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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: What would your top 3 picks be for 2015 and the reasons why?
Read Answer Asked by Rob on December 08, 2014
Q: It's understandable that Bloomberg (or 5i) can't spend excessive resources in ferreting out all the nuances of insider holdings. In the case of Slyce, further digging reveals that Business Instincts Group (5.4m shares) actually include the equity holdings of co-founders and current board members Cameron Chell and Erika Racicot. Also, BBG Equity Management (John Gabriel) and their 1.7m shares has been in the picture since 2008 so the only true 'outside insider' would be Salida Capital's holdings. I therefore suggest that true insider interest is closer to 14.3m shares, or 13.4% of total issued.
Read Answer Asked by Richard on December 08, 2014
Q: This is a comment to an answer to trading in a TFSA. It has always been CRA tax policy to tax stock traders differently than investors. If the CRA declares you a trader due to more than a normal number of trades, they have always been able to tax that individual on the proceeds from the trade. The newspaper article was poorly written and the writer does not understand tax rules. Just another example of newspapers more interested in selling papers rather than educating people.
Read Answer Asked by Robert E. on December 08, 2014
Q: I am thinking that the best way to play the american turn around is through american banks and credit card companies. What's your thought on that and is American Express the best way to go
Read Answer Asked by david on December 08, 2014
Q: Good morning Peter/Staff,could you please have your opinion on ET?
Considering initiating a small (2%)position (?)
Read Answer Asked by Sergio on December 08, 2014
Q: Peter and Gang:
Wondering what your view of TBE is right now. I was in @ $2.00 and made some nice dividends. Wondering what the potential of dividend cuts are vs. the rest of the sector, and if it might be a victim in upcoming tax loss season. I am willing to hold for 3 years plus if you think there is hope.

Thanks for all you do

Phil
Read Answer Asked by Phil on December 08, 2014
Q: Hi Peter and 5i Team:
I have a small position in NRG and would like to. Sell and buy some more AVG as a dollar cost averaging strategy; as I bought it at $29. Do you like NRG? Is is a good long term hold . Or would you agree on my reason to sell it?
Alternatively, I was going to sell NRG and buy ELW as it has really got hammered and I like the management team for a 2-3 year hold? In your humble opinion which strategy do you think would make most sense for a above risk portfolio and greater growth prospect ? Than you so much.
Romeo





Read Answer Asked by Romeo on December 08, 2014
Q: I am surprised at the huge decline in the oil services stock. Savannah has reached 2008 levels? I thought this time around it was not 2008 all over again! Unfortunately things went down so fast that I did not react and am down on precision and savannah over 50 per cent. Precision actually raised its dividend before all this carnage. My question: surely the bottom is close and would you start adding to bring down the average cost. Thanks for a great 5i forum.
Read Answer Asked by Helen on December 08, 2014
Q: I have just read that CRA is investigating TFSA trading accounts.Apparently if you do a lot of trades and get quite good at it,individuals or their institutions could be taxed and you cannot withdraw money while being investigated.Could you some light on this subject.As usual tks 5I
Read Answer Asked by Guy on December 07, 2014
Q: Hi 5i team,

Suggestions for starting a TFSA with 10k initial investment. I was thinking of 3 stocks from diverse sectors. low - med - high risk.
SGY (or WCP) high
DHX.B med
TD low
roughly 3k each. Thoughts?

This TFSA complements a large portfolio of mutual funds that are properly diversified.

As an aside would you substitute BTE for any of the above mentioned candidates?
Read Answer Asked by Peter on December 07, 2014
Q: Recently, D.UN made the following announcement that appeared as an 'Early Warning Report in Respect of Dream Industrial Real Estate Investment Trust'.
'DREAM OFFICE REIT (TSX: D.UN) announces that a subsidiary of Dream Office REIT (the "Property Vendor") acquired ownership of 2,269,759 LP Class B Units ("LP B Units") of Dream Industrial LP and a corresponding 2,269,759 special trust units ("Special Trust Units") of Dream Industrial Real Estate Investment Trust ("Dream Industrial REIT").'

What does this mean?
Read Answer Asked by Elizabeth on December 07, 2014
Q: RE: NAL.TO

I think the company may be affected by lower oil prices in two ways: First, it may get let work to do; and second, the recovered oil may get a lower price.

After taking consideration of the new reality, would you recommend it as part of a portfolio? Can we say Newalta is a potential Peter Lynch favorite that is boring and involving dirty, even disgusting, wastes?
Read Answer Asked by Dong Sheng on December 07, 2014
Q: 12:06 PM 12/6/2014
Hello Peter

It is said repeatedly that stocks in interest sensitive sectors like banks, pipelines, power producers, utilities, and real estate, will suffer if interest rates rise in the years ahead.

It would seem to me that with today's remarkably low rates that any responsible company officials and boards of directors would be securing all necessary very long term low interest rate financing for a decade or more in advance. Surely they would be irresponsible and negligent not to.

Fixed Income is the only real income investing option other than stocks. Bond yields would have to rise to the 5+% range to be any real competition for Dividends in the 4-5% range, and that seems unlikely in the next 5 years or more [just look at Japan] given all the almost unpayable Government debts in most countries.

So why then are "interest sensitive" stocks vulnerable?

I really have little option but to invest in these large companies with good dividends for ongoing income. So should we be concerned?

Many thanks....... Paul K
Read Answer Asked by Paul on December 07, 2014
Q: I have 40% weighting in financials in my RIF A/C, and 20% in energy. I plan to 1) sell BBT (US Bank) and buy either Telus as I have no exposure to telecoms, or Coach. 2) sell FSZ and buy AW.UN and XTC. 3)Hold on to Athabasca oil for another three years. I have lost 70% of the value in this stock.
Your advice please. Thanks always for your excellent advice.
Read Answer Asked by Vinod on December 07, 2014
Q: I recently heard that this coy was a good long term hold,with good immiediate prospects Please
Read Answer Asked by brian on December 07, 2014
Q: As far as I can determine, Slyce (V.SLC) is the only visual search pure play in which one can invest. As a public company it can raise funds to develop further and really extend its lead on the competition and become the 'go to' player in that industry niche.

Looking thru SEDI and recent news releases, I calculate the holdings of management, officers and directors at 7.2m shares - this includes the shares given to owners of the two recent acquisitions, BuyCode and Drivetrain. There are also three entities deemed insiders which own a total of 11.2m shares - i.e. BIG, BBG and Salida.

This brings total insider holdings to 18.4m shares out of 106.2 issued, or 17.2%
Read Answer Asked by Richard on December 07, 2014
Q: Hello 5i,
I'd like to get your take on Sandvine Corp. Their technoloigy is intriging and I could see sector growing in the future. Last quarter was weak but it seemed to be more related to contract timing and they have since signed a few new deals, and they've got a ton of cash on the balance sheet. Is this stock a good buy right now for 1-2 year time frame?
Read Answer Asked by Scott on December 07, 2014
Q: Hello,

My investment in Enterprise Group is now down 54%. It is held in a registered account and, at current valuations, represents just 0.5% of my portfolio. Is it time to sell this stock and preserve the remaining capital?

Thank you.
Read Answer Asked by Craig on December 07, 2014