some of these things.

Thanks for your thoughts. As it is perhaps not a question of general interest, please publish only if you wish.
Thanks as always
Neil

Q: Peter, is there a possibility to build into your database of questions (Q&A), the ability to do a word search?

I wanted see any comments you've made in the past about shale gas and comments related to marine transport that may carry this gas overseas.

Thank You as always.

Q: Peter and 5i team,

With an equity financing, like what has taken place with E recently, how does the average investor buy into the financing? If it's a stock that an investor already likes and is looking to pick up more shares, it sounds like a good opportunity to pick up the stock at a cheaper price (in instances where the financing is done at a lower price than the current market price). I'm just unsure on how to go about participating in these financings. I currently trade with Questrade.

Much appreciated in advance,

Q: I have heard you use the EOITDA frequently.What does t mean and how useful is it for evaluating any stock?Thank yu and have a good day

Q: Peter and 5I team, I think some of your members might enjoy the efforts of this blogger per Canadian dividends...

http://www.dividendgrowthinvestingandretirement.com/canadian-dividend-all-star-list/http://www.dividendgrowthinvestingandretirement.com/canadian-dividend-all-star-list/

"The Canadian Dividend All-Star List is comprised of Canadian companies that have increased their dividend for 5 or more calendar years in a row. I used the dividend record date to determine the length of streaks."

If you don't feel it's appropriate to be posting publically for fear of a whole whack of links to blogs etc; then I understand. Just felt it was worth it to share. There's lotza good blogs out there on dividend investing for sure. Thanks for creating 5I, it's been a blessing in disguise.

Q: I wonder if in your web you could add a column(alphabetically)about the stocks you already have ganswered the question in the past ; so one would not ask any question if you already have answered except some specific reason for.I have noticed many questions that you have already answered about them has been asked before by some one else.Thank you and have a good day

Q: when do you plan to publish income portfolio?

Q: Hi Peter and 5i: I have been reading Ben Graham's “The Intelligent Investor,” on your recommendation among others. Thank you for that. It is a wonderfully provocative read. It has me considering the increasingly defensive positioning one might come to in the later stages of a bull market through balancing and rebalancing the fixed-income and equity components of one’s portfolio. I am considering capital preservation strategies including diversification between components of conventional bonds, cash & short term income vehicles on the fixed income side of things, and (ironically?) gold on the equities side. But I am also wondering about the inclusion of non-leveraged short or “inverse” ETFs (MYY, HIU and the like) specifically to hedge the risk of the long equity positions I might be inclined to hold or accumulate throughout a market downturn, and also to provide the possibility of some positive equity-based returns in a declining equity environment. I wonder though about how reliable they will be in delivering the suggested returns, especially in what may be perceived as “crisis conditions” in the markets. Have they been tested over sufficient time and sufficiently variable market conditions to warrant confidence for capital preservation purposes? They seem to be investments in derivative instruments which are likely not well understood by many investors (me included!). That description reminds me of the “black box” ABCP investments that caused a significant crisis of confidence prior to the 2008 market meltdown. I also wonder about the dynamics of a derivative products market which becomes increasingly larger than the supposedly underlying repositories of value (the equities themselves). Should one be concerned that the next major market crisis may result from a loss of confidence and unravelling of the same derivative products that people may be depending on to protect them from a bear market? Am I completely off base or would you suggest any parameters for restricting one’s approach to investing in specific kinds of “non-leveraged” inverse ETFs or ETFs in general? Thanks for any thoughts! (Please feel free not to post this if you think it is unsuitable.)