Q: What are your current thoughts on IBN (ICICI) in a fully topped up TFSA? It seems to me that India is showing significant potential with the new government and new CEO at the bank.
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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: Hi, Sanofi is down 10% today. Is there bad news or is this a buying opportunity?
Jeff
Jeff
Q: Hi Peter and team,
What is your opinion on Veolia Environnement (VE.US)? I am thinking about a two to three years investment.
Thanks in advance for your answer.
Michel
What is your opinion on Veolia Environnement (VE.US)? I am thinking about a two to three years investment.
Thanks in advance for your answer.
Michel
Q: Hi Peter,
I am thinking of buy European Banks. I looked at Barclays, Deutsche and ING Group. Would you please comment on those three banks? If you buy three European banks, are those three will you choice.
Thanks,
Deming
I am thinking of buy European Banks. I looked at Barclays, Deutsche and ING Group. Would you please comment on those three banks? If you buy three European banks, are those three will you choice.
Thanks,
Deming
Q: 5I Team,
I would appreciate getting your view on North Atlantic Drilling Ltd (NADL). The share price has really been hammered in the recent correction and I'm wondering if now is a good entry point and whether the yield is too high to be sustainable.
Thanks,
Scott
I would appreciate getting your view on North Atlantic Drilling Ltd (NADL). The share price has really been hammered in the recent correction and I'm wondering if now is a good entry point and whether the yield is too high to be sustainable.
Thanks,
Scott
Q: Hello 5i team,
I hold the model portfolio plus about another 10 stocks. In regards to Ambev which is trading near it 52 week low. Do you see much growth in Ambev over the next 2 years? I am down about 12%. I am debating on on averaging down OR selling it and adding that $US money to my Unilever holding and VXUS holding which have both been hit hard recently. Or I have the cash and can add to all 3 of those $US holdings (in-addition to other holdings in the model portfolio). Thank you for your advice.
Kerri
I hold the model portfolio plus about another 10 stocks. In regards to Ambev which is trading near it 52 week low. Do you see much growth in Ambev over the next 2 years? I am down about 12%. I am debating on on averaging down OR selling it and adding that $US money to my Unilever holding and VXUS holding which have both been hit hard recently. Or I have the cash and can add to all 3 of those $US holdings (in-addition to other holdings in the model portfolio). Thank you for your advice.
Kerri
Q: I noticed Statoil is still declining while other oil majors are flat or bouncing today. What is your opinion on this company? I have a small position less than 1% of my portfolio. Should I hang on or cut losses? Is the dividend safe? It seems like its not afforded out of free cash flow.
Q: Hello 5i,
I’m in effect building my own mutual fund and have been studying portfolio asset allocation recently. My portfolio is evolving over time and looks like it will contain approximately 80 to 90 stocks upon completion, which is 10 years away. The covariance between the different asset classes and beta of the individual stocks is currently where I want it to be. My concern is the original set up of 50% Canadian stocks and 50% world; I also have a break down within ‘world’. I’m happy with the way the overall portfolio is taking the current pull back and would like to make it even better.
The question is:
To reach the optimum setting at the higher level (world), what should I be allocating percentage wise?
Your help is appreciated,
I’m in effect building my own mutual fund and have been studying portfolio asset allocation recently. My portfolio is evolving over time and looks like it will contain approximately 80 to 90 stocks upon completion, which is 10 years away. The covariance between the different asset classes and beta of the individual stocks is currently where I want it to be. My concern is the original set up of 50% Canadian stocks and 50% world; I also have a break down within ‘world’. I’m happy with the way the overall portfolio is taking the current pull back and would like to make it even better.
The question is:
To reach the optimum setting at the higher level (world), what should I be allocating percentage wise?
Your help is appreciated,
Q: Good morning everybody at 5i .I am fully invested in the model portfolio and would like to use ETFs to invest outside of Canada.what market conditions would allow you to buy into the Russell 2000 ,S&p 500,Europe and Asia.everybody excepting the North American pullback but not so positive on Europe or Asia.thank you for your response and enjoy your Thanksgiving long weekend.
