Investment Q&A

Q: Hi There - I'm up 46% on CMH in the past couple of months. Has it got ahead of itself at a PE of over 100? Should I take the profits?

Thx very much.

Q: A member asked about transferring a stock held at a loss to his/her TFSA. As you point out, one could sell the stock and wait 30 days before re-acquiring it (that is, inside the TFSA.) Aternatively, one could purchase it inside the TFSA, then wait 30 days before selling the losing position. Of course, this ties up more funds - but under the right circumstances (including sector allocations) might be preferable to giving-up exposure altogether. After all, if the stock continues to decline, then the claimable loss is greater. Perhaps the more pertinent question is whether one believes in the stock strongly enough to hold on to it, in spite of the possibility of unclaimable losses (that is, on the position held inside the TFSA.)

Q: I am in the process of figuring out exactly the amount of each sector holding that I have and wondered how should I record preferred shares, should these recorded a financial sector?

Thanks

Q: in your summary report you list Enbridge as belonging to the Energy sector but you often refer Enbridge as a good Utilities stock so should Enbridge really be under the Utilities sector?

Q: On March 5, 2015 theScore, closed a bought deal for 39,560,000 shares at a price of $0.67 per plus the over allotment option of another 5,160,000 shares.
Do you believe they are about to make an acquisition or just strengthening their balance sheet. Are they diluting themselves too much?

Q: There is an IPO on Monday for a recycling company called Grey's paper. It is supposed to come out at .25 cents a share. The city of Edmonton is already invested in them. Do you know anything about the company and the IPO. If not do any other members know anything about the company. Thanks.

Q: My apologies, as I tried to send an email from my phone earlier today, and had problems with service, and phone.
I thought I had completed my dudiligence on syz, and seemed like a great buy coupled with insider buying. Technicals indicate oversold, as well as RSI is low.
Markets were not good today, however what is wrong here, and should I be selling to average my loss.
Thanks for the great service

Q: Hi 5i: Thanks for pointing out the BoC interest rate hike as the cause of the increase in CBO price. I had actually just realized that as I read the ROB magazine over lunch. But it is interesting that a significant increase in the CBO price seems to have started in late December/early January. Poloz is quoted in ROB saying "... the possibility of a rate cut had begun to enter markets in the last couple of weeks." I didn't think that was supposed to happen.

Q: Hi 5.
For the next 12 months would you go with GUD or CXR if you could buy only 1? Thanks.

Q: hi;i bought these preferred shares 2 weeks ago and they went down 5.4% I,am not selling but why the drop. was it currency?thanks brian

Q: Dear 5i; I was reading through the TFSA questions and the one asked by M S on July 17, 2014 got me thinking about transfers-in-kind and taxation. So firstly, I wouldn't necessarily want to transfer a "gainer" because of the capital gains tax payable. On the other hand, it seems to me that transferring a stock that is currently under-water could be advantageous. This would of course be a stock that I intend to keep because I expect it to recover, so therefore the inability to claim a capital loss is a moot issue. The advantage would be that for a given amount of contribution room, I would be able to transfer a larger number of shares into my TFSA than if the stock were at or above my ACB.

Do you think this is a sound strategy, or are there other considerations that I am missing?

Q: I am debating whether to invest part of my portfolio in ENB or ENF? ENF has had a better return of late and has a higher dividend. Which would you go for? I am looking for a good long term return as well as a good distribution. Tnx.

Q: Hi Guys,

This is a follow up to Alayne question on BRF.pr.A.

Don’t forget, the 3.32% dividend is on the original $25. If you calculate it on the current price of $20.35 you get a return of 4.1% ($25x3.32%/$20.35). If it is held outside of an RRSP in will have an equivalent interest rate of approximately 5.3%. This is much better than current yields.

If you reset using the short term provision and if the T-Bill rate went up 1% next year your yield would probably jump to something over 5.25% (6.8% bond equivalent) at that time and you could eventually have a capital gain from the $20.35 to $25.

Not all that bad.

I’m in the same boat with GMP Capital, GM.PR.B. Any comments on this company?

Thanks
John

Q: could you please comment on the current prices of these companies in relation to current price of WTI. Thaks

Q: In case you hadn't seen it there was good news today on NRG
Alter NRG agrees to Harvest takeover for $5 per share.

Rob

Q: As with other energy companies, Encana has seen some challenges. But it has not faired as well as others of that size. What is your opinion on its future?

Alan

Q: WSP recently reported Q4 and year-end results and,to me, they appear excellent. Could you comment on the results as well as on the news they were selling all their shares in Norwegian company multiconsult AS? Is this a good move? Thanks for the excellent service.

Q: My goal is to create a list of criteria for the ideal small-cap growth stock. I fully appreciate very few stocks, if any, will meet all the criteria. I have started the list. Please add to it.

1. Experienced management
2. High insider ownership
3. Low debt
4. Low forward P/E ratio
5. Momentum

Q: Hi 5i: I've decided to add some more fixed income to my portfolio and was checking on how my CBO has done over the last year. I note that it jumped very sharply on Jan 20/21 of 2014. I can't recall what triggered that leap, which is visible in other bond ETFs also. Do you have any record of what the event might have been? Thanks.

Q: Hello,

Following on my previous question regarding using WIN as an income stock and reading your previous answer regarding DCI which one would you chose for income (and some appreciation) Both? Others?

Thanks