Investment Q&A

Q: I own both aw.un and boston pizza bpf.un, wondering if you
prefer them to reits? thanks

Q: Good day,
I have been considering trimming if not selling my insurance exposure out right because of falling interest rates. With more and more Central Banks experimenting with negative rates it is possible that eventually Canada and the USA try out negative rates. Would there be any merit in selling GWO,MFC,SLF to buy FFH? My rationale is I could maintain some insurance exposure but if the whole system implodes (this is why they are considering negative rates to begin with because traditional monetary stimulus isn't working), clearly there must be some risks of a black swan event out there. Like you, I don't like to go zero weight any sector so this way I could maintain insurance exposure but also have down side protection? Or should I keep it simple and simply reduce my insurance weight.. Thanks.

Q: With csh up 5.6% since Feb 29 acquisition news, do you its
better to wait for pullback to buy?
Thanks

Q: Looking to potentially add some U.S. Healthcare stocks in a RRSP. We already hold JNJ.
Any thoughts on GILD vs. UNH or MRK or COO...how would you rank these?
Thanks so much.
Anne

Q: Hi 5i: I am down a little more than 20% in each of BOS, DRT, KXS and MAL. AS far as I can determine, there is nothing fundamentally wrong with these companies so I am planning to hang on. What would you advise? Are there any I should sell?

Q: Hello Peter,
I’m looking to build up the higher quality part of my portfolio. I’d like to add a few reasonably stable, well-managed companies that pay at least a 2% dividend and that have a decent likelihood of longer-term modest growth.
Based on today’s markets and prices, can you please suggest 6 good Canadian candidates (including one REIT), and 4 US choices (or international if traded on our or the major US exchanges).
Please do not include banks or oil & gas, which are already well-represented, nor the following which are also currently held: BAM, FTS, T, HCG, BCE, or ENB. And could you agree with KBL being one of the 6 Canadian options? Thanks! James

Q: I have held Enercare and Just Energy for approx the same amount of time. ECI has performed very well while JE is stagnant. Both have provided a Nice Income Stream which is important. I am considering selling JE and adding to ECI for Income and growth. I am reducing my income but expect that dividends as well as the stock price will grow. ECI's position would become approx 3% of my total holdings.

May I have your opinion on this move and some of the reasons.

Thank you,
Brian

Q: chartwell and sienna (sia) and extendicare (exe) have been trading well lately, their payout ratios and dividends and earnings look solid

is there any reason they cant continue to make new 52wk highs? are valuations too stretched in this space or does the growth that these stocks have deserve the valuations?

thanks

Q: What is your view of Northern Blizzard's 2015 results and do you like them as a name to own in the oil sector? Thanks,

Q: I have been following this stock for some time and feel it is a good opportunity. Do you agree.

Q: Hello Peter and the 5I team

I have noticed a decent decline in the KBL share price. Do you see this as a good buying opportunity? My discount brokerage has some data on the company, PE of 25.6, PB of 3, ROE of 13.8, about an average of 2% div growth over the last few years and debt of 0. Do these numbers jive with your numbers?? Would you consider this a good buy for a long term hold or is there better more stable companies with div growth to go to? What is your opinion of Management? What are the possible future hurdles for this company?

Thank you

Q: Peter and team:
I am down 30% on G and it represents about 1/2 weighting (2.5%) in a portfolio modelled much after our BE portfolio.
I missed the switch to AEM when you made it last month. Would you still recommend the switch in light of recent movements by both. Also would you suggest topping up with cash to bring holding to full weighting(5%) at this time, or wait for a pull back. Time frame is 10 years+ (hopefully).

Thanks as always.

Phil

Q: Hi Peter and Staff
Just took your advice to another reader and dumped a small position in LRE- would like to use those $ to add to a small position in one of the 5 above? Which one and why please .
I have been away but add my name to the list whom Ryan impressed on BNN- very confident in his answers

Q: What do u think of a bought deal at these prices? Would u buy it?

Q: As a followup to John's recent question on VIX, the ETFs VXUP and VXDN have minimal liquidity on most days and appear to have poor correlation with the VIX. May I get your comments on using VXX and XIV as vehicles for trading S&P 500 volatility. These ETNs have excellent liquidity.

Thanks, Tim.

Q: I currently owed some Rona preferred shares and now that the circular is out what you do think someone holding these shares should do?If I wish to convert to the new series I must let my discount broker know.I did buy at a lower price so I am not in a loss position.I hold these shares in my RRSP. If the ex-dividend date is March 14/16 and I sell the stock after March 14,would I be entitled to the dividend?
Thanks
Dolores

Q: I have a 4% weight in CM in a portfolio heavily weighted to financials. I have already crystallized some capital gains this year and was planning on waiting till next year to sell my remaining position in CM, proceeds to liquidate an investment loan. I have heard that the upcoming budget may change the tax hit to capital gains from 50% to 100% which would speed up my plans to sell prior to the budget announcement.
Based on your connections do you think it likely that the Liberals will make this change?
What is the date of the Budget announcement?
CM go s ex-dividend on March 23 so when can I sell and still get the next dividend payment? i.e. Is ownership for dividend purposes based on the selling or settling date? If settling date than could I sell on March 18 which would settle on March 23?

Q: I have read your answers to 2 questions on this today and I believe your answer may be confusing some people. you have said both times, "you can sell UP TO AND INCLUDING the dividend date"
The up to part is not right as if you sell before the ex div date you will not get the div. only if you sell on the ex div date or after, not up to. Is this a misprint or am I reading your answers wrong?

Q: If you owned the Long Run debentures, would you sell them into the market right now, or wait it out? What do you feel is the current risk of the deal not going through at 0.75 on the dollar?

Q: I have limited exposure to Europe / Emerging Markets. Do you think it is a good time to invest in either of them and if so how would you do it? What are the best ETFs? Would you use a CAD hedged ETF/am I correct in understanding that buying a CAD hedged ETF would protect against the CAD appreciating?
Thank you as always.