Investment Q&A

Q: Hi Peter, I hold Kimberly Clark (KMB) in my kids’ RESP account and recently they spun off a new company called Halyard Health (HYH). I received 1 share of this new company for every 8 shares of KMB held. Since it’s a small RESP account for now, I only received 6 shares of HYH, which is currently trading at $39.29. What are your thoughts about this new company? I’m thinking of just holding the shares because I understand from an article I read that previous Kimberly Clark spin-offs have historically done well. Thanks as usual!

Q: Hi Peter: I know you do not follow non-Canadian stocks. I held Deo (Diageo) since mid-2009 and enjoyed over 100% gain not including their dividend in my RRSP. It has not done well over the last year and flat the year before. May be people are not drinking liquor anymore or they cannot afford to drink. I am considering selling and replacing it by another large non-Canadian dividend paying company whose products or services are not well represented in Canadian companies. I am considering DOW (Dow Chemical) or INTC (intel). What is your view on this strategy? Any other alternative security suggestion will be appreciated. Regards. Fl.

Q: Hello to all at 5i

Based on personal experience and the demographics, one of the significant trends over the next 20 or so years, I believe, will the increasing amount of hip and knee replacements along with other orthopedic surgeries.

With respect to the investment thesis, do you have a preference between Stryker and Zimmer in the US or are there other investments (in Canada or the US) of which you aware that would eventually help soothe our aching joints?

Thank you for the service you provide.

Q: Hello 5i,
I am currently deciding on a new sector to build out my portfolio into, the choices are health care or consumer stocks. Below is the list of stocks on my buy list in each sector. The idea is to have about 10 stocks in each sector to smooth out the returns. I currently have the money to purchase 3 stocks, can you help me select the three stocks to start with and which sector to start in, as there may be a timelier sector to start buying. I am a dividend investor and a 3% (minimum) dividend is pretty much my cut off. If you have some better ideas I’m open to suggestions (currently own GSK).
Consumer Stocks:
Kimberly-Clark , Kraft Foods Group Inc,Clorox Co, Sysco Corp, Procter & Gamble Co, General Mills Inc, Nestle SA, ConAgra Foods Inc, Unilever PLC, Campbell Soup
Health Care:
Sanofi SA, Roche Holding AG, Pfizer Inc, Novartis AG, Merck & Co Inc,, Johnson & Johnson, Eli Lilly and Co, Bristol-Myers Squibb Co, AstraZeneca PLC, AbbVie Inc.
Thanks for your help,

Q: What is your evaluation of this semi conductor manufacturer with strategic links to Apple ?

Q: Apparently recent insider buying. Your thoughts on this company?

Q: Peter -do you have any thoughts on the relative attractiveness of the Aig warrants versus Aig common ...and whether you view either as compelling here?

Q: Hi Peter and Team,

Another microcap with potential i believe. they lost one customer, which is GM, however they renewed 8 recently and have gone live with a Tier 1 bank. thoughts on potential growth?

Q: Hello 5i team

recent commentary mentions CHK beat wall street expectations on their latest reporting. Can you please comment on the recent quarter and expectations moving forward?

Thanks for all you do

Gord

Q: Hi Peter,

Thoughts on IVFH and their recent quarter. i know its risky due to size.

Q: Would you please offer some recommendations for investing in USA equities for my RRSP. I am retired and am looking for equities that balance both growth and dividends. I have built my Canadian investments to mirror your model portfolio but would like some additional USA exposure.
Thank you for this exceptional service.
Deborah

Q: Hi Peter,
Can you provide an update regarding Hewlett-Packard's turnaround story. Do you still see this as a good value buying opportunity? Can you please comment regarding their medium term growth prospects? Thank you. Linda

Q: Hi Peter and 5i Research Team,
Can you please provide your analysis on VISA. There are so many positive factors with Apple iPhone pay and small business simplified payment processes. Can you comment on growth prospects? Do you think its a buy, sell or hold? Thank you. Linda

Q: Hi Peter, What do you think about these tech companies: RFMD and TQNT (which apparently are merging to create QRVO). Also, CODE and IMOS. Would any of these fit as a buy? If so, would they be ok in registered and/or non-registered account?

Thank you!

Q: I held this stock and then got nervous about losses, or potential losses and sold it during a choppy period at $48.35 and now it's $62.94. I wouldn't mind making another investment in US Technology stocks, so should I go back to RHT or look for something else?
I guess I need to build up my fortitude for those choppy periods!

Q: Is this stock overvalued? For a growth-oriented investor, do you think this is a buy right now?

Q: US listed Co.: last quarter was terrific, fundamentals look good-poor dividend though. Taken a bit of a hit in sympathy with lower oil-huge back log of orders. I do not own any rails -so, was thinking of buying this one in my USD portfolio. Comments please.

Q: Hi Peter and 5i crew, my diversification is lacking the Healthcare sector and I was wondering if you could provide me with a couple of stocks that I could purchase now for at least a 5 year hold, and as usual thanks for a great service and I am grateful to be a small part of your membership.

Q: Hello 5i team.

I have read that your favourite US dividend ETF is VIG. I own the TSX listed version (VGG) in my RRSP. Although, there is no withholding tax on dividends in an RRSP, there seem to be some erosion from taxes within VGG itself. Can you recommend a US dividend etf that is efficient to hold within an RRSP?

I note that the total return of VIG has been less than VV. Is this compensated for by lower volatility?

Thanks,
Hans

Q: Hi Peter & Team
Have you looked at Avon Products. Is it a Hero (in disguise), or a Zero
Thanks, as always