Investment Q&A

Q: Stock charts , or TMX money both allow you to compare performance between stocks in a sector / I find it helpful in getting a pulse .before buying .. Union Pacific and CNR both were battered , and I bought CNR at a recent low ... I didn't have enough USD but I would have bought Union Pacific as well... I have never lost on Rails ( touch wood ) . I follow ( CP, CNR, UNP.US, CSX.US ,NSC.US, KSU.US ) ... Making charts is easy, but doing due diligence on six companies is a day's work for me ... I would like to shorten my list / which are your faves ? ... and do you feel this reversal in rails has legs ?

Q: Please comment on the CEO retirement. Given time, do you think our investment thesis is still valid.

Thank you!

Q: Both SJ & Byd.un are to be added to TSX composite.I understand your reply on the latter today. A question--Will it results in more volume temporiarly as there is a requirement for some to buy stock added to the composite?.Appreciate your normal great services & Views. P.S.Saw Ryan on BNN today

Q: Hi Peter & Team,
I plan on taking a sabbatical for a year after working overseas for 10 years. I have 1 mill. approx CAD to invest and want to live off dividends, travel and not worry about my portfolio. Therefore I want a SWAN portfolio and am thinking the following:
Financials 20% (BNS, TD, RY, BMO) - Avg Yield- 4.4%
Pipeline/Utilities 20% (ALA, AQN, ENF, IPL) - Avg Yield- 5.52%
Telecoms 20% (BCE, T) 4.4%
REITS 20% (CSH.UN, AX.UN, HR.UN, CAR.UN) - Avg yield - 6%
Energy 20% (WCP, CPG, HSE, TOG) - Avg Yield - 7%

Average Yield - 5.46%
As an non-resident I simply pay 25% tax and therefore would have a budget of $41,000/yr or $3,400/month.

What risks am I not considering with the above?

Are my stocks and sector weightings reasonable?

Q: Mr. Smedley had T.TOY as a top pick last night. If one were to buy a hundred shares to a growth portfolio would this be a wise move. (I already own all stocks in all 3 of your portfolios). You have never had a question on this stock.

Thanks for the great service.

Mike

Q: Hello,

- Is it a good time to add to VLN ? Any reason outside the weak market for the stock to be down ?

- PHK is going down a lot these days ... Can you explain why ?

Thank you

Q: My 20 year old son has a question for you as follows:
Hi peter,
I have a tfsa which i am looking to add to. My holdings are the following:
AVO- 10.8%
BNK- 10.1%
ENB- 15.6%
XTC- 15.6%
OTC- 15.4%
PHM- 5.4%
RMP- 7.7%
WIN- 18.8%

I was considering adding BNS & SLF.
OR
I was considering adding a large position in a mutual fund.
Would you please recommend what to add & potentially what i should sell.

Thank you!
Chad

Q: Just wondering your opinion of CN amending it's Normal Course Issuer Bid to allow it to buy from a "Third Party" from Sept 16th - Oct 23rd its own shares for cancellation....

MONTREAL, Sept. 11, 2015 /CNW/ - CN (TSX: CNR) (NYSE: CNI) announced today that the Toronto Stock Exchange (TSX) has accepted CN's amended notice of intention to make a Normal Course Issuer Bid (the Bid). The notice has been amended to permit the repurchase by CN of its common shares under a specific share repurchase program (the Program) during the term of the Bid. The purchases will form part of CN's Bid for up to 28 million shares announced on Oct. 21, 2014.

CN will enter into an agreement (Agreement) with a third party to repurchase its common shares through daily purchases that will take place from Sept. 16 to Oct. 23, 2015. Pursuant to the terms of the Agreement, and subject to the terms of an issuer bid exemption order issued by the Ontario Securities Commission (Order), the third party will purchase CN's common shares on the open market in accordance with the rules applicable to the Bid. The price that CN will pay for any common shares purchased by it from the third party under the Agreement will be negotiated by CN and the third party and will be at a discount to the prevailing market price of CN's common shares on the TSX at the time of the purchase. Information regarding the number of common shares purchased and aggregate purchase price will be available on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com following the completion of the Program.

