Investment Q&A

Q: Home Capital Group: I am now down 16.4%. Bought it at $51.19. Given all your other most recent replies to other members, is it worth holding onto? Is it likely to recover, and become a good decent growth stock? Or should I cut my losses and sell it? (It's in a registered account.) If so, what should replace it as a growth stock? Also, Open Text has been declining in the past 2 weeks. I'm down 4$. Is it worth holding onto?

Q: Hi Team,
What are your thoughts on Bitgold?The BNN interview this morning made complete sense to me.Is this a place for wait and see how foolproof the execution of their vision and how the algorithm runs in practice.Do you see any flaws in the model.

Q: For fixed asset allocation in ones portfolio, can an allocation of say 20% of cash availble for investment be put in paying off a portion for mortgage (for those of us who still have one!)..The remaining 80% would be invested in stocks..does this make sense or is a combination stocks and bonds recommended.

Also in instances where one gets a lumpsum of cash for investment (long term), can flow through shares be used? Note: This lumpsum will result in one being put in the highest tax bracket. How does one effectively use Flow through share it as it is very risky in nature?

Q: I really cannot believe the beating that the railways are taking in the last week or so.They say that is is from the slow economy in Canada.Do you think they are over sold at this point and would it be a good time to buy.

Q: I would appreciate your comments on the new rail safety regulations pertaining to oil transportation. The rails, including CNR appear to be selling off due to the impact the new regulations may have on expense ratios. Is this overdone?
Thanks,Hans

Q: Hi Team,

I realize this is a totally apples to oranges comparison, but if you could only pick one of AVO or GUD for a 5 year hold, which would you choose? This is for a small position in an otherwise well-balanced portfolio. I currently own AVO but am tempted to switch to a company that has better market sentiment.

Many thanks for any thoughts you can share.

Michael

Q: Eif and kwh.un both reported recently which do you like for income and growth. thanks

Q: Can I have your thoughts on their quarterly results. Is there a reason this stock can seem to get out of the trading range it has been in for 6 months?

Q: BAM.A now trades @ $43.52. Down 1/3 from yesterday. Is that correct?

Q: Hi Peter & Team
Is POT a good entry today? 2.5% in RRIF for long term? It is down 15% in three months with a nice yield. Your opinion please, thanks

Q: I would like your opinion on Cara.

Q: Good morning!
The change to US dollars leaves me with about 3-5% less in income, after factoring in an exchange rate. Could you comment specifically about this change - in other words are there any hidden advantages I am not seeing?
Like the previous question about STB, I am reluctant to play the "exchange game".
Also, is there anywhere yourself or readers might suggest for getting the best exchange rate? FYI I have calculated based on the rates posted on Wellington Foreign Exchange in Kingston, ON)
Thanks! ... and enjoy your day!

Q: Thank you for your May 10 response to my question on Insured Annuities. As a follow-up for clarification, is a pre-tax GIC-equivalent yield of 5.2% a reasonable return (without the benefit of a crystal ball looking ahead 20 years)? Again, the annuity is not indexed.

Your are correct that our income exceeds our expenses from our Cash accounts. An income stream from our RRSPs and TFSAs has not been included yet. Annual RRSP withdrawals are directed towards our Cash accounts for future investments. Capital gains/losses are not factored in.

The second option under consideration was to add to the mortgage sector, specifically Capital Direct. For clarification, what maximum weighting in the "mortgage plus REIT" sector would be appropriate? I currently have 5% in Sentry REIT and 15% in Fisgard Capital, totaling 20%.

Bond-GICs yielding 1-2-3% barely cover inflation, but do provide portfolio stability. If the current relatively low interest rate environment stays this way for another 5 years, we are right back to the annuity being the better choice. Your thoughts?

Thanks for your help,
Steve

Q: In light of the recent earnings for Aecon, what is your view for the coming 12 months. thanks.

Q: Could you comment on FTP's big price increase in recent days. Is it due to speculation on a Greece exit from Eurozone and the need for Drachma print order ??

Q: Hi, I've grown a bit tired of watching this stock do very little and I'm not optimistic that it will do much in the next year or two, unless things really pick up again.

Can you recommend a replacement in this sector that you like for growth, and perhaps a bit of a dividend?

Thank you for providing this excellent service.

Q: Hi Peter,
you list like 20 companies in your April 2015 growth Portfolio. Before I decide which stock to buy, could you please tell me what is your opinion about their management team?

Q: Hi Peter I am now coming to the realization that I must move off this stock because of its change to the div being paid in us funds I will not play the exchange game and my cash flow is dependened on the exchange rate .I have done well on this stock but it is time to move on.My thouhts are to take a position in FRC with the proceds can I have your opinion on this switch .
Kind Regards
Stan

Q: I am looking at adding to ATD.B. LTD seems to have come down nicely over the past year and the number of shares outstanding seems fairly stable. I am wondering about growth. Morningstar shows $1.89 for 2016 up 8 cents from 2015. What kind of growth does your analysis show? As an NR stock do you have plans to do a report at sometime or is $26b market cap too large?
Many thanks
Mike

Q: Hi team:

this stock has dropped below it's 50 days and 200 days MA
is there any fundamental reason for it ?
hold or sell ?
thanks