Q: Hi Team: any comments on ORAN- the yield and PE look very attractive here. As the former France Tel, are they not in a strong defensive position as well? thanks
Q: Hello,
Just wondering of your thoughts on an investment in Europe and Emerging Markets/Asia and what %'s in a aggressive portfolio. Thanks Again!
Just wondering of your thoughts on an investment in Europe and Emerging Markets/Asia and what %'s in a aggressive portfolio. Thanks Again!
Q: This stock is not going down even on bad days. Do you think it is still a buy ?
thanks
LC
thanks
LC
Q: Peter and company,quick pick on Alibaba.
I always wondered why a Chinese company would relinquish some ownership ''just'' to have the dubious privilege of an American listing.
Well I got the answer via 'Wall street on Parade' yesterday: they simply don't give up anything and that makes much better sense for them. Does it for you?
If you are interested, read on:
The concerns about this Chinese company’s opaque structure as a Variable Interest Entity (VIE) in the Cayman Islands are so serious that a U.S. Senator, Bob Casey (D-Pa), issued two letters this year to Mary Jo White, SEC Chair, demanding answers.
In a July 11, 2014 letter, Senator Casey drilled down to the core of the stock ownership problem, writing:
“…American investors in Chinese companies often do not enjoy the same protections and legal guarantees that they are afforded when they invest in American firms. Most Chinese firms that list in the U.S. use a structure known as a variable interest entity (VIE). VIEs are shell companies that give investors contractual claims to a firm’s profits but do not legally grant them ownership of the company. For example, according to Alibaba’s securities filing, Americans who invest in the company will not be buying stakes in Alibaba’s profitable e-commerce business, but in a related Cayman Islands shell company. These structures allow companies to circumvent Chinese regulatory restrictions on foreign investment.
“More concerning, given the Chinese government’s interest in restricting foreign ownership in certain industries, it is far from clear that the contractual claims underlying VIEs are enforceable. In fact, in recent years Chinese courts and arbitration boards appear to have invalidated VIE contracts and similar arrangements. As a result, VIE structures pose significant risks to American investors accustomed to the idea that shares sold on stock exchanges amount to legally sound ownership stakes in revenue-generating companies.”
The VIE structure for Chinese companies trading in the U.S. sounds more like an international lawsuit waiting to happen than an ownership piece of the corporate pie. If you think VIE shareholders have any right to elect the Board of Directors of this company, think again. Here’s a revealing section from the Alibaba prospectus:
“Risks Related to Our Corporate Structure
“The Alibaba Partnership and related voting agreements will limit your ability to nominate and elect directors.
“Our articles of association, as we expect them to be amended and become effective upon completion of this offering, will have the effect of allowing the Alibaba Partnership to nominate a simple majority of our board of directors…
“The interests of the Alibaba Partnership may conflict with your interests.
“The nomination rights of the Alibaba Partnership will limit your ability to influence corporate matters, including any matters to be determined by our board of directors. The interests of the Alibaba Partnership may not coincide with your interests, and the Alibaba Partnership or its director nominees may make decisions with which you disagree, including decisions on important topics such as compensation, management succession, acquisition strategy and our business and financial strategy.”
The history of Chinese companies listing here in the U.S. hasn’t exactly been a rose garden for investors either. Senator Casey notes the following in his July 17 letter:
“In the past three years alone, the SEC has charged a number of China-based companies with fraud, including China Sky One Medical Inc., AutoChina, SinoTech Energy Limited and China MediaExpress. The sheer number of fraud cases involving China-based companies listed in the U.S. reveals systemic problems with many Chinese companies’ legal structures and accounting practices. Indeed, earlier this year, SEC Administrative Law Judge Cameron Elliot ruled that the Chinese units of several large accounting firms could not audit U.S.-listed companies due to their willful failure to disclose information to U.S. financial regulators.”
This seems to be more the realm of traders than the one of your subscribers, don't you think so?
I always wondered why a Chinese company would relinquish some ownership ''just'' to have the dubious privilege of an American listing.
Well I got the answer via 'Wall street on Parade' yesterday: they simply don't give up anything and that makes much better sense for them. Does it for you?
If you are interested, read on:
The concerns about this Chinese company’s opaque structure as a Variable Interest Entity (VIE) in the Cayman Islands are so serious that a U.S. Senator, Bob Casey (D-Pa), issued two letters this year to Mary Jo White, SEC Chair, demanding answers.
