Investment Q&A

Q: Hi Guys, Am I correct in assuming that if the Fed raises the interest rate in June that the US bank stocks will go up,the US dollar up and gold/gold stocks down in conjunction with that move?
On a personal note when I renew I understand that my unused question credits will be carried forward. Correct? Thanks as always
Mike

Q: In a question asked earlier regarding getting a small amount of shares from the upcoming stock dividend it was mentioned that selling bam.a before the xdate would avoid the tax mess in an unregistered account. Can you explain why accepting the stock dividend and selling the shares would be a tax headache. Thankd

Q: Network media group Inc. (nte.v) went up a lot for last few days with very large volume. Can you tell me what are reasons behind it?

Q: Hello, I am a new member and have some questions. I am almost 30 years old and have a new, manageable mortgage. My TFSA stock account values at appox $20,000 with additions of $250/ month. I'm needing to build up my emergency fund and currently own 500 shares of AYA, 220 shares of IT and 200 shares of SLF. I'm hoping for some guidance. Thank you, Katherine

Q: I have a full position (5%)in BCE, would it make sense at this time to sell all or reduce this position and take a position in KXS?

Peter

Q: One would think that DRT could provide services to the extensive rebuild in Fort McMurray, both residential and commercial. I don't hear anything to this effect, your thoughts please.

Q: It would appear that much of the success of leading tech/internet companies like Google and Facebook (which I currently have shares in) can be attributed to their ability to align themselves with, and then capitalize on, emerging technological and communication trends in society such as internet information gathering and social networking.

For investors, serious money can be made by identifying and forecasting such trends and identifying, at an early stage, the companies that can best capitalize on them by dominating the niche (think of the number of search engines that had proliferated before Google became the go-to web-browser of choice).

Based on this line of thinking, could you name a few companies that you consider best positioned to capitalize on emerging trends in communications and technology (Canadian or US)? Is there any hope for TWTR which seems to be in the right place at the right time but has been a basket case so far?

Q: What does it mean when a company is a good allocator of capital ? Can you please give a few exemples as part of your explanation ? Thank you.

Q: I bought Echelon Financial (EFH) about two years ago, it is now trading at my purchase price. Last quarter was a bad one and I am contemplating selling. Could you please give me your opinion if a switch is good idea and what would be your suggestion on the switch. Thanks

Q: Yr thoughts plz, esp now it has declined so much recently.

Q: It is my understanding that some of the Cdn. forestry companies have a fairly large holding in the US(land & timber rights). I was thinking of buying WFT, on pull backs, but I was wondering what percentage, if any, is due do there holdings in the US. Also, are there other Cdn. companies, that have a larger footprint in the US.

Q: I have 400 BAM.A in a taxable account that I am slightly above water on.

If I am understanding correctly I will receive 8 BBU.UN in “stock dividends”.

I don’t have much use for an 8 share position and would just sell them.

I am very tempted to avoid the “Pain In The But” that dealing with the tax consequences would entail for a very small transaction.

I am tempted to just sell my BAM.A, sit on the Cash and after this gets done possibly repurchase my shares.

My commissions to buy and sell would be $20. The tax consequences would be minimal and I have losses to offset that.

I do like BAM.A for a Long Term investment and the risk would be that the share price could get away on me before I can buy them back without this “stock dividend”. If it does I could look for something else.

If I do this what would be the first date that I could buy BAM.A without the “stock dividend”?

Q: Hello,
I have been thinking about selling CHE.UN & buying ECI.
Can I get your thoughts on this move.
thx,
Martin

Q: Could you comment on ATA and what you think the coming year- or two, holds for it. Thanks, as always.

Q: Hi
Is the current price a decent buy/entry point for a partial position or would it be better to wait for another quarter of results. Thank you

Q: Hi Peter,
I am happy to have held win through the terrible downturn. What have changed since? Is it time to sell with a small profit? Thanks

Q: Can you give me some reasons why this company is trading so low. From what I understand they are the patent owner of WIFI technology that helps congestion problems in high traffic areas. In this stage of WIFI development, this company should be in high demand and the stocks should be taking off. But the stock sits well below 1.00. Do they have the WIFI patent that there is stated in their google finance description or is the low price due to poor management.

Q: Hi can you help assess the market today? The US Fed announced that interest rates may be raised this year, increasing the chances of one or two hikes. This sparked a sell off in metal and energy companies. Is this due mainly to a sector rotation to another sector due to the news, or are interest rate hikes normally bad for energy? Given this news, what sectors would you expect to do well and which ones to do poorly, or has nothing materially changed today? Then there is Goldman saying that there could be a large correction this summer - is this also related to the interest hike potential?

Q: Lots of momentum behind Maple Leaf Foods. Owned them forever and sold out at $25.00. Now they are approaching $30.00. One analyst thinks they can go as high as $40 now that their restructuring is in place. How does MFI compare to Premium Brands a stock I don't own but have been watching.

Q: Any views ?