Investment Q&A

Q: Good morning

Can you please give me an update on ird as a possible small cap investment?
Have you become more favorable to the company since your last update in February?
Living in TO they definitely seem to be in the right space for future growth.
Are they a potential takeover candidate?

Thanks very much!

Q: Rajeev asked a question today about CCL.B in which he stated the RSI is now 14. On TD Waterhouse the RSI is currently listed as 55. So the natural question is to ask you what you would use a reliable source for RSI? Thank you.

Q: I just recommended the following to a niece who currently has ALL mutual funds . She wants some growth and income, but probably never wants to look at her investments . As she is likely to continue owning mutual funds, I suggested that she should start a brokerage account and buy the following bit by bit .

1. FINANCIAL BANKS ... BNS, TD or RY
2. FINANCIAL INSURANCE ... SLF or GWO
3. ETFs… XSP, CDZ in Canada , or VGG

What would you suggest ?

Q: Doing some research I have become quite impressed with the Mawer group of funds. For the most part they have done very well versus the indexes both in Canada, the U.S. and world. I have reviewed Maw, 102,108,120,150,106,130,104 and 105.

What is your opinion of Mawer ? Any things to watch out for.

Many thanks

Paul

Q: Hello 5i team. Suspect you've been asked this before, but wasn't able to locate the topic on the Q&A part of your site.

Are you (or any of your subscribers) able to provide a reliable source of information on current payout ratios for Canadian dividend stocks? I've been relying on the Globe Investor 'Watchlist' tool, but sometimes the ratios quoted don't seem right e.g., TransAlta at 27.30% compared to latest edition of Money Magazine at 720%. Lots of dividend-focused websites out there, but the ratios quoted seem all over the map.

Any suggestions would be appreciated. Thanks.

Q: Can you please recommend an ETF that tracks the broader US market, that I can buy with CDN funds. I know you have identified IWO in the past but I don't have US funds and the cost and spread on currency conversion turns me off... It seems you are going to lose 3+% coming and going just on the conversion charges. Thanks

Q: I am contemplating buying some common and preferred shares in utility type companies for dividend income. I understand the Liberals if elected may possibly make changes to taxation of capital gains. Have you heard or have thoughts whether they may also target the favourable tax treatment of dividend income as well?

Q: We are both retired but still eligible to contribute 5000$ to a Quebec sponsored workers fund (FTQ) this year and get a refund on our income tax bill at the end of the year.
The funds have to be held 3 years.
Shall we contribute more or just transfer this holding to our Disnat account?
Thanks,
Serge Lacroix

Q: Any change in outlook on FCR from your last comments back in August?

Q: Hello,

I own NHC and am down 50%. I was planning to hold for the long term as fluctuations are common in small caps, however, I just read that two US law firms are now investigating them for violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.Can you please explain what this violation is? And what does it mean when a law firm gets involved? Does it mean there is a problem or the law firm is just looking to make some money?

Sadly this is my largest small cap holding, I bought way too much in it, about 5% of my total portfolio. Should I sell now or hold?

Best,

Carla

Q: Any outlook on Shire?

Q: is this a turn around story?

Q: My investing approach for my TFSA is to hold high yielding small cap companies with good management. My current holding is SMU.UN-an industrial REIT.
I have identified 3 companies for my next purchase.

Exchange Income Fund (EIF)
Wilan (WIN)
Diversified Royalty (DIV)

What are your thoughts on these 3? Are there others you would recommend? Thanks
DEREK

Q: I currently have the following stocks in my wife's income portfolio
AD
ADW.A
BCE
BEP.UN
ENF
ET
WSP
Currently the portfolio is down 1.44% since purchase.

Of that port I have 17% cash to invest in other income producing stocks. Can you suggest which ones you would reccommend I add to this grouping. Or should I buy more of the same.

All originally had equal weightings.

Thanks

Q: Thanks very much for answering my question on covered calls as it relates to out 5i portfolios.

Your answer raised another question. If, using my example of AYA, you are called away on your call option and you no longer have AYA in your port.

Would you then, sell an at the money put to reesetablish the position using November option expiry ( or further out)?

Is this what you would do using this strategy?

Q: I own a few of this company.Dell has purchased.We receive VM ware.Is this reason to wait till deal settles.

Q: This pref looks to offer a good yield (~6.4%) and a good capital gain (at current price) in 2018. Am I missing something? Thanks.

Q: Hello Peter, after 20 years of mediocre-to-poor investing results (despite being an incredibly smart guy ;-)), I've concluded I'm just either a horrible, or a very unlucky, stock picker. With only 5 or so years til retirement, and with no RSP or TFSA room available, I've decided to build out a non-registered account with, eventually, around 10 companies. I know large-caps aren't your focus, but I'm looking for 'blue-chip' companies, preferably mostly dividend payers, and I'm prepared to sacrifice significant growth for a 'reasonable' assurance of capital preservation. I've started with ENB and TELUS (choices I trust you'd agree with, though you may want to run and sell these now). Can you please suggest a further five companies for this account to acquire over the next several months? (I was considering Cdn Tire for one? Your thoughts appreciated.) Finally, if you could add two similar choices from the US, that would be great.

Q: Thanks for your great service. Any thoughts re EPAM? Recent breakout from consolidated period on chart.

Q: Any thoughts on LOW VOLATILITY CANADIAN EQUITIES INCOME FUND?