Investment Q&A

Q: Hi there,
In my TFSA I am down significantly on the following stocks with no tax loss benefit. Which of the following would you recommend doubling down on/ bringing back up to a 3% portfolio weighting? Do you think they will be under tax loss pressure over the next few weeks?
AVO down -50%
AYA down - 32%
GUD down - 11%
PHM down -60%
BIN down -20%

Thank you,
Kerri

Q: Hello Peter and 5i:

I like your Balanced Equity Portfolio, and understand you started it with equal dollar weighting in March, 2013. Currently, however, the % weightings range from about 3% to 6%. I have two related questions:

Question 1: If an investor were to set up this portfolio today, would you recommend EQUAL DOLLAR WEIGHTING in the stocks, or would it be better to use the current weightings?

Question 2: Do you recommend "REBALANCING" the stocks in this portfolio, e.g. once a year? Ie sell some shares of the companies that have the highest weighting, and use the proceeds to purchase shares of those with the lowest weighting, to equalize the weightings again. Would this be a "buy low, sell high" approach.

Thank you!
Ken Morin

Q: Over 9 million shares sold Friday, institutions stepping back in?

You figure institutional selling is all but over?

Cam

Q: Hi Peter,

Always nice to see you as a guest on Market Call.
I noticed you don't personally own any of the past picks you talked about.
Just curious, how do you participate in the "market"? ETF's, low cost mutual funds, individual stocks? Do you own any of the stocks from your published portfolios?

Thanks

Q: Hello Peter & 51 team,
Have you ever suggested a typical portfolio split between the balanced equity, the growth and the income portfolios? My $ split is turning out to be roughly 75%, 15% and 10%.
Enjoyed your appearance on BNN today
Antoine

Q: I think I may have experience a time out, so apologize if i have dupliacted this.
Not a question, but a comment in response to the posting of the Globe and Mail article referring to ``PHM in Steep decline``. First off, this article may be misleading to members as it was written on Oct.19th. The SP for PHM has increased since then and by roughly 30% in the last 5 days. I am quite pleased with this as I thought I was fortunate when I had a buying opportunity at $.63. You can imagine my chagrin when the price maintained its downward spiral and hit a low of $.44. I held for the same reason I bought. Despite the ugly series of events that precipitated the downward trend, I felt the fundamentals supported the thesis that this stock was unjustly oversold. I experienced the same scenario with Concordia. I excitedly bought CXR at $54. Then, out of a sense of recouping some of my loss, I bought at $45. We all know the story, and I feel fortunate to have bought my last lot at $30. By doing so, I was able to average my cost to $44. Today the stock is over $50. I only wish I had the fortitude to have bought at its ``bottom`` of $25. Needless to say, during a negative Market backdrop, I am thankful that I maintained my confidence in the fundamentals of these two stocks and feel they both have tremendous upside. Thank you to 5i for your guidance in teaching us to recognize true fundamentals, and my simple message to other new investors and members of 5i … try not to be overly swayed by all that is written by the `` Talking Heads``
Thank you, Rick

Q: Hi,
I have all of the growth portfolio stocks, most of which are held in my tfsa. I understand the risks involved and that it's been a tough year, but I'm hoping over time this portfolio will do very well. I have just added new money for this year's contribution. Which companies would you see as the best opportunities right now. What would be say - your top five.
thanks
michele

Q: Hi Folks

My question relates to your October 28 response to Paul re: the likelihood of the SPB - CUS combination going through and the need for CUS to pay a big break fee if unsuccessful. In a report by RBC dated Nov 1 on SPB they stated that "We note that Superior Plus is taking full regulatory approval risk and would be liable for a $25 million reverse termination fee if it is unsuccessful in obtaining regulatory approval." So could you please clarify the situation re: the break fee and who pays in event the deal does not go through.

Thanks

Ross

Q: Good day. I have some cash and am trying to fill gaps in the income portfolio. I am missing Vnr,et,adw,spd .I would like your advice which would be best to purchase at this time. Thanks.

Q: Hi Team,
Trying to find a good entry point for lmp. Can you help me with the earnings expectations for this company over the next 2-3 years?

Ideally, I'd like to hold for the same time frame. I don't want to waste a year though as they grow into their multiple.

Thanks,

Q: I am under weight in the technology sector. From your portfolios what technology stocks might you recommend at this time (I own DH)? I am good with either income or growth stocks.

Is there a stock not in your portfolios that you may recommend over the others?

Thanks
Paul

Q: The other day you mentioned that comdev had been sold out of the model portfolio, but that you recommend members hold to the closing. Can you elaborate further on the reasons for this. Thanks as ever

Q: Hello Peter & Co,
I will join the chorus of voices favouring the portfolio approach. As a case in point, I own all the stocks in the 5i balanced equity portfolio except AYA,G,SIS,SYZ and WSP and the total return in 2015 (up to Nov 15) is 14.5%; that's a great performance considering the tough year we're having.
I salute you all,
Antoine

Q: Hi Peter,
I purchased stocks in the growth portfolio under your recommendation with the understanding it could entail very large volatility and risk... but was OK with that given that these would all be mid to long-term holds. Taking Guestlogix as an example - I bought right after the Growth portfolio was released and to date I am down about 75.0%. Although I don't like this, I was OK with this volatility given it was going to be a long-term hold and there are still expectations of growth, but now you have recommended a complete sell only 8 months later so I am confused. What should an investor do in my position?

Q: In reference to another members comment regarding portfolio performance, I agree that it would be important to show both the "losers" and the winning trades. The inclusion of date position was opened and the date closed would be beneficial for all of us.
Please share and consider this request for the portfolios.
Regards,

Q: TC has given back some of its yearly gains. Is this just a round of profit taking? And how do you see the company going forward given its most recent earnings? Thanks again.

Q: Hi there,

I wanted to comment on one of your member's comments on his losses on individual 5i stocks. I too have been a member for a very long time and the one thing I have learned is to stick with a disciplined portfolio approach rather than just trying to pick stocks from your portfolios. This has led me to consistently better overall results over a number of years. Some stocks have gone done at times and recovered at other times. But it is the 'stick with it' portfolio approach which has led to better than market returns. Thanks for all that you do.

Publish at your own discretion.

Q: Hi:
last time someone asked this question was in April
I wonder how one would compare A&W (ranked B+) compared to PZA.un ?
I am looking for dividends income and safety of capital
(almost 65) thanks!

Q: Can you explain to the less educated why SPB should be selling off when they declare to pay out the debentures at 7.5% in this low interest environment, I would have thought that was good thing, but obviously the market does not agree me, I guess this is an opportunity to add to my position.

Q: Hi Guys,

This stock is down 45% today, is it time to get out?

Thank you,

Pat.