Investment Q&A

Q: I currently have about 140.00 in D.B. through the pension plan for employees where i work. I will be retiring this year and would appreciate your advice and time.
The employer gave me two options to consider.
Option 1: lifetime pension.
I'll receive about 680 dollars per month, this lifetime pension is a lifetime annuity.
Option 2: Lump sum transfer.
This commuted value is eligible for transfer in lock-in and tax differed basis.
I'm a subscriber of 5i research and CMS (95183)
Thank you.

Q: So many questions related to income and share prices as interest rates increase: here’s one more.
Could one justify selectively adding to the ENB-BCE- KWH- FTS - TRP -T types of stocks as share prices drop... and we therefore see higher dividend rates?

The strategy is to own these companies almost forever (unless something unforeseen or disastrous happened) and enjoy the dividends.

From my vantage point this seems to make more sense than buying bonds or low rate gic’s for income.

Your thoughts please with this dilemma. We of course have already seen the share prices drop and are wondering what to do with cash on the sidelines currently.

Q: Can you help with secor allocation for 2018. Realise that the allocation will vary depending on factors such as risk tolerance, age etc. Just seeking your thoughts on reasonable ranges for allocation with a view to tweaking our investments. Thank you as always for your much appreciated assistance.

Q: Hi 5i:
I'm currently trying to reduce the number of stocks I hold in my RIF account to around 20 - 25. In the materials sector I currently hold SJ, CCL.B, AEM, and MX. To reduce this to 2 (maybe 3) stocks, which would you drop? I want my portfolio to be as resistant as possible to market shocks such as NAFTA and general downturns, so feel free to suggest alternative names. Thanks again. Roland

Q: Can you comment on the recent rise to all time highs for Herbalife, and on the outlook for this stock. Thank you.

Q: Would you buy Paychex at todays price?

Q: Hi 5i
I intended on holding (PUR and AVO) for the long term but cannot due to their being taken over by XYL and MSI. These acquisitions will mean a cash infusion and I'm wondering whether a purchase of the acquiring companies is sensible. What is your opinion of these US companies (it is understood that they are not your focus but I respect and appreciate your opinion)

Thanks

Q: What is your feelings about using an inverse ETF such as the above to protect a portfolio against North American interest rate increase over the next year?

Q: Hello Folks:
What are your views on Goodyear Tire
Thanks gain

Q: The news talks about sub prim loans for auto, consumer debth, and car sharing. In your opinion is time up for these 2 cyicular stocks?

Q: Hi, I am bit confused about my Canadian oil and gas sector performance in last month or so. crude oil prices are now at $65, but Canadian companies in this sector keep getting lower and lower. I currently have positions in ZEO, BIR, HWO, PEY, & RRX.
Has spread for Canadian oil deteriorated compared to normal levels?

Q: I have Sherritt bonds 8% coupon in my TFSA expiring Nov. 2018. I got a proposal from the company to buy them back. Here is the proposal:

Option 1: Auction tender - The company is offering to purchase their debentures of SHERRITT INTERNATIONAL CORPORATION at a purchase price not greater than CAD $950.00 nor less than CAD $752.00 in cash increments of CAD $1.00, for a maximum of CAD $75,000,000 in value of its shares. All shareholders tendering at or below the purchase price will receive the same amount. If more than CAD $75,000,000 were to be paid, shares will be paid on a pro rata basis. Subject to proration. Tax consequences: Disposition

Option 2: Purchase price tender - The company is offering to purchase its 8.00% Senior Unsecured Debentures due 2021 of SHERRITT INTERNATIONAL CORPORATION. The purchase price for its 8.00% Senior Unsecured Debentures due 2021 of SHERRITT INTERNATIONAL CORPORATION will be the lowest price which will enable the company to purchase common shares for a maximum of CAD $75,000,000 in value of its shares. If more than CAD $75,000,000 were to be paid, shares will be paid on a pro rata basis. Subject to proration. Tax consequences: Disposition.

Option 3: Do Not Participate. (Default Option)

What would you advise?

Q: I know that China is not your area but what do you think of ...

Baba, after its recent earnings report, which seems good, yet is being punished? I'm up 25% and wonder if I should sell?

And Tencent vs Baba for the next couple years.

Q: Hello Folks
What are your feelings re: holding on to both Kraft Heinz and Starbucks, which are both struggling with their own issues. Would you consider McDonalds a decent bet/ replacement at present as it has been taking positive steps, but is expensive. Do you have other suggestions in this sector?
Thanks for your good work
brian

Q: Hi Team, I realize that dividends are an important part of any portfolio and I know that 5I regards "Drips" very highly and I agree. Since I have no recollection of the investment world with high interest rate, how is "Dripping" affected in a rising rate market in the long run? Especially the utilities and the Bond Proxies.In the past how have names like TRP, FTS, EME performed. The higher yielding names in my portfolio in the utilities space are T and AQN. Should I keep dripping them? I am not worried about the other sectors stocks with dividends just the utilities.Thank-you in advance! Sam

Q: Other than the year 2009, the chart on this company appears to grind up to the right. Would consider this stock to be a good candidate for long term income? It does appear to have a low trade volume, so would that indicate difficulty in selling the stock if you wanted to get out?

Q: Hi team,
Would it be considered to risky to dollar cost this stock or is the stock oversold and can be considered a value play looking about two years ahead?
Many thanks,
Jean

Q: Looking for growth 2-5yrs in a US account with international content. Which of the two do you prefer now?

Q: A general question: Utilities have tanked extremely much out of proportion to the small increase in interest rates.. how must an investor assess whether this can be a continuous downfall or a temporary trend that creates buying opportunity

And how do you rate the chances of comeback for the stocks listed
As well what utility type stocks would be most attractive buys for dividends and price increase

Q: Hi Peter, Ryan, and Team,

I manage a TFSA for my daughter-in-law. She holds 165 shares of GUD and is presently down $419. I know that you're still positive on GUD, but she's beginning to lose patience. Would you be OK with selling GUD to buy COV (realizing its size makes it more risky) or perhaps buying XHC (which we can do commission free) to stay in the same sector in an otherwise balanced portfolio?
She's 49 years old and is using her TFSA as forced savings by adding $100 each month. (I invest the $100 in a commission-free ETF by looking at the 'best ones' and invest in the one that's down the most on the day that the $100 appears in her account.)

Thanks in advance for your insight.