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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: Regardng Mike's question concening monitoring holdings, RBC Direct Investing has a tab which will give you the dollar amont and the percentage of portfolio for stocks held in all accounts. I find this quite useful. It doesn't, however, have the stocks categoized in sectors. But, for no cost it is a pretty useful tool.
Read Answer Asked by joseph on April 15, 2014
Q: I have a small holding in EGL-UN and am thinking of adding. Would like your opinion.
Read Answer Asked by Phil on April 15, 2014
Q: Re: Mike's question regarding portfolio consolidation – Publish if you think it will be both useful and comprehensible !

I have found a couple of things helpful to monitor our 8 portfolios (TFSA's, Rif's, RSP's, Unregistered accts).

1. We use TD's Webroker and in addition to the formal individual account information it reports and updates daily, it provides a Portfolio Management feature that allows you to manually set up your own portfolios. Other brokerages may provide the same. This is useful, not only because you can set up a consolidated detailed portfolio (not provided by TD in their formal reporting) but also because you then have access to additional reporting analysis that is not available on the formal individual account detail provided by TD. Once these portfolios are set up, providing you are not a frequent trader, they are easy to maintain – just have to enter in buys and sells as they occur. I have set up one portfolio that is a consolidation of several individual ones, to see the overall picture of all accounts. I also set up individual portfolios which mimic the individual formal TD accounts in order to take advantage of the additional analysis info available through the reporting features.

2. Unhappily, however, the reporting does not (in my opinion) provide a good analysis feature for sector weightings . After (finally !) paying attention to Peter's repeated insistence that sector weightings were critical to successful investing, (Thank you, Peter !), I searched for software to provide this but with no luck. So, I had to bite the bullet and set up a custom spreadsheet to give me this information . I download each account direct from TD Webroker (they provide this capability – I assume other brokerages do, too) . I then determine which sector the stock belongs to (I use a total of 11 sectors and give each sector a number). I have a column in the spreadsheet where I put my assigned numerical value for each stock as well as a column that shows the name of the sector. Using the sector identifier, I have programmed the spreadsheet to then calculate for each account what the total weightings are for each sector. Weightings could also be calculated for the total of all accounts but I don't bother since as long as each account is weighted appropriately (I do some variations, depending on what goals I have for that account), then that's enough for me. This was something of a pain in the neck as it has been a good number of years since I have worked with spreadsheet software, however, now that it is done, it only takes about 15-20 minutes to download and to adjust, if new stock buys/sells have to be sector categorized. I do it on a weekly basis to keep up-to-date . It has made a BIG difference in my ability to keep on top of things in a time efficient manner.
Read Answer Asked by Alexandra on April 15, 2014
Q: Hi Peter & Ryan
You may have seen a quantitative analysis of Investor Behaviour's contribution to results, along withAdvisor contributions. A sample pdf here:
http://www.google.ca/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0CEMQFjAB&url=http%3A%2F%2Fwww.qaib.com%2Fpublic%2Fdownloadfile.aspx%3FfilePath%3Dfreelook%26fileName%3Dadvisoreditionfreelook.pdf&ei=mSJNU6SKEKep2gXCoIHwAg&usg=AFQjCNFwWBetw8xOGdROK8RQS4BwUts0Hg&sig2=-lpwYJX6Bs3EFHAV-aUgvA&bvm=bv.64764171,d.b2I

It is a long read but makes many good points which appear often in your Qs&As with quant backup. It has a soothing tone.

Post to view at your discretion

Regards
Ernie

Read Answer Asked by Ernie on April 15, 2014
Q: Hi Peter and team - can you please comment on using stop-losses to lock in dividends on etf's such as CDZ, XEI or even stocks such RY (RBC). My thoughts are that I would be happy to continue collecting the ~4% dividend on $100k invested and lock-in breaking even if the stop-loss was ever triggered. Pro's, cons and risks of this strategy? thanks for a great service... Al.
Read Answer Asked by Al on April 15, 2014
Q: The Japanese stock market has had a pullback. Do you have a view on its prospects now? If so, any comments on EWJ vs CJP? Thanks
Read Answer Asked by DEREK on April 15, 2014
Q: Hi,

Thinking about IAG and MFC. MFC has outperformed IAG is the past 12 months. The foreseeable slowdown of Chinese growth and other problems likely affect MFC's Asian business. Additionally, I am still not very comfortable about MFC's financial status.

