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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: There's an interesting take on CSU rights I found in my inbox from Seeking Alpha (here: http://seekingalpha.com/article/2490895-constellation-software-rights-a-low-risk-high-reward-special-situation?uprof=44) that argues the rights should be trading at 94 cents. One little aspect it ignores is that if you purchase rights as opposed to having received enough to purchase adequate debentures you will be receiving less than 1% interest in the first year on your market price vs. the 7.4% coupon on par. Also they compare this issue with a Microsoft bond without highlighting the difference in credit quality.

This email went to hundreds of thousands of Americans, so we'll see if the rights lift off 55 cents on Monday!
Read Answer Asked by Jeff on September 15, 2014
Q: Hello, can you please confirm that in LIRA account, like in RRSP account, no withholding tax will be paid on US dividend stocks. Are they important differences an investor should know about those 2 accounts. Thank you for your comments.
Read Answer Asked by Pierre on September 15, 2014
Q: Hello 5i team,
In the sector classified by Globe Investor as "other services", I hold BYD.UN (B+) and CGX (A-) and think of adding KBL (A-) and FSV (B) which I consider as steady eddies discreetly flying under the public radar. Would it be OK to buy them at current prices?
Thanks as usual,
Tony
Read Answer Asked by Antoine on September 15, 2014
Q: Svc tse
Stock has fallen sharply this week with poor earnings report but they say this will improve in next quarter. Previously there had been analyst estimates of a 4.50 price next year. Any comment
Read Answer Asked by G Robert on September 15, 2014
Q: Do you have any recommendations re participation in the marijauna industry in Can. Or the U.S
Read Answer Asked by G Robert on September 15, 2014
Q: Re SYZ, On September 5th, the volume jumped to almost 600,000 on the sell side, almost 20 times the 100 day MA of about 31,000. There was a question/comment on this site talking about a new issue yet my source for news (Scotia iTrade) talks about a trading halt on the 4th with a resumption on the 5th. No other news. Can you fill in the blanks? Where, if I am not getting all the news from Scotia iTrade, can access ALL the news?
Read Answer Asked by Fred on September 15, 2014
Q: Hi 5i Team
I am now down to a 2 percent gain on each of BDI and Bad. What will bring back Investor interest to these stock? Analysts all seem very negative on BAD in particular . Should I get out and look for better opportunities?
Thanks
Read Answer Asked by Kathy on September 15, 2014
Q: Hello, when looking at oil and gaz exposure in a portfolio, I assume you combine oil and gaz service companies and producer to assess your overall risk. I was interested in those names: FRC, MCB, VET, PEY and BDI to build a new portfolio. Which ones would you combine or should I buy a smaller piece of each name ? Do you find those names decent buy at the momen ? I can take some risk and anticipate to hold for 5 year +. I would appreciate your general comments. Thank you.
Read Answer Asked by Pierre on September 15, 2014
Q: Hi 5i Team,

I had a question about FAM REIT, I realize it is small and a little higher risk. My question is with regards to their dividend is it sustainable now with the higher payout ratio and what about for the long term?
Read Answer Asked by Keith on September 15, 2014
Q: Hello Peter,

I recently opened a joint account funded with cash for my wife and myself. We're starting with a clean slate as we've liquidated some other less interesting holdings to fund the new account.

We're both in our late 30s and will continue to add funds to this account as we can.

From the model portfolio, what holdings would you start with? Our account isn't big enough yet to buy board lots of all of model.

Looking for 5 things that we could buy now.

We already hold BNS, ENB, ESL, and T from the model portfolio.
Read Answer Asked by CAMERON on September 15, 2014
Q: Hi, I'm interested in the following US stocks - Kimberly-Clark and Colgate Palmolive. Do you have any advice or comments based on current stock price ie would you lean to a "buy", or favour something else in the sector. I already own Proctor and Gamble.
Thanks, Dave
Read Answer Asked by Dave on September 15, 2014
Q: Hello 5 I Research team. I was wondering about your thoughts about Westport Innovations. Thank you for providing your feedback. Cheers from PEI
Read Answer Asked by susan on September 15, 2014
Q: re: Mitigation Strategy (MS)and lagging equities

Saw your answer for Rita re the MS and your comment to reallocate into stocks that "are lagging."

Could you give us a few examples of your opinion re which equities you would consider are lagging?

Thanks for all your do

Gord

Read Answer Asked by Gord on September 15, 2014