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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Do these latest financing deals mean it might be time to get in now. Thanks
Read Answer Asked by David on January 30, 2015
Q: Hello Peter,
As we go into February, what do you think of the North American markets? Are we looking at a correction, is it an ageing bull or we are in the middle of a secular run? Should we trim positions, raise cash and wait for the buying opportunity to happen; or should we put the additional room available in RRSP and TFSA to work at this time? Do the markets go risk off on interest rate hike in 6 months or are they all in with small and medium companies betting on the growing US economy? I do not sense a clear direction. Perhaps you can show the way.
Read Answer Asked by Rajiv on January 30, 2015
Q: Hello,

ZPR is now down over 5% ytd. This seems to be more than interest rates concerns. Has the credit risk increased? Any ideas why the preferred market is being hit so hard?

BTW, I noticed that the credit ratings of CPD holdings has been removed from their website. I called Blackrock about it: they said they would find out and call me back, but they never did.

Thanks, Greg
Read Answer Asked by Greg on January 30, 2015
Q: I've been looking at Methanex in view of the dramatic price drop. Further big drop today despite better earnings announcement and reasonably optimistic outlook. On the other hand 40% of earnings related to O&G industry. Would you consider this worthy of a buy or more like a falling knife? Thanks for your opinion.
Read Answer Asked by richard on January 30, 2015
Q: Barclay's is predicting the USA will experience a negative CPI in 2015. What would be the best sectors to be invested in should we find ourselves in a deflationary climate? Thank you.
Read Answer Asked by Richard on January 30, 2015
Q: Hi 5i,

Part of my core holdings is CWB. I am attracted to the 20+ years of continuous profitability and dividend growth. It has now declined to the point where it's nearing 9x PE & 1.4x BV.

At what level would you say it becomes way too compelling not to add more to the core? It's a 4% holding currently.

Thanks,

J
Read Answer Asked by JAIME on January 30, 2015
Q: Peter and team
I have one trading account that holds fairly aggressive and volatile securities. The oil portion of this is: BDI, DEE, PD,PPY,SGY,SPE, and QST.

I am willing to wait things out, but my question is are there any of these that are not likely to survive a prolonged downturn. IE could you please rank in order of "survival".

Thanks for all you do

Phil
Read Answer Asked by Phil on January 30, 2015
Q: Hello, on your recommendation I bought Enghouse and am very pleased. It seems like a perfect investment in that there is very little news, it kind of flies under the radar and you look at it a year later and it has had a nice move. Although in a very different business, Winpak's stock behaves similarly. I would like to add Winpak's to my Tfsa. Your thoughts would be most appreciated. Bill
Read Answer Asked by Bill on January 30, 2015
Q: Carnival Cruise Lines, is the parent company to several cruise companies including Cunard, Seaborne, Princess, Holland America etc. An investor holding at least 100 shares is eligible for a shareholder benefit (reviewed annually)in the form of an On-Board Credit of up to US$250 which I believe is a tax-free benefit. I see that a number of analysts are forecasting significant growth over the next few years. What is your opinion of CCL as a US investment?
Read Answer Asked by Geoffrey on January 30, 2015
Q: Are you still OK with EWH? I bought it about 14 months ago and I must be up around 37% straight dollars and I suppose 42% with the currency fluctuations. I read in the paper how the economy is imploding in China and the banking sector is a looming disaster, with the banks over extended, so I am wondering if there is any truth to all the negative news. I have a 3% weighting in EWH and it is my only Asian exposure.
Thanks
Read Answer Asked by James on January 30, 2015
Q: Reading previous responses, 5i appears to suggest treating all accounts (cash, RRSPs, TFSA) as a whole when considering how diversified a whole portfolio is. There is also a suggestion to place higher risk (growth) names in TFSA accounts because of the potential tax benefits. I agree with this approach and am considering both mine and my spouse's accounts as one large portfolio.

What is the suggestion if I were to setup a new RESP for a young child? For instance, if I initiate $5,000 position in a high growth name such as DHX.B, this may be a small weighting in an overall family portfolio, but now I am basically betting the future child's educational funds in one stock. If the child is very young, high growth is desired, but is this the right approach? Or should I be trying to diversify the $5000 into multiple stocks (perhaps 5 stocks at $1,000 each)? A list of some potential stocks would also be appreciated. Thanks!
Read Answer Asked by Mike on January 30, 2015
Q: Hi Peter and 5i team, We saw how U.S. markets have rallied thanks to Fed's QE program. Can we expect a similar stock market rally in Europe thanks to ECB's $1.2 trillion stimulus package? If so what's a good way to play it. Any ETF that you would recommend?
Read Answer Asked by RAJITH on January 30, 2015
Q: I have just read your answer to Dale (Jan 29) and would like to know if you believe DEE and Surge have "survivability" in this downward spiral of oil prices?
Thank you and your service is much appreciated.
Deborah
Read Answer Asked by Deborah on January 30, 2015
Q: Hi:
I've held TRP since 2008 through the ups and downs of XL excitement. I am now having doubts that even if it gets approved, that it will do much for the price of the stock. I am seriously considering selling so as to buy MDA. I don't need the dividend and I am otherwise in good shape thanks to your ever splendid advice. You are the best.
Read Answer Asked by Elaine or Gerry on January 29, 2015
Q: Hi Peter, your thoughts on Exco's latest results please. Ignore if already asked and in the queue. Thanks!
Read Answer Asked by Hussein on January 29, 2015
Q: The 5 year yield on Canadas is 0.69%. ENB.PR B has dropped from $24.86 to $20.97 since November 17. Do you think now would be a good time to start taking positions in preferreds rather than 5 year GICs @1.25%? Or is an ENB problem causing the decline?
thanks for the ongoing quality replies. I should note that, if today was the 2017 reset, the yield would be 3.09% based on the 240 plus .69
Read Answer Asked by Tim on January 29, 2015
Q: Preferred shares are a rip off, where else would you invest for a secure, modest return? Parkland common shares seems to pay a reasonable dividend with good price stability...are there any other recommendations? Thanks.
Read Answer Asked by Curtis on January 29, 2015
Q: Do you think that there is going to be much more share price appreciation in view of lower oil. Thanks
Read Answer Asked by Patrick on January 29, 2015