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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: Good afternoon,

I am new to 5iresearch, and have been spending the last few weeks researching your Balanced Portfolio.

I am struggling a little with both CXI and CCL. I would like to include them in my own portfolio construction, but am concerned with their recent (significant) price appreciation.

Notwithstanding the various explanations for the recent price performance of both companies, I am simply wondering if you would add to your exposure of both CXI and CCL at current levels?
Read Answer Asked by Trevor on January 03, 2017
Q: I contacted you with a question regarding TCS yesterday and haven't heard anything yet. I will ask the question again in case it got lost in the New Year mail. TCS was a BNN recommendation in mid-2016 in the $10.80 range. Shortly after the recommendation it began trading in the $9 range and basically hasn't done much since. Is there issues with this company? A short note on SHOP - when I see a big drop like the big drop recently I think of Concordia which I had at over $100 and ended up selling at $12. I am concerned that things can happen like that again. Thank you. Dennis
Read Answer Asked by Dennis on January 03, 2017
Q: This is the thesis you offered in early July, on NVDA. It is really about gaming and virtual reality. Its chips have one of the best reputations for speed and quality, both very necessary for these industries. Itis expensive at 25X earnings, but growth should be 40%+ this year. It has $3 billion in cash and generates very strong free cash flow. Revenue growth looks good and it has a solid record (7/8) of beating earnings estimates. It looks like chip applications are widening, as NVDA is also showing good growth from the data centre industry. Autonomous cars are another growing market for the company. It pays a small dividend and we think it is very well managed."

I'm having a very difficult time seeing that anything has changed. If anything, NVDA should be on the cusp of something even better, and yet the Citron thesis says "all the easy money has been made." How can this be? If the easy money has been made, that would suggest that NVDA will be grinding to a halt soon, and yet with the ever-increasing demand for all the areas of technology it covers, I'm at a loss on Citron's approach.

Notwithstanding your usual advice that there are always two-sides to a trade, there still has to be someone who is "more right" ... and I think it's you, and the position you offered in July. Is this still worth a 3 year hold ... my ultimate time frame for this particular account.

Thanks as ever. Happy New Year! ... Thanks for another great year of superlative service!!





Read Answer Asked by Sylvia on January 03, 2017
Q: This is a question and a quick heads-up.
In your latest coverage summary (Jan 3), you continue to show Newalta as having a 10.8% dividend yield. I think they dumped the dividend a while ago.

My question is on Cardinal Energy. If oil continues a slow move up to $60USD in 2017, do you see Cardinal being a solid name to hold? Thanks!
Read Answer Asked by kelsi on January 03, 2017
Q: A senior in his 80s has recently inherited 200,000. We have put 100,00 into laddered GICs. We would like to divide the remaining 100,000 into 4 income investments. We would like your opinion on the following stocks. Income and safety are paramount. Please list them in order of preference and feel free to add any we have not thought of. BCE,BNS,ZPR,ENF,AQN. Thanking you in advance for your opinion
Read Answer Asked by wayne on January 03, 2017
Q: nhc. is this an ok entry point? is management just ok or very poor. Would the new board members be better than the old ones? the lumpy earnings are not convenient to investors ,with nhc making acquisitions and having their best quarters at certain times of the year. in your opinion do the shorts and or Craig Hellum ($2 target) correct in their (dislike) of the company .thank you!2
Read Answer Asked by cliff on January 03, 2017
Q: How would you suggest incorporating non-equity investments into diversifying a portfolio? For example, if an investor owned an office building:

a) Would this satisfy the "REIT" sector component of the portfolio?
b) Should the investor diversify within the REIT sector, and aim to also own a residential REIT, such as CAR.un?
c) Should the income-producing real estate asset be considered a "bond-proxy", thus not affecting the equity sector allocation?
d) Other?

Thanks in advance!
Read Answer Asked by Jonathan on January 03, 2017
Q: Hi Peter and team again
I am looking at my SDRIF.
I have TD and RY in this account. TD has grown to a 10% stake, so I am thinking of selling 50%. What replacement do you recommend? BNS or XCI or other.?
I also have VISA in this account that has been flat all year, also being a 10% stake, I can sell 50% or all. Was thinking of SLF, PWF or STB. I would really like to have high yield investments here. Do you have any other high yield investments to recommend?
I understand this account for two questions. No problems.
Thanks
Margita

Read Answer Asked by Margita Elisabet on January 03, 2017
Q: I would like either STN or WSP and would appreciate your comments on which one is preferable and why.
I have no health care and would like your suggestions for this sector, individual companies or ETF's.
Thank you.
Read Answer Asked by Nadine on January 03, 2017
Q: Les'question today about Alcoa - I think it may be a bit more complex. Alcoa first did a reverse 1 for 3 split and then days later spun off 1 share of a new company for every 3 of the new shares of Alcoa. At the same time they named the new company Alcoa and the old company Arconic. Les' BV for Arconic should be the old Alcoa BV (before the 1 for 3) and his $2,000 BV for the new Alcoa is the BV of the spinoff, so adding the two together he should have GAINED $2,000 in overall BV (probably temporarily). There may be no tax implication for a Canadian holder IF CRA eventually approve the spinoff under S86.1 (they haven't yet, so Les may find the $2,000 reported as a taxable stock dividend in a T5). If and when they do approve Les will have to advise CRA how he wishes to proceed under S86.1 - see an accountant or google several good articles on foreign spinoffs. I intend to file assuming approval and ignoring any stock dividend with an accompanying letter to CRA electing to defer tax and at the same time reducing the Arconic BV by the amount of the new Alcoa BV thus cancelling the temporary increase in BV. Worked for me before on HPQ/HPE and DHR/FTV. Hope this helps.
Read Answer Asked by Fraser on January 03, 2017
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