Investment Q&A

Q: My portfolio is overweight in Financials and feel I need to reduce over time. Wells Fargo has provided good returns but I am thinking there is more upside with BNS and TD over the long term.
I am planning to sell my position in WFC and move to a different sector in US$. Perhaps the Consumer Discretionary or Industrial sectors. Your thoughts.

Q: Your opinion please, many thanks.

Q: I am invested in this interesting company that seems to be in the right space but the shares seem sluggish. Should I hang on for the longer term?

Q: I made money on this when it was over $50, and now, after a positive report from the company, it has been dropping like a stone to about $22. I still believe rail will do well, and most of its business is in the US, so maybe now is time to take a half position?
John

Q: Hi there

You answered a question yesterday about OSL.un Onex Credit Partners and said that it might be down because of overall economic outlook and "we would hope to see this one be stronger over a 3 year timeframe." I own OSC.Un which is a similar security I believe and is also down considerably. I am wondering what to do with this fixed income security. I would gladly hold if there is some chance that it might recover somewhat over a few years as I get a good dividend. Are your views similar on this security that if credit markets get better then OCS.Un should recover? A couple of related questions - are the loses in NAV reflecting a ongoing payout of capital and/or permanent impairments or more just a lower pricing of current assets. I would think that with the cash generated by loans that OCS.Un would be able to buy debt at pennies on the dollar?

Thanks

Q: Is there anything fundamentally wrong with this co. Dividend up every year and projected up in next two years by the co. Yet share price continues to fall yielding 9% .I'm confused.

Q: Could you give an outlook for this company.
Any reason of the low shareprice?and is dividend safe?
I am looking at tcn or bip-un as a potential buy.
Which one would you choose and why?

Q: Hi Peter

What is your long tern outlook for these companies,is it a buy,sell or hold. thanks.

selina

Q: I am a conservative, retired dividend-income investor with a pension and CPP. My portfolio includes AD, AQN, ALA, BCE, BNS, CGX, CPG, RY, SLF, WSP, WCP, WEF, ZLB, XIT, Sentry Cdn Income Fund, Sentry REIT, RBC Eqty Inc, TD Health, Annuities and Fisgard Capital.

My question is regarding SLF. I bought it in the fall of 2014 with the investment thesis being rising interest rates and an improving equity market (both supposedly good for lifecos).

I am basically flat (down from cap loss and up from dividends). I am normally almost fully invested and am not a trader. I'm happy to hold SLF, but I think the original investment thesis has now changed. Is SLF dead money for now and is the current environment likely to produce more share price deterioration?

On a side note, I am slightly overweight in financials.

Thanks, Steve

Q: 5i Team -

Can you please provide your analysis on Whitecap Resources? What is their debt/cash flow? Can they survive with $30 WTI over the next Year? How does WCP stack up against CPG? Thank You!

Q: The CEO of this B2B ultra micro was interviewed on BNN recently. Very interesting...
Your succinct analysis please.

Q: Hi Guys,

I am an income oriented investor with the following financial stocks:

Bank of America (BAC)
Bank of Montreal (BMO)
Genworth Canada Inc (MIC)
Gluskin Sheff (GS)
Royal Bank (RY)
Sun Life Financial (SLF)
Toronto Dominion Bank (TD)

They all represent roughly equal value in my portfolio and are all within my minimum and maximum allocation. The overall financial area is within my global limits. I have no additional cash to invest. I have the following questions:

1)Would you sell any?
2)If you would make a sale, how would you replace it in the financial area?
3)Do you see more than a 10% chance of a dividend cut in the next 3 years for any stock?
4)Any other comments would be appreciated.

Please charge 2 credits due to the number of securities involved.

Thanks
John

Q: I am finally looking at converting some of my RIF to bonds in order to get a stable income to add to pension. The funds will be divided equally between CBO,XBB,XHY. I have not invested in bond funds before and would really like to better understand what affects the price movement of these three particular funds. I have done a browse on Moneysaver past issues but can't find anything that really gives me the info I'm looking for. Could you give a quick explanation or maybe suggest some alternative resource ?
Many thanks

Q: What do you think of buying Gibson Energy for future growth and dividend payments? How safe is the dividend? Am looking for 3-5 year plan. Also, does not the commodity price tend to overshoot both up and down? I recall selling my HOD.To and SLV when silver came close to $50 and oil in 2008 or 2009 came way up when Goldman-Sachs said it was going to $200 a barrel. I recall the high overshoots were both spikes and did not last long. Do you expect the low price of oil to be a spike and return to 45-55? Thanks. A great service that you do.

Q: Any chance this stock could go much lower, any upside, dividend stands at 6.7 % right now. What is your take on it ? Thanks and the best for your team in 2016!

Q: Cuf.un and D.un have been in pretty much of a freefall approaching the 2008 levels.They had the dividend then,how do you feel about now going forward.

Q: Sold 1000 sh of 2000 that I own at 3.59 for a 2700$ loss. How safe is the next 1000 sh. Thanks James
Also, if I give permission to be viewed do I also receive an email. If so viewing is not a problem

Q: Was looking at this utility: TTM PE=16, P/B of .93, low debt/equity of 16%, low ROE of 7% and a P/R of 92%. Price has gone up a lot lately - not sure why as EPS on a Q basis has not been that stellar as indicated by low ROE. I already own FTS as my utility unless you count ENB and TRP: so, I know you like - but, why as it seems to be of less quality as the afore mentioned.

Q: I hold shares in Baxalta and am trying to decide what to do. I don't mind selling into the present market at a fair profit but I note shares are trading 10% under the terms of the offer from SHPG, I presume because few want to hold Shire stock, me included. Shire's price action over the last 18 months is pretty ugly and I show a P&F target much lower than here. Any opinion? Thanks, J.

Q: Hi 5i, what range of capitalization would identify stocks in the micro cap , small cap, mid cap and large cap categories. As always, Thanks for your great service.
Ivan