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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: In your recent update to your list of top ten USA stocks for an option writing strategy I notice that CALM ( Cal-Maine Foods), which was on your list from the beginning, was dropped. Was that intentional? And if so, could you please provide the rationale for this as well as your current thoughts on the company? Thanks.
Read Answer Asked by John on July 21, 2016
Q: I have owned these two companies for a couple of years as part of a well diversified portfolio - both geographic and by industry. Financials in the US have been relatively flat for nearly a decade and I am wondering if there is a case to be made for owning US financials when Canadian financials have done better and pay a nice dividend. I am comfortable that these two stocks are near the top of the class so it is not the companies that I question. Would you deem it reasonable to hold only Canadian financials at this time and to invest the US dollars in other areas?

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on July 20, 2016
Q: Hi, I am considering replacing my IWo by IJR or SLY ( S&p 600 small cap growth). I was reading David Swensens book "unconventional success". Brilliant book. He talks about how Russell 2000 is not a well structured index as compared to S&P 600. Which has a better structure and therefore results in better performance. What are your thoughts on this. Also what portion of a portfolio would you suggest for small cap growth based ETF like this. This is for an otherwise diverse and aggressive portfolio. Your advice is most valuable. Cheers, Shyam
Read Answer Asked by Shyam on July 20, 2016
Q: Currently 25% of my portfolio, is in individual US Stocks.I have recently sold some positions and I am wondering the best strategy on re-allocating the money.

Should I look at US stocks as part of my total portfolio and add in sectors and areas that I need more exposure too? (in stocks)

Or should I be looking at trying to get total portfolio diversification in US funds?

I was thinking IWO would add diversification with growth over time. At the same time I think Google may do better than IWO; however it isn't as diversified.

Also have 18% of my portfolio in tech, so should I pass on Google? I believe Google is becoming a stock that you can buy and hold for a long time and do well.

As always thanks for the advice. Cheers.

Read Answer Asked by Colin on July 20, 2016
Q: BMO US Put Write(ZPW)
BMO Europe High Dividend Covered Call Hedged to CAD(ZWE)
PowerShares Preferred Portfolio(PGX:US)
BMO Laddered Preferred Share Index(ZPR)
BMO US High Dividend Covered Call(ZWH)
BMO Equal Weight REITs Index(ZRE)
iShares S&P/TSX Canadian Preferred Share Index(CPD)
iShares S&P/TSX Capped REIT Index(XRE)
BMO Covered Call Dow Jones Industrial Average Hedged CAD(ZWA)
iShares Convertible Bond Index(CVD)
BMO Canadian Dividend(ZDV)
Above are ranked as to yield - high to low. Can you rank as to risk - high to low?
Thank you for considering my question
G. Reynolds
Read Answer Asked by Gail on July 18, 2016
Q: Hello, I was looking at entering a position in Terra Nitrogen Co (TNH) which produces nitrogen fertilizer products. It has a pretty good dividend and seems to be very undervalued. Also it seems to excel across most metrics (ROIC, ROA, etc).

A few reservations is that the gross margin is slowly decreasing over the past 5 years and that it is a master limited partnership. Is this different tax wise if I buy this through my RRSP account?

I already hold Agrium and wanted to also get into TNH for the dividend and valuation.

Your thoughts would be greatly appreciated.

Andrew
Read Answer Asked by Andrew on July 18, 2016
Q: I would be thankful for some substantive updated comment on Cummins, CMI.us . Financial sites give mixed opinions, including for example: “no growth; low ROE ; PEG is too high.... &c” . I have CMI , 2% of folio, in non-tax registered accounts Loss in CMI has been reduced. Rsing tide thing. Is CMI now competitive in its industry? Is it a technology leader (if you know)? Is CMI at least keeping up with new tech. and developments in its core products?

CMI pays an attractive dividend, which is hot button now that the resident 2 year old has lungs that allow her to scream loud enough to wake neighborhood. CMI is part of the group meant to pay much of her future education. CMI’s trailing dividend is around 3.4 % . Notwithstanding that good dividend, my ‘Lessons Learned’ file reminds me that being enamored with high dividends can be unwise. I am the idiot who hung on to tons and tons Nortel, AGF, and Och-Ziff (OZM.us). My stupidity prompts me therefore to seek your objective opinion.
Read Answer Asked by Adam on July 15, 2016
Q: My RIF equity portfolio has reached my target and I now wish to build cash in high interest paying investments such as GSBD.
There will be little price appreciation however security of principal will be better guarded over the long term (5 years plus)
In this case I will be employing my US holdings and realize the potential ramification of exchange differentials at time of cash out. I presently hold a small amount in XHY (yield now to low)however avoiding government or corporate bonds until the dust settles.
Do you have an opinion on GSBD?
Have any other ideas?
Thanks

Dave
Read Answer Asked by DAVID on July 15, 2016
Q: My question is about vvi-viad corporation. This is the owner of Brewster travels..which is running an extremely profitable operation, which I experienced first hand during my recent visit to the Rockies. What do you think about this company, is this one to consider adding to my Us portfolio? Thanks very much.
Read Answer Asked by Shyam on July 14, 2016
Q: Good Morning 5i,

I am looking to replace my shares in Bank of America ( BAC). I have held it in my US account now for more than 2 years, and it really has done nothing, it has actually in that span of time gone down in value. No growth what so ever.

I realize the US market isn't your field of expertise, but i thought you would know of a US Financial ( including Investment banks), possibly something smaller and more Regional that looks good going forward that pays a small dividend, and has good growth prospects?

Thanks,

Stephen



Read Answer Asked by Stephen on July 14, 2016
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