Investment Q&A

Q: Previous comments on Onex ( OCX )have been positive. Currently share price drifting marginally lower as insiders load up on purchases. Any thoughts on this or any additional comments on company. Patience required?

Q: Hi 5i: I just heard Jerome Haas on BNN describe EIF as an "absolute short" which was part of his company's hedge against a market correction. He essentially endorsed the Veritas report and the article in today's Globe and mail based on it. Besides Westower, he dismissed EIFs other businesses as problematical, and with respect to Westower he claimed that all its contracts were with STT and worth at most 5%. He did disclose that EIF was his company's largest single short. What are we to make of all this? Re Veritas, my amateur reading of the Avigilon results suggests that much of the Veritas claims against that company were not borne out. Are we seeing a conspiracy of the shorts, or is there truth to their claims?

Q: Thinking of buying Bombardier at around $3.85. Looks like orders for its long awaited jet are on the rise. Your opinion of this as a medium term hold.

Q: Please comment on Senvest's (SEC) latest results. I find it hard to understand the huge differences in earnings from Q to Q.
Thank you.

James

Q: What do you think of of ITP (Intertape Polymer Group) earnings and guidance? Thank you!

Q: Norbord: After a brief spike in response to its good earnings report, the share price has resumed its decline, down even more than before the release of its report! On July 30 you suggested to John that now would be a good time to top up his position, but I'm sure having doubts about even continuing to hold. Any thoughts?

Q: Hi Peter and team,
Alimentation Couche-Tard (ATD) has grown to become my largest holding at just over 6.5%. I am just wondering what your opinion is for the company/stock. I am happy to continue holding but I am also considering selling roughly 1.5% to bring it down to a 5% holding. If I were to do that what stock (growth with a small dividend) would you recommend putting it in?

My other Canadian holdings (which are between 2 and 4% of my portfolio) are AVO, BAD, BEP, CNR, DH, EFN, ESL, EH, MG, OTC, RY, RX,and TD.

Also, just wondering if you are considering covering ATD any time soon?

Thanks very much.

Q: Good morning Peter
Would you recommend the purchase of Uni-Select at this price level. From last weeks earnings release sales were flat to low growth but the profit per share has been increasing. I think the market is focused on the revenue number and has missed the earnings growth and the increase in the dividend last quarter.

thank you David

Q: I'm a GIC buyer with extensive experience in writing covered calls, but haven't used that procedure for a while. After a market correction is usually a good time to start buying higher yielding stocks with higher premiums. It's easier to lose a stock to a call rather than watch it go down. Do you have any suggestions on higher yielding stocks with higher yielding premiums to be bought on a correction? In the past I've used BTE,ARX,SLF,SU,HSE,BCE,T,BNS,CM,etc. I'll take the responsibility for the timing.

Another procedure would involve buying quality companies where the sector is out of favour. Recently I've looked at G, AEM, TCK.B and Bad. They have an average premium yield on the second next call (46 days) of about 30%. The DTC yield is about 3.00%. If the stocks go down, I have a higher-than-GIC yield and can hold until the stocks increase and I can start selling calls again. Do you have any suggestions on this type of out of favour stocks. Thanks for your help.

Q: Of the Canadian pipelines, which would you recommend and is it a good time to buy now?

Q: Bell Aliant
Provided I can purchase Bell Aliant at $31.00 per share or less, does it make sense to buy BA when BCE is trading greater than $48.66.
Essentially I would be buying BCE at a discount to the trading price (on august 05 BCE was $49). I have ignored commission on the trade, but its pretty minor at $10 per trade.

Q: Hi Team,

Back in the spring, you suggested the following stocks for RESP accounts:
13 year old going to grade 9: Stantec, Badger, Boyd, Linamar, Enghouse, Stella Jones, Sun Life, Black Diamond, Cineplex.

7 yr old all of the above would still be suitable, but more aggressive names would be DHX Media, Surge Energy, Teck Resources, Home Capital, Tricon, Element Financial, Amaya and Sylogist.

