Investment Q&A

Q: What are your thoughts on Wajax? Is it worth holding for the dividend or does the risk of further downward slide outweigh the benefit of the dividend. My book value is about $46 a share.

Joe

Q: Hi team, please give me your opinion on the below allocations for both Consumer Discretionary and Staples stocks (this is about a 10-15 year time frame and part of a $200,000 portfolio):

Consumer Discretionary (13% of Portfolio)
ACQ.TO, BYD.UN, CGX.TO, DH.TO, ECI.TO, GC.TO, IT.TO, KBL.TO, MG.TO, MRE.TO, PEO.V

Consumer Staples (12% of Portfolio)
ADW.A, ATD.B, CSW.A, DOL.TO, L.TO, SAP.TO, TPK.TO

Any stocks to take out of these lists or perhaps add to?

Q: For sector allocation, I have the following:

Consumer Cyclical 27.21%
Consumer Defensive 11.67%
Energy 9.10%
Financials 10.07%
Healthcare 8.0%
Industrials 11.97%
Tech 21.98%

Is this too high in cyclicals, wherein I hold Boyd, Disney, CCL Industries and Starbucks, in roughly equal weightings.

If so, which sector should I rebalance into, to optimize what's happening in the market right now?

I'm working with all 5I-approved companies, so the worry is not about individual stocks, but the sectors as a whole.

Thanks as always.

(And thanks to Geoff for correcting my "dyslexic moment" yesterday on Concordia. Obviously, my morning coffee had not kicked in. Very red-faced member, here. : )

Q: Hi 5i,

There are a couple of things I don't understand about this recent rally.

It seems to me that it is due to the US potentially slowing down, and hence delaying interest rate increases. If this is true, are we to expect this rally to end soon (since a slower US economy must eventually be bad for stocks) or does this rally have legs?

Also, if the rally is based on delaying interest rate increases why are companies like SunLife rallying. I thought these companies were going to benefit from rate increases so the current environment should be negative for them?

Any help you can give me to clear up my confusion would be appreciated.


Thanks,

Q: What are your thoughts on MarketSmart GIC's? And what would be a good alternative?
Thank you in advance for your thoughts.
Janice

Q: Hi 5i:

Further to your request regarding this info: I received a message from my discount broker with the following:

"RBC Direct Investing TM. would like to inform you that the following New Issue has just been announced.

Exchange Income Corp

Short Description: Treasury Offering of Common Shares - RE-OFFERING
Price: $24.40 CDN per share.
Settlement: Settlement: October 8, 2015."

I looked for announcements and could not find anything at that price. I ended up wondering if maybe it was just the broker dealing some of their shares at a discount after participating in the recent offering at the higher price. Hope that helps.

No need to publish this if someone else has already responded!

Q: Could you define for me what period of time you are meaning when you say "Long Term, Mid Term and Short Term" ...
and THANK YOU for keeping us on an even track during this turmoil !!

Q: Can you provide an update analysis on bird bdt and canwell as an investment for dividends and moderate growth? Are both dividends sustainable based on coverage ratios or do you prefer one over the other? Thanks again! John.

Q: I have $12000 that i would like to invest a company bond any suggestions

Q: Hello,

I have this dogs and sitting on them for a year and they don't go anywhere. I'm thinking of selling them for tax purposes. The question is do they represent value and buy them back in 30 days or buy something else now that have better momentum?
If you have 200k, would you deploy it now or sit tight until market gets some direction. If now what would you pick.

Thank you
M

Q: Hi team,
for tax purposes I need to sell 3 of these 6 names: ATH, BAD, BNK, GS, MRC and RMP. Which 3 you'll recomend to sell and buy in 30 days or can you give me 3 other names to make a swich now or later. in which 3 of them you see more upside potential?

regards,

Q: In response to Terry's question on the sudden drop in EIF, there is a new issue this morning at $24.40 per share.... which quickly sold out. Hence the drop in price.

Q: Any reason for the sudden drop today.

Q: Could I please have your comments on ORT. It is starting commissioning shortly or has already started. It received a patent approval recently. Is it time to take a position in this stock? Thanks.

Q: Hi,

TD Waterhouse classifies BIP.UN as a utility but I see it as an Industrial. Which sector do you feel it fits into best?

Thanks,

Carla

Q: Hi- this has been a horrible story for some time, but I noticed they did have improved results this summer . What are your thoughts on the stock at these levels and the risk/reward in buying common or the 7% conv. thanks

Q: Peter, would you please suggest your three top choices for a low- to moderate-risk investor who is looking for a long-term investment in companies that do NOT currently pay (and, as far as you know, do not plan to begin paying) a dividend. In short, I'm looking for long-term 'sleep well at night' investments, for eventual capital gains, without any taxable income along the way.

Q: Hello! I've been a member of your website since April this year. Investing has become much less difficult and less stressful because I know there is a place to ask if I have questions. Because of your good investment knowledge, my portfolio is doing ahead of the TSX index. THANK YOU VERY VERY MUCH.

I have a question to ask you. I am planning to allot 10% of my fixed income investment to high yield bonds. I am planning to hold these bonds till maturity but I don’t prefer maturity beyond 2019. I found some information in TD about the topic: https://www.tdsecurities.com/tds/pdfs/High_Yield.pdf

In your opinion, which company has the best credit rating and has the strongest balance sheet that can withstand the recession and can pay the interest on time? Companies in the oil sector are having a difficult time right now so I should avoid them, right? Please pick two or three companies for me.

In my opinion, it seems like AGT might be a good choice? I am not sure. I leave it to your professional advice. Thanks again.

Q: Peter, I own CXI, HCG, BNS with each representing approx. 5% of my portfolio. I am considering selling one and buying BAM.A; do you think this would make sense and if so, which one would you sell? I am also looking at selling my 2.5% position in TOU and replacing with either ENB or BEP.UN.

Thanks, Stephen

Q: Hi Guys,
I am interested in your take on AYA, PHM and SCR.
What are your thoughts on the respective companies and would you be recommending buying at the current share price levels?

Thank you for your feedback