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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: This morning Larry Summers was talking on Bloomberg. He doesn't see inflation rising "as far as the horizon" and if it was up to him, he wouldn't even consider rising rates until he sees inflation. It's hard to believe rates will go up much at all and therefore, the hunger for yield should remain for years. Let's assume we knew that (a) U.S. rates stay below 0.5% for years (b) you want to minimize your exposition to Canadian housing and economy (no oil stock / office / mall REIT) (c) that you want above 5% plus income. Can you find better stocks than A&W, PizzaPizza and Sienna (AW.UN, PZA, SIA)? If our economy slows, Canadians will keep eating fast food (A&W + PZA). Sales might even go up while restaurants start to struggle (cheaper). They also have no exposition to currency or world issues. As for Sienna, I picked it because it add some growth that isn't tied to world growth or the Canadian economy. Please help me find holes in my strategy. Much appreciated.
Read Answer Asked by Matt on October 07, 2015
Q: I am 69,retired and dependent on my rrif and cpp for income. I have put aside cash in gics which I approximate will cover the mandatory draws for 6 years which I felt would cover an economic cycle and allow stability to the equities and bonds in the portfolio. The cash does grow beyond that sum and is redeployed to best advantage. This is a different approach from the percentage models used . I would appreciate your opinion. Thanks very much for your help.
Read Answer Asked by Tom on October 07, 2015
Q: Good morning

Can I have your thoughts/analysis on Mad Catz as a possible investment (projected earning growth/debt etc.)? Are they any stocks you would recommend in this sector)

This stock is behaving very well technically.

Thanks again!
Read Answer Asked by Thomas on October 07, 2015
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
Read Answer Asked by Joseph on October 07, 2015
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?
Read Answer Asked by Patrick on October 07, 2015
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. : )
Read Answer Asked by Sylvia on October 07, 2015
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,
Read Answer Asked by Mark on October 07, 2015
Q: What are your thoughts on MarketSmart GIC's? And what would be a good alternative?
Thank you in advance for your thoughts.
Janice
Read Answer Asked by Janice on October 07, 2015
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!



Read Answer Asked by Lance on October 06, 2015
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 !!
Read Answer Asked by Alexandra on October 06, 2015
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.
Read Answer Asked by john on October 06, 2015
Q: I have $12000 that i would like to invest a company bond any suggestions
Read Answer Asked by Pierre on October 06, 2015
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
Read Answer Asked by Marios on October 06, 2015
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,
Read Answer Asked by Nick on October 06, 2015
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.
Read Answer Asked by Paul W on October 06, 2015
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.
Read Answer Asked by Bruce on October 06, 2015
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
Read Answer Asked by Carla on October 06, 2015
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
Read Answer Asked by Scott on October 06, 2015
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