Investment Q&A

Q: Peter, I would be very interested to get your opinion regarding the recent news that AAR.UN has closed a deal to develop a 60-acre parcel of land in Vaughan, Ont. The $128-million project in partnership with Scannell Properties includes a plan to establish a state-of-the-art distribution and sorting facility to serve the Greater Toronto Area. The tenant, FedEx, has entered into a 15-year lease.
Good news or ???
Thanks to you and your team for your valuable "service". We don't make an investment move before checking the 5i Members Questions.

Q: I am looking for some beaten down oil co for my US portfolio and I understand the sector may be volatile for a while but I am looking for some growth and excitement. I am open to any other sector if you think this may not be the right one. I do hold FEZ,IWO,QQQ,VIG,BRK.B and SLW.
Regarding SLW with US thinking of raising intereset rates wouldn't that be a headwind for gold and silver and with the US $ getting stronger are these ETF's ok to hold for the next 2-3years? Your opinion please.

Q: Is VNR a Stock that I should be holding my portfolio. Eddie.

Q: Who are the top 5 mutual fund managers out there now in 5i teams eyes, also what does 5i think of the tangerine mutual funds?

thanks

Q: Any good books you can suggest for
Investing

Q: Need to reduce my bank stocks.Would you sell BMO or TD?Thanks Paul

Q: I am thinking of adding one of these vanguard etfs (VGH or VGG) to my RRSP portfolio
for a medium to long term hold. Is there any parameters to choose between the two:( VGH is hedged and VGG is not.)

I would like your opinion as to which one you would choose- with the Canadian Dollar hovering around 80 cents US

Thanks

Q: Hi Peter and Staff: A good number of insiders have been buying (including public market buys) last few months. Is there a significance of to this activity?

Q: One of your correspondents proposed that the T1135 reporting threshold were based on "highest fair market value at the end of any given month." But this is not the case; see, for example, <http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/frgn/1135_fq-eng.html> which states that the threshold "is based on the cost amount. The cost amount is defined in subsection 248(1) of the Income Tax Act and generally is the adjusted cost base and not the fair market value."

It's worth noting, further, that "specified foreign property held in an RRSP or a TFSA is excluded from form T1135 reporting requirements."

Finally, it's possible that foreign securities held for the purpose of day-trading are also excluded (though the FAQ is rather vague on this point.)

Lots more useful guidance in this FAQ.

Q: Hi Team. Is there any new I may have missed which might account for Constellation's recent (and quite wonderful) share price gains?

Thank you, Peter

Q: Good Morning

Would you know if owning shares of BAM.A requires CRA filing of form 1135 when held in a non registered account. I can't seem to tell if this is a company that reports to the IRS or not. I know that BAM.A trades on Toronto, and BAM trades on New York and that the home office is in Toronto.

Q: In response to one of the previous comments about Teletubbies freaking him out. I lived in the UK at the height of the Teletubbies mania and my kids and all their little friends could n't get enough of the show.
It was incredible how it had such an impact both with kids and even the parents. That's why I think DHX is onto a real winner particularly their exposure to China. Wait until the M & L really kicks in.

Q: Could you comment on the investigation happening with HSBC and should I be selling at this time, thanks.

Q: Peter, here’s a challenge of sorts for you; I hope you can help. We are about 5 years from retirement. Our RRSPs and TFSAs are topped up, so we’re starting a non-registered account for excess savings. We have no need for income from the account (though, as you’ve said, it’s a good sign when a company initiates or grows a dividend). Can you suggest around 6 or 7 ‘lowish-risk’ stocks for long-term ownership? By this, I don’t mean we’re unduly concerned about volatility or short-to-medium term losses. Rather, we’d like stocks for which you think a loss of more than, say, 25% after 5 years is highly improbable. We are already topped up on banks, energy producers and REITs, but are probably a bit light on IT, Industrials and consumer stocks, amongst others. To add to your challenge, we already have fairly full positions in FSZ, SJ, WPK, ESL and DHX, all of which have done well for us, thanks to you! (ENB, DSG and BIN seem like possible candidates? But we’ll leave the advice to you.) Thanks for the TRULY excellent service and the unbiased guidance you are providing to us smaller individual investors. James

Q: This stock continues to get hammered and still hasn't cut its ultra high dividend.Even when oil makes a bit of a uptick it still goes south is this stock that at one time had promise dead in the water ?

Q: Hi team,

I'm working on diversifying my portfolio with a canadian media company. I have been looking at Corus Entertainment (CJR.B). I'm a bit concerned with their relatively high P/E ratio for the sector as well as the drop in their EPS form 1.7 to 0.6 recently. I like their 5% dividend payout, but wonder if this is sustainable given their reduced profitability.

Do you think corus's profitability will improve or continue to decline? Would you consider it a good option to buy at present or would another stock such as DHX media be a better purchase (even though teletubbies freak me out).

Thanks,
Jill

Q: Hello, I have a small position in this stock. Since I purchased it, it has increased in value by 15%. I am thinking of adding more to my position. The stock has a ROE of 50%, a P/E of 3.3, trades at double its book value,has a 5.5% yield and has exceeded its profit projections on the last two quarters. On this basis, it appears to be a excellent value. My question is "am I missing something?"

thank you for your response.

Regards, Alan

Q: Hello,
I have very little fixed income in my portfolio (7% GIC's) and feel that I should probably increase this as I will be retiring in 3 years. What are your thoughts on adding ZLC, to bring my fixed income up to about 11%.
Thanks
Roy

Q: What are your thoughts on FRX : TSX as a spec play?

Q: Good Morning Peter, Ryan, and Team,
This morning it was reported on BNN that a larger competitor of Avigilon, "Axis Communications" of Sweden, was purchased by Canon of Japan. The price paid was $2.83 billion US. From a pure technological perspective Avigilon appears to have the best end to end mouse trap. How do you think this transaction will affect Avigilon going forward and do you think that AVO may end up being acquired by someone as well ??? Thank you for your wisdom and insight. DL