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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: Peter - I like the Technology and healthcare sectors in 2014 and long term (+5 Years). Rather than selecting stocks in these sectors, I am looking at IYW (US Technology) and IYH (US Healthcare), however I am concerned at the low daily volumes. Can you provide your thoughts on these two ETF's and can you recommend any alternative ETF's in these two sectors? Thank You and Best Wishes in 2014!! Thank You for providing us with an excellent service.
Read Answer Asked by Luigi on January 02, 2014
Q: Gentlemen,
Is Italie possible to suggest 2 or 3 shares for your sectors suggestion
Industrial 15%
Materials 15%
Cons. Discretionary 10%
Cons. Staples 5%
Utilities 5%
Financial 15%
Energy 10%
Info Tech 15%
Telecom 5%
HealthCare 5%
Thanks a lot
All the best to I5 team
Read Answer Asked by Djamel on January 02, 2014
Q: In your answer to Behrouz re a Mining and Metals ETF, you mentioned CMW and XME. I, too, have been looking for a decent ETF in the sector in Canada. The problem in this country is that there are no ETFs in the Mining and Metals sector, just Global Base Metals. XME is listed as having about 9% in gold and another 10% in Precious Metals. I'm sure CMW and a second iShares entry, XBM, have considerably more than that in gold (I can't find out how much). If you wish to avoid gold in a M&M ETF, it's difficult. And besides, both Canadian products are thinly traded. There is a third Canadian entry, this one from BMO, ZMT. Surely one of them could be a more pure M&M play.
Read Answer Asked by Fred on January 02, 2014
Q: Happy New Year

Thanks for the great service. Question for my TFSA account, looking to add one stock from the A or B+ rating. Currently own BNS, STN, CSU, ESL. Looking for long term hold and a dividend grower.
Thanks
Kevin
Read Answer Asked by Kevin on January 02, 2014
Q: Hello 5i, Could you comment on Longview Oil LNV also what is the P/E and the payout ratio. Thanks
Read Answer Asked by Michael on January 02, 2014
Q: Hi 5i team. Final question in 2013. Would you classify BIP.UN as utility? What about BEP.UN? Resource? How will they behave, classwise, going forward? Best in the New Year. Henry
Read Answer Asked by Henry on January 02, 2014
Q: A general question on rate-reset preferred shares. There are many that have had their share prices hit hard because of the worry over rising interest rates, and that makes them look quite attractive if their share prices recover. Wouldn't the share prices move back to par as the reset date approaches, as the new yield would compete with then-current rates?
If so, then buying a rate-reset preferred with a share price of $20 should provide a very nice return.
Read Answer Asked by Lloyd on January 02, 2014
Q: with the sharp drop of stocks of precious metals companies, some of them have dividend rates 2% or more

I would appreciate your take on SVM, especially, with this in mind

http://business.financialpost.com/2013/12/19/silvercorp-short-seller-accused-of-fraud-by-securities-watchdog/
Read Answer Asked by Behrouz on January 02, 2014
Q: Happy New Year Peter & Team :
I am interested in the micro-cap company Input Capital Corp INP.V I read with interest your answer to Owen dated October 06, 2013 and wonder if you have any additional information.

They lend money to canola farmers in exchange for 6 year contracts giving Input the right to buy a certain percentage of the crop for an average price of $79.05 per ton which the farmer then delivers to the grain elevator who in turn pays Input the prevailing price for canola, currently about $450 per tonne.

The canola price has ranged from about $250/tonne to over $700/tonne over the last 10 years. I cannot determine whether Input engages in futures trading or not to hedge their expected profits, nor whether this could be a good practice or not.

This looks like an excellent business based on a proven business model and has enormous potential growth. Supposedly crop insurance protects Input in case of a crop disaster, and there is perennial global demand for the canola. They currently have 10 signed contracts worth $18.1 million, about $767,000 cash in hand, and no debt.

The issue I see is the cost of capital to Input, and whether there will be future share dilution. If Input can borrow at a reasonable rate [5-6%] it should go well but if Input are borrowing at 10% or higher it may not be economic. Can you find out the relevant facts on this company for me and give me your valued opinion.
Many thanks... Paul
Read Answer Asked by Paul on January 02, 2014
Q: I have a follow up question on your answer to Micheal.If you decide to drop a company from your portfolio,would the volume of 5i members selling have an effect on the stock?I have seen buy or sell recommendations on BNN have a significant affect on a stocks price.Thanks Terry
Read Answer Asked by terry on January 02, 2014
Q: Thoughts on Firm Capital (FC) as a dividend play?
Read Answer Asked by cary on January 02, 2014
Q: Hi Peter,
Could you give me your opinion of CKI and do you consider it a buy at this price.
Thank You,
Barry
Read Answer Asked by Barry on January 02, 2014
Q: In a previous response you mentioned that Brazil could see a recovery this year. Is there an ETF you can recommend that is either a pure play on the Brazilian market or at least one with a heavy weighting in Brazil?
Separately, I would like to also diversify into Europe. You recently responded that for Europe FEZ is “hard to beat”. In previous responses I believe you have at different times also recommended both IEV and VGK. What is your top ETF pick for exposure to Europe (long term) for new buying at this time?
Read Answer Asked by Steven on January 02, 2014
Q: Hi Team - I know you have been critical of RIB.un in the past. It has been a decent yield play and has held up fairly well in the NAV dept. They are proposing an increase in their leverage to a max 35%. Thoughts? Happy New Year
Read Answer Asked by Scott on January 02, 2014
Q: Hi Peter.

I am a new subscriber and have enjoyed reading the great information and questions and responses in your news letter. My question is with regard to your Portfolio. It has done extremely well since March and I like the stock picks. I would like to invest in some of these companies but I do not know if I have missed the run up. Is there any indicator that would assist a new investor to the stocks and the portfolio to know whether this is still a stock to buy or just to hold? Thanks and I look forward to your response.

Michael
Read Answer Asked by Michael on January 02, 2014
Q: Hey guys was wondering your thought on which has a greater growth potential menus labs Msl or dhx media thank you for the great service
Read Answer Asked by jason on January 02, 2014
Q: Has this stock have any potential for future upside. Shp. Shole point energy
Read Answer Asked by Jim on January 02, 2014