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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: Hi 5i Team,

Can you please comment on the report from Seeking Alpha today that Moody's has downgraded big Canadian banks (e.g., BNS) to "negative" due the prospect of "bail-in" legislation being passed in Canada?

Also, any quick thoughts on how investors with discount brokerage accounts should respond to the possibility of a "bail-in" occuring should something really go wrong with their bank? Does it mean investors would take a haircut if they held stocks and bonds in their brokerage accounts?

If so, is there any defence an investor can mount?

Thanks so much.

Michael
Read Answer Asked by Michael on June 11, 2014
Q: Hi Peter,
I have been a member for about a month, and must admit, your advice is very good. I have two questions: i like the aapl stock, but i cannot see it going very high. If it doubles, it would get to a 1000 billion market cap, is this possible? I do not recall seeing a stock hitting those highs. Second, i have been looking at a company called the Buckle, BKE in the US market; it is a high end retailer competing with the gap with high insider ownership. It has done very well and the ROE is high followed by lower PE under 15. The stock has not moved much in about two years. Any comments please? Thanks very much.
Read Answer Asked by umedali on June 11, 2014
Q: I have noticed in my td market and research that for a week now the gold miners are the ones moving up. Is this worrisome? It looks like the smart money is moving into gold stocks. Does this mean a recession is on the horizon? Except for IMG, I have no exposure to gold.
Read Answer Asked by Helen on June 11, 2014
Q: I have started new positions in Vrx and Pfe with their recent pullbacks as I do not have any healthcare. I would like to build up to a 5% position in each stock. Would you consider this prudent at this time?

Thanks,

Tom
Read Answer Asked by Tom on June 11, 2014
Q: Hi Peter, I have owned ATD.b for about a year and have done well. I read an article in the Globe re atd.b not being entered in the SPX because of various reasons, so while I am happy with my return, the stock has been going sideways for a while. Should I consider,to the point, might I do better with Loblaws in lieu of the above mentioned article. I need growth and income too. I am open to any replacement stock you might recommend if not the above two. Thanks very much.
Read Answer Asked by Maureen on June 11, 2014
Q: Hi team, great work as always. I am looking for your opinion on two stocks. High North Resources (HN.V) on the venture and Luminpulse (LMP) on the TSX. Thanks again.
Read Answer Asked by Seamus on June 11, 2014
Q: When asked to recommend 4 growth stocks on June 9th you suggested AVO,ACQ,BAD,and AYA. When asked a similar question today you suggest DHX,SJ,and WSP. Please explain why you would recommend completely different 'growth stocks' to the same query within a two day period? Otherwise when scanning the Q/A column for my own guidance I find this inconsistency confusing rather than helpful.
Thanks
Read Answer Asked by Peter on June 11, 2014
Q: Hi Team - can you comment on the ownership of XSR- any insights on a possible secondary issue or selling block by major holders. Would this be considered an overhang? thanks
Read Answer Asked by Scott on June 11, 2014
Q: Hi 5i,

I have another question regarding buying companies with options. I would love to buy calls (8 months-1.5 years) for ESL or CSU, but unfortunately none are available.

Upon trying to find comparables to CSU or ESL I've come across Tyler Technologies (TYL). TYL has shown great growth, has no debt and maintains a nice ROE. My only concern is it appears to trade at over 60x earnings. Is this accurate? Are there other solid and growing tech companies that you think might be appropriate here? (I already have some Jan 2015 OCT Calls that have done very well).

Thanks!!
Read Answer Asked by Michael on June 11, 2014
Q: I have a $100,000 GIC coming due and do not plan to renew it. I plan to put $90,000 of it into the market. I like stocks with some growth combined with a decent dividend. I already have a well diversified portfolio. Would you please suggest some stocks that you would currently recommend.
Thanks for your great service.
Read Answer Asked by Ray on June 11, 2014
Q: Dear 5i
I would like your opinion on the best tactic for growth in the following scenario. In an RRSP account, I have CDZ, SGY, and SYZ
shares , no one position large enough to benefit from the DRIP if available. With new money is it better to increase each position to allow for the DRIP benefit or is it better to diversify with a couple of more stocks, if so which would you suggest and not worry about the DRIP possibility.
Thanks
Kathy
Read Answer Asked by Kathy on June 11, 2014
Q: Could you comment on BAU,Bauer as along term hold,and what effect the listing and name change on the New York exchange will have going forward.
Read Answer Asked by CALVIN on June 11, 2014
Q: Should the internals of the market start deteriorating (preferably before then), what could DIY investors do, to protect their portfolios, aside from correct/smart asset allocation? Would buying inverse ETFS help and if so, could you recommend any for the TSX and S&P? Or if there is a better way, hope you share with us. (I am a survivor of the 2008-2009 crisis before being a DIY, thus the apprehension)

Because of this market experience, the quality of your unparalleled service is really appreciated. I have never seen such a deal. I marvel about what you do on a daily basis. I hope you company is there for the long haul.
Read Answer Asked by Rosario on June 11, 2014
Q: Hello hello...This question has been asked in the past. But at this point in time, what are the growth-eee stocks you would suggest for at new TSFA, with $30,500. From a length of time to hold, I'm interest in letting the stocks do there thing. And about other stocks that are held in other accounts, this is not a factor for diversification purposes. Again thanks for the 5iR-Advise.......Tom M
Read Answer Asked by Tom on June 11, 2014
Q: I see that the daily twice fixing of gold bullion price at the London Stock Exchange, managed by five big Banks, might get phased out. How will it affect the price of gold bullion, if that happens. Do you think John Embry is right in saying that price of gold has been suppressed for a long time. I am only interested in buying a little bit of CEF.A. Your advice please.
Read Answer Asked by Vinod on June 11, 2014