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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: At least 4 times a year I wake up to a stock that has fallen out of the sky. DIRT and IT both down considerably from their highs and under performing the market for quite some time seems to be what happens to these stocks that fall out of the sky. I still have DIRT which is fallowing a pattern just mentioned so I wouldn't be surprised if it falls out of the sky. From past history I guess I should be getting out of this one too. thanks Dennis
Read Answer Asked by Dennis on December 21, 2015
Q: Peter, Ryan and Team:
My TFSA has 20 stocks, overall has done quite well and I do not need income or capital from it in the foreseeable future. It has quite a number of picks from 5i's Balanced & Growth Portfolios (leaning more to growth) but I have significant losses (-45% and more) on 5 of the usual suspects: BDI, QST, SLW, SGY, WIN. I am quite prepared either to sell them and replace, or to wait 2-3 years for a recovery. I am under the impression from the Q&A section that you feel all five are a 'Hold'. Is it reasonable to assume that providing they weather the next year or so, that because of how far they have fallen, it is likely the stock price may double or more in price in the next 2-3 years? How does that stack up against selling them and replacing with stocks that you might have more confidence in now, but whose gains over the next 2-3 years will be more muted because they have not fallen so badly? I am really stuck in an indecision groove on this and would appreciate your comments and any suggestions on how to approach making a decision in a logical way both generally for this kind of problem and specifically for this situation.
Also, just to add my thanks to that of the other 5iers for the great service you have provided since the beginning...it has been a bridge over troubled waters !! The very best of the season to all.
Read Answer Asked by Alexandra on December 21, 2015
Q: I have the following candidates to sell for a tax loss: IPL, IT, CXR, BOS, DH. I only need one or two. Which would you recommend - and would you bother to buy them back? Thanks!
Read Answer Asked by TK on December 21, 2015
Q: Hi Peter,
What is the place for hedge funds for an individual Canadian investor going forward ? Andrew McCreath who appears on BNN manages such a fund (ForgeFirst) and he makes a lot of sense in his thoughts on and strategy towards the current markets. You have also mentioned in the past that due to your non-biased advice you invest in hedge funds yourself. Any thoughts in general or on ForgeFirst are appreciated. Thanks to you and your team. Have a Safe and Merry Christmas.
Read Answer Asked by Paul on December 21, 2015
Q: Hi Peter and team,

I know you have been positive on this name. Would you consider this to be a decent entry point and investment over the next 2 to 3 years. What do you consider to be the main risks with the name.

Thanks
Read Answer Asked by Greg on December 21, 2015
Q: I am looking for some holiday reading regarding investment strategy, finance or economics and would like to know what you would suggest? I have read many of the classics and would like something more resent although I realize some strategies and theories are timeless so don't be afraid to suggest something that must be read from the past.

Thanks very much for the great advice as always.
Read Answer Asked by John on December 18, 2015
Q: Hello Peter,
If I may extend the discussion w.r.t the question on Tucows by Rick yesterday .
The markets are volatile combined with tax loss selling and perhaps retail investors putting fresh money into registered accounts early 2016, there are going to be opportunities. It is also likely quite a few investors would look at the 5i portfolios to make new investments or add to positions. Perhaps you could guide the investor where the opportunities are based on valuations and fundamentals or even just qualitatively.
So here is my suggestion. When you email/post the month end performance report for the 5i portfolios; is it possible to include a column that ranks them on investible attractiveness as of that date? Now I would not be expecting 5i to have done extensive research before providing a rank. It could be a combination of your current existing knowledge, news that you may be aware of or just your opinion; quite similar to the opinion you provide on Market Call, except it would be for the stocks in the 5i portfolios.
It would help me and probably a lot of the subscribers in deciding on where to put fresh money – to start a new position, trim or increase existing ones ; based on our individual portfolios.
Regards
Read Answer Asked by Rajiv on December 18, 2015
Q: Good morning,

With the increase in the interest rate by a .25% today and with a plan to increase by the same amount in each of every quarter in 2016, will this affect BCE and Telus since they are companies that are, usually, negatively affected by an high interest environment? I own both of them, BCE 5% and Telus 4.4%. I own them for their safety and increases of their dividends. Should continue to hold them?
Thank you

Paul
Read Answer Asked by Paul on December 18, 2015
Q: Thank you for your work, this has been a difficult year. Hopefully things will settle down next year.
As tax loss selling draws to a close, what do you see as compelling value.
Read Answer Asked by Deborah on December 18, 2015
Q: In view of US Fed plan to gradually increase their bank rate to 1.375% by end of 2016 would you pls advise a few TSX stocks in addition to the above that would profit by that scenario. I already have NFI also.
( Thks for ESL & SJ by the way). Happy Xmas to all you guys.
Read Answer Asked by Arthur on December 18, 2015
Q: Hello team,

First, I would like to echo the sentiments of gratitude expressed by other members. I wish a happy holiday season to all the 5I team and their families. Thanks to your advice, my daughter's RESP has done very well.

My question now relates to ESL, SJ and Byd.un, the returns on these 3 vary from 60 to 88% and I wonder if I should sell them and replace them with some beaten down names or hold the cash. We have another 3 years before she starts college (Fall 2018).
Please suggest 4 to 5 names if you think replacement is appropriate.

Thank you for all you do for your subscribers.

BK
Read Answer Asked by Bekaye on December 18, 2015
Q: Is the recent selloff in RCI.b a result of U.S.interest rate tightening or something else?

Thanks
Bob
Read Answer Asked by Robert on December 17, 2015
Q: My son (3 yrs old) has about 6K in his resp. I have been trying to create some kind of balanced portfolio, but clearly with the limited funds, it is a challenge. I currently have some aya, pki, bin, and bns. Given his age, I am willing to take on moderate risk. I have looked at cpd, but am not overly impressed. I was considering part zeb for stronger bank exposure and finding a good US consumer disc. Etf. Can you recommend a good approach to invest for my son's future education.

Thanks and a very Happy holiday to all at 5i!!

Eric
Read Answer Asked by Erichsen on December 17, 2015
Q: Peter and Team,

I often hear Kevin O'Leary talk on BNN about buying short duration bonds (36 months, for example) and even 90-day floating rate debt and getting a yield of 3.5 - 4.5%. When I look at the fixed income section on my webbroker, I do see the 0-5 year corporate bonds but I don't see 90-day floating rate debt with a yield anywhere close to 3.5% - 4.5%.

Can a retail investor access that kind of debt for investment? If so, do you know what I need to do? Do I need to engage a person at some institution or can I do this myself?
Read Answer Asked by Marc on December 17, 2015
Q: Hi Peter and Team,
Can you please provide your opinion on CBL at this juncture? There is significant buybacks, CEO Glassman just purchased 500,000 shares on the open market, and the company continues to deliver good operational results.
Read Answer Asked by Graham on December 17, 2015
Q: The last question to 5i regarding PANW is listed July 2014. What is your assessment of this company based on an additional 18 months of history and would you recommend it as a buy? Thank yoi for your great service.
Read Answer Asked by Deborah on December 17, 2015