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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: For 2015 it was most beneficial to be invested outside Canada. I calculate the cost of the Euro rose 6%, the Pound 12% and the U.S. dollar 13%.These are major changes. There seems to be a rush for investors to invest even more outside of Canada. In my mind if I look at a U.S. non hedged etf or mutual fund I would need to subtract 13% fx change off the posted return to get a pure equity, apples to apples comparison. Keeping in mind trying to play the fx guessing game is pointless, do you see a real danger in loading up on foreign equities after such quick and substantial devaluation of the Canadian dollar. When the Canadian dollar does turn around there will be significant drag on the non hedged returns.

Paul
Read Answer Asked by paul on January 04, 2016
Q: Hi,

I have cash to deploy, I cannot decide what to do about my energy stocks.

I have WCP (2.8%), TOU (1.8%), and BAD (3.5%)

I realize BAD is only about half exposed to energy.

My target for energy had been 10-12% with a max of 3 stocks. If you include BAD, I am currently at 8%. My full position for a stock is 4%.

Would you recommend I top up these stocks, or readjust my target for energy and wait for better times?
Read Answer Asked by Mike on January 04, 2016
Q: Here is an easy question (or not). Are we in a bull or a bear market? Obviously oil and the base and precious metals are in a bear, but if we take them out, is the rest of the market in a bull market?
Read Answer Asked by Christopher on January 04, 2016
Q: I seem to recall reading somewhere that if the ROI is higher than the EPS this is positive for future share price growth. Using data from RBC Direct for DOL, the ROI is double the EPS. I take this as a positive sign for share price growth.

I am comparing DOL with GIL as I only want to keep one and based on the above I intend to sell GIL. Both companies have a rather high EPS.

Would you please comment on my analysis and do you agree with my conclusion?

Thank you
Read Answer Asked by Richard on January 04, 2016
Q: pih hit a new high. vol. is light. is it a buy? good Q recently.
Read Answer Asked by bob on January 04, 2016
Q: I plan to transfer 500 Bns shares from my cash account to my TFSA account.
I withdrew funds from my TFSA in 2015 and wish to replace these funds .
The record dare for the dividend is Jan 5/16 . I plan to make my transfer on Jan6/16
My question is , first is my dividend safe and will the dividend get paid to my TFSA account which is my goal . The dividend payment date for Bns is January 27/16
Lastly can you tell me how the swings in the Canadian dollar affects the price of the stock . If th C dollar falls to .68 cents what effect will this have on the stock price .
Many thanks Richard
Read Answer Asked by Richard on January 04, 2016
Q: what is your appraisal for Microsoft. short and long term. thanks
Read Answer Asked by chet on January 04, 2016
Q: It is my understanding that as of January 2016 the "private equity market" will now be available to all investors not just "high" wealth investors.
Could you comment of this change and whether or not ordinary investor's should pursue this opportunity?
Read Answer Asked by shirley on January 04, 2016
Q: Hi,

I currently own HCG as part of my "financial" stocks. It is currently at about 2% of my holdings. I also own BNS (4%) and SLF (4%) as part of my financials. My target for financials is 12% (max 3 stocks). I also own HR.UN in about the same weighting for REIT exposure.

At today's prices, would you suggest increasing HCG to a full position (4%), sell it and switch to something else (ie. EFN or CXI), or do nothing?

Thank you

Read Answer Asked by Mike on January 04, 2016
Q: My experience with these funds in the last few years is that at maturity I have received about
3% less than what I paid. I assume that the interest paid makes up for the 3% and then some, but the damage such as it was was done and I didn't bother to reconcile it.

I was trying to keep a 3 year ladder for withdrawals from a RRIF. I have since moved on to HFR and CBO. This year I may put a year's worth of withdrawals in an ISA
Read Answer Asked by Leonard on January 04, 2016
Q: What is the dividend payout ratio currently?
Also, what is the book value per share and how does this compare to US business development companies?
Thanks!
Read Answer Asked by Michael on January 04, 2016
Q: Hi Peter and Staff
I know you are high on this stock and it's been a top pick in a few post replies for 2016. Globeinvestor shows a forward P/E of 8.37. What would you have and from where ?. At 8.37 it would seem to be a back up the truck buy?
Thanks for all you do and all the best for 2016
Dennis
Read Answer Asked by Dennis on January 04, 2016
Q: your thoughts on Dundee as a value pick on the discount to BV
Read Answer Asked by edward on January 04, 2016
Q: Can one construct a portfolio based on beta. In other words can you structure it in such a way that if the overall market declines say 1% you portfolio would go down .3% therefore a beta of .3. Just wondering if this makes sense. Thank You
Read Answer Asked by roland on January 04, 2016
Q: Where would the ordinary guy find estimated next year growth for a company. I have brokerage accounts with TD & ITrade but can't seem to find this information. Also, is comparing next years estimated growth to PE a good way of deciding valuation.

Thank You
Read Answer Asked by Craig on January 04, 2016
Q: Good morning Peter and Team,

Is the thesis for PUR still there? How much of their revenue come from oil and gas compared to municipal? It has been beaten down to 1% of my portfolio so do you recommend I top up to a reasonable weighting or let it go? Thanks,

Wes
Read Answer Asked by Wes on January 04, 2016
Q: My strategy for TFSA's differs from most because of age and income needs. Would you consider CYH to be a good choice for a monthly income or would you have a better choice. Thanks for guiding us through the most difficult of years (2015) and good investing to all 5i members and staff in 2016.
Read Answer Asked by Alan on January 04, 2016
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