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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: I know you have answered many questions on DCI already. Just wondering since the price drop of Direct Cash do you consider it a buy, sell or hold? I hold 100 shares in my LIRA at a cost of $20.00 per share. Thanks.
Read Answer Asked by Jimmy on September 24, 2013
Q: Hi, new member since this weekend.
I took profits on quite a few stocks (cgi, hcg, plb, rkn), perhaps selling was not justified. I just felt these stocks had gone straight up and the market also, so there should be some kind of pause or correction in the usual September/October time frame (especially with the budget issue in the US).
So I am a bit confused as to how to put the money back into the market and the lack of recent correction ?
thanks
Read Answer Asked by Francois on September 24, 2013
Q: what is your opinion on cfw,tcw and oil service sector. Thank you for helping us ,the small investors
Read Answer Asked by Tony on September 24, 2013
Q: can you tell me what is the lag period between when an insider buys or sells a stock and when it will show up on an INK insider report. Thanks.
Read Answer Asked by wendy on September 24, 2013
Q: Hi Peter and team;
Thanks for the great service. I am building positions with A and B rated stocks. So far I have bought Stantec, Enghouse, BNS. I am looking at adding another stock, my goals are long term hold (5 years) and looking for dividend growth potential and stock price appreciation. At this time, is their one stock you would recommend.
Tks
Kevin
Read Answer Asked by Kevin on September 24, 2013
Q: Hi Peter - I would be interested in your opinion on Cabo Drilling (CBE). It has been languishing in the 4 to 5 cents range for some time now but seems to have potential: a book value of 0.31, current ratio of of 2.4, some insider trading and not overly diluted for a penny stock at 79 million shares. The debt to capital ratio is 22% and am just wondering if this is a concern. Anyways I would be glad to hear your view on the possible upside of this stock. Thanks.
Read Answer Asked by Rob on September 23, 2013
Q: Hi, can you share the asset allocation for your model portfolio (e.g. financials, energy, consumer staples, etc.). I could not find it on your website. Thank you.
Read Answer Asked by Robert on September 23, 2013
Q: Hi Peter I would like your opinion on Norbord I am 76 and like dividend stocks with some growth prospects. NBD appears cheap - div $2.40 free cash flow $4.91 GROWTH dependent on US new housing recovery - maybe a moderately high debt load - willing to hold until US housing recovers is this too risky? Paul
Read Answer Asked by Paul on September 23, 2013
Q: hello 5i:
I'm a shareholder in AGU, and am having trouble deciphering their latest news release. Dividend increase looks positive and one wouldn't think the company would do that unless they thought is was feasible, but the rest of the news looks fairly downbeat. Your take?
thanks
Paul
Read Answer Asked by Paul on September 23, 2013
Q: On Sep 20 Ken asked for an EFT that uses principles similar to VIG, but for Canadian companies. You suggested XDV. I would have thought that CDZ would have been a closer match. Your thoughts?
Read Answer Asked by Douglas on September 23, 2013
Q: I am interested in your opinion on NorthStar Realty Finance. (NRF) I understand that this company is organized as a REIT and invests in healthcare, industrial and commercial properties which they re-finance and usually lease to others to operate. Their current yield is quite high at almost 9% implying risk and possibly current operating losses. Would you say this stock is a safe income stock to add inside an RRSP? Thank you for your highly valued opinion.
Read Answer Asked by Joseph on September 23, 2013
Q: Hi Peter,

Could I pls have your thoughts on the latest results of dhx media

Thanks
Paul
Read Answer Asked by Paul on September 23, 2013
Q: HI 5i, my question is regarding (CZN) Canadian Zinc. it sure seems to be trading very strangely for a company that just very recently received a very important water permit.it would seem that the share price should have gone much not much lower. what do you think of management ? Overall can you comment on this situation and what would you suggest current shareholders do ? thanx norm
Read Answer Asked by NORM on September 23, 2013
Q: RE: Jeff's question of Sep 22 "They (PPNs) can be replicated....but.....using a combination of an ETF and a bond could still result in a decline of total principal at the wrong time."

It is not my intention to be disagreeable at all and I stand ready to be corrected if I have misconceptions about Hank C's idea but here is a real life example of Hank's Gambit:

On June 21, 2009 I purchased a $24000 Government of Canada Strip Bond maturing December 1, 2015 in my wife's RRSP for $20051 (includes commission estimated at $200) with an annual yield just over 3% which is being held to maturity. About the same time in her cash account I purchased $3600 worth of COW units plus a $10 commission. Although we have since moved around the $878 profit from the sale of COW, I believe her principal of $20050 is still not subject to any kind of decline (present value $23281) so long as the Canadian Govt continues to print banknotes AND I sheltered her interest in a tax sheltered account AND capital gains and dividends in her cash account have been tax preferred AND I knew roughly what fees were paid to set this up AND funds have not been locked in. I believe this approach is superior and safer than any structured product available in Canada including Index Linked GICs and PPNs.

It is my understanding that PPNs are 1) Not covered by CDIC and therefore guaranteed by the institution only, which is an inferior guarantee to Cdn Govt, and 2) any gains made on maturity are fully taxable as interest, so even if you have stock market gains which are capped in the contract, you will pay tax at the highest rate and 3) the capped gains are tied to the performance of the TSX 60 or other benchmark so if you have a loss or are flat all you will see is their very low "guaranteed"rate or worse, just your principal after years of investment and hope and 4) you will never see the true hidden fees disclosed in the contract and 5) funds are probably locked in till maturity or there is a high fee to escape. I have never purchased one of these PPNs though when the Bank puts on an ad campaign for them they look tempting to be sure, so my assumptions could be all hogwash. There is a 10 year old CMS article by Jim Yih which estimates undisclosed fees on PPNs to run from 2% to 12%, seems to me a case of buyer beware!

Please let me know where my ideas might have gone wrong as my wife will surely have my scalp if I lose anything of hers!

Also I have never met Hank Cunningham though I did see him speak once at the Canadian Moneyshow.

Thanks, J.
Read Answer Asked by Jeff on September 23, 2013