Investment Q&A

Q: Your take on Clearwater's report today? It didn't impress the markets. What do you think of Clearwater going forward?

Q: Morning Peter and Ryan...looking for some clarity in self managing a retirement fund(s). Both of my RIF/LIF accounts require cash for the monthly payment ...is there a standard amount of cash on hand (ie 6months,1yr,2yr) that a person would have to avoid being handcuffed on lets say market correction or pullback. Thanks as always.

Q: Hi, I’m trying to replicate the Tangerine Balanced Portfolio and avoid the 1.07% fee. This is what I’ve come up with so far:

1. FTSE TMX Canada Universe Bond Index;
a. XBB

2. S&P/TSX 60 Index;
a. XIU or
b. ZCN

3. S&P 500 Index;
a. VFV

4. MSCI EAFE (Europe, Australasia and Far East) Index.
a. EFA or
b. VEA

Do you have any recommended adjustments or suggestions on this approach? Any preferences where I’ve listed a choice of two ETFs?

Thank you,

Q: I've been holding this for about 3 years and basically spinning my wheels thanks only to the CDN $ dropping. What are your thoughts on this investment? I also hold the Vanguard Growth as well in my US side of my RIF which has done well. Should I switch to more of the Vanguard or maybe convert back to Cdn$ and invest here. Thanks

Q: 11:15 AM 2/24/2015
Hello Peter :
We are retired and living on dividend income plus modest pensions so the equities we own are chosen for their stability and for good dividends. The balance of the portfolio is reasonably spread into the other sectors, and we have a good position in Provincial bonds.

I am very confused as to what exactly constitutes the "Energy" and "Utility" Sectors, and as to where "Pipelines" fit in. You suggest a maximum of 10-15 % in "Energy", and 10% [which you later downgraded to 5%] in "Utilities"

We have an 18 % allocation to what I call "Utilities"
EMA 2.4%,
FTS 4.5%,
NPI 1.0%,
BIP.UN 4.6%,
BEP.UN 5.6%,

and a 17% allocation to what I call "Pipelines"
ENB 2.7%,
ENF 6.1%,
TRP 2.3%,
PPL 2.9%,
PKI 2.8%,

and a 4% allocation that was 10% before the oil price dropped, to "Energy"
COS 0.4%,
SGY 1.0%,
BNE 0.3%,
BTE 2.0%,

1. Which of these would you consider to be Energy, or Utilities, and where do you place pipelines?

2. Would you agree that these stocks are reasonably robust and likely to survive a serious market correction and still maintain dividends with at most modest dividend cuts other than the oil stocks?

3. Would you maintain these investment levels now or should some be sold off and to what level?

4. Which would you suggest selling if you feel it is advisable?

Many thanks...... Paul K.

Q: Do you recommend buying the above companies. What are the good qualities and risks of holding each and what should be the size in a portfolio? Thanks

Q: in my opinion this stock is underpriced or mis priced,what other stocks you think are miss priced?Thanks a lot.

Q: I'd appreciate your updated opinion on CRP, particularly in light of their recently announced results.

Thanks!
Greg

Q: I would appreciate a few suggestions in the consumer staples category, I'm trying to diversify.

Q: Which would you choose between these 2? I know that ATB is much, much larger and successful but is it getting too pricey? Would PKI be a good substitute? I really like this kind of company as I think they present reasonably stable but growable parts of the economy. Do you share my thinking that now is the time to get in on the ground floor of PKI or would yo go with ATB?

Thanks.

Paul F.

Q: I have a small amount of extra USD cash in my TFSA and would like to put it into an ultra speculative high growth stock. Do you have anything intersting on your radar out of the US?

Thanks

Q: hi, I want to buy for growth and relative safety . Which 2 are best? CLR or Et Evertz or ESP Espial . Or can I expect as much growth and more safety with the more established EFN or Bip.un?
Thanks very much for your help. Helen

Q: I already own Capstone Infrastructure (CSE). I'm considering Valener or Capital Power (CPX) for income. Could you please list the pros and cons of these two companies?

Thank You.

Q: Hello Peter & Co,
Sometime in 2014, given the current stage of the economic cycle, I reduced my exposure to Energy and to (traditional) Financials and increased my exposure to Health, Technology and Industrials. The sectoral returns so far indicate that the move is encouraging, but I would nevertheless appreciate your opinion.
Consumer: ATD,BYD.UN,CGX,DOL (10.3%)
Consumer cyclicals (auto): LNR, MG (5.2%)
Energy: TOU,VET,WCP (5.4%)
Energy Infra: ENB,IPL,KEY,PPL (8.1%)
Financials: BNS,CXI,EFN,HCG,TD (8.8%)
Health: CCT,CPH,CXR,GUD,RX,VRX (12.0%)
Industrials: BIN,BIP.UN,CCL,CHE.UN,CNR,SJ,STN (14.0%)
Materials (lumber): IFP,WEF (3.6%)
Technology: CSU,DSG,ESL,CGI,MDA,OTC (17.6%)
Util/Telco/RE: ALA,BCE,BEP.UN,FSV,TCN (10.8%)
Cash: 4.1%
Keep up the good work; in my humble opinion, the service you provide is worth quite a bit more than the membership fee you charge.
Thanks as always,
Antoine

Q: Hi Peter, thank you for all that you do.

My grandson told me today that he has $5,000 in an RRSP and is looking at 2 or 3 stocks to hold long term (10 - 40 years). As far as I know these are his only savings as he just finished University last year. We both agreed that BAM and CSU seem like good choices, but I had not heard much of KBL.

I know you are a fan of BAM and CSU, but wondering your thoughts on KBL and also if there are 1 or 2 stocks that you would prefer over these 3 given such a long term time frame. He is 26 years old and said he plans to contribute $5,000 each year and invest between 1 to 3 (new) companies.

Thank you,

p.s. planning on buying him a subscription for his birthday!

Q: Do you know of a company that is in the fantasy sports, that has recently received funding?
Appreciate your answer. Thanks

Q: Hi 5i
I have been working on our sector allocation and would appreciate your help.This commentary includes Canadian stocks only.
Financials at 24% of the total include Alaris AD,Bank of Nova Scotia BNS and Power Financial PWF.5i has recommened a 10% allocation.
To comply with your suggested allocation,we need 11% up to 15% in Information Technology and 7% up to 10% in Materials
Assuming no income tax implications I could sell our financial investments down to 10% which I am reluctant to do and invest in whateve you might suggest to bring Information Technology up to your recommended percentages.
Thanks again for all your help.

Q: Now that VRX has had such a great run in the last 4 months,i am thinking of selling it and investing the money equally on CCT and CXR. Will this trade make me more money. I know CCT and CXR are also up nicely .
thanks LC.

Q: Can you tell me why WEF is falling the last week?

Q: Hi Team,

These names would be positions to diversify my portfolio. My portfolio already has exposure to most other sectors. Eventually I would like to own all these companies however, could you comment on the pros and cons of each please. Even substitutes/alternatives within the same general sector would help too.
Thanks again for the great work.