In a July 11, 2014 letter, Senator Casey drilled down to the core of the stock ownership problem, writing:
“…American investors in Chinese companies often do not enjoy the same protections and legal guarantees that they are afforded when they invest in American firms. Most Chinese firms that list in the U.S. use a structure known as a variable interest entity (VIE). VIEs are shell companies that give investors contractual claims to a firm’s profits but do not legally grant them ownership of the company. For example, according to Alibaba’s securities filing, Americans who invest in the company will not be buying stakes in Alibaba’s profitable e-commerce business, but in a related Cayman Islands shell company. These structures allow companies to circumvent Chinese regulatory restrictions on foreign investment.
“More concerning, given the Chinese government’s interest in restricting foreign ownership in certain industries, it is far from clear that the contractual claims underlying VIEs are enforceable. In fact, in recent years Chinese courts and arbitration boards appear to have invalidated VIE contracts and similar arrangements. As a result, VIE structures pose significant risks to American investors accustomed to the idea that shares sold on stock exchanges amount to legally sound ownership stakes in revenue-generating companies.”
The VIE structure for Chinese companies trading in the U.S. sounds more like an international lawsuit waiting to happen than an ownership piece of the corporate pie. If you think VIE shareholders have any right to elect the Board of Directors of this company, think again. Here’s a revealing section from the Alibaba prospectus:
“Risks Related to Our Corporate Structure
“The Alibaba Partnership and related voting agreements will limit your ability to nominate and elect directors.
“Our articles of association, as we expect them to be amended and become effective upon completion of this offering, will have the effect of allowing the Alibaba Partnership to nominate a simple majority of our board of directors…
“The interests of the Alibaba Partnership may conflict with your interests.
“The nomination rights of the Alibaba Partnership will limit your ability to influence corporate matters, including any matters to be determined by our board of directors. The interests of the Alibaba Partnership may not coincide with your interests, and the Alibaba Partnership or its director nominees may make decisions with which you disagree, including decisions on important topics such as compensation, management succession, acquisition strategy and our business and financial strategy.”
The history of Chinese companies listing here in the U.S. hasn’t exactly been a rose garden for investors either. Senator Casey notes the following in his July 17 letter:
“In the past three years alone, the SEC has charged a number of China-based companies with fraud, including China Sky One Medical Inc., AutoChina, SinoTech Energy Limited and China MediaExpress. The sheer number of fraud cases involving China-based companies listed in the U.S. reveals systemic problems with many Chinese companies’ legal structures and accounting practices. Indeed, earlier this year, SEC Administrative Law Judge Cameron Elliot ruled that the Chinese units of several large accounting firms could not audit U.S.-listed companies due to their willful failure to disclose information to U.S. financial regulators.”
This seems to be more the realm of traders than the one of your subscribers, don't you think so?
Q: Good morning 5i, may I have your opinion on investing in SAN, Banco Santander, for income and growth after the Scottish referendum. How risky is it now compared to the times of the first two questions in 2012 and 2013. Is it too risky for a RRIF? Thank you
Q: Peter, what do you think of the upcoming ipo for Ali Baba? What are your thoughts on when and how much to pay when demand will be massive and the price will likely be driven up rapidly?
Thanks.
Thanks.
Q: HI,
What are your thoughts on buying Panasonic? It recently had news about a relationship with Tesla. Do you think it has long term potential?
Carla
What are your thoughts on buying Panasonic? It recently had news about a relationship with Tesla. Do you think it has long term potential?
Carla
Q: I am thinking of investing in a European ETF for added diversification. The Vanguard FTSE (VGK) and the iShares MSCI (IEUR) look like good options to me. What do you think?
Q: Hi. I hold Lloyds Bank via the ADR (LYG US). The government seems to be considering a sale of all or part of their shares to institutional investors shortly. Do you think they will sell the shares below what they are trading at today, or at the previous sale price.
Thanks for your thoughts on this
Thanks for your thoughts on this
Q: Dear All, i am wondering if you have any information on LLEN (L & L Energy)? Looking forward to your response.
Q: I appreciate your comment re BRF S.A.( BRFS-N) a Brazilian company(consumer).Thank you.Ebrahim