Investment Q&A

Q: I hold ABX (US Account), G, YRI, XGD plus some bullion (combined <5% of portfolio). Though underwater on all to varying degrees, I am in no panic to sell and will add to some positions over time. Do you see any value in selling the XGD or ABX which have the biggest losses and moving the money into YRI or G? To which of these choices would you be most inclined to add? Thanks for a great service.

Q: oil prices and Canadian oil stocks ?
could you give me your take on:
1.recent oil price are they not to high ?
2. at what oil price would a CPG like company be able to cover divined, drip and require capital to maintain production.
3.why is the sector so beat up if as per my guess, good producers can make money at $70. (and now get $75 $85.
4. Being addicted to divedens should I reduce holding in this sector ? at this time or wait ( I have 30% weighting in oil And gas ?
many thanks
Yossi

Q: could you explain "short squeeze" and how it pretains to the gold sector with this continued shorting of the gold price

Q: Dear team, Could I have your opinion on Pembina, PPL.UN? Thanks

Q: What does sector rotation mean?

Q: what would you consider a better long term investment, enghouse[esl], or cgi group,[gib.a] thanks?

Q: HOT.UN--- American Hotel Income Properties, $11.17--8% yield.Would this be suitable for my TFSA?

Q: Thanks much for your reply on my T and BCE question. At the moment they total just 9% of my portfolio. What would you think of my adding a half position in SJR.B or would you prefer Rogers at its present beaten down price?

Q: Hi Peter & 5i: I am wondering about dividend reinvestment plans. Could you comment and maybe mention a couple of examples? Theoretically the company gets the money back that it would otherwise have paid out in dividends (at least to the extent of the DRIP participation rate), which it can then use to grow the business and, all going well, the results can be accretive to all shareholders and the accretion would be pleasantly leveraged for the DRIP participants. But suppose there is no progress being made on the growth front, or worse that the company isn’t really earning the dividend that it would otherwise have had to pay out in cash. Then it seems like all that is happening is a kind of steady dilution and potentially a dangerously growing snowball, because each new share that is issued comes with its own dividend rights stretching forward indefinitely. If the market intervenes by lowering the share price, then the rate at which the DRIP shares get issued increases because the dividends will buy more shares. Does this ever really get out of hand? It seems that there might be a significant difference in the DRIP impact on a company with a 3% yield versus one that slips above 10%. It would be different of course if the company was buying back its own shares opportunistically to offset the DRIP’s effects, but that would seem to negate the benefit of the company keeping the dividend cash in the first place. Are DRIPs generally a negative in the context of a company that might be a relatively higher risk investment? Thanks.

Q: How many stocks are required to own a diversified income portfolio of $125K and what weighting do you give for each stock? When should you sell to bring back the weighting down and what do you do with that profit, buy more stock for more income or buy more shares of the stocks that are down the most in the portfolio? Do you have a future plan to build an income portfolio, if yes, could you indicate a timeline? Thank you, Peter and Team. Your service and magazine are awesome tools.

Q: If Blackberry (BB-T)reports a good Q1 on June 28 and with all the shorts on the stock in the USA, would you expect a jump in the stock price?

Thanks.

Q: Thank you for your answer to my question about holdings in a RDSP. Given that we never know whether the CRA will accept the resubmission of request for DTC, the plan may have to be collapsed. If it that ends up happening (in 12-18 months), what holdings would you recommend, given that security and return are important.
Thanks!

Q: Can you explain why WCP is up .33 today to 10.55 when they just had a private placement of 17M shares (which is more than 10% of the 147M outstanding)at 9.90. Should this have not depressed the stock price?

Q: Are RCI.B, Telus and BCE buy or hold?

Q: Peter,

Do you think NKO could be at least a two bagger from here after the news?

Q: Hi Peter and team, I have a 60/40 US/Cdn portfolio. My US portfolio is really well diversified and growth oriented, but my Cdn portfolio, while diversified, has been a bit heavy with HR.un, REI.un, IPL.un and CPG. I am thinking of rebalancing by bringing in SUM and ESL or CSU. Have these three run up too much? I would also add BAM.a.

In the CDN portfolio I also have CNR, TFI, KBL, CGX, ANS, WFT, TD. As part of the rebalance I also recently added SLF, and HCG.

I rejected BEP.un and DCI as being too similar to to the stocks I propose to reduce. MG worries me after huge run up.

What do you think? Any other additions for me to consider?

Many thanks for your help,

Keith

Q: It is great having a source for individual enquiries on stock moves. Thanks for your expertise! Could you please provide an up-to-date commentary on Norbord. The stock seems to be under pressure, yet it is a good play on the continuing recovery in the U.S. housing market. Any thoughts?

Q: Morning Peter and team , what do you think about buying telus at this price ? It has come off considerably due to sector and downgrades this morning . Or would it best to wait for a bottoming in the stock before stepping in . Cheers Carol .

Q: I have 300 RCI.B shares. Should I sell or hold.

Thanks,
Milan

Q: I have 8.3% of my portfolio in shares of T and BCE, which have dropped incredibly with the Verizon scare. T is now -17%. BCE has dropped like a stone also, but is an old holding and still +12%. Is it time to buy, hold or sell on T and BCE. And is MBT,which has climbed recently, worth looking at?