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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 have transitioned a substantial part of my own RRSP from mutual funds to individual stocks & other investments, with the help of 5i (thanks! Done quite well), over the past 3 years.

My wife is still reluctant to do the same, so we are transitioning her RRSP from mutual funds to ETF's, with only one purchased so far. The specific ETF our advisor put us in was BMO ZDV. At the time, I specifically wanted an ETF with lower exposure to the energy sector.

Unfortunately, we bought in at the August 2014 peak, and are underwater by 20%, even after distributions. Moreover, the distributions have been steadily dropping since we bought in.

Is it time to bail out of this ETF, and if so, what would you replace it with?

Thanks.
Read Answer Asked by Lotar on July 07, 2016
Q: Hello Peter,
I own sj, csu, esl, and gib.a. All of them are down more than 10%-15%. My weightings range from 2 to 4 percent. Is it best to just keep the weightings as they are for long term or reduce them. Much appreciated.Umed
Read Answer Asked by umedali on July 07, 2016
Q: I have recently received a notice that AX.DB.F is to be redeemed. One option is cash ($1000 per unit)and a second option is a share conversion. In the latter case, Artis is offering 64.5 common shares per $1000 unit. This is equivalent to a conversion price of $15.50 which is nearly two dollars above the present cost of an AX.UN share. Such a large gap doesn't seem right. Can you clarify? I believe this is a full redemption and I must choose one or the other of the options.
Read Answer Asked by richard on July 07, 2016
Q: I'm considering buying this stock on valuation basis and growth potential. In your answer to a question regarding this company, you also mentioned its 7x pe as cheap. But a principle of buying cyclical stock is when its pe is high compare to historical level because it maybe in trough earnings period. So how should we handle this conflict perspectives?

Many thanks!
Read Answer Asked by Dong Sheng on July 07, 2016
Q: I'm trying to understand SYZ. It's a fabulous company but little known. There is strong insider buying and the company is aggressively buying back shares. The share price has moved steadily from $6.60 to the $10.50 range. It isn't widely followed by the market. 5i has been the big supporter to date. My concern with the stock is that the upward movement in the share price appears to be directly due to the company buying back shares. If the company stops buying, what happens next? I guess the question is how does a small company get broader recognition and a wider following to push the price higher on pure market conditions? When the company isn't buying shares, the trading volume is usually very low.

thank you
Read Answer Asked on July 07, 2016
Q: I noticed that you sold igm in your model portfolio and made a comment about being glad not to be in the mutual fund business, as this month they are required to disclose all their fees. I notice that igm hasn't been doing well lately. I am kicking myself because i did not get out when you did. I know you don't have a crystal ball, but i was wondering what your feeling is about igm? Best to bail out now, as it may continue downwards or hang on for possible upside before selling. If i had sold when you did i would be fine. Now, i am a little down. C'est la vie, eh?
Thanks
Read Answer Asked by joseph on July 07, 2016
Q: Hi there

I wanted some feedback about putting about 5% of my portfolio into Preferred shares for income purposes for over a 5 year hold. I know I could buy the preferred ETF CPD but have been hurt before in ETF bond funds so feel better buying two or three individual issues where I know up front what I will be getting in return for at least the first few years. Would it be possible to provide three preferred issues that you would recommend for income?

Thanks so much
Read Answer Asked by Stuart on July 07, 2016
Q: Hi .. I'd like to hear your thoughts on the privatization plan for MGO .. more info. at http://business.financialpost.com/news/agriculture/migao-corp-ceo-already-companys-largest-shareholder-makes-bid-to-privatize .. my "advisor" bought this for me 5 years ago at $4 .. also, your thoughts on the broader implications vis-a-vis Chinese companies. thanks, best regards Patrick
Read Answer Asked by Patrik on July 07, 2016
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