Investment Q&A

Q: Hi team,
I think I kind of understand but just for sake of certainty:
1- What does it mean when the status on a given stock is HOLD? Does it mean: don't sell if you have it or don't buy if you don't have it?

2- What is the difference between Indicated Annual Dividend and Dividend Yield? For example, BDI right now has each of these at $0.60 and 13.57%, respectively. Let's say I buy 100$ worth of stock at $4.00 today, how much would I earn in dividend in one year if the dividend does not change in one year? With a big thank you! :)

Q: I have noticed different terminology used by diff firms when reporting performance. BMO (personal acct) uses 'avg ann compound rate of rtn'; RBC provides 'annualized' 'calendar' or 'cumulative'; Mawer uses annual or annualized (one can select); Invesco just reports 'performance'; Templeton reports 'annual or calendar perf'; G&M provides 1 and 5 yr total returns (compound % rtn) and a 3 yr compound % rtn. I tried using the internet/Investopedia with limited success. My question is: is "CAGR" (cmpd ann growth rate) the same as "annualized return" which is same as "compound % return"? Is there a resource that you know of that makes some sense of the different terminologies?
PS: I like to use the G&M as they provide perf numbers (as well as Div Gwth RAte, PEG ratios, etc) for stocks, ETFs, MFs on the same site, there should be some measure of consistency, thus facilitating an apple to apple comparison.

Q: I have recently joined my local share club and am learning how to feel more comfortable acting as my own financial advisor.
I have transferred my existing mutual funds over to a TD Waterhouse Account and would like your advise on what to do next with these funds. I am 56 and would like this to grow over the next 10 years and then produce income for me as I have no pension. Thank You.
These are approximate
TDB889C - 29%
AIM1595C - 19%
AIM1571C - 13%
AIM1561 - 9%
AIM1581C - 7%
AIM1559C - 5%
Cash - 17.5%

Thank you

Q: Hi 5i
Could you please tell me what would be the best 2-3 metrics to use in security analysis for each sector. I would like to focus in on the most important metrics for stocks within each sector. Thank you for all your advice.

Q: Hello 5i team,
It's in times like these that I should have listened to you when you suggested to maintain an exposure to energy, gold and minerals (even though you exited FM); but to what do you attribute the recent (sudden) rally? I understand gold = uncertainty but lack of global growth (demand) would not suggest a surge in metals; as for oil, it seems we will always have an oversupply thanks to shale production.
I would appreciate your take on these issues,
Antoine

Q: Peter,it is worthwhile getting these 2 books by Robin Speziale.Market Masters(You were one of many interviewed by him) & Lessons for the successful investors. Thanks a lot

Q: I know this is outside your area of concentration, but I'd like an opinion on the Canadian dollar vs. the U.S. I put about 25%of my net worth in U.S. dollars in the high 90s. Recently I see an uptrend against the U.S. dollar and am considering repatriating that money. Do you agree with my reading of the situation and that it could be sustained for six months or more. Do you have a guess at where the Can. dollar would have to get to be "over-priced".

Q: It has mentioned several times that deposits at many Canadian financial institutions are insured through CIDC up to $100,000. I don't remember any mention that all deposits in any Manitoba credit union or caisse populaire are guaranteed, without limit by the Deposit Guarantee Corporation of Manitoba.There are several credit unions in Manitoba that offer online banking across provincial boundaries and higher interest rate than the banks. Implicity financial is one example that offers 1.75% interest on deposits and the unlimited guarantee.

Q: Hi Peter, I noticed some companies have high debt/equity ratios (above 50%) both in their most recently reported year and over the 3 previous years: RSI: 77%, PKI: 85%, BCE: 134%, CJT: 289%, ATD.B: 83%, CNR: 70%, LAS.A: 100%, AGT: 106%, BIP.UN: 193%, REF.UN: 58% (70% in the past), BYD.UN: 139%, BIN: 137%. How and where do I know that a particular industry's standard is acceptable? For example, maybe all of the telecommunications industry is operating at unsustainable levels (although doubtful). I do realize that some of these industries or comparing A to B will be necessary for years to come (hence why a good investment), but I just don't understand how maintaining high debt can be okay or they can get away with it - i.e. banks and utilities seems to have high debt to equity ratios. Why invest in them then ... thankx.

