Investment Q&A

Q: Please comment on earnings. Looks like a large miss from here?

Q: A member had asked on the tax treatment for options trading. It is not as straight forward as your answer indicated. It is detailed on http://www.taxtips.ca/personaltax/investing/taxtreatment/options.htm

Q: Do you still expect modest growth from PFE into 2016? What might the impact of the strong US$ be on earnings and results? I have held it for several years for the dividend mainly. I would like to buy WSP instead and know this is apples to almonds, still....your opinion please and thank you.

Q: I hold 6500 shares of Surge Including dividends I am down a little less than $ 9,000 Would you hang on for a recovery or buy Torc or Whitecap It is still less than 5 percent of my portfolio
Thanks
Paul

Q: Can you please give me advice on how to purchase us stocks in the most cost efficient manner.

I do not have very much in consumer staples and would look toward the US side to diversify.

I would consider purchasing proctor and gamble for example and 1000 shares would be > 80 000 $ US.

I have the funds in canadian dollars. I presently self manage my portfolio through BMO investor line.

how would you recommend proceeding with such a purchase in the most cost / fee efficient manner.

would you recommend an ETF in the consumer staples sector instead ?

thank you

Ernie

Q: Thanks for your comments on alternative investments. I would like to know which of PMM or PHE (hedged or not hedged) you would recommend or would I just stay the course with conventional holdings? I would be investing 20K between our two TFSA accounts. The contents are currently heavenly weighted towards income.
Thanks to all

Q: Could you please give an update on theScore? I feel like I missed the boat and would love to take an initial position. As of today it's trading near its 50 dma and is now over sold on the 2 hour chart. Would this be a good entry point at 0.70 cents?

Thank you, Dwight

Q: I bought this etf a year ago. It is in my RRSP US account. The etf is up 7%. Should i sell and buy it back when it dips. It has 0.15% expense ratio. Can you treat these etf's like stocks, or should it be held long term. It keeps fluctuating, so I thought of cashing in. Is it a good strategy. Thank you

Q: There seems to be significant concern/fear/terror regarding the rather sudden and substantial drop in share prices of so many of these stocks (VRX,CRX,CSU, ESL, PHM etc); and the possibility of a change of "sentiment" and sector rotation out of these areas. If I read your replies accurately it sounds like you are saying "we don't know" - which of course makes sense. I am wondering though if there is a way to get some sort of sense of whether or not we are at a tipping point in these sectors.

With that in mind, my thesis is that evidence or indicators of sentiment and sector rotation could take the form of large trading volumes, particularly the big hedge funds taking profits and unloading these stocks.

Us lemmings tend to play follow the leader - often too late, i.e. after waiting and subsequently incurring even larger losses - and sell our shares out of desperation or despair!

If there is any logic to the thesis of hedge fund or other large fund trading activity?

If there is, do you have a way to monitor unusually large trading volumes in these sectors?

So, bottom line: if there is evidence of sentiment change or rotation out .... I want out too and now in order to avoid further losses.

Thanks for your help and guidance with this perplexing issue; and decision making.

Q: Could you please comment on People's recent financial results. Thank you

Q: Hi Peter and Team,

I own G, FNV and SLW representing in total about 6% of my stock portfolio. I am thinking of adding to my precious metals holdings (I like them as portfolio insurance and don't mind the dividends).

Do you think adding another 2% of my portfolio to these three holdings allows for sufficient diversification or would you suggest opening a new position in another company (and which would you currently suggest)?

Thank you. Michael

Q: Hi Team, I want to pay down some debt so I am looking to sell some shares to rise the cash. I know many things come into play but of the following stocks which ones would you recommend trimming. BAD, CNQ, CSW.A, DC.A, DRM, GH, IPL, PKI, SU. Are there any you would remove right away? Let me know your thoughts.
As always your advice is greatly appreciated.

Q: Hi I am a new member
I have look at all your Model portfolio and need to make a decision on how to invest 50k that is sitting in bank saving account not doing much
I am 54 years old plan to retire in 6 years
I think the Income portfolio is well suited for me
I am not sure if 50K is enough money to invest in all 20 equities
Should I pick 10 out of 20 to make my trading fee more reasonable (I have a self manage RRSP trading account)
if yes what would be your first 10 pick in the income portfolio

Q: Hi Peter and team. As always I value your opinion. Presently I have the following health/bio stocks. GILD (US),XLV (US), GUD,PHM,CPH,CXR = 8% of my portfolio. I have just added CPH + CXR.Unfortunately both of them seem to be correcting as of late.
Questions:
(a) would you swap/change any of the present holdings or %
(b) Is the sector overbought and correcting or?

Q: Hi Peter and 5iResearch Team,
Can you please advise on the outlook for Apple. I am up 25%, with Apple comprising 4% of my portfolio. Can you comment on the valuations for technology and the Nasdaq? With valuations at record levels, are these reasonable given profits, economic outlook. Thank you. Linda

Q: Do you see much growth potential for GS in the near future or is it just a income stock. It is well off it's highs for some time now and just don't know if it's worth continuting to hold or use the money elsewhere for better potential for growth.
Thank you.

Q: I see today that Credential Direct has listed Knight Therapeutics(GUD) as bearish in todays alerts. todays's closing was 7.75. and Credential alert is 5.10 - 5.60. Would you recommend selling at this point or holding. Thanks. Ernie

Q: Just a follow up comment and question to my recent question on writing calls on Apple. Sorry, but I think I had the wrong ticker (I see that it's recorded as APPL rather than AAPL; I only realized this when I was trying to refer another 5i member to the answer and couldn't find it by searching the ticker). As a related question, your answer made me wonder if there are some obvious Canadian candidates for doing covered calls (I.e., high volatility, cash-rich, with a dividend)? Methanex? Magna? Thx!

Q: Your answer on tax loss selling was straight forward. but I would like a bit more clarification on average cost / ACB, as I think there may be two averages costs. The first being the "Bucket Method" What is the average cost of your holding in the bucket at time of sale. This method seems to follow all of the CRA's publications on Capital Gains. The second method could be your average cost of your holding for the year. I think whatever method you choose you have to be consistent in application forever. I would appreciate comments on both of these average costs, or is the second average cost just incorrect. Further on taxes is the question pertaining to selling options that carry over December 31. Do you have a Capital Gain when you sell the option / receive the cash or is the Capital Gains deferred until the option expires. As you can buy back the option any time until expiration date and therefore the contract is not closed. I am sure many readers can express comments on the above.

Q: Could I please have your current view on Milestone Apartment Reit as a TFSA holding? Is there another apartment Reit that you would prefer?
Thanks
David