Is this just a way for CNR to repurchase more shares in a shorter period than it would be allowed to do on it's own?
Also I see the results of the "Program" will/does not get reported to SEDAR until it is over, just prior to CN reporting its 3rd Quarter results. Do you have any idea who this Third Party might be?

Thanks in advance,
Scot

Q: I own this stock and it really shot up today, but I can't find any news on it. Can you enlighten me please?

Q: Hi there, instead of complicating my Us and international positions, I was considering VTthx as an idea since the mers are low as well. I was considering 50% of my Rrsp for this since it is diversified. What do you think of this approach for a 20 year hold...do you think this can come out more successful than multiple positions?if you suggest multiple positions can you provide some suggestions for a long term hold.

Q: On BNN this am Lmp was listed as one of the top 5 stocks increase in short interest. Can you comment as to why this is the case.

I realize the stock is struggling and down 30% since June.

Q: What effect do you think a minority Gov't might have on Canadian stocks? Perhaps consider if it was to be Conservative or some other dreaded party. Thanks

Q: Hi Team,

I have some AYA and was considering lightening up and buying some Intertain to maintain my sector weighting. I cannot understand the recent drop as it now appears very cheap. Why do you think it is being punished and would you jump in now or wait?

Thanks Peter

Q: Hi Peter,
I have Davis TEA shares and they are up 10 percent. Fairfax is down quite a bit and given what happened to Amica, there is a chance of greater upside for Chartwell Retirement. I was thinking of selling Davis Tea and load up on Fairfax as it is down a lot; however, I am debating whether to apply the monies to Chartwell Retirement. Fairfax and Fairfax india represent 6% of my weighting, Chartwell represents 3% but I also have XRE (the REIT ETF) at 2%. What would you suggest at this point? Thanks again.

Q: My question is what is the proper asset mix, percentage wise, for a Canadian equity portfolio in today’s market conditions. Presently my asset mix is Financials 36% - Utilities 16% - Bonds & GICs 12% - Communication Services 10% - Preferred Shares 6% - REITS 5% - Energy 5% - Cash 3% - Stock Mkt Indexes 2% - Consumer Defensive 2% - Industrial 2% - Consumer Cyclical – 1%. Would you change these percentages & are there asset classes that you would add? I am finding the most difficult job of managing my portfolio is determining a proper asset mix. Thanks … Cal

Q: Any insight on JE... One insider buy a lot , would you consider a buy here for income ,,thx

Q: Richmont just announced that they have been added to the S&P/TSX Small Cap Index, and the stock is up over 7% today. I know this is a positive for the stock, but I'd actually like to exit my position (slightly under water), but wonder if it's worth holding for another few weeks/months to see where it goes? Specifically I'd like to know how long the positive effects of an addition to an index like this will remain?

Cam

Q: Hi peter can I have your thoughts on stb results today debt and payout ratio down looked ok to me but market did not seem impressed .i have a large position in rip.un and it has held up well in this turmoil.
Kind regards
Stan

Q: Some time ago I purchased a Royal Bank "fixed-floater" subordinate bond issue,for which the interest is fixed at 3.18% for the first 5 years, and then floats at the 90-day Canada rate + 1.21% until maturity 5 years later. The "fixed period" is coming to an end this year on November 2.

When I purchased the bond, I was told that banks virtually always "call" fixed-floater bonds before they become floaters. However, I do not understand what would be their motivation to do so: with the current approx 0.30% 90-day rate, they would only be paying about 1.5% interest to the bondholders until maturity in 2020.

Should I expect that this bond will not be called and that I will be stuck with it at a poor interest rate until 2020?

Thanks!

Q: Yahoo shows 2016 PE for above as 6.8, 11 & 6 respect. Pls. state what your source shows. I'm itching to buy.
Thanks