Questions:
1 - Would you still recommend the listed names at current prices
2 - Could you suggests an alternate name for Amaya (non-gambling stock)? QST?

Thanks for your help.

BK

Q: Peter; There is a very interesting article in todays Globe , pge.B8, by John Reese , on market
corrections. It really paraphrases 5i's mantra very well.
Rod

Q: Good morning! I am about to have 350K proceeds from the sale of a house, and wish to “park” it for probably 1 to 2 years. I would hope to be able to comfortably invest it into one or more equities paying a 4% dividend or more, and would appreciate the “ safest” names you might recommend (i.e low beta, not much downside risk). I am also looking at preferreds and would ask for a couple or more of names you might suggest, again with the payout of a minimum of 4%. My goal here is twofold – sustainable income and security. Growth is not a key element. Your comments and any alternative thoughts are appreciated!

Q: Hello:
I have a fair number of shares in Bell Aliant. With the recent announcement that BCE is going to take over complete ownership I do not know how this will affect my investments in Bell Aliant. Should I continue to hold or sell now. BCE has not announced to my knowledge how this would affect Aliant shares owners.
I would appreciate your opinion and knowledge on this matter.
Thank You;
Duane Campbell

Q: I prefer not to invest in gambling stocks and since AYA is in the model portfolio what would be your next best stock for the model portfolio?
Thanks

Q: would it be possible to allow a user to see 10 pages of questions at a time rather than only one page? In other words allow 10 times the questions to be on 1 page?

This makes it easier if you have an iPhone because because you don't have to say next page as often.

Thanks,
Ken

Q: Hi 5i: A comment on Ronald’s question (Aug 1) about spreading holdings across more than one account (RSP, TFSA, Taxable). I took his issue to be that, given the amount of his total investments, two 5% equity positions would max out his TFSA capacity, resulting in his betting his potential for TFSA tax benefits on only two higher growth (and quite possibly higher risk) equities. I suffered through a period where a similar concentration that did not work out as desired seriously hamstrung my ability to grow my TFSA. Back in the first couple of years of TFSAs, when the accumulated contributions were $5k or $10k, this concentration for equity holdings was only really avoidable through an ETF or mutual fund. But now that one’s total contributions may be as high as $31k, and one may have grown from that with some years of investment returns, TFSA account balances can be large enough to warrant treatment as mini-portfolios and in my view many of the regular principles regarding diversification and stability should be applied. I agree with your general suggestion that the TFSA accounts be weighted toward higher growth companies because if you can get some of the high growth benefit in a tax free form it is great. Probably even better than no tax bill is the accomplishment of increasing your total allowable tax free investment space, which would otherwise be severely restricted by the annual contribution limits. However, by the same token, the value of that tax free investment space makes the TFSA the worst place to suffer a significant loss. So I would say have some high growth potential in your TFSA but also have some relatively stable reliable stuff in there that will preserve your ability to salvage the account and recover in the event that one of the high growth vehicles doesn’t work out. That probably means you don’t concentrate your TFSA in just two positions (at least, it wouldn’t fit most people’s investment profiles to be that concentrated). Particularly now that an equity transaction costs most do-it-yourselfers $10 or less, you are not costing yourself much in fees to have some diversity in TFSA positions starting in the 3 to 5 thousand dollar range. And you are not costing yourself much in extra fees to have some of the same holding in different types of accounts in order to have a stabilizing or growth effect on each of them. Thanks!

Q: I have a balanced portfolio and some cash on the side. Can you suggest two or three stocks that represent good value and growth potential at current levels?
Thanks

Q: Hi Peter and 5i team,

I'm looking for an industrial stock to add to my portfolio. I currently own CCL.B and SJ, but I'd like to add a third stock in this sector? Do you have recommendations?

I also wanted your opinion on Chartwell Retirement REIT. I currently own 3 REITS (Riocan, H&R and Chartwell), but I was thinking of selling Chartwell and buying Boardwalk for a bit more growth.

Thanks very much,
Jason