For risk control, is it wise for me to swap my holding from MFC to IAG and maintain a similar percentage in my portfolio?

Thank you.
Read Answer Asked by Eric on April 15, 2014
Q: Hi Peter
I am looking at starting a portfolio for my daughter who is interested in growth stocks or ETFs with some protection to preserve capital. What 4 stocks and ETFs would you recommend.
Thank you for your comments on Surge which I have bought recently and is it still a buy?
Read Answer Asked by Hamish on April 15, 2014
Q: Migao's most-recent quarter reported improved revenue but a much-worse net loss. Potash prices are up slightly since the beginning of the year, but surely not to such a degree as changes the company's prospects. Yet shares show a pronounced uptrend since October 2013, and, at this time, a 'put' bid (200000 shares) at 1.45/share. With these divergent signals, is it even possible to form an opinion on Migao?
Read Answer Asked by John on April 15, 2014
Q: A response to Mike's April 15 2014 question about monitoring several portfolios. I suggest that he look at Quicken Home and Business – the Canadian edition. The Canadian edition will only operate on the Windows platform.
Once accounts are set up, Quicken easily updates prices and provide several ways to evaluate portfolios.You can view any number of portfolios in any combination or altogether. By adapting Quickens “Investing Goal” feature you can also review portfolios by sector weightings.
Quicken can be quirky and if you are not going to enter transactions regularly it's probably not worth the cost or effort to learn it. I would give Quicken a B+ with a C+ for customer service. Other than using Quicken I have no relationship with the company.
Read Answer Asked by Paul C. on April 15, 2014
Q: Hi 5i

My question is regarding Interfor IFP.A . I sold my position in the $17's and has pulled back to ~$15.25 . With respect to the US housing market, the issues of moving lumber and the weather, would now a good time to buy? Interfor reports May 6.

Thank you
Read Answer Asked by Robert on April 15, 2014
Q: Hello 5i.
I have been sitting back and watching the developments in the takeover attempt on Augusta AZC by HudBay as per your advice from my previous question. Augusta has since claimed there are multiple parties interested in purchasing the company. HudBay seems to be calling their bluff and is trying to get the Canadian regulators to remove the shareholder rights plan so they can get on with things. If there are other interested parties should they have showed their cards by now? Would it be prudent to still sit and see what develops or is the challenge to rights plan the signal to head for the exit? I would like to be gone with almost my original investment if there is nobody coming but HudBay at the end of it all as they have stated their plan is to wear them down over time as they have done to others previously. Thanks for all your help.

Dave
Read Answer Asked by Dave on April 15, 2014
Q: Hi Peter and Team:
Re: your model portfolio:
1. SYZ: volume is only 8950. should I buy at $8.8 now?
2. ENB: should I buy at $51 level or wait until there is pull back?
I bought most stocks as per your model portfolio and tries to buy at price same or lower than yours. for the last few days, performance was negative. Should I make any adjustment?

thank you
AD
Read Answer Asked by hong on April 15, 2014
Q: Hi Peter. WEF has slipped below $2:30 ($2:26 today) which was a bit of a support level. Do you see it going lower or?...also the us banks are report major decreases in mortgage applications / approval. Morgan Stanley was off 60-70% from this time last year. Do you think the us housing is slipping back. WEF is not that exposed (25-30%) to the us so I am struggling with the big drop from the high of $2.72. I am thinking of buying more but am a bit cautious . your thoughts are appreciated + keep up the great work
Read Answer Asked by Terence on April 15, 2014
Q: Hi,

I have a question about TKM. The stock had a huge run and is now back to half of its peak and the selling is ongoing. What do you think. Is this a pure speculative play or does it have real potential based on fundamentals. Thanks
Read Answer Asked by Imtiaz on April 15, 2014