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
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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: 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
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: Hello Peter....I'd like to improve my timing of trading stocks as when to press the do it, execute button. By trading, I mean buying and selling shares related to an investment portfolio. Any suggestions for me or books/articles to 'study'?
.....Thanks....Tom M
.....Thanks....Tom M
Q: Hi,
I noticed that some days there are unusual big numbers of block trades - as per Financial Post - Block trades yesterday. Is there any special reason there were so many trades yesterday.
Thank you.
Bob
I noticed that some days there are unusual big numbers of block trades - as per Financial Post - Block trades yesterday. Is there any special reason there were so many trades yesterday.
Thank you.
Bob
Q: Hi 5i I guess this is a commodities question. Analysts all seem to feel the Cdn. dollar is going to drop quite a bit further over time. Cdn. companies selling commodities at U.S. prices but operating in Cdn. dollars I would think would benefit. But with the Cdn. $ going down does this make a Cdn. company look less desirable to foreign investors Thx Gerry
Q: how to determine what is a good or limit p/e ratio per industry or stock?
Any resource to provide a guideline on historical data?
Thanks.
Any resource to provide a guideline on historical data?
Thanks.
Q: Re March 20th question asked by Frank concerning holding US securities in an RRSP or TFSA account, I spoke today with a Canada Revenue Agency official who indicated that foreign property, such as US securities, held in RRSP's and TFSA's are excluded from the requirement to be reported in Form T1135. If you hold foreign stocks in a non-registered account and their total cost amount in 2013 was more than CAN$ 100,000, you required to file the form.
There is a Question and Answer section about Form 1135 on the CRA website. See the answer to question no. 28.
Hope this helps.
Robert
There is a Question and Answer section about Form 1135 on the CRA website. See the answer to question no. 28.
Hope this helps.
Robert
Q: MyOwnAdvisor interview just another example of what a splendid service you offer. Many thanks, and happy spring.
Q: 'Playing defence' question of Mar 20/14 asked by yossi:
As noted in the answer this could play out in many ways.
One thing an investor can do is conduct all non-margin activity thru a 'cash' brokerage account so that all securities therein cannot be used in the brokers business. RRSP/TFSA's are already 'cash' accounts.
Secondly, set up your accounts to use a third party trustee.
Most brokerage accounts are 'self-trustee', ie they act as their own trustee. This was the same structure (no comparison intended) used by Madoff, MF Global, and Lehman Brothers to access client funds)
Publish at your discretion.
As noted in the answer this could play out in many ways.
One thing an investor can do is conduct all non-margin activity thru a 'cash' brokerage account so that all securities therein cannot be used in the brokers business. RRSP/TFSA's are already 'cash' accounts.
Secondly, set up your accounts to use a third party trustee.
Most brokerage accounts are 'self-trustee', ie they act as their own trustee. This was the same structure (no comparison intended) used by Madoff, MF Global, and Lehman Brothers to access client funds)
Publish at your discretion.
Q: We listened to BNN's duscussion on tax for 2013 returns, and also to our own accountants, to minimize US stocks in RRSPs and TFSA because of the requirements for US in relation to recording and the treaty in relation to this. I am confused on this, are you able to clarify the tax ramifications for Canadians holding US companies in their portfolios? Thabk you.
Q: Hi Peter, In your interview with My Own Advisor you stated, "Also, there will be at least 10 times of complete panic in the markets in the next twenty years. Use these times to buy, not to panic."
Recognizing that there will be a different number for every individual and situation, what would be an acceptable range of cash to keep for the purpose of buying into panics, say 10 to 20%? Or would you recommend staying fully invested and pulling funds from the fixed income side of the portfolio, or tapping into margin, or perhaps a combination of the 3 areas? Thanks, J.
Recognizing that there will be a different number for every individual and situation, what would be an acceptable range of cash to keep for the purpose of buying into panics, say 10 to 20%? Or would you recommend staying fully invested and pulling funds from the fixed income side of the portfolio, or tapping into margin, or perhaps a combination of the 3 areas? Thanks, J.
Q: Peter,
I am hoping that you may be able to clear up the confusion I have about what is the definition of a "dividend stock". In response to a question from Mark yesterday about obtaining a 5% dividend yield, you commented that outside of telecoms or utilities, it is difficult to get more than a 5% dividend (although you did note almost as an after thought that the REIT sector has higher payouts). However, there are a number of stocks that you support that do pay out higher dividends - many of them in the oil and gas sector - and there are several tech stocks and assorted others as well. (Morneau, Calian, Torstar)
Secondly, in the past you have referred to companies such as Boyd, Stantec, Cineplex etc as being good "dividend stocks" even though there dividend yield is somewhat low (not even sure why Boyd is called an Income Fund with a 1.9% yield).
So my question is, what is the definition of a dividend stock and do those stocks differ from stocks that pay a high dividend?
Thanks.
Paul F.
I am hoping that you may be able to clear up the confusion I have about what is the definition of a "dividend stock". In response to a question from Mark yesterday about obtaining a 5% dividend yield, you commented that outside of telecoms or utilities, it is difficult to get more than a 5% dividend (although you did note almost as an after thought that the REIT sector has higher payouts). However, there are a number of stocks that you support that do pay out higher dividends - many of them in the oil and gas sector - and there are several tech stocks and assorted others as well. (Morneau, Calian, Torstar)
Secondly, in the past you have referred to companies such as Boyd, Stantec, Cineplex etc as being good "dividend stocks" even though there dividend yield is somewhat low (not even sure why Boyd is called an Income Fund with a 1.9% yield).
So my question is, what is the definition of a dividend stock and do those stocks differ from stocks that pay a high dividend?
Thanks.
Paul F.
Q: Hi Peter & team, this is a general question. For any company, once in a while we hear or read "the stock is down today on heavy volume" or "the stock is down today on low volume"? Could you please explain the difference? In other words, is it "better" for a stock to be down (or up) on heavy or on low volume? Thanks, Gervais
Q: Hi 5i team, what is the risk , reward ratio and market cap before you recommend a stock? Any potential of CTH, small in a hot sector ?
Q: Hi,
I am trying to understand currency hedging. This is from FFI.UN's description:
"Currency Hedge
The portfolio's US dollar exposure is hedged back to Canadian dollars to protect against currency risk."
Does this protect me against the CND dropping or USD dropping?
Thanks!
I am trying to understand currency hedging. This is from FFI.UN's description:
"Currency Hedge
The portfolio's US dollar exposure is hedged back to Canadian dollars to protect against currency risk."
Does this protect me against the CND dropping or USD dropping?
Thanks!
Q: Good afternoon....based on the recent comments by Bank of Canada -Poloz "low growth, low rates" what impact do you project for interest sensitive stocks (REITS, Pipelines/utilities, dividends stocks for income)...Thanks
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
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
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
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
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