Investment Q&A

Q: Home Capital was once a 5%+ weighting in the Balanced Equity portfolio; now it is under 2%. Are you more inclined to add to the position here or cut and run, particularly since the P/F now has 23 positions and your stated preference is for 20? Also referencing the seeking alpha report is this a case of where there's smoke, there's fire?

Q: You mentioned in a previous answer that AVO would not get a premium valuation for a very long time. I was wondering if you can elaborate more on this? Is this because of the lowering of prices and also the dept increase?

From what I gather they are trying to increase their market share (which I think is currently 2%).

Thank You,
Andrew

Q: HCG getting clobbered again. Can't see any reason. Can you?

Sheldon

Q: 17% of my portfolio is in REIT,s. Is this to high a weighting or should I reduce. I am holding REI.UN, CUF.UN and CRR.UN. Equal amounts. If I am to reduce, which one do you recommend I should sell?

Thanks in advance

Q: What would you suggest replacing QHR with(staying in the same sector)? Do you have anything lined up as a replacement in the growth portfolio?

Q: Paul Colbourne continues to purchase stock in the open market. Another 65000 last week. My question is can the CEO still be buying his own company shares if he feels the company will be taken over or is PC buying because he feels the stock is cheap. His previous history speaks seems like he knows what he is doing.

Q: Good Afternoon,
There hasn't been any discussion in regards to Africa Oil (AOI) in a long time. Where do you see this name in a few years? Also do you still believe a sale of the company is their ultimate exit strategy?
Thank-you.

Q: I've owned this stock for a few years and it's done well. What are your thoughts?

Q: I am looking for growth + income and trying to identify stocks with a decent value position. What are your thoughts on Hammond Power Solutions? Do the recent earnings have a significant effect on the decision to buy and hold longer term (for me that's 2 + years).Thank-you.

Q: Could I please have your opinion on trilogy energy.

Q: I have a question about Manulife Floating Rate Senior Loan Fund (MFR.UN). It pays a monthly dividend of .0563 (annual div .68) at today's share price of $8.48 for a yield of 7.96%. Is this riskier than a preferred share? Does the floating rate change monthly? Or is it set annually or on a longer period? This investment could be in my RRSP or TFSA account.

Q: Memex Inc., OEE, is a small company that looks like it has a chance to grab a share of the Internet of Things platform for industries. Their web page lists interesting case studies with real corporations accompanied by many credible customer testimonials. It seems very risky and currently suitable only for mad money but it is one that might be worth keeping an eye on. No dividend but could be a growth story. Would be interested in your thoughts. Thanks, Phil PS Sorry, for all the repeats.

Q: Hi all at 5i... I have a query ....what is a better investment at this time..an individually owed, mortgage free, rental property versus a REIT? So I drew up a list...at least as far as I can see, ..pros and cons. The rental property...pro- I have a tangible asset which can generate a monthly income and hopefully appreciate in value over time. Con- I enter the world of becoming a landlord with all of its issues. There is the cost of the up keep of the property. The question remains, how much more will the property appreciate given the fact that the market is very high already. The REIT ...Pro... No landlord headaches...A steady stream of income...others that do the buying and selling of the properties held and a diversification of properites. Con...success of the REIT can depend on the management team, the market can fluctuate and interest rates can change and effect the valuation of the REIT. As far as my exposure to real estate, I,only own my own home and a goodly amount of stocks and bonds. A small percentage of the stocks are Reits. How would you weigh in on this...and could you suggest some Reits that are investment worthy. Thank you, Tamara

Q: Over the last 5+ trading days MRG.UN has been moving down from a recent 52 week high ($13.65). Today MRG.UN closed at $12.95 and moved below its 50 day moving average. As well, recent daily trading volumes are frequently higher than their average volume. Today for example, the volume was well over two times the norm, albeit the average daily volume is only about 26,500. I also noticed late today - on the TMX site, that RBC appears to be doing the majority of the selling of this stock. I would appreciate your thoughts re this REIT. I hold 2000 units that I purchased at $10.00 several years ago. I SO appreciate your expertise. Thanks.

Q: Hi Peter and Ryan,

Can you please provide an update of your opinion (July 6, 2016) on Dynacor. Seems like the market is starting to catch on to this company.

Thanks

Dave

Q: Hi Peter your thoughts? Amphastar Pharmaceuticals (AMPH) It seems to be the maker of narcan for fentanyl overdoses - big problem these days. How's the company itself? Other suggestions due to generics now? Thanks.

Q: Hi 5i!

New member and I have found your wealth of knowledge very helpful in providing guidance for a relatively new do-it-myself “Core & Explore investor” and have prompted me to make some changes to my investment strategies and portfolio. My question is “Core Portfolio” management based and specifically regarding switching to Index ETFs from Index Mutual funds. I’ve been a regular monthly contributor to my RRSP built up and directing most of my funds towards a TD Canadian Index Fund TDB900 – e series and a lesser amount to the same e series TD International Index Fund TDB911 as they have very low MERs of 0.31% and 0.51% approximately. My strategy, since I dollar cost average into the indexes, is to continue to contribute to these TD mutual funds monthly but then funnel from them to ETF index funds so I can take advantage of the lower MERs of the ETF. Could you recommend ETFs to replace my current TD mutual funds? Would you also recommend adding a DOW Jones Index or another US index? What ratios would you consider appropriate for a portfolio? Any other thoughts are welcome and I’ll save my “Explore portfolio” questions for a later date.

Cheers!

Q: I own a portfolio of preferreds...both reset and perpetual. Many of the Perpetual shares have returned to $25 and above. I want to role out of a few of these names and buy some other perpetual shares that have some upside potential. A name I came across is INE.PR.C. The investment currently yields 6.5%. DBRS rates it as PFD 4 high which is about as low a credit quality as you can get. Yet the market...as well as the comments on your service seem to like the common shares. Also the price in reflection to the yield seems very mispriced in the current preferred market. Is there something I'm missing??

Q: Given the 2 Aug 15/16 press releases regarding Q2 earnings and commencement of issuer bid/revised bid terms, what actions would you recommend with the goal of optimizing a shareholders situation? I've been advised by their investor relations rep. that BV/share is $8.85 at June 30. Disregard commission costs if selling in open market at certain price is recommended as these costs are negligible in my case.

Q: pih has pulled back lately but still up a lot over the last 52 weeks, earnings the week of sept. 12. what is your opinion on this company. dave