Investment Q&A

Q: I am 65 years old and this is what I have in my RRSP(my income account). Everything except Win (has 2%) has about 1 full position (5%). I have about 50k still to invest. What would you do with it, and what do you think of the present allocation?
TRP,Tog,RY,NA,LIQ,FTS,CVE,CWB,BNS,ALA,G,BEP.UN,EMA,TMA,and T. Short of the market totally collapsing, I am ok with market gyrations.

Thanking you in Advance
John

Q: I was looking at this preferred share innergex power 5.75% ser C perpetual price of $18.50 yield 7.77% and callable in jan18. Can you please explain the biggest risk with this type or security outside corporate risk ? Am i correct to assume that the yield of 7.7% is only until jan 2018 and the yield thereafter will be the terms of reset or is it a perpetual 7.7% ? Thank you

Q: My question is not about Wajax specifically, but using Wajax as an illustration in the context of my question.
In previous answers, you have repeatedly expressed a leaning towards shedding losing stocks and replacing them with others currently showing promise, on the premise that there's an opportunity cost involved in holding the "loser".
Assuming the company (Wajax in this case, on which I'm down almost 50%) is a well-managed company, and in the absence of known problems, and the company is merely being battered by economic conditions WHICH WILL (EVENTUALLY) TURN AROUND, wouldn't any replacement stock have to double in value (including reinvested dividends) before reaching breakeven? And isn't it likely that the loser stock, Wajax in this case, will likely double in value sooner than (almost) any replacement stock (provided the replacement isn't of substantially higher risk profile)?
Or, to put it a different way, isn't the opportunity cost of continuing to hold the losing stock effectively nil?
Thanks for your and your team's continuing effeorts to educate us! Lotar.

Q: Hi Team , I have 10k that I want to invest in a TFSA account, I wont need these funds for 5-10 years, Im thinking of 3 options , invest in your equity model portfolio picking appox 10 stocks with a 10 % weighing, # 2 invest only in ETFS , or # 3 split the 10 k between the 5 banks , BMO, BNS, TD , RBC and NA... does any of these options look good to you? .....or do you recommend an option 4 ???
For option 1 can you recommend some of the stocks to pick ? and also for option 2 can you recommend some ETFS to pick ?

Thanks

Q: Great article in the Globe concerning this co. Give a good dividend 3.9% .. what are your thoughts on a possible entry point. Respect your opinion.

Q: Would appreciate your opinion on this company and if you consider it
a "buy" at todays price.Thank you.

Q: The stock is up 300% in the last year. Refinanced 25 million of debt with BNS and recently upped guidance. The new management has turned this company into one of the best gold plays.Do you see anything else I am missing here? This is my best stock YTD and I know 5i likes momentum.

Thx

Q: Are you guys frustrated or growing impatient with the lack of excitement, or acquisitions from Sylogist? iam.

Q: Dear 5i

I came across this comment from Otterwood Capital Management today:

"The fundamental event which could initiate a dollar selloff would be an announcement from the International Monetary Fund to include the Chinese Yuan in the SDR basket (see my post here for more details). The last decision was made on November 15th, 2010 so we should expect similar timing for this year’s decision. If included, roughly $1 trillion of global reserves will move into Yuan, largely out of US dollars. The decision would be positive for Chinese risk assets and by default, negative for the US dollar.

The US dollar is at a crossroads and the ongoing consolidation is running out of time. One way or another it will break out of the range and an unanticipated US dollar selloff would lead to significant repositioning and volatility."

This is the second time I have heard about this in a week. I just wanted to get your opinion on this scenario and what, if anything, you would recommend doing (i.e. would this be a good time to sell some US stocks?).

Thanks for your great service.

Q: I have a relatively well diversified portfolio and would appreciate your perspective on how the top-up contribution of $4,500 to my TFSA might be invested. I'm looking for growth opportunities as opposed to income. Please provide a couple of suitable stocks.

Thank you
Rossana

Q: .give your assessment of this stock,please

thank you

Q: Hi Peter what is your take on the high volumes and price on this stock in the last few days.Who do you feel is buying ?
Kind Regards
Stan

Q: Hi...what are thoughts about POT. It is near a 5 year low. I purchased it mid forties. Is it worth holding? If not, what would you replace it with. Thanks for your time.

Q: I have seen PHM beaten down from $1.50 to approximately $.50 over some recent controversy. It appears that management is good and their results remain very good so no fundamental change in the companyto warrant such a large drop in valuation. I'm I missing something

Q: For investing books, what would you guys recommend for the middle of the road, fairly experienced, investor, thanks?

Q: I have held this company for some time and I'm down significantly on it. I lost money on it back in the day when it really was a tech company. I'm a slow learner. The stock hasn't done anything in the last 5 years except loose value. Over the last month it is down almost 8%, 16% over the last 6 months and 26.5% over the last year. In 5 years it has lost 45% of its value.

I'm not sure about its business model. To me it is bordering on extortion and I'm not sure how much growth there is going forward. The company put itself up for sale and no one would touch it. The only ones making money on this company are the lawyers.

I've lost patience and am going to sell WIN. I guess your metrics make it a 'B' on your report but I don't understand keeping it in the 'Income Portfolio'. The dividend looks very attractive, however, the decline in share value has more than eaten that up.

Q: Hello 5i Team

Seems like the writing is on the wall for some growth in the Fintech industry. I believe the Big Banks will be acquiring the more promising companies. Are there any Canadian companies that are "investible" in this area at present? O you have your eye on any?
Cheers and good luck fellow investors!

Q: Hi Peter/Team what is your opinion about pure energy . Thanks for your great service! Jim.

Q: Thanks for the earlier response regarding a u.s. Dollar denominated bond fund. I was surprised that you offered something trading on the tsx. Don't know why, but i thought it would have been bought on the american exchanges. I also meant to add but didn't that i would be looking for something similar to cbo.
Thanks

Q: My position in BCE has crept up to almost 8% of my portfolio which feels a bit high. Its currently trading within 5% of the 52 week high so I am thinking of reducing the position a bit (to around 6.5%). I would like to replace the yield, div growth and risk profile. I was thinking of adding to my BEP.UN holdings (now at about 3%). My telecom total holding is now at 10.5% and my Utilities/Industrial holdings are about 12%. My Brookfield company (BIP.UN and BEP.UN and BPY.UN)holdings represent 13% now. Your thoughts on this move please. Many thanks