Investment Q&A

Q: For a long term investor, a market correction could be considered a "sale" on good companies. Which good companies do you think represent the best buying opportunities in this market correction for an investor looking for growth.
Thanks as always,
Chuck

Q: Hello,
Just wondering if I could access the webinar that I missed 4 Oct with Colin Ritchie on estate planning?
Thanks

Q: Hello 5i team. I currently hold shares in both trp and ppl. They have both had a good ride over the last few years Can I get your take on them? Should I continue to hold them or sell them to buy other pipelines? I know you recommended enbridge a few days ago. Thank you

Q: hello 5i Team,

First, am loving the correction and the opportunities it is providing. With that in mind I would like to hear your thoughts on PRW.

There is tons of commentary regarding the BC LNG proj and the probabilities of it moving forward in the foreseeable future. There is no question it would do much for the BC economy. For every positive comment you hear, there are just as many negative comments stating it may not move forward for many years.

My Questions???? PRW has many projects in the works. How would their prospects be effected IF the LNG project did not go forward in a reasonable time frame? What is you thoughts on whether it will or will not go ahead? And lastly, what are your thoughts on PRW in general (sell, hold or buy) at this time with the pull back in full force?

Thanks for all you do

Gord

Q: A graph showing the "wall of worry". Post if you feel members might find it of interest.

http://finance.yahoo.com/tumblr/photoset-depicting-the-wall-of-worry-with-one-chart-its-124027988.html

Q: Anything look like a screaming buy according to your screens?
And yes, I am old and have gone thru this several times.

Q: Hi Team,

General question. If I have unrealized gains in certain stocks (take AYA for example) would it not be wise to cash in these gains and top of several stocks that have dropped sharply? BAD or AVO would come to mind.

In addition I was quite over weight in SGY. I like the stock and think it will rebound (I get the sense you agree as well). However I was thinking of cutting my position from ~10% down to 5% in order to redistribute these funds to the above mentioned stocks or possibly others (BDI, MCB etc...) that have been mentioned in your questions section.

I suppose in summary I realize that selling now is not ideal (as everyone else seems to be) but are there certain times when freeing up money in your portfolio to buy stocks that have been hit hard is a good idea?

Q: jean coutu is very strong with volume in this down market. I am thinking of going in for a short term trade. Your opinion would be appreciated.

Q: hi, is prw a longterm (2yrs plus) buy. thanks.

Q: Enerplus has had a big sell off in the recent past. Is this a good entry point for it or any other energy stocks?

Q: Hi Peter

What is your favourite growth stock for new buying at this time? I have a well-diversified portfolio and am looking the stock for more than three year.

thanks,

J

Q: Please give your opinion of so called "robo-adviser" investment providers. Are there any Canadian ones out there?

Q: I am thinking of diversifying my portfolio to include some gold stocks. Would you please recommend 3/4 gold mining stocks and rank them in order of your preferences. Much appreciated.

H.S.

Q: Lucara has had a significant pullback since August but fundamentals in the diamond market continue to be strong with generally rising prices and demand while supply is struggling. Lucara itself has been building a strong cash position with increasing revenue. Should one be overly concerned with the share price drop from the high $2 range to around $2 or is it likely just consolidation after a strong run?

Q: Hey Team,

CSX will be reporting this coming Tuesday. On doing some research this is what is expected...

4% increase in sales to $3.13B

$0.47 earnings per share which is a minimal 2% gain reported same 1/4 last yr

questions...

is this what you have found?

if this is accurate, what would you expect share price to do after the reporting?

and finally, would you consider CSX a sell, hold or buy at this time?

Thanks for all you do

Gord

Q: tou Is it abuy?

Q: This looks to be caught in the falling of energy shares in the past couple of months. It pays a high dividend - is it worth accumulating here? Thanks a lot!

Q: what's your opinion of RY compared to BNS and TD? I believe RY has outperformed in share price over the last 10 years compared to the other banks.

Q: Hi 5i: There have been a lot of questions recently regarding oil producers and the apparently ongoing declines in their share prices. It seems people have been having trouble getting their bearings and are coming simultaneously to the questions ‘should I be buying now?’ and ‘should I be selling and exiting the sector?’ With the same thoughts in mind I found it useful recently to look at the 5-yr chart on the WTI oil price. Outside of their own operational issues, successful producers rise and fall with the oil price. The path of the oil price since a trough valuation on May 17, 2010 can be described in terms of the following series of upward “runs” and downward “slides.” Each run or slide represents at least a $15 change in the price of oil and I was interested in how long each move lasted and the magnitude of the price change in each case. This is what the chart says in those terms:
• May 17/2010 to May 2/2011 (nearly 1 year duration) – Trough to Peak run from approximately $70 to $114
• May 2/2011 to Oct 3/2011 (5 months duration) – Peak to Trough slide from $114 to $74
• Oct 3/2011 to February 27/2012 (5 months duration) – Trough to Peak run from $74 to $110
• Feb 27/2012 to June 18/2012 (4 months duration) – Peak to Trough slide from $110 to $77
• June 18/2012 to Sept 10/2012 (3 months duration) – Trough to Peak run from $77 to $100
• Sept 10/2012 Oct 29/2012 (1.5 months duration) – Peak to Trough slide from $100 to $85
• Oct29/2012 to Sept 2/2013 (10 months duration) – Trough to Peak run from to $85 to $110
• Sept 2/2013 to Jan 6/2014 (4 months duration) – Peak to Trough slide from $110 to $91
• Jan 6/2014 to June 16/2014 (5 months duration) – Trough to Peak run from $91 to $107
• June 16/2014 to Oct 10*/2014 (4 months duration – * still going) – Peak to Trough slide from $107 to $85

Of course one has to consider that past patterns do not guarantee future paths and for one reason or another ‘it might be different this time.’ But that aside, a number of observations may be made. In each case the next significant move in the opposite direction followed immediately on the heels of the prior one. The longest slide was about 5 months long. The present slide is nearly 4 months long already, about the same duration as two of the other four slides in the past 5 years. So from that perspective what we are presently experiencing is nothing out of the ordinary and each past similar instance has resolved into a nice run to the upside. Unless it is different this time, 4 months of sliding puts us much nearer to the end of the slide than to the beginning.

In dollar values, the magnitudes of the past slides are (oldest to most recent): $40, $33, $15, and $19. The present move is $22, so far. Again, unless something makes this time different, the present slide will likely end with an intraday trough price somewhere between the present $85 and the previous lowest lows of $74. Again, but in dollar terms this time, that would put us closer to the end of the move than to the beginning.

Overall, I’d note that this particular slide has so far shown us nothing out of the ordinary and for that it should provide us no reason to panic. No good quality producer is put in danger of failing as a business enterprise by virtue of a short term commodity price slide. But it may be important to stress “good quality” in that observation. On the other hand, the shares of even the best quality oil producers have become significantly cheaper during the present slide. Whenever similar share price declines have occurred in the past five years, it has provided a good opportunity to add high quality producers to one’s portfolio (and some very nice ‘Yield on Cost’ numbers as well).

Hope that’s useful to someone!

Q: Hi team, a quick comment first: For some new investors out there I have been through many corrections since going it alone without a broker. Just hold tight, collect dividends, DRIP what you can, good companies will survive. My question is that I have some cash on hand and I am giving some serious looks at buying some HEX for the dividend, maybe in a week or so. Time to buy when everyone else is selling, thoughts? Thanks.