Investment Q&A

Q: Hello Peter and Team,
Given the weakness in lumber prices, would you recommend Home Depot as a better way to play U.S. housing than lumber stocks such as West Fraser Timber? Do you have any companies you would prefer to either?
Thank You,
Barry

Q: Regarding iFabric….2 questions. First they were just listed on the TSX and secondly the insiders own 77% of the share structure. I understand that these are both positive conditions. However could I have your comments. Thanks

Q: For the "balanced" portfolio, the target % for transportation is 5% and the current actual is at 2.6%. The existing equal weight % positions are CNR and TFI. I would like to add to this sector in CDN and/or US dollars, say at least 2 more positions What are a few names you suggest would be a good mix with the existing ones, for me to consider within a portfolio managed 5iR approach?.....Thanks....Tom

Q: How many stocks should one own? I have a position in most of the stocks in your BE portfolio and have supplemented that with smaller positions in some of your Growth stocks. I recognize this is not the intended use of a "portfolio" but I am comfortable with my sector and risk weightings. Also a very long term investor for what it's worth. All that said, what is your opinion on per-security weightings on a whole-portfolio basis? Should an investor stick to about 20 securities (the number in the BE portfolio) with bigger positions? Any harm in owning 30-40 different securities or otherwise?

Q: Gentleman/Ladies

I see you last update on BIR was sometime in Feb. Has anything changed since then regarding BIR

Q: Good day

Your comments on XRE.UN please

Q: The security is WisdTr Europe Hedged Equity Fd

Your thoughts on this security please.

Q: Your last comments on this little company were about a year ago. Since then it has almost doubled market cap. Volume is now averaging 150-200k. Things seems to be happening. Any comments you may have on this company would be much appreciated as I am looking to add to a tiny position.
Thanks as always.

Q: Peter and His Wonder Team
Please compare First Majestic Silver and Pan American Silver in terms of balance sheet, management, reserve life and overall value. Which one do you think is the strongest going forward? Is there another Canadian silver company that you think tops these?
Thanks for your excellent insights ...they are invaluable to retail investors who are just wanting respectable returns on there investments!
Dr. Ernest Rivait

Q: Hi
What ETF’s would you suggest for an 18 year old starting out with a new TFSA, and non-registered account?
Income is desired and would be “tax free” since the TFSA and Personal Exemption Credit would shield it from tax.
I’m thinking:

35% XIU
20% XSP
15% Mawer International
30% XSB or some QUEBEC 4.5% Dec2019 I own

I’m tempted to sprinkle some beaten up sectors like XEG, XRE or XFN, but I’m leaning towards the main indexes to avoid beating myself up for picking the wrong stuff.
How does the allocation look? And the strategy?
Any suggestions?
Thanks

Q: can you explain why the volume traded for example on td bank on friday sept 18th was so high? Other stocks were the same, ie bdi, sj, wfc, atd.b etc. I looked at a 3 year chart of td bank and the volume yesterday was huge and way higher than anything over the 3 years.
thanks

Q: When assessing the prospects of a junior oil and gas company, given the current commodity price levels, how do you determine if the debt level poses a low, medium or higher risk - what metrics do you use? For example how would you compare the debt levels of Raging River (RRX), Rock Energy (RE) and Surge (SGY) Energy and the health of their overall balance sheets? You’ve mentioned previously that RRX has a rock solid balance sheet.

Q: Semiconductor companies represent about 5% of 'folio.
For some reason, the logic of which escapes even me, I am not worried about other semis I have , all of which are down. But Micron has me puzzled. Micron's continuing and rapid descent looks similar to an object trying futilely to escape the powerful gravity of a black hole.

I look at MU's financials and my lying eyes see only a beautifully valued company. I lie to myself and pretend that I do not fall in love with my stocks , but I do. I have thus hung on to Micron. And now I rationalize (illogically) that it is ridiculously cheap,so why sell now? Am I wrong ? Do you see much more downside? (I refer herein to Micron , not more downside on my reasoning or logic).
Do you advise sell?

Q: Would appreciate your analysis of BEP. Why include it in the Income Portfolio rather than BIP or BPY? For total return, would it be better to owm BAM instead?

Thanks

Q: I am thinking of increasing my positioning in NFI. It has held up well in the current market, pays a reasonable dividend and I think, should have some growth in a positive U.S economy, even if interest rates increase by 25 basis points. How significant are insider holdings? Institutional holdings? and has the increase above $1 billion mkt. cap.already been priced in. Another sentence ending in a preposition. thanks for all you do.

Q: Can I get your thoughts on PPL.PR.A? Is this a good save investment now that preferred shares have dropped back in price?

Q: I purchased shares of ABT at $9.88. Recently received a Corporate Action Notice for a Voluntary Dutch Purchase Offer of the following:
Option 1: "Auction Tender" whereby I would specify the price I want;
Option 2: "Purchase Price Tender" whereby I accept the price determined by the Company.
-OR-
Do Nothing.
Suggestion? Will these shares see $9.88 or better in future?
And, please explain the taxability of these options. Thanx

Q: BMO have ETF's that have "covered calls"
Could you explain what a covered call is, and are there any tax implications with these products?

Q: In your Sept 18 answer on covered calls you say BNS Jan 60 call is 1.72 and if you sell a covered call you collect 1720. It should be only 172 (1.72x100).
Steve

Q: Thanks very much for your Canadian ETF suggestions below. You mentioned I did not specify Canadian, or otherwise, so you have suggested Canadian ETF's. I would be interested in international ETF's, or a mix to make a strong portfolio. If you have some international suggestions, that would be very helpful, although, in my RBC DI account I have the option to invest in US or Canada, I wouldn't know how to invest in other markets.