Investment Q&A

Q: Hello, Curious about NFI being added to your coverage soon? How would you rate the company currently? The chart is certainly interesting, your thoughts on the company going forward?
Thanks, Lavern
p.s. Very happy with my portfolio after a few years of following your recommendations, keep up the good work!

Q: I have looked all thru the website looking for the blog on options and the questions pertaining to it. Could you point me in the right direction? Thanks Ron

Q: Hi Peter
I have a bunch of losers in my well diversified portfolio, specifically BDI, FRC, FM, SGY, WCP and YRI. My question is which stock(s) would you keep (and why) and of the stocks that you would you would sell (if any), what stock would you replace it with? I am thinking a 2-3yr timeframe, am ok with risk, dividend would be a bonus but not necessary and any industry is fine. Thanks and dock as may credits from my account as you deem necessary.

Q: Peter, on a pure risk vs reward basis, and given today's market activity, which of the above would you suggest for an acquisition in a TFSA for a long-term (5+ years) period?
Thanks, James

Q: Happy New Year Peter and the 5i Team,

Last year,I transferred (in-kind) some 'poorly' performing stocks from my RRIF to my non-registered account. The reason for doing this is three-fold: (1) I am in the fortunate position of not needing the RRIF income for living expenses, so am gradually reducing my RRIF portfolio even though I realize that these withdrawals are taxable.
(2) If the stocks continue to under perform, they can be used as tax-loss selling inside the non-registered account. (3) If the stocks turn around, then the non-registered portfolio will grow, and the dividend tax credit will help to reduce the overall tax burden, when applicable.

Given that my 'thesis' is valid, and if what I've outlined is a good idea, which of these "under performers" in my RRIF would you suggest be transferred to my non-registered account? ABT, G, HLF, PEY, and SPB.

Thanks to 5i's timely advice,the "outperformers" in my RRIF have done very well so that even in this difficult market, the portfolio is still up and handily beating the TSX.

Since this is a rather convoluted question, please dock my question credits accordingly!

Thanks as always.

Q: Hi Peter and team, Happy New Year! I am considering two of the above for my daughters TFSA where we are looking for a mix of growth and income. I believe you like all 3 stocks but they have all had a tough 2015. What is the "bear case" for each? I see a lot of positives but why are these socks moving in the wrong direction. Please rank the three in order of preference for a 2016 price recovery. Thanks

Q: Hi there. Could I get your opinion on HRX and its valuation.

Thanks

Q: I seem to recall reading somewhere that if the ROI is higher than the EPS this is positive for future share price growth. Using data from RBC Direct for DOL, the ROI is double the EPS. I take this as a positive sign for share price growth.

I am comparing DOL with GIL as I only want to keep one and based on the above I intend to sell GIL. Both companies have a rather high EPS.

Would you please comment on my analysis and do you agree with my conclusion?

Thank you

Q: Hello,

Where can I find:
1) Historical information on shares a company has issued or bought back since inception
2) Insider ownership and who the insiders are

Thank you and wish you all a very happy new year.

Q: I have no investment in any of these three companies, KXS; DSG and ESL (Kinaxis, enghouse and descartes). In your opinion, which of these three is cheaper or has the greatest potential for a three year holding?

Q: Hi Team
Thanks for great support and happy New Year.
I am 72 years old and dependant on income from my investment. This year a loss on energy stocks. Last week I sold DOL and even ENB, to keep the profit. Now I have about 50% in cash and need to reinvest. I am thinking of selling Magna (already lost 16%) Loblaws and EFN, as they don't seem to get anywhere. Do you have any suggestions for growth stocks with dividend?
Thanks
Margita

Q: I currently hold both MG and LNR.While LNR has performed well MG has been disappointing.I am considering a switch from MG to UNS with the expectation of a better return.Does this make sense or should I just hold my ground and be patient? Joe

Q: We have a substantial investment in our RRIFs in SPY, IWO and XLK together with US banks.
We now want to purchase CDN ETFs with complementary US stocks for our TFSAs. Could you please recommend a few such ETFs that would fit.
Separately could you advise on how stock future prices affect the opening each morning.
Thanks for your great service.
Alex

Q: I have held BAM and some of its spin offs going back to the Brascan days. I will likely hold BAM.A forever but recently waded back into BIP because the NAV of BAM.A was so heavily weighted to Commercial real estate. I am always hesitant to bet against the smart money though. The combined Brookfield holdings are a 10% position. Any thoughts on the use of both holdings? I know that sentiment with one will affect the other and am ok with the large total weighting. Thanks for the thoughtful service.

Q: The Big Dogs in my portfolio, each of which is down in the 20-70% range (are AVO,ACQ, KLS). Can you outline a compelling case for holding on to any of these DOGS?

Like many others, I was stung by the debacle around WIN - but in less than a month after selling .... the stock has increased about 40%. I would hate to see history repeated for me by selling these stocks and then sit on the sidelines and watch each of these DOGS become "Leaders of the Pack" shortly afterwards.

I know you do not have a crystal ball, but still would appreciate your take on these stocks.

Conversely what 3 stocks would you see as compelling opportunities going forward to replace them.

My portfolio is well balanced with a blend mostly of your Growth, Income and Model portfolios.

Thank you and best wishes for 2016.

Q: I'm sorting positions between growth, balanced and income portfolio segments. I'm inclined to put BAM.A in income because it manages trust positions like bep.un. What say you?....thanks also for the help with the small stuff.......tom

Q: My wife turns 71 on 31st December and this year, we converted her small RRSP to a RRIF with only three investments, namely Patient Home Monitoring PHP, Apple AAPL.US and National Grid NGG.
PHM is down 53% and pays no dividend; AAPL is down 16% and is currently paying 1.9% (though less for our investment), and NGG.US is up 46% and currently pays a 4.68% dividend with payments semi annually.

The dividend payments are not high enough to support the minimum withdrawals, so I am looking for the answer.

I have been considering culling PHM for a while in order to create cash, but am always teased by the fact that it seems to be on the cusp of re-discovery, as it is now.

AAPL.US has also been a big disappointment and the dividend is small and the price has remained within the same depressed range for a while.

NGG.US, although it hasn't lost money for me, at least is providing a reasonable dividend.

Any suggestions?

Q: Hello 5i!
Down 65% on MCR, should I hold on or trade for better stock in the same sector? Please suggest 2 or 3 more stocks as required. I am a long term investor, well diversified portfolio, and can handle risk.
Thanks!

Q: How would you view the current valuation of the rails compared to their prospects? Union Pacific specifically has been beaten up badly it seems based on coal volumes. Any favourites or maybe hold with exposure through Berkshire? Thanks!

Q: Could you please comment on the statement update released by the company today on "investment in working capital" Why did they feel giving this update was important and what is it really saying? What is "non-cash working capital"? Overall is there anything in the statement to be concerned about or pleased about? Thank you for your expertise !!