Investment Q&A

Q: Hi Peter and Team,
I have allocated about 10% of my portfolio to higher risk/growth stocks.Which five or six of the following would you suggest? AVO,ACQ,LSI,BAD,EFN,MCR,FSZ,LGT? Or are there others you might suggest? Thanks Dave

Q: Comment on comparison of discount brokers.

I moderate a forum on high yield Canadian stocks and have done so for 11 years. This question has frequently come up over that time period and I have noticed some similar conclusions coming up over that time period.
1) Every brokerage will have its die hard fans who swear by one institution--those institutions are never the same.
2) the most general conclusion is that all the brokerages have problems and strong points but all certainly have their problems--seems more luck than picking the "right" one
3) Only trend over the years is that TD has been dominant but the number of complaints against it are also increasing.
4)for the record I have no connection to a brokerage (retired) and use Investorline personally.
Bryon in Elmira

Q: This is my response to Paul's question regarding self trading with a broker. I have used TDW for over 10 years am very satisfied with the performance of their system. I have recently started using their new Advanced Dashboard program and find it to be very complete and happy to be using it.
Good luck Paul in your decission.
Terry

Q: For Paul who asked about trading platforms. I used to be with TD, then moved to Nesbitt Burns and now with HSBC Invest Direct. Use HSBC for 99% my banking and like the world wide representation it provides. Check it out.
Ronald

Q: Could you please give me some information on ala.pr.e. Will this be affected by rising interest rates. Wishing you at 5I a Merry Christmas and a Happy New Years. Jack

Q: Good Day; We are starting up an RESP investment account for a new born and would like a suggestion on an ETF to start the first investment with. The initial cash investment will be fairly modest, probably around $2000 - $2500 for the first year.

Thanks for your insight.

Q: Peter
I own DHX and have owned it since $2.62.Now it is overweight in my portfolio.Traditional thinking is that I should be selling some and rebalancing.What is wrong with putting a stop loss(lets say 15%) behind the stock and let it run!I spend a lot of time trying to find such an investment and I submit I took more risk at $2.62 cents than I am today.

Q: hello 5i members:
I'd like an opinion on those familiar with using Scotia iTrade for a self-directed investment broker. If comparisons can be made with other experiences ie. BMO Investorline, or TD etc, then that would be helpful.

Q: I am in Goldcorp at about $26.50 and willing to be patient. Does it appear weaker to you recently, and do you attribute this weakness vs AEM (for example) due to this land claim issue in Mexico? Buy more, sell, hold at this point.

Q: I owe GNV as a play on infrastructure. I am up about 40%. I was thinking about selling at getting into STN or do you think there more to go for GNV? Thanks

Q: Hi Team
My adviser is suggesting purchasing Vertex Arbitrage fund as an alternative to a portion of fixed income type of investing. Do you know this fund and any feel what type of return may be achieved with this type of fund?

As always thank you for your advise.

Q: My question is on Abbott Labs and Abbvie. I had 300 shares of Abbott and they split. Now I have 300 of Abbott and 300 of Abbvie. Should I hold both sell both or keep one over the other. I know that Humira comes off of patton in 2016 in US and 2017 in Europe. Should I sell Abbvie before then?

Q: What are your thoughts on PMI.V sudden surge;good entry point?
Thx.Gerry

Q: I would like to clarify my understanding of convertible debentures. AFN.DB, for instance, matures Dec 31 2014 and pays 7% interest. It is callable Dec 31 2013 by the company. I understand that its conversion rate was set at 22.23. Assuming that AgGrowth does not call the debenture and that I was to purchase it in early January, I believe I could expect two interest payments in 2013 and then 22.23 shares if the shares have reached their target price of $44.98 or higher by the end of 2014. Presently, the debenture is priced at about $40. If the shares do not gain further value in 2014, do I get $1000 in cash at the end of 2014 when the debenture matures or does the company change the conversion ratio in order to return the value in shares? Is there a negative impact; i.e., a significant dilution, on the stock price when the company suddenly releases all those shares to pay back the debentures? What is meant by the premium on the debenture? Is it the difference between the present value of the debenture and the value at the conversion rate? I thank you for your information and look forward to your reply.

Q: Hi Peter,
Could you offer an update on Artek Exploration (RTK)? What would be an attractive price to add to my current small position?
Many thanks, Peter!

Q: Hello Peter
Olympia Financial Group just declared a $10 per share special dividend. So now we have to work out what will happen to the stock price right away, and also after the dividend is paid. Does the share price rise now in the expectation of the dividend? Does it stay at the present price after the dividend is paid or does it drop $10 after the dividend? The company may be "dividending" out the profits to the large insider shareholders [and the rest of us]in preparation maybe for selling the company to another bank who might just bid a higher than current price to get it. What current strategy would you advise?
Thank you for the excellent advice. Paul

Q: Give your assessment of MRC

Q: Assumption: The U.S. equity market continues to remain healthy & positive overall for the next 12 months. The question is what, in your opinion, is the best way to buy the US equity market from a Cdn.registered acct. relative to the current surcharge(incl.fees & exchange)of nearly 7.5%.
Thanks for a great year.

Q: I would appreciate your outlook for KP Tissue (KPT)

Thanks - Ken

Q: I would appreciate your input regarding which 3-4 companies in your Model Portfolio represent the best value currently. A brief explanation for your selection would be helpful . Thanks.