Investment Q&A

Q: Sorry team, it didn't sent last time. Is it possible that the rotation into REITS etc has a further reason? Hedge funds borrowed tons of yen at almost no interest and use the money to buy North American dividend stocks and pocket s cool 3% in 6 months for free almost (leveraged that a few billion times). When they unwind, they sell the divendend stocks and buy yens to pay back the loan. Hence the back up in the value of the yen as well as the drop in those stocks. We, retail investers have to suffer these machinations, I'm afraid. Thanks, Henry

Q: Hello 5i Team. After 3 years as a DIY investor who's sought out numerous sources for information and advice, I have to say that the couple of months I've been a 5i subscriber has so far provided the best service and value. The individual company reports are concise and clear, and the Q& A is invaluable.

My wife and I are retired with some pension and a fair number of laddered GICs, but need additional dividend income to round out our retirement needs. We presently have a portfolio of about 18 stocks, mostly dividend payers and reasonably diversified (e.g. AFN, EIF, WFT, BTE, PPL, PZA). However, we've been sitting on a fair bit of cash, patiently waiting for a suitable pullback and entry point on some expensive 'blue chip' dividend stocks in the banking, utilities, telecom and pipeline sectors.

While I know that no one can time the market, what information should a retail investor look for before buying into these sectors ... especially given the current sector rotation?

Thanks
Tom

Q: Trevali Mining has had 20 million dollars in private placements lately. Does that dilute the shares a lot? I would like to add to my holdings in this company with the Peru mine coming into production.

Q: iip.un has taken it on the chin more than other REITs. Is this purely because of its size? Is this a buying opportunity?

Q: Hello, I am puzzled by the drop of PPY in the last month or so. It is growing its assets and continues to have no debt. Any reason not to keep this stock? Thanks, Bill.

Q: Hello Peter,
I am a little confused on the recent price drops on the REIT sector. You say the selling is due to people believing interest rates will be going up soon. Some REITS are offering over 8.0% yields.
At what dividend yield do you believe REITS will stop dropping?
Regards, Max

Q: You're thoughts on HIS-US. I've been told that Hartford Financial is a great play if you believe in rising interest rates

Q: At what point do you think there will be enough "blood in the streets" to consider the REITS a table pounding buy?

Q: Hello 5i, i'am looking for some insight on DualEx Energy International Inc. DXE-v. concerning debts level and outlook with a new drilling in progress, i guess near an other oilfield? thanks.

Q: Hello Peter,
Do I see it right if I buy uuu now for $2.77 that I will get a 9 cents gain in a couple of weeks?which comes to over 3% in a short amount of time.
Is this a 100% guarantee?if so ,this does not look to bad to me and why is the stock languishing at $2.77

Q: Hi folks, I'm looking at Whitecap, Crescent Point and Baytex. How would you rank them for a long hold?

Thanks for the continuing great support.

Q: hi peter,i have quite a bit of cash to invest. i see you mentioned sfl in one of your answers, this stock looks interesting to me , is the yield safe and is there upside.
also catamaran, they secured long tern renewal of a contract and lots of strong buys initiated. what do you think. dave

Q: During the financial bailout of US banks in 2008 under TARP, companies such as Bank of America, Wells Fargo and JP Morgan issued long-term warrants that mature in 2018/2019. What are your thoughts in using the warrants as a way to play the US financial sector?

Thanks

Q: Hi 5i, I see you didn't like Wesdome (WDO) a year ago, what do you think of it now?

Q: May I have your current opinion on IMG (Imgold).Book value is $10.09 current price 5.30. A lot of inside buying between May 15th to June 3rd in a price range of 4.86 to 5.58. Div. at 4.6%.

Q: Further to the comment that HCG should be considered part of the real estate sector, would the same be true of MIC? I currently have it as part of the Financial Services portion of my portfolio. Thank you.

Q: could you please give me your views on stn.

Q: Hi Peter and team

As I sit and watch my portfolio go down because of the rotation out of dividend stocks, I wonder who the sellers are and what they are doing with the money. Presumably they bought REITs for income and where are they going to find anything equivalent? As I try to decide what to do (if anything) I would appreciate any insights you have to offer. Thanks

Ross

Q: I have been invested in XRB [real return bonds]for the past three years and have done very well, however the last month it has been in a strong down trend. With interest rates likely to rise in the not to distant future.Is it time to sell ?

Q: Hi Peter
I am committing $15,000 of my TFSA money to a stock portfolio and would like to see growth & income. Could you recommend 5 stocks for the medium/long term, or should I have as much as 10 names?
GUY