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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: We have full positions in TRP,IPL,PPL,and a 2/3 pos'n in ENB. We also have full positions in HSE,CPG,BTE and WCP. I'm considering selling our 400 ENB and looking at splitting the result between 2 of ERF,ESN,TOG,WJX. Your thoughts? Suggestions?
Read Answer Asked by Edward on December 04, 2013
Q: Hello Peter
I am looking for a long term heavy oil/oilsands buy for the dividend because they have immense reserves and will operate indefinitely. Canadian Oil Sands COS is a plodding behemoth with little price change for 3 years but the best combination of high dividend 6.98% and Lowest P/E 11.26. I know you said on Nov 28th that it very cheap but a slow grower. The only other high dividend stock that I can find is Baytex BTE div 6.31%, but P/E 31.18. Is the higher Baytex P/E justified and on what basis, and might it be a better buy and is BTE's dividend secure longer term, and which one would you choose?
Thank you. Paul
Read Answer Asked by Paul on December 04, 2013
Q: Could I have your view of TN.UN (True North)
Read Answer Asked by Bruce on December 04, 2013
Q: Hi Team- have you had a chance to look at todays financing from E? Any insight on the acquisition of Hart? Will it be dilutive as it seems like a big bite for them. How will it be priced? Overnight in the market?
Read Answer Asked by Scott on December 04, 2013
Q: Hello, I currently have zero exposure to the energy and/or material sectors. I was considering the wisdom tree etf GNAT. Your comments would be appreciated. Thanks
Read Answer Asked by Adam on December 04, 2013
Q: Potentially weird question - Do institutional investors participate in tax loss selling differently than individuals approach it? Maybe the same question could be posed for realizing profits too. I mean in the last few weeks I have observed some pretty big swings and odd volumes on stocks that have been typically stable throughout the year. Do institutional portfolio managers use now as a major time to rearrange their funds in anticipation of their big 2 month sell period to future investors (RRSP season)? Just trying to understand if there is an opportunity as an individual investor I should be looking to potentially capitalize on. - Cheers.
Read Answer Asked by Philip on December 04, 2013
Q: Hello 5i

First thank you for your great recommendation for ACQ, it has been doing great for me and I will probably hold it for years to come.

I own a full position in BEP.UN and I am looking at switching that for the SPDR Homebuilders ETF XHB to take advantage of the home builder surge in the U.S. What do you think of this?
Cheers

Greg
Read Answer Asked by Greg on December 04, 2013
Q: A trading question: G/ Goldcorp as an example and in the context of your model portfolio, would you buy more, sell or hold, and why?

A suggestion: I am having a difficult time properly identifying the correct sector for many stocks in my portfolio in order to be properly diversified. Is there room on the form you use for individual stock reports to indicate the sector you would assign to each stock? Or have I missed this somewhere else?

Feedback: I recently renewed and added Moneysense as well - and would happily subscribe for an additional 2 years now. 5i has done an amazing and superb job of satisfying a large and obviously diverse market. Thank you.
Hopefully you are not being overwhelmed with suggestions for changes, and dont tinker too much - "if it aint broke don't fix it".

A grateful and very happy 5i member ! :)
Read Answer Asked by Donald on December 04, 2013
Q: I found your answer to Andrew's question yesterday re selling to be most interesting. As I took quite a bath in '08 and '09, I have educated myself on technical analysis but my results in market timing have been somewhat less than satisfactory. But I am afraid of another loss like that of '08 and '09.

My question is, do you ever foresee the day when you might consider going to 100% cash in your model portfolio?
Read Answer Asked by Fred on December 04, 2013
Q: Hi 5i. Do you know why TCM had a big drop in price today? What do you think of TCM in general? Thanks.
Read Answer Asked by brent on December 04, 2013
Q: Regarding your price increase notice in the Dec 2nd issue
I joined in April 5, 2013. I think I read in your notice that I do not have to do anything about renewal at the old price until April 2014.
Is that correct ???

Keep up the good work

Read Answer Asked by Ernest on December 04, 2013
Q: Hi Peter & 5i: Just a comment regarding Andrew’s question (12/3/13) about switching between VUS and VUN and the possibility of not triggering a capital gain. I agree with you that his contemplated switch would crystallize a taxable gain, if executed, but I think he may have had something else in mind when mentioning what he had heard about. I think in some cases mutual fund companies are able to allow investor’s holdings to be switched between their various funds “in house,” without creating a taxable transaction for the investor. That may have been the idea. As you point out though, it doesn’t work with ETFs, even if the ETFs are both products of the same investment company.
Read Answer Asked by Lance on December 04, 2013
Q: Hi guys. Any comment on the BMO earnings? Are any other new bmo earnings estimates published? I see CIBC has a new Bank of Montreal report this morning with 2014 eps estimate of $6.27 and 2015 estimate of $6.75. On a $69.95 share price that gives us p/e of 11.15 for 2014 and 10.36 for 2015.

I know, of course, these earnings estimates can always be adjusted, but all things equal the valuation doesn't look too bad sub $70 in my opinion. What are your thoughts? Thanks, as always.
Read Answer Asked by john on December 04, 2013
Q: I'm eyeing MX thinking of taking a position. I understand it's a leader in the space do you know how much market share it has? You mentioned it's cheap, google shows it at 94x earnings, what valuation are you showing? What type of growth do you think is achievable for them on a go forward basis and for how long? What drives methanol prices and what are the risks with MX?

Thanks,
Rob
Read Answer Asked by Rob on December 04, 2013