Investment Q&A

Q: Hello Peter and team, I'm considering adding to my half position in EFN. But while I know it's up nicely over the past year, the recent performance has not been good, including today when it is down in an otherwise buoyant market. Any reason I should hold off?
Also, which of ESP and DHX.B would you suggest I favour (for the long term) if I am adding to only one or the other's position. Thanks as always!

Q: Could you tell me the difference between XEM and XEC emerging markets ETFs. Do you have a favorite ETF in this sector, perhaps ZEM or something else?

Q: Could you recommend 7 large cap Canadian dividend paying companies that have a history of increasing the dividend and are under valued at the present time. Thanks.

Q: Good morning 5iresearch. Would just like your opinion on Adrian phosphate Inc. what does the future look like for this company .thanks alan

Q: Hi guys, again.

Feel free to take your time on this one and dont post publicly if you feel it adds zero value to the discussion.

I was reviewing Citron's twitter account and it looks like they only took notice of Valeant after Hilary Clinton's tweet, promising drug pricing reform. Citron Research's first tweet on Valeant, that I can find, was on September 28.

Do you think its possible, Citron, noticing Valeant's reaction to Hilary Clinton's tweet, decided to only then initiate their short attack on VRX by simply packaging the questions that have always surrounded Valeant in a nice neat report?

Imagining a world where Hilary Clinton never sent that tweet, would Citron have thought of to initiate their short on VRX? Would they have the courage of their conviction to place a $50 price target on VRX?

If you think Citron's report on Valeant took months to research and create, then obviously, the above timeline doesn't work out as Hilary first commented on drug pricing reform in late September.

So which do you think it is? (1) Citron was working on their report previously and independently of Hilary's comments or (2) Citron noticed the weakness in Valeant's share price, after Hilary's tweet, and smelling blood in the water, were opportunistic in deciding to create their short report.

Thanks again for your insight.

John

Q: The Valeant short-seller (Andrew Left) was on BNN today:

http://www.bnn.ca/Video/player.aspx?vid=732841

I have to say (in my opinion) that the above video does not paint him in a good light. It seems this whole story is more about sensational headlines than material evidence.

Q: Any idea what is going on with CXI? Is this just volatility or something more than that?

Thank you for your expert opinion.

Q: I have held PHX for years - mainly for the income but (once upon a time) also for growth as well. Now both seem to have disappeared.

I am considering a switch into BDI (Black Diamond) once again looking for income (~10.4% yield) and growth (currently beaten up but showing signs of life). Could I please have your opinion:
Stay with PHX; or move on to BDI or would that likely be a frying pan/ fire scenario.
If so, any suggestions for another company with income and growth potential.
Thanks for you help.

Q: Hello Peter
1-Please list one or two sector that should do well in 2016 ?
2-What are some stocks that will benefit in these sectors .

Thanks
Claudio

Q: Peter and Co.
I have 3% in Canadian healthcare stocks, CRH and PHM. Would you buy CXR today? Is it catching a falling knife or has it started it's rebound (up 18% yesterday.)
To me it looks like it has a ton of upside, but I don't think I could handle another PHM haha! cheers

Q: Tax related question after reading various post about stocks in different accounts.
If I buy a stock in a non-registered account and then buy the same stock at a different price in an RRSP or TFSA, no dollar cost averaging will take place here right? It is safe to say it only happens when a stock is bought at different prices in a non registered account?

thanks,

Paul

Q: My friend, age 59 and recently widowed, is interested in investing “a few dollars” to get some growth. Her modest portfolio would be just under $100K. Although she and her husband worked hard all their lives, her husband’s serious terminal illness took away much of the equity they had built.

On the plus side, she has no debts, owns her home outright, has a small pension of $750.00 per month, and works part-time, which covers all her needs. She plans on working as long as she can and plans to be able to contribute $300 per month on a continuing basis, to her TFSA, so she doesn’t foresee touching any of her capital for the next 10 years.

My very real concern is: should she be in the stock market at all? Granted, if needs arise, she could sell her home which would conservatively net her $500K. But, in the meantime, there is a very thin financial cushion between her and any serious financial needs. If she gets ill and is unable to work, that $100K could disappear very quickly. She has no disability insurance.

She says that at some point she will sell her home. As such, I thought it might be better for her to wait to get those funds in hand before jumping into the market. She prefers to start now. Her bank has advised her with a handful of mutual funds, but she would rather not.

Given the above scenario, what would Peter advise to someone who came into his office? Would it be wise, in any way, to get into the market, with some conservative companies and/or ETFs? If so, would you please suggest what percentage of her funds might be prudent for her to invest, and which companies/funds she could start with?

Thank you, sincerely, for addressing this “real life scenario”. My friend’s situation makes me think there are so many more people, just like her, who struggle with this same problem, as they near their retirement years.

If you feel this would be useful to the general membership, feel free to publish.

Q: What is your view on ZUH? Is it and the sector breaking down or just a setback? Would you add to the position.

Q: I believe the best Seasonal performance for lumber is NOW and going forward until April ... What is your fave ... Canfor, Western, Interfor, Acadian ? . ADN and WEF have decent dividends in case something goes haywire short term ... or do CFP , WFT and IFP which have low dividends perform better seasonally : or is this a dumb way to make investment decisions ? .... Thanks.

Q: It may be that some of the money leaving Valeant is going into more established names like Gilead. Its up over 6% today.

Q: In previous comments about this company, you expressed some reservations as you felt there was a lot of competition in the space. I have Sirius in my car and think the product is excellent and I am not aware of any competition. Could you elaborate. Thanks, Bill

Q: What are your thoughts on LND & GXI are these good buy at todays price.

Q: I have a reasonable weighting in dh and am thinking of buying more. Your thoughts on it going forward. Also, is their revenue stream/cash flow consistent? Or maybe other names that have a better risk/reward than DH.
Thanks guys

Q: Do you recommend Tax Loss Selling? Is now a good time to do it for Guestlogix, Patient Home Monitoring, and Questor Tech.

Thanks, Colin

Q: Valeant Pharmaceuticals and Concordia in the last few days have been absolutely punished. What has been the rational as they are currently at ridiculously low PE's and seem to have a strong balance sheet and pipeline. Is this a good buying opportunity?