Investment Q&A

Q: As you know Resolute is the former Abitibi paper. I purchased at 9 and sold at 17 thinking that the upside was limited. It keeps pushing higher. Book value is 29 but no profits and future prospects not clear. Your opinion appreciated.

Q: Hi 5I Team,
I was wondering which company you liked better: SJR.B OR CJR.B? I would like to buy and hold for a longer term.

Thank you for your hard work.

Best wishes,
Terri

Q: Could you please tell me your top 3-4 picks for pure growth stocks in Canada to buy today. I'd appreciate if a couple could be more established (such as CSU) and a couple more "up and coming." Thanks.

Q: Hello Peter and Team,
I have available cash in a non-registered account which I will not need to access for several years. My goal is long-term capital gains WITHOUT any other income along the way. Currently, I hold non-dividend payers TOU, AVO and GUD in the account. Which one or two of these would you feel best about for a solid long-term gain? Also, if I were to add two other non-dividend paying shares for the long-term, can you please suggest two? PS. Any explanation for the wild (10%) ride on DHX today? Thanks for the terrific service!

Q: Hi,
The equity portion of my Income Portfolio contains the following with % weightings shown. Any names you would remove or add to? Any sectors you would trim or add to? Any names from your Income Portfolio you would strongly suggest I include? My average yield is 4.3%.

Consumer 1% (CTC.A)
Banks 20% (BMO,BNS,NA,RY,TD,TMC)
Insurance 11% (MFC,POW,SLF)
Utilities 8% (EMA,FTS,TRP)
Telecom 15% (BCE,MBT,RCI.B,T)
Precious Metals 6% (AEM,TCK.B,SLW)
Energy 19% (CNQ,COS,CVE,CPG,FRU,IMO,SU)
REIT 17% (CAR.UN,CHP.UN,D.UN,DIR.UN,HR.UN,REI.UN,TCN)
Technology 2% (ET)

Looking forward to your Portfolio Analysis feature/service.

Thanks for this,
Carlo

Q: Peter,
If there were 12 important items you reviewed of a company before buying a stock, where would ROE rank in this list as its level of importance? What might influence your decision to buy a company despite having a sub-par ROE?

Q: I have a significant position in this stock Can you give me your outlook given that lumber prices stay relatively stable. As a general comment I recently became a member of 5I and I am getting tremendous value. I like that. Excellent format.

Q: Hello Peter and the 5I team
When markets correct as the tsx has done so, I like to search for companies that are able to hold their own in down times. I was surprised at how well CXR held up throughout the correction so far, the SP seemed to hold its own while the market came down. I was wondering if you could give us a few names of stocks that surprised you on their resilience to the market correction. Or maybe a few names that have a habit of holding up in down times.

Thanks for your response

Q: I own CRP shares and, as an owner, have recently received (for "free") an equal number of CRP.RT rights, giving me the right to purchase one CRP share at $5.84 for every 1.1063 CRP.RT. (CRP itself closed at $6.41 on Friday.) The rights expire on Nov. 28, but in the meanwhile may be traded on the TSX.

It seems to me that this is more or less equivalent to participating in a bought deal at 1.1063*5.84 = $6.46, and, as is usually the case with bought deals, that the share price is likely to fall in the short term as a result of the substantial dilution.

I like CRP for the long term, but wonder if I wouldn't just be better off selling my CRP.RT on the market now (Friday's close was $0.45) and then perhaps buying more CRP shares directly after Nov. 28 if their price falls. I would appreciate your opinion on this.

Thanks!

Q: In my equities-only portion of my portfolio, my Finance-REIT weighting is 34% (22% and 12% respectively). The utilities sector is 19%, Consumer-Health is 16%, Manufacturing-Info Tech is 10% and Resources is 21%.

Ideally I'd like to decrease Finance-REIT to 30% in order to increase Mfg-Tech towards 15%, but I like the Finance-REIT holdings (AD, BNS, RY, SLF and Sentry REIT, TCN). I'd like to rebuy CSU in the process.

I am a retired dividend-income investor. Are my current Finance-REIT weightings too high? If yes, would you simply create the CSU cash by trimming the Finance-REITs?

Secondly, is my Resource weighting too high? Among my holdings are BTE, CPG, SGY, WEF.

Thanks in advance...much appreciated.
Steve

Q: For my TFSA which of CNR or TMA would you pick? Is Mullen MTL a possible, considering the dividend and valuation?
Thanks for all you do.

Q: Good morning Peter and staff

Since the the market has gone down quire a lot,, can you recommend 2 growth, divided stocks for a 10 year old RESP Portfolio.
Thanks

Q: Hi there,
I am enjoying the Bull run on DHX.B, with a P/E of greater than 138x do you think this can sustain?
I plan to trim down on DHX from my TFSA holdings would MDA or AYA be a good alternative for portfolio balancing purposes at the current prices?

Also what is your opinion on GSK (US) for my RRSP as a healthcare stock? Thanks a lot. cheers, Shyam

Q: Hello Peter,
Do you think atd.b, aya, and dhx.b are getting close to being fully valued. I understand they are growth stocks, but they seem be getting quite high. I was thinking of increasing my position in atd.b, but was wondering from a valuation standpoint. Thanks for the advice.

Q: Could you give us your opinion on XSR given their latest results. I've owned a small "starter position" (about 1% of my income portfolio) for about a year now and am trying to decided whether to drop it or add to my holdings. Thanks for everything.

Q: Is it better to sell agrium now with the recent jump in the stock price or wait for further news? Many thanks

Q: Hi guys,

Is there a place where I can find reliable financial information on all Canadian and U.S. companies. For example, type in a ticker symbol and access recent quarterly results for the last few years, P/E ratios, forward P/E, etc. I don't mind paying for the service if the information is reliable.

Thanks a lot!
Jason

Q: I hold Cameco now for nearly 2 years in my RRSP account, which is 100% invested in diversified canadian equities. I felt the company prospects were tantalizing and bought it for the long term. While the market has done pretty well over this 2yr period, I am slightly underwater here. I am wondering if there is an opportunity cost lost here and should I get out now when traditionally there could be seasonal strength?
If you think I should indeed get out, what would you replace it with either in Canada or USA? I have a fairly well diversified portfolio with no exposure to metals/mining and a very small exposure in healthcare with PHM, 10% in oil and gas and overweight in financials. Would you consider switching to Seven generations if trading below $20, something else in Canada or do you have a suggestion something south of the border.
I know this question now extends to more than one, and if you prefer, give a separate answer. How would you compare Tourmaline and Seven Generations @ around 20 dollars?
I would appreciate your viewpoint.
Thanks.

Q: What did you think of their latest earnings and would you hold on to such a stock or take the hit and move on to something else? It is a 1/3 position in my portfolio. And if you could put the funds in anything, what would your 3 top picks be right now (any sector)?
Thank you.

Q: What are your general thoughts on the long term prospects for this stock? What impact would listing on the NASDAQ have on the stock