Investment Q&A

Q: Any opinion of the firm and their funds, Ewing Morris, in Toronto?

Q: Hi Guys,

My 82 year old parent's new financial advisor ( the other one just disappeared without notice) has propose the following for their TFSA:
Mr.; MER Allocation
Fidelity Global Monthly Income F .80% 20%
Fid Monthly Income F .70% 20%
Fiera Income Opportunities F .82% 20%
First Trust Senior Load ETF ? 10%
Northwest Healthcare Property 10%
Pro Real Estate Inv. Trust 10%
Healthcare Leader Inc Fund EFT ? 10%

Mrs.;
Dynamic Blue Chip Eq. Fund FE ? 30%
Dynamic Global Value Fund DSC ? 3%
Dynamic Stragic Yield Fund LL ? 21%
Fidelity Strategic Income Fund F .75% 26%
Cibc Cdn Equity Auto ? 6%
CI High Income FE ? 8%
CI High Income Dsc ? 6%

Both are low income and live off their dividends.

What I am looking for is a general answer; yes it looks OK or are they still paying way too much for fees (the advisor is charging 1% + to handle their investments).

thanks,

Jim

Q: Hi Peter
Can you comment on Binary Options? My friend put $10,000 with Magnum Binary options two weeks ago and has been told that she is now at $10,750. They recommend that she increase her investment to $50,000 and they will manage it to make her some money. She is dealing with a fellow out of Bulgaria and it sounds a little scammish to me. Any thoughts?
Guy R

Q: If I receive $10000.00 in dividend income, do I get an additional 18% contribution room in my RSP from this income?

Q: Re: Jason question
I would very highly recommand the site "Masters in busines" from Bloomberg and scrolll down to the interview of Aswath Damodaran by Barry Ritholtz, on Valuation, data and investing. I consider this interview the most unbiaised and educating I never had the chance to hear on the difficulties of valuing companies.
IN HOPE THIS IS USEFUL
Claude

Q: Hi guys,

I was looking at Free Cash Flow Yield as a metric to evaluate companies that I want to invest in. Do you find this metric useful? Also, what would be considered a good free cash flow yield? I've heard people look at companies with 10% free cash flow yield, but that seems like it would be hard to find. Some of the companies in my portfolio like Disney and Stella Jones seem to have closer to 5% free cash flow yield. I know Disney has been investing heavily in their parks, which has lowered their FCF yield in the short-term.

Thanks,
Jason

Q: Hi Peter,
These long bond etf (ZLC, XLB, ZFL) have done very well with YTD total return of 10.48, 10.35 and 8.91 respectively
Why have they done so well?
Is it too late to consider them for RRIF income investment going forward? If so, which one do you recommend, thanks

Q: Hello 5i Team,
Do Peter &/or Ryan make a point of meeting the management of the companies in your three portfolios?
Thanks
Dave

Q: What do you guys think of trump winning? Any idea how this will affect Canada?

Q: Hello,

I have 100k (non-registered) that I need to use for a child's schooling over the next 5 years. I will need 20k each year for the 5 years. Looking to balance preservation of capital while looking to at least match inflation over the 5 years. No interest in equity. How would you recommend going about investing the funds? GIC's? Short term bond funds? Money market funds? Recommendations?

Regards,

Robert

Q: Excluding mutual fund management fees for the moment, is it not better to own the entities within a fund vs the fund itself? Putting it another way, if the stocks go up, I go up 'x' percent. However the funds holding the stocks also have to be 'popular' with other investors, so money flows into them, for me to make any money. Have I got that right?
Are we, as investors, getting a continual watered down effect with the many funds out there?
You commented briefly on the industry decline on the past while reviewing CIX for another member.

Q: MT Newswire at 7:26 AM on Friday filed a report that BIP.UN had reduced its dividend when in fact there distributions are up 11% in the year. The result was a drop of 6% in Market Value which later in the day recovered half of the loss. Some shareholders would have been damaged if it prompted a sale. Are there no repercussions for MT Newswire for the misstatement?

Q: Just to follow up :
There is a very good free analyst's ratings site for both US and Can stocks (including affiliations):
https://www.marketbeat.com



November 06, 2016 - Asked by KEN

Q: In financial media eg Globe + Mail, I sometimes see stocks listed as analyst Strong Buy. Is there a source or site where I can track strong buys for the USA and Canada? incl analyst affiliation.

Thanks for your help.

5i Research Answer:
TMX Money shows the analyst distribution (#buy, sell, etc) as well as estimates and target prices (click 'Research' after searching a stock of interest). It does not show the affiliation though and we imagine this would be difficult to find from free services.

Q: In financial media eg Globe + Mail, I sometimes see stocks listed as analyst Strong Buy. Is there a source or site where I can track strong buys for the USA and Canada? incl analyst affiliation.

Thanks for your help.

Q: 2:10 PM 11/4/2016
Hi Peter
I just got my Nov/Dec issue of Canadian Moneysaver and the "accompanying table" illustrating Norman Rothery's article on Graham Stocks for 2017 is missing! Would it be possible for you to print it on the Blog or Report page in 5i?
Thank you........ Paul K

Q: PPL and others in the utility pipeline space have taken a major haircut in the last few days for no reason at all. Is the threat of a Fed rate increase really to blame? In real financial terms that is really immaterial. However, market movers have been using all threats (real or otherwise) to further their games of stirring stock movements. What is your take on this? Thanks.

Q: If a stock such as SU which is listed on both Cdn and US exchanges is purchased on the US side, is the dividend going to be eligible for the same tax credit as if it was purchased on the Cdn side [bought thru a Cdn discount brokerage]

Q: In looking at your Balanced Portfolio, Do you disclose when you trim positions as well as add and remove? Thanks

Q: I haven't used stop losses in the past but with the uncertainty of the US election coming up ,I am considering putting stop losses on my stocks should there be a quick sell off.

What are your thoughts on stop losses and using them especially in uncertain situations.

Thanks

Q: I have a 5% position in Alaris and am significantly under water. Earlier this year I sold CJT at a nice profit so I am sitting with a nice capital gain. I am thinking of selling Alaris for the loss and to offset some of the capital gain with Cargojet, As I like Alaris and it's dividend I would most likely buy it back after 30 days. My question is do you like this strategy and if yes would you execute it before or after Alaris reports next week ?

Thanks Ken