Investment Q&A

Q: I added into strength in August and now find myself underwater 20% in QST. My concern is even if things go well for them, will this be dead money due to the sector it's in? It's a 4% position in my TSFA. I'd appreciate an opinion whether I should move on or be patient?

Q: Is Athabasca Oil a good prospect for bottom feeding?

Q: I just purchased WCP.to to join my RDS.a in bringing my Energy exposure to approximately 12.5% of my portfolio. Would you recommend a pipeline or energy storage, etc. stock to complement these holdings? If so, which firm would you suggest?

Q: I'm thinking about taking the profits on BEP. Is this advisable at this time? What should I replace it with?
Thanks!

Q: ARN has just announced that it proposes to exchange their debentures for stock at a price of $0.15/share. The company also states that debenture holders holding approximately 40% of the Debentures have executed a support agreement whereby they have agreed, subject to certain terms and conditions, to vote in favour of and support the Exchange (the "Support Agreement"). Under the terms of the Support Agreement, such Debentureholders will receive additional common shares representing approximately 5% of the new common shares in the capital of Arcan upon completion of the Exchange.
This appears to me that a certain group of securities holders are being treated differently than others holding the same security and is therefore unfair. I also wonder whether this is consistent with securities laws which generally are focussed on treating all securities holders on the same basis.
Can you comment on this and also whether you would tender to the offer.
Thanks

Q: What is your outlook for DHX?

Q: I note your current model equity portfolio holds no stocks in the Consumer Staples sector. This sector has been in an almost uninterrupted uptrend since the 2008/09 debacle. Are there any stocks you would rate B or higher?

Q: I was disappointed to read this week that the “Growth Portfolio” won’t be available until March. I need to be very aggressive for a while. I currently hold: atd.b, ccl.b, stn, gil, aya, which I suspect will be candidates for this portfolio. Could you name a couple of others that you are considering. Thanks.

Q: I am a newbe to your site, and looking forward to your direction on future positive returns.
I spent a great deal of time this weekend reviewing your portfolio research and follow up comments and I feel that some of your picks are dogs and should be dropped eg. Aston Hill b-,Transat C-, Alarm Force B-.
You certainly have some winners Amaya,Sylogist.
Also I look forward to seeing your new growth portfolio, asking why this would not commence in Jan 2015 when the tsx usually expierences rapid growth.
Thanks and appreciate your opinion,and hope this does not discount my question credits.
I enjoy following Peter and your team on BNN
Thanks and Merry Christmas and the very Best for 2015
Rick

Q: I am a newbe to your site, and looking forward to your direction on future positive returns.
I spent a great deal of time this weekend reviewing your portfolio research and follow up comments and I feel that some of your picks are dogs and should be dropped eg. Aston Hill b-,Transat C-, Alarm Force B-.
You certainly have some winners Amaya,Sylogist.
Also I look forward to seeing your new growth portfolio, asking why this would not commence in Jan 2015 when the tsx usually expierences rapid growth.
Thanks and appreciate your opinion,and hope this does not discount my question credits.
I enjoy following Peter and your team on BNN
Thanks and Merry Christmas and the very Best for 2015
Rick

Q: Do you follow Martin Armstrong? What is the best way to short emerging market bonds? Thanks, Andre

Q: On Friday there were 6.5 million shares sold the highest volume this year. Is there a concern for a potential drop in the share value now at $9.80. Thanks, and Merry Christmas to the 5i team.

Ed

Q: Peter and His Wonder Team
Thank you for your comments on Lake Shore Gold...however I notice that ASR traded 32M and HMY traded 66M. These are huge numbers...please comment on these stocks also...
Thank you!
Dr. Ernest Rivait

Q: Dear 5i; There's something I'm still not clear about regarding superficial losses. When selling an unregistered stock for the capital loss, must the whole position be sold, or could you dispose of half a position if that's all you need for tax purposes, and keep the rest?

I've read the definition of superficial loss in the Income Tax Act and the explanation in CRA's Capital Gains Guide. From these, it is my understanding that there is a superficial loss if I (a) aquire a substituted/identical property during the 30-day-before-and-after-disposition period, and (b) I own the substituted property at the end of that period.

Since the half-position that's been kept was not aquired during that 30-day period, I would assume that it would not be considered substituted property. And therefore the half-position that's been sold would constitute an actual capital loss.

Am I correct in my line of thinking, or am I way off the mark?

Thanks!

Q: I wanted to take a gain in Dhx to offset capital losses in this taxation year.I purchased an equal amount of Dhx in a non taxable account 1 week prior to my selling of DHX in my taxable account.Will there be an issue with CRA using this strategy.

Q: Thank you for answering my question on Lakeshore gold and the 47 Million shares that went across at the last second of trading of Friday. Just so I am clear about what you are saying is that Portfolio managers decide to adjust and re-balance so they either sell or buy and in this case they sold. In this case (if I understand correctly) it was decided to sell off 47 Million shares and that happened at the last minute. In effect it didn't drive the stock down more than 5%. Obviously. Also there were enough buyers to absorb 47 Million shares. Is this correct and if so does it not speak to the strength of this stock. One would think that this off loading of 47 Million share would cause the price to plunge by a lot more than 5%. This was 30 times more than the daily average. Thanks You.

Q: I have held SPY in my US$ account for a few years and am thinking of trimming it now and use some capital losses to offset the gains. It is not overweight in my portfolio so I don't really have to do anything. A couple of questions.

First, I would be looking at buying SDY with the proceeds. Does this give me further diversification, SDY a better ETF or is it a sideways move?

Second, I have been reluctant to sell ETF's because I am concerned how to calculate the ACB because of dividends. I am right to be concerned about this?

Thanks and a happy holiday to all at 5i.

regards,

Paul F.

Q: Hi Peter and Team, would you be able to explain the five year low in share price of AHF? Is there something of real concern here? Are insiders or major share holders selling here? Thanks!

Thanks for all your help this past year.
Merry Christmas and All the Best in 2015 to All at 5i including Members!

Q: On Friday at the bell 48M shares were traded. I read it was rebalancing. Not sure what this means or what transpired. Can you explain the process and explain.

Thanks

Q: Unlike Andrew, I found the show with DB excellent.

He gave a macro view of the market as he sees it, and as always, he stated his style of investing. He uses stop
losses, does not bottom fish, and focuses on strength.
e.g. Consumer, Technology, Health Care, Financials

Yes, oil will bounce, but it is not showing strength now.

I call this common sense, not chasing.
Different strokes for different folks.