Investment Q&A

Q: Hi Peter, Ryan and all,

I am a rational DIY investor who adheres to the diversity mantra but I am considering a slightly radical move. Here's the thesis, which is about energy: at the beginning of the year my oil and gas exposure - 6 stocks, all solid choices - was already on the light side at about 8% of my portfolio. Just shy of 1/4 through the year they are down a cumulative 10% (9% including dividends). My thinking is that:

a) global demand will be flat-ish, as non renewable energy sources gradually gain strength, off setting increasing demands elsewhere.

b) it's somewhat amazing that the OPEC production cut is holding but I'm not confident that it will long term, which could lead to the spigots being turned on full blast again.

c) technological gains mean a decreasing cost to extract every last drop of oil, as evidenced by the Americans in the Permian Basin and elsewhere.

Bottom line is I'm not buying the global oil inventory coming into balance scenario meaning further pressure on prices. That 8% of my portfolio figure is now 7.1% and dropping. Contrary to oil I have been knocking it out of the park on the tech side - 10% of the portfolio - with NVDA, SHOP, KXS, OTEX and AT and am considering getting right out of energy and deploying that 7% into tech and healthcare.

I am well represented in all other sectors except materials - don't like the volatility - so would then be skipping two sectors.

I know this is a deeply personal investing decision but your thoughts are appreciated conceptually.

Thanks!

Q: I have owned Savanna Energy Services (SVY) for several years. There are two takeover offers for this stock. The three choices I have for my stock are:
a) tender my shares to Western Energy (.85 shares of Western and $.21 cash offered per SVY share).
b) tender my shares to Total Energy (.13 shares of Total and $.20 cash offered per SVY share).
c) do not tender my shares
In your opinion, what is the best choice.

Q: Two children ages 11 and 15. $5000.00 just being put into a self directed RESP.

Stock suggestions please?
Pat

Q: Re Amaya after all they went through in 2016 does Company have good leadership for the future. Any comments on their top people ? Thanks Bob

Q: Hi, my advisor suggested I sell na as it is an all Canadian bank ,and buy Zwb or sit on cash.
I'am a investor for dividends mostly and some growth. Do you think this is a good move,or is the switch even necessary. I assume if I went to cash it would be see if there is a correction and buy at a later time?
Thanks for your comments,Brad

Q: Hi, I have held STN for years, remain just above break even. Considering a switch to WSP for better dividend and growth. Your thoughts on this move? Have also held SJ and KBL for years, have done well but both seem weak lately, would you recomend any potential replacements, or just a hold pattern? Thanks, Lavern

Q: New fund,believe IPO was $10.00 in December. why would anyone now be selling below $7.50 in only short time. Is it good long term hold if the price of oil is going up? What would be MER. (including expenses) Is Mr. Nuttall's (P.M.) track record worth the investment (high fees). Risk/reward.....Cec

Q: I want to buy CLL.b but wonder if buying it now, 50 shares,then ending up with 250 after the split, is wise, or should I wait until after the split and buy 250.
Thank you,
Helen

Q: I have read that some of the big US media companies are going to start allowing people to view newly released movies at their home (for $30-$50) only shortly after it is released to theaters. How much of a concern do you think that is to Cineplex as a long-term hold?
Thank you.

Q: Athabasca Oil is a disastrous long-term holding in my trading account. My purchase price is $3.87, with the current price at $1.40. I'm considering buying enough shares to average my cost down to about $2.00. Would you recommend doing that? What is the long-term outlook for ATH? Thanks for your thoughts.

Q: I am looking to add to my current position in Boyd. This appears to be a great opportunity, but, ever the nervous Nellie, I am looking for hidden pitfalls to the pullback with relatively huge volume. Am I being overly cautious? Thanks for everything.
Larry

Q: Could you comment on recent results and going forward ?

Q: Hi 5i,
This stock has been a beauty for me. Up 30% and a dividend yield that is 4.7%. In my portfolio, instead of owning three banks, I chose one bank, one lifeco and this residential mortgage insurer. I am comfortable with this diversification in financials and with the real estate risk associated with MIC (have a 10-year horizon).
The mortgage rule changes in late 2016 did not change their story, but I know the ongoing housing issue in the GTA certainly has the potential to change their story. Is there an early-warning signal in housing that I can/should watch for?

Q: I want to build a somewhat buy and hold portfolio that has a decent dividend. What are your thoughts on ZPW, ZWH, ZWC and what percentage would you give to each? Another possible portfolio would be MKC and MUS.
Your thoughts - thanks

Q: I would love to see a 5i indepth report on SHOPify to fully understand different aspects. This company seems to be growing great guns. It is now over 8% of my portfolio and I am tempted to let it run. My rationale being that this is a company which is doing e-business for thousands of other companies in different sectors. In that sense it is a well diversified entity in itself (or so I convince myself). What are your thoughts?

Q: I am light on tech/growth stocks. Plan to add 3-4 names to total about 10-15% of portfolio. Want growth,can take fair degree of risk. I am considering the following- KXS, SIS, PHO, ITC, OTEX. Any preference among these or any better ideas?
Thanks Jim

Q: I know US companies are not your focus however I wanted to get your thoughts on selling GE and allocating some US$- in my rrsp.
I am an income investor and currently hold ZPW-U and ZWH-U in equal weight re investing the dividends monthly. I also have a small position in JNJ and a larger position in GE (7%) of portfolio. I am concerned GE really isn't going anywhere and am considering switching to something with a better outlook any suggestions etf or stock to add here... or should I continue to hold?
I already hold VGG in another account...

Q: Please comment on KBL's recent quarter. I believe earnings will be released March 24. Thank you.

Q: Hello,
I recently subscribed to your ETF/MF newsletter. I have looked over the site but I didn't find a section there for asking questions (might have missed it). In viewing some of the ETF performance tables I did not see a column to indicate whether the income is paid out on a regular basis or reinvested in ETF units. My fee for service investment planner has advised me to use more fixed income vehicles to reduce income slightly caused by the gross up of Cdn. dividends in my equity portfolio but I would still like to get the income on a regular basis.
In regards to this perhaps you could comment on VSC or suggest a similar short term laddered bond ETF and a similar emerging market income ETF(with adequate liquidity).

Thanks in advance ..... Larry

Q: I'm looking for a safe place to park some money. You've mentioned CLF but could you explain why its price chart goes straight down and do you expect this trend to continue? Also, what might make it rise? Thanks.