Q: As a follow-up to Tim, I understand the CDIC issue, but what about funds in a self-directed brokerage account held at a bank that has to be bailed-in? How would a bail-in affect stock and preferred share holdings in the bank affected, and, in the same account, non-bank stocks and ETF holdings that hold some of the bank stock? Does it make any difference if the individual actually holds the stock certificate (I suspect most of us don't)?
Thank-you

Q: A general question about voting and non-voting shares. How can a retail,investor find out if coattail provisions exist in case of a takeover.?
Many years ago I was burnt when laidlaw was taken over and the premium was not
Offered to non voting shareholders. Interesting , I did write a letter to investor relations at the time ( before email) and was assured that all shareholders would be treated equally.
I guess it was not written in stone
Thank you

Q: Would you please provide a percentage sector allocation recommendation for an income portfolio with a 5 year time frame.

Q: Good day, can you provide a few names of fee for service advisors, that you would recommend in the GTA.

Thanks

Q: Within the next two years I must convert my RRSP to a RRIF. Over the years, I have never paid a lot of attention to the right mix for my RRSP…I just invested in a company I liked and if I had the cash, the stock was either purchased within the RRSP or cash account. My major holdings are CNQ, SU, and a Mawer fund (MAW105). These constitute approximately 70% of the RRSP account. With Husky at 9% and cash at 7% there are only very small holdings making up the remainder, of which Home Capital Group and WSP Global total about 6%. I don’t expect to have immediate needs for the money from cashing in, before age 71. I just wished to have some advice of what I should exchange, if any, within the RRSP. It seems that, at present, I am heavily weighted in cyclicals, especially oil. Since we probably are at the bottom for oil or close to it, I don’t see any advantage to trading for something different before I reach 71 unless there is some advantage that I don’t understand. Perhaps I should do nothing and ride out the oil depression then rebalance once oil prices improve? Can you provide some thoughts as to what, if anything, I should do between now and age 71? Thank you, I value your opinion very much.

Q: Yesterday you provided a percentage sector allocation for a growth portfolio for 5-10 year holding. Would the answer be different for an income portfolio? Thanks.

Q: Thank you for the 'heads up' on your blog post on CUS/SPB/AYA. While I have already made these calculations and acted on them, I had realized it was a difficult subject to broach with 5i. This trade is a speculation and something you shouldn't encourage what with you PF approach. Very glad you found an outlet for these types of ideas in "blog" postings and I encourage you to continue sending us a "heads up" when you do. Thanks again.

Q: Donald Trump is likely becoming a GPO nominee for the coming US Presidential election. How should an investor prepare for the coming market uncertainty ? Presently I hold 20% of my portfolio in cash and am contemplating to increase my cash holding to 50%. Please advise. Thank you. Bill

Q: I like this site that another member suggested for info on short positions. https://ca.finance.yahoo.com/q/ks?s=DH.TO The link takes you to Key Stats for DH but just enter the symbol in the box for any stock and moving averages is in the right hand box. Tons of info on this site. I use it regularly and find new stuff all the time.
Thanks

Q: In response to Brian's question on Feb 26 about a stock's technicals and analysis. He might find this site useful StockTA.com http://www.stockta.com/ For Canadian stocks you need to add a .c to the ticker symbol

Q: I asked this question in the blog but probably should be here.

My broker told me that BEP.UN was a bad investment because the $2.25 payout far exceeded the $1.11 earnings? When I go online to check this out I get conflicting numbers, so not sure who to believe. Can you clarify as to the integrity of BEP.UN
Thankyou....Jim