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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 to admit that I am truly puzzled be the way the shares have dropped today to around $11 below the new share issue price. I was expecting that the shares night trade around the issue price of about $86 Canadian or slightly below. But $11 seems very excessive. What am I missing? And what does the market know that we don't? At the very least I would have expected the underwriters to maintain the share price close to the issue price in order to successfully market the shares. Where do you see the shares going from here?
Read Answer Asked by John on September 25, 2015
Q: Dear 5i,
I currently own Concordia (3%), Gilead (3.5%), JNJ (1.5%,) Baxter (1.5%) and PHM (.75%).
Given the recent developments of CXR and PHM, I am considering adding 1% of one of these companies (CXR or PHM). Which do you think would be the better of the two for a 2 to 3 year hold. Or would you recommend something else in healthcare?
Thanks for your services!

Read Answer Asked by Brian on September 25, 2015
Q: Hi Peter, I finally said uncle on AVO and sold. I know it may go back up (even though the chart is horrible) and I hope it does for those still holding it, but selling it felt Soooo Good :) Its nice not to see it next to the strong stocks I have left and If it turns around and you become more positive on it again I will consider. Thanks for your great service and have a great weekend.
Read Answer Asked by Paul on September 25, 2015
Q: Please give your thoughts on this options ETF and general comment on options etfs.
Thank you.
Read Answer Asked by Howard on September 25, 2015
Q: Not a Question Just a Thx.I am not normally a trader but on Aug. 25 I sent an email about SGY and it was trading at $2.00 then (the same as what it sold the asset to TORC for in April.%5 i helped me pull the trigger and I bought. I thought the risk reward looked good so I bought and have since sold at 2.75 plus 1 divy (still holding a 2% position).I think PC will manage the company thru this downturn so I am still holding a position.
Read Answer Asked by blake on September 25, 2015
Q: hi peter

this new issue perpetual preferred is coming out at 5.25% this month... do you think this will be a good preferred share, many have been beaten up lately as their rates reset, do you think this will be different as the rate is fixed? the yield and safety seems enticing... thanks
Read Answer Asked by michael on September 25, 2015
Q: Good day, may I have your opinion on paragon offshore please?
Thanks
Seamus
Read Answer Asked by Seamus on September 25, 2015
Q: Given the tight Federal election race, in the event of a NDP or Liberal win, are you aware of any major changes they are proposing to the taxation of dividend or capital gains income? Thanks.
Read Answer Asked by Gary on September 25, 2015
Q: Hi Peter.

Came across this useful article on TFSAs. I wasn't aware of the difference between "successor-holder" and "beneficiary" designations and thought other 5i members might find this of interest.

http://www.advisor.ca/tax/tax-news/tfsa-designations-may-cause-estate-planning-problems-183045?utm_source=EmailMarketing&utm_medium=email&utm_campaign=Brokers_Newsletter?utm_medium=Newsletter&utm_source=Personal%20Finance%20Reader&utm_type=text&utm_content=PersonalFinanceReader&utm_campaign=129908129

Cheers,

Scott
Read Answer Asked by Scott on September 25, 2015
Q: ok the issue has been priced 65.00 us which translates into about 86.50 cdn, cxr is trading a 2 dollars below issue price, what i am having trouble understanding if the ebita increase is going to be that much greater than the stock dilution when the deal closes, why did the stock go down so much and why did cxr price it here. secondly i know you like cxr and think the selloff is a bit overdone, would you buy more at 84.50.it seems most analysts see this stock going to 125 in short order. dave
Read Answer Asked by david on September 25, 2015
Q: Hi Peter I hold a large position in dh I did almost a double on it .My thinking is to sell half of dh and buy a position in pot to capitalize on the uS div.which I need .
Can I have your thoughts on this.
Regards Stan
Read Answer Asked by Stan on September 25, 2015
Q: NMI has a P/E of less than 4 or an earnings yield of almost 30%.
It must have some kind of non-recurring earnings, I think. I would be grateful for your opinion.
Read Answer Asked by Graham on September 25, 2015
Q: What is your opinion of this Reit which I own , and the advisability of taking up the proposed share rights offering ? Thank you




Read Answer Asked by Harold on September 25, 2015
Q: I hold Ing Floating Rate Sr Loan Fund, Symphony Floating Rate Trust Units,& Mint Income Fund Trust Units in a varied portfolio, and would value your opinion as to buy , sell , or hold in the present climate. Thank you.
Read Answer Asked by Harold on September 25, 2015
Q: Can I have your opinion on this Chinese online retailer.Also do you think there is much downside risk at this price.
Would you purchase this stock at this price?
Thanks Gord
Read Answer Asked by Gordon on September 25, 2015
Q: Hi 5i,
Subject to the usual reservations about it not being a stock that you cover and being a US stock as well, what do you think of Western Digital’s situation at present? I’ve held it for a long time because I like data storage as a longer term theme but, if you look at a multi-year chart on it, it seems to have run all the way to the top of the mountain and nearly half-way back down. The result appears to be an increasingly significant dividend yield (2.8%) and an increasingly attractive P/E (11.6x according to my online broker). But are they likely to run into shrinking earnings that would call both of those measures into question? Are there other measures that may indicate I should be re-examining the investment thesis at this point? Thanks!
Read Answer Asked by Lance on September 25, 2015
Q: The stock has been dropping everyday? What are you current view about this company. Should I sell, hold or add more. I have very small position.
Thanks
Read Answer Asked by satish on September 25, 2015