Investment Q&A

Q: Good morning,

I understand that AMLP.US ETF that tracks the performance of a basket of energy infrastructure - oriented master LPs. Assuming that the oil prices will be up from here in 5 years and given that this etf currently pays out approximately 9% dividend, I would be interested to hear your view regarding the suitability of this etf in a RRSP in terms of downside risk and dividend sustainability. Thank you.

Q: I hold 'IBG.DB' debentures maturing 2019 June 30 in my TFSA.

If the shares appreciate above the conversion price, then the debentures become a kind of option on the shares, with interest income while you wait. In this case, it seems to make the most sense to sell or convert just prior to maturity (as holding to maturity would mean receiving back only face-value.)

On the other hand, IBI might at some point call the debenture away at face value, in which case the option value disappears. How do I make a judgement on the likelihood of the latter event? Am I missing something as concerns incentives not to hold to maturity?

Q: Network media group Inc. (nte.v) went up a lot for last few days with very large volume. Can you tell me what are reasons behind it?

Q: Peter; Would DBO be a natural fit for either CGX or IMAX? Thanks.Rod

Q: Hello, I am a new member and have some questions. I am almost 30 years old and have a new, manageable mortgage. My TFSA stock account values at appox $20,000 with additions of $250/ month. I'm needing to build up my emergency fund and currently own 500 shares of AYA, 220 shares of IT and 200 shares of SLF. I'm hoping for some guidance. Thank you, Katherine

Q: The recent 5i Globe & Mail article referred to a method of transferring Cdn to US dollars by means of using Interlisted stocks. Where on your site can I find more information on this.

Q: I have a full position (5%)in BCE, would it make sense at this time to sell all or reduce this position and take a position in KXS?

Peter

Q: I know your focus is not in the US but just wondering your thoughts on this one. I have positions in Wells Fargo and JP Morgan and was thinking of selling one of those to purchase Aegon. Thanks.

Q: I have unfortunately owned these pref shares since first issued as EPP.PR.B. They then became CZP.PR.B and are now as noted and related to Atlantic Power. I don't really understand the corporate relationship. However they are a fixed reset and were reset in 2014 and now yield about 10% on their current price of $13.85 or about 5.6% on their issued price of $25.
Please provide your thoughts on this security. Is it worth a continued hold? Do you ever see the market price ever approaching the issue price? Do you consider the pref share dividend to be sustainable? They are unfortunately held in a registered account so no capital loss if sold.
Thanks

Q: One would think that DRT could provide services to the extensive rebuild in Fort McMurray, both residential and commercial. I don't hear anything to this effect, your thoughts please.

Q: Starting to look appealing from a technical standpoint. Would you be supportive of taking an initial position around $6.50 (given appropriate time horizon and risk tolerance)?

Q: I read with interest your recent article in the Post and was intrigued by the comment that research shows 90% of portfolio returns come from sector allocation - if a person wanted to take advantage of that, in a simple, easy to manage and inexpensive way (ignoring taxes for the moment) what would be your view be on an approach where one's equity component of their portfolio consisted entirely of a number of ETF's with each one of the ETF's focused on a particular sector, with a periodic (say quarterly) rebalancing? What specific ETF's would you suggest for such a portfolio? Thank you.

Q: It would appear that much of the success of leading tech/internet companies like Google and Facebook (which I currently have shares in) can be attributed to their ability to align themselves with, and then capitalize on, emerging technological and communication trends in society such as internet information gathering and social networking.

For investors, serious money can be made by identifying and forecasting such trends and identifying, at an early stage, the companies that can best capitalize on them by dominating the niche (think of the number of search engines that had proliferated before Google became the go-to web-browser of choice).

Based on this line of thinking, could you name a few companies that you consider best positioned to capitalize on emerging trends in communications and technology (Canadian or US)? Is there any hope for TWTR which seems to be in the right place at the right time but has been a basket case so far?

Q: I am in the process of creating a balanced portfolio and am underweight in commodities area and would like your recommendations on an ETF.

Q: What does it mean when a company is a good allocator of capital ? Can you please give a few exemples as part of your explanation ? Thank you.

Q: What is your view on TOS regarding their prospects going forward? What do you think of their current fundamentals? Are they close to being cash flow positive? I like the fact that they have very low debt.

Clarence

Q: On May 5, They offered a pursuant to private placement which consisted of 18,666,666 units @0.375cdn/each unit, consists of 1 share & a warrant for another share for .50 with a 5 yr. duration. My question is does this company appear that attractive to you. Why would the share price climb after that amount of dilution. I assume there must be other news as for what they are going to use the funds for that I'm not aware of.

Q: K-Bro is near an 18 month low. The dividend is now 3% and I'm tempted to buy it as a long-term hold for relative safety and some income. (I'm content with 5 or 6 percent long-term annually.) But I'm a bit concerned about the 'falling knife'. I've read your recent comments on the company. Are you aware of any new or more serious concerns to explain the drops? Do you suggest I wait, or is this as good a time as any to buy? Thanks!

Q: On the "growth profile" discussion, I am wondering if you have estimates on the expected growth in earnings/revenues/and cash flow for DHX Media. My broker has no information on these.
Many thanks.
Mike

Q: CWB & NA recently declared provision for loan losses related to energy loans resulting in sharp drop in their stock prices.Meanwhile the big 5 Canadian banks are doing well with 4 reporting next week starting Mar.25 & BNS on June 1.What will the effect when they report their results & loan losses? Please advise if I should sell some of BNS & the 4 prior to release of results.Always appreciate your great services & views.