Investment Q&A

Q: You have probably written an article about this and I would like to read it. I see a lot of questions that start with the phrase "there is a lot of SELLING of BLANK (example "phm). Could you not insert the phrase "there is a lot of BUYING of phm".

It seems to me that when the volume goes up on a stock it could be caused by a number of people seeing an opportunity to get in cheap on a stock and start making ridiculous bids in the hopes of picking up a growth stock at a great price.

Day traders must love a stock like phm. If they know what they are doing they can make 5 or 6 percent a day.

Q: Hi Guys, in my long journey of reducing the number of stocks in my portfolio, does selling MFR.UN (under water) an adding to L and PKI make sense. I am looking for income and a little growth.

thanks,

Jim

Q: what is going on with Saputo to get knocked down as it has.

Q: WITH THIS VOLATILITY GOING ON ARE THERE ANY SLEEP AT NIGHT STOCKS IN YOUR OPINION/.

Q: Peter and Ryan ... OK it would seem to me that now would be the time for either of you to please give your opinion on where the world economy is going and could you also reassure everyone that it is important to stay the course ...and not panic. TY.

Q: Hi there, can I get your opinion on "DOL". (Dollarama).

Q: D & J Vialoux's Sector Seasonality states that Agriculture & fertilizer sectors are strong in summer.However,they are weak including these stocks---INP,AFN,AGU,POT.Please enlighten me & advice if this is a good entry point on the aforementioned stocks or other similiar ones.Appreciate your usual great services & views

Q: Magna got hit hard today, while Exco did not. Do you think this might be because Magna is exposed to China, and to some extent Greece, while Exco is a local Canadian company with no overseas assets? Might we see continuing falls in Magna?

Q: CHC announced today that they were pulling the financing and not raising any capital In addition the board has not declared any dividends Generally what does this mean I take it is not a good sign

How will they complete their announced acquisitions I did not buy the stock but I am putting it on my watch list

Thanks
Paul

Q: Am doing a tiny bit of portfolio rebalancing. What would be your best name, to buy today, for growth and dividend, in Consumer Defensive, other than Alimentation Couche-Tard?

In terms of asset allocation overall, I see that the TMX rates BAM.A as Real Estate, and yet I'm sure you've noted in this Q & A section that you would classify it under Financials. (Did I dream this, because I can't find the answer anywhere?) If it's listed under financials, which presently sits at 10.88%, by adding BAM under this sector, would move me to 18.1% in financials. Overall, I'm quite happy with these allocations, but was wondering if I should add anything to Real Esate -- or does BAM.A act as a good cross over for both.

Please feel free to deduct two questions, as they are separate equities -- but it just seemed silly to send in two different questions.

Thanks, as always, for your advice.

Q: Hi Peter and the fabulous team,

I know you most likely disapprove of this plan so I thought I would ask you before I proceed. I am planning to refinance our house and invest 250K in stocks in a taxable account. My wife and I have a combined portfolio of 400K in non taxable accounts. I have been a member since early on and more less follow the stocks I have been learning about from your service.And we are about 20 years from retirement. The plan is to buy 10 of the best managed companies in Canada whether or not they pay dividend and hold them for 10+ years. Now here are my specific questions:
1- Why should I not do this when the interest rates are so low and money is so cheap?
2- What 10 stocks do you suggest regardless of this crazy idea?
3- This is in a taxable account and I wonder if I do get a tax-slip for the dividends from the bank or do I have to manually find out how much I have earned in dividends?

I know and I appreciate the fact that I am lucky to have your unbiased and caring advice. Thank you very much indeed.

Q: With the health of the canadian economy looking more questionable again and interest rates here looking like they will hold or decease would it make sense to tweak a portfolio that encompasses virtually all of your model, growth and income stocks and increase holdings of REITS and/ or bond etfs? With health care and tech about the only sectors showing some growth, it is hard to foresee any 6-9 month stock price appreciation n th other areas. As usual your perspective is appreciated. By tweak I mean add about 5% in total by taking say 1-2% from places like energy, gold, financials.

Q: I currently have the following breakdown by percent for each savings plan: RRSP -28%; RESP - 13%; NRSP - 59%. Within each plan I hold the following asset classes:
RRSP: 5% Can. Eq.; 25% Intl Eq; 70% Fixed Income and cash
RESP: 20% Can Eq; 20% Intl Eq; 60% Fixed Income
NRSP: 92% Can Eq; 8% Intl Eq; 0% Fixed Income
Within my NRSP account ATD.B, HCG, GIL, SJ make up 65% of my portfolio.
Would the concentration of these 4 companies be a concern?
Note that I have had exceptional returns for the past 3 years and it is largely due to these 4 companies which I have all owned since 2000.

Q: Hi there. Can I get your opinion on WEF. Western Forest.

Q: I wanted to comment on a question asked by Fred about DRIP - I hope this is acceptable.
Wanted to say that DRIP has really served me well over the years. As a longterm holder, DRIP has helped me in two ways
1) some of the companies offer a small discount to market price (although this advantage is being cancelled, sadly)
2) more importantly, If you just leave the DRIP alone you will avoid the temptation to "time the market". Through DRIP, I was still buying great companies at bargain prices right through 200-2009. Not sure I would have had the guts to do that with cash (actually I know for a fact I did not!). Psychologically, for me anyway, DRIP keeps me on track and out of trouble with my long-term holds. It has worked out.
Hope this is useful to some. Good luck fellow investors!

Q: Hi Peter, at what point would you step into Jean Coutu or am I best to look elsewhere as this stock may continue to be out of favour after another earnings miss?
Thanks Rob

Q: I have an expenditure of approximately $10,000 USD due in December of this year. Should I be buying USD today or in the near future? I have been reading about a significant downtrend in the CAD.

Q: Would you mind commenting on the implications of CRA's tax proceedings against Silver Wheaton?

Q: Today Peter asked about the Sector of each stock within the Balanced Equity Portfolio.

You listed:
AYA - IT.
TMX says "Amaya Inc is a technology company....Sector: Consumer Cyclical." (Under the Company tab, Industry Classification section.)

http://web.tmxmoney.com/company.php?qm_symbol=AYA:TSX


ENB - Utilities
TMX say "Sector: Energy".
http://web.tmxmoney.com/company.php?qm_symbol=ENB:TSX


I was surprised that the TMX site stated ENB, ALA & TRP are listed as Energy but yet FTS is listed as an Utility, as ENB has lots of utility and ALA has some also.

I have not looked at the others from 5i's Balanced Equity Port.

Have a great day.

Stan

Q: Hello Peter & Co,
How is one suppose to interpret these types of responses to clients' letters, eg:
1. Engineering: you prefer WSP now better than STN because it is behaving better after its recent acquisition; you then proceed to make a switch in the balanced portfolio
2. Gold: you prefer AEM now better than G but you keep G in the balanced portfolio
What do we do? adopt the flavour of the day or hold both?
Auto parts: you prefer MG and I prefer LNR; so I hold both
Transport: you like TFI and I own CNR; should I also hold TFI?
If I kept doing that I would end up with a much larger portfolio of stocks.
I would not mind that as long as my grey cells are working (age 72).
Antoine