Investment Q&A

Q: What do you think of this closed end US fund? I am told it will be protected if rates rise, and it is trading at a discount to NAV.

Q: I bought it in Feb. 2015 at $85 only to see low of $67 in the summer. I am still holding it, but ... what are the prospects of recovering and going to $85-$90 ? I read that the high US $ is hurting their EPS because lots of their products are sold in overseas locations, any light at the end of the tunnel ?

Q: Can you explain why U.S. preferred share ETFs like PGF and PFF have considerably outperformed their Canadian counterparts such as CPD and ZPR ? Thanks, Joe

Q: I am thinking of buying 5,000 shares of Chesapeake Energy, now down close to 80%, and just holding and forgetting about this investment for five years. What do you think of this plan?
Thanks.

Q: I would never view the TVIX as investing -- unless one considers volatility an investment. That said, it seems it has a place in a PF in a very small way -- say 1% or less. The index seems to consistently settle in the 5.75-6.00 range as a low and when a world event comes along that causes the markets to get volatile, it can shoot up a lot in a heck of a hurry -- a bit of an insurance policy. The time to buy this is when all seems tickety-boo. What are your thoughts on this strategy. Thanks and great job by all.

Q: Good morning

I am thinking of initiating a position in juniper nnetworks.The earnings estimates have been rising and the stock has been behaving very well technically.
Can you give me your opinion on the company regarding future growth and how does the balance sheet look (debt levels etc.)
Is it a good time to make an investment in this company?Are there other companies you prefer in this sector?

Thanks

Q: Hello much of our exposure to US is through etf's in Canada. However we do hold some stocks directly and would like to buy Visa. Do you see any significant risk to a rally in the US dollar over the next couple of years. It is just that Us $$s are so expensive presently. Thank you

Q: I am interested in your views on CALM. I see the last question came in 2012 and the stock has tripled since.
Seems to be a very stable business (with a bit of a volatile stock)
Thanks!

Q: I hold some XHY in my margin and TFSA. The Canadian dollar has come down since I purchased about 2 months ago. The prediction is for a lower dollar. How risky is this downward slide , should I sell now? I just bought for the increased yield.Thank you,Phyl

Q: Could you please provide your comments and future prospects of this company.
Thanks

Q: Hi 5i,

I have held ZWA in our RRIF,s for income for a couple of years. Recently added some ZWH which has a higher yield. Both are doing fine. What would you think of using just ZWH for the higher yield? These ETF,s do not represent total US exposure. Most US is held in other accounts.
Best regards, and thanks for your service.
Ted

Q: I am sitting on some US Dollars in a cash account and am putting together a small portfolio of USD dividend paying stocks that are also quite stable i.e lower downside risk, not likely to go out of business. So, essentially long term holds.

This portfolio already includes US listings like Apple and RAI. Most of the other stocks that I am considering, know best and am comfortable with are Canadian companies that also have US listings. Examples would be BCE,Telus,TRP, BNS,TD, ENB etc

My question is: does this make sense? Are there any guidelines to follow when making this kind of a decision?

Most of the stocks under consideration are already in my CAD portfolio. This would be a matter of increasing my weightings which would still be at acceptable levels.

I also see this as a relatively "safe" way to build up a cash reserve of US dollars via the dividends.

Any help you can provide to help me work through this process will be greatly appreciated.

Thank you.

Q: i have been contemplating buying some shares on its recent sell off...can you comment on its investment merits at this time , please and thank you ...i can appreciate your limited coverage of US stocks

Q: Seems to me with the downward spiral of big box stores and the rise of internet shopping at places like Amazon, doesn't it seem logical that UPS should benefit long term from this trend? How do you feel about this particular stock and do you have any other favourites in the sector?

Thanks,
Charlie

Q: Can I get your opinion on SMCI.US, is it buy at this level?
Thank you.

Milan

Q: Would you please review the key metrics for VGR and let me know what you think of this company as a reliable source of income and some growth. Would VGR be impacted significantly by interest rate increases?

Thanks.

Q: I am thinking of averaging down on this U.S. company. Should I wait until tax loss season is over and is this a good safe stock for a long term hold?
thanks

Q: I am looking at losers in my US portfolio for tax loss selling. Considering building cash to buy Cal-Maine Foods, Visa and Pepsico. Which of the following stocks would you consider candidates, out of Polaris, Sodastream and Bed Bath & Beyond? The stocks all seem to have good fundamentals especially BBBY (as you remarked in an earlier question from January 2014). Would you endorse the switch?

Q: Hello Peter & Team, in your response to a recent question about Merck versus BMY, you refer to the Valuation of Merck. What does Valuation mean? How do you define Valuation? You say that MRK valuation is about half the valuation of BMY, and has much more debt than BMY. Still, you prefer Merck. Thanks, Gervais

Q: Hi
Do you have any idea why Face book is coming down. And even VISA seems to have that tendency?
Margita