Investment Q&A

Q: A member wrote: "The CHIP was at 4.74 at the time (I can't remember where I got that number but it was accurate) and assuming interest rate increases, after 10 years, the CHIP had grown from an original $44,000 to $289,326." I don't have my scientific calculator, but this seems most unlikely. Under the rule of 72, even with a 8 percent interest rate, it would take nine years to double the amount, not a 16 time increase, as is claimed here for 4.4 per cent. Where did I go wrong?

Q: H i Team, I have google alerts set up to send me emails pointing me to news stories, reports, releases, etc. regarding the various companies that I want to follow. More and more, I am finding, almost all of the alerts I get are links to reports churned out by robots (ie. wall street confidential) that really don't seem to provide the insight that real analysts and reporters can provide. My question is weather you or perhaps any other subscribers know of a way to filter out the robot links while still receiving company stories, news, reports etc. that real people (all be it potentially biased) wrote. One thing that I can count on every day is excellent, non biased answers to questions penned by all of the real caring folks at 5i!! Thank you!
John

Q: In response to a question about reverse mortgages from Deborah, I recently worked out a spreadsheet comparing a reverse mortgage (CHIP) with a secured line of credit. The CHIP was at 4.74 at the time (I can't remember where I got that number but it was accurate) and assuming interest rate increases, after 10 years, the CHIP had grown from an original $44,000 to $289,326. The LOC at a current 2.94%, grew to $176,500 a difference of well over $100,000. CHIPs do offer a good product but it's not the only one and they are expensive. Many seniors (me included) find themselves with a pretty good net worth but with a problematic cash flow so Deborah's question is appropriate.
Both scenarios on my spreadsheet included a $1200 monthly income. I am also aware that my calculations are approximate. An actual program could work out interest calculations more accurately depending on how they are applied but that would weight even more in a secured line-of-credit's favour I would think.both scenarios on my spreadsheet included a $1200 monthly income. Sorry about that. I am also aware that my calculations are approximate. An actual program could work out interest calculations more accurately depending on how they are applied but that would weight even more in a secured line-of-credit's favour I would think.

Q: Peter and team:

I own a substantial amount of CCO in a Non Registered account.

What are your thoughts regarding the tax investigations from both CRA and IRS, and the potential implications this may have on the company moving forward.

Thanks

Phil

Q: For tax loss purposes, which of these would you sell and is there a case to keep holding the others?
Thank you

Q: I have held these stocks for several years and overall they are up in my portfolio. In the last year that have been flat or down. Are they a hold or sell for the 2017. They are held in a non registered account. Thanks for insight

Q: Hi Peter at my family's insistence we took a position on the subject stock when the posted their last results since this stock has been dead money with a very small dividend .
What your thinking on this stock is it worth to hold or should I move on and take the heat from the family
Kind regards
Stan

Q: Hi. I love the information you guys give. This might be out of your expertise but I have been trying to get the scoop on these reverse mortgage es I see advertised. No one seems to post the costs and no double the traps involved. Do you know where such information can be found.Thanks and Merry Christmas. Debbie Hendriks

Q: how dop you view the take over just annonced.short term and long term?
2

Q: Hi the new offer by ESW seems far superior to CSU's
CSU does have days to make a superior offer
Does this seem likely?
Thanks

Q: I am considering moving some or all of these from a cash account to a TFSA. Would you agree with this move and if so is there a particular order or any that you would leave out. Thanx Robbie

Q: FORWARD EARNINGS: In one of your replies. you stated" TD we believe uses trailing earnings, and we have seen this issue crop up before. On a forward earnings basis, MDA trades at 11.3X earnings. We believe the future is more important than the past." What are the best web sites for us retail investors to view forward earnings for companies of interest?

Q: I have some cash to deploy into a consumer stock, which between Atd.b and L would you prefer right now ?

Thank you

KR

Q: I own Rogers. Given the current news, would you hold or sell?

Thank you.

Best wishes for a very Merry Christmas.

Q: Hi,

What books can you recommend on investing especially who just starting out on investment.

Thanks and happy holidays!

Q: I am considering selling the following to realize capital losses for 2015 and would appreciate any suitable recommendations to replace them with. The candidates are MDA,MCB,NHC,and SVC.

Q: Both MDA and PLI have reached new 52 week lows. You have always considered MDA to be a solid company and have given it an "A" rating. Given the current situation, would you consider that things have substantially changed with the MDA outlook or is this actually a buying opportunity?
I also have the same question for PLI, but someone else has already mentioned about the Seeking Alpha comments. Which leads me to ask your opinion of the quality of comments, generally on Seeking Alpha. Weren't they also beating up certain stocks for short selling?

Q: Hi, I have roughly about 120k in a resp for my two children who are 14 and 12. I went to cash before election unfortunately in hindsight as it was 75% index funds and 25 percent bond funds. Going forward, as there are 4 years remaining before university I want to remain somewhat defensive but still have growth as I believe the markets will continue higher over the next couple years as The big Fed day is over, and markets remain resilient. I was thinking about zwb,Zwu for defence and income...7% yield, at 30 k each. Zsp for us market and currency exposure at 30k. mg and gud at 15 k each for some growth. Am I being to aggressive at 5 years away from university? Do you recommend any changes to this approach? Thanks for your opinion and advice and Merry Christmas!

Q: Shocked at low emp.a continues to fall. Is their a point at which you feel the dividend could be at risk?

Regards,

Robert

Q: Hi team,

Just happily renewed my 5i membership. Thanks for all that you guys do.

I'd like (and value) your opinion on the best portfolio-tracking websites, that also have intelligent and independent analysis (market and individual stocks), current stock news (not spam), and strong stock screening/filters etc. Would need to track both US and Canadian stocks of course. Was thinking Morningstar. Is it worth paying for their premium service ($325/3 years)? Any other sites I should be considering? I use Google Finance now and, other than the ability to download my portfolios and view all lists on one page, am not happy with the stock "news" they push. Lots of crap.

Thanks,