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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: I am trying to make a spreadsheet where I collect the best stocks I can find with different metrics and ratios and rank them. When I say best I think about quality and predictability, not price. Since these stocks will be from different industries, what metrics and ratios should I use to compare them against each other? Or maybe I must ask what ratios and metrics should I NOT use to compare stocks from different industries against each other?
Read Answer Asked by LARRY on March 16, 2017
Q: Is BB stock on the cusp of a price turnaround? BB software is currently used in over 60 million vehicles including all the big name manufacturers. BB recently inked a software contract with Ford. In addition, according to some analysts “BBRY can be the intelligent infrastructure system provider for the new collar industry" -- next-gen jobs that are a hybrid of blue collar and white collar -- "which we think could be 10% of [a] $200 billion infrastructure spend, or $20 billion,” It seems to me BB has the talent to continue to develop the new age software but can they execute?
What does 5iR think?
As always thanks team. Chris
Read Answer Asked by Chris on March 16, 2017
Q: Enbridge has a long list of preferreds, with two sets of symbols, PR and PF. What is the difference between the two classes? I was specifically interested in ENB.PF.V - any adders in the grass here? I realize volumes are very small, but this is for a buy and hold account. Finally, how come the preferreds are doing better than ENB and ENF? Thanks.
Read Answer Asked by Kurt W on March 16, 2017
Q: Would you be kind enough to rank these companies as to your current preference & explain why? How does the insider ownership play a factor? Would the long term chart comparisons, figure into your decision? With interest rates possibly moving up in the USA & the Canadian real estate mkt. rather extended & a Federal budget on our doorstep, your comments greatly appreciated. Thanks for the hard work. Ken
Read Answer Asked by Sue on March 16, 2017
Q: For US tech I own NVDA,BIDU, FB and GOOG. BIDU has been underperforming and I am wondering about your opinion of it from a growth perspective. I am considering selling it and adding to the others.
Read Answer Asked by Paul on March 16, 2017
Q: I have owned IPL, PPL & KEY for many years & as a result have built up substantial capital gains & continue to receive very healthy monthly dividends. My question &/or query is whether to continue with these very staple equities or sell all or part to better deploy funds in other sectors. I do not NOW hold any direct oil or gas investments; having sold all in early 2015 as I firmly believe the oversupply of oil & gas will only continue to grow throughout the world until we have replaced it with alternate technologies. Your comments are always appreciated. Thank you.
Read Answer Asked by Robert on March 16, 2017
Q: I am concerned about a correction in the market (both USA and Canada) and am wondering if I should take some profit given the great run over the last 4 months and hold some cash for better buying opportunities should the correction occur later this year. Recent analysts on BNN are also calling for a defensive position with holding cash. What do you think about this strategy and what percent of a portfolio would you suggest to have in cash? Does 10 to 15% make sense? Thank you for your great service.
Deborah
Read Answer Asked by Deborah on March 16, 2017
Q: In my overall portfolio (RSP, RIF, Unregistered & TFSA) my low weighted sectors are:
2.5% in Telecom (BCE & T);
3% in Consumer Staples (WPK & ATD),
3% in energy (RRX, SPB, WCP, VET);
5% in Materials (SJ, SLW/FR, RUS);
6% in Health (GUD, SIS, ECI, CRH, CSH.un)
With the sale of RDM, I have some cash in my RSP which is mostly 'Balanced' equities. Which one or two of my underweight sectors would you consider the first place to deploy the cash in my RSP at this time? And what would your top stock selections be - of either my existing stocks, or new ones ? As always, thank you for your help.
Read Answer Asked by Alexandra on March 16, 2017
Q: I think I know the answer to this however I need to ask anyways-if someone is just interested in collecting dividends and a small amount of growth, and for simplicity, why not put the vast majority of your investments into the various Brookfield companies-throw in a bank and large oil producer and walk away. The history of the Brookfield companies is very good and I figure if they go down hard, the whole economy is in serious trouble. Your thoughts?
Read Answer Asked by Bradley on March 16, 2017
Q: I have accounts at multiple CDIC insured lenders. One of them is Oaken Financial which is composed of CDIC insured Home Bank and Home Trust. I'm concerned about the ongoing problems with parent Home Capital; one thing after another. What's your best estimate of the likelihood of a bankruptcy, serious financial issue etc.with Home Capital which would trigger defaults at the subsidiaries so that I would be dealing with the CDIC regarding my GICs. Thanks
Read Answer Asked by Tim on March 16, 2017
Q: I originally bought ERF when the energy sector was flying and there was a good dividend. I didn't move quick enough to sell it when the market dipped and I still have about 1.41% weighting in ERF. The dividend is too low to hold for that alone and I have been waiting for a bounce that makes it look attractive again, but I feel I should move on.
Other energy exposure is SPB 4.57%, WCP 1.31%, FRU 0.7%, SU 0.54%, BEP.UN 4.88%,
I would like to retain some energy exposure and like the idea of income while waiting for growth. Assuming that I am putting these stocks in the correct sector, is this about the right exposure to energy at this time?
What would you recommend as an alternative to ERF, or should I just keep it?
Read Answer Asked by John on March 16, 2017
Q: I am so far under water on BDI that I am tasting mud, and a little bit underwater on PD. I am thinking about taking the loss on BDI and dumping whatever pennies I get back into PD as a means to tidy up my portfolio. (I also own small positions in VET, WCP, and SGY - all under water as well.) Does this seem like a reasonable approach for someone with a reasonably long time horizon and a belief that the world is going to need oil for quite a few years yet - even if only as a feedstock for other processes?

Thanks - and congrats on the new baby. Exciting times in at least one 5i household!
Read Answer Asked by Dave on March 16, 2017