Investment Q&A

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.

Q: new year, new model portfolio?

Q: CKI Clark Inc. Have you changed your opinion since last March? 5% div and cheap. Seems like the payout is reasonable but the debt seems high.

I like companies where the Officers take a stake.

Thank you.

Q: Further to the earlier question today on DHX Media, I'm curious why it ran up so much on the news. Seems counter intuitive to me. Thanks.

Q: I would value your opinion on Torex Gold (TXG on the TSX). Given the present climate of gold, I do realize this will be a speculative position, but would nonetheless appreciate knowing if the fundamentals of this company will carry it through to recovery in the gold sector. How would this compare to Mandalay Resources (MND on the TSX), fundamentally speaking? In terms of geo-political risk, is Mexico a better/worse environment than Chile, in which to invest?

I am interested in deploying some speculative cash into this sector and am trying to choose between Mandalay and Torex. Any preferences? Or both?

Thank you, as ever, for this wonderful service!

Q: Hi Peter
I have had a very good run with ATD as play on Europe. Should i take profits and what consumer income stock would be alternate in RRSP. Thanks Hamish

Q: Hi 5i team,

CSCO, your opinion on Cisco? Taking a bit of beating lately.
I'm down about 9% to date, and don't mind holding for the long term.

Thanks.

Q: HI 5i,

Now that tapering appears imminent, how badly do you think dividend stocks in my portfolio, like Telus, IPL, Suncor and PBH will be affected?

I sent you this question a couple days ago but haven't heard from you. (Perhaps i sent it to the wrong address?)

Thanks G