Investment Q&A

Q: I am not one to be too worried about the exact price at which I purchase a stock, as I take to heart your advice that for a true investment that could last years, a percentage or two difference in price isn't going to be a deal breaker.

Having said that, you once commented on the best time of day to buy a stock but I can't locate your answer now. If I remember correctly, you suggested that one should wait until an hour or so after the opening bell for some reason.

If that is correct, I was wondering if any time after 10:30 a.m. (EST) is good or is it better to wait until just before the closing bell, during lunch etc or does it really not matter?

Appreciate the insight.

Paul F.

Q: re: Hal's question of Apr. 27 for a site that classifies stocks for seasonality. He could try EquityClock.com. There are charts and tables for stocks, sectors, indexes.

Q: Hi Peter and team. For the most part, I am a buy and hold investor with a very long time horizon especially for dividend-paying stocks. However, I also use a buy-write strategy where I write covered calls on stocks. For example, I am considering doing this with AAPL $135 calls expiring in July (07/17/15) that last traded at $4.46. So, if buy 100 shares stock and write 1 call, three month upside (after transaction fees) about $900 for a $13000 investment (7%) Any thoughts or advice on this? (E.g. what time frame for calls would you suggest? Any "art" of selecting the best delta?) Thanks for great service!

Q: After reading your column in Saturday's National Post my eyes wandered to
the right, a beginner's guide to Alternative Investing. What do you think of the article
and what funds would you recommend? Would you recommend any ETF exchange
Traded alternative funds by Purpose Investments Inc.? I like most investors have avoided this this type of investing because we really do not understand it.
Thanks to all.

Q: I'm having difficulty trying to classify stocks (eg consumer discretionary, materials,consumer staples, industrials) for seasonality. Is there a site that classifies Canadian stocks?Thanks for your input

Q: Do you know where I can view what % of a company insiders own? Thank you.

Q: I am looking to diversify my holdings outside of Canada as we are told we should.I am looking for ETF's for U.S. as well as other world markets.It would be best if you could start other model funds for outside of Canada or recommend a clone of yourselves.

Q: Sierra Wireless trades on the American exchange as SWIR and on the Canadian exachange as SW. On some days there is more than a 1% difference in the change between the two exchanges. Most often there is a differenct. Can you explain?
Thank you.

Q: I have never used stop losses but with big gains in stocks like CSU and T wonder if I should start using on the stocks held in my TD Waterhouse account.
Thanks for your opinion

Q: Hi Mr. Hodson and Team:
We keep hearing about the end of the Commodity Supercycle and China slowing down, and we keep sweating.
Maybe we ought to trim our Canadian Resource exposure.

We hold the following (post recent sell-offs):
Can. Energy Producers: 10.7%.
(Cpg 3%. Arx 3.1%. Vet 2.4%. Bte 0.6%. Eca 0.9%. Bnp 0.3%. Su 0.2%. Cnq 0.2%.)
Can. Energy storage/ Pipeline: 4.5%.
You said these are Hybrids, so would count as 2% of Energy.
Makes my Total Can. Energy = 11.7%.

Materials: 7.2%.
(Tck 1.8% + Can. Agri/Lumber 5.4% )

Can. Gold: 3.4%.
G 1.5% + CGL 1.1% + ELD 0.4% + K 0.4%.

Makes- Total Can. Resource exposure: 22.3%.
(Above Energy 11.7% + Materials 7.2% + Gold 3.4%).
Too much in a volatile, cyclical and perhaps SunSet (post-China), Sector?

Perhaps, we should trim Total Resource down to 12%?
Keeping Energy 4% + Materials/Agri/Lumber etc 8%?
What is your opinion of this trimming/ allocation/ %age?

What Percentage would you suggest? Please comment. Thanks so much. sarah.

Q: I plan to invest in GIC's through my self directed accounts. Second tier providers such as BTB and Equitable Banks offer significantly higher rates than the Schedule 1 banks. Assuming I keep within the $100,000 CDIC limit is there any additional risk, disadvantage or consideration investing in these smaller providers vs. the big banks. Thanks.

Q: If a TSX listed stock becomes listed on the NYSE or Nasdaq, would this generally be good news for the stock and would it likely increase the value of the stock on the TSX? Or is it better to purchase it on the US exchange? Could you please explain? Thanks for your great service!

Q: Hi Peter,

Do you personally use technical indicators to inform your buy or sell decisions? If so, which ones are you looking at most? Scott Barlow at the Globe and mail often summarizes the trading week looking at RSI levels for equities. If you don't use technicals, what are you using to inform your buy and sell decisions? Thanks very much.

Q: Where can I find your recent emailed report on the re-alignment of stocks in your different portfolios. ie removal of HCG etc.

Q: What rights do shareholders have to stop/control dilution by issue of Treasury shares to anyone? Where insiders protect their positions by granting themselves options/warrants/rights to mitigate dilution caused by granting Treasury shares to new insiders can other shareholders insist on the same protection? Where dilution does take place what notification has to be made to shareholders, how and when?

Q: Hello Peter and Ryan,
I have a fundamental portfolio question if I may...I’m getting increasingly more concerned over how little the market is reacting to geo-political issues, in the sense that this non-reaction will possibly do a 180 into a sharp reaction at some point. I read Mohamed El Erian’s comments from his speech yesterday, and it certainly highlights these concerns.

I’m a true blue-chip buy-and-hold-type investor, but I’ve let some of my fixed income portion slide into conservative dividend stocks, as bonds stopped offering much in the way of income. I’m a true holder; I never sold in ’08-’09, I rode it through, and I will ride through any future turbulence as well, regardless of how steep.

Given all that, for someone in late 50s, no pension, and plans to live off the income generated from the investments (while planning to continually add some of the income back into capital to stay ahead of inflation) - and at this point in the cycle - what general percent should one maintain in GICs/high-grade-bond portion of the portfolio? And to state again, while my equity exposure is quite high today, 75-80%, it is in blue-chip type companies. On the margins I play the growth end, but only on the very far margins.

I realize that in this type of forum you can only provide general answers, so I’m only looking for your general ballpark thoughts, given how dramatically fixed income has changed in only the last few years.

I’ve marked this private, but if you feel it’s beneficial for your large audience, please feel free to publish. Thanks very much….

Q: RE MY POST YESTERDAY CONCERNING THE TD WATERHOUSE OUTAGE, I SENT AN EMAIL COMPLAINT AND RECEIVED A TELEPHONE CALL BACK THIS MORNING. THE UPSHOT WAS THAT I NEGOTIATED FINANCIAL COMPENSATION.GOOD LUCK TO OTHERS.

Q: Re Brenda's comment about TDDI "President's Account":
There is definitely a distinct phone number for holders of these President's Accounts (As far as I know your voice imprint has NO affect on call routing). I am in Montreal and therefore the local # is (514) 289-1272. There could/must be a 1-800 #, but Iam not aware of what it is.

Q: I use the TD discount brokerage. I established the account almost 20 years ago when I was virtually broke. Since then, I've used the phone #613-783-6322 (Ottawa) they've given me. In the past couple of years, I've gone to "President Account" status, still using this phone # (good memory and too lazy to look up phone numbers) and got through relatively quickly. The question I put out to members is whether TD discount brokerage gives this "less wait time" special status based on the phone number you call (in which case now many more people have it) or the phone # you have on file, or is it associated with the "voice print" sign in.
PS. The best decision (albeit, forced between a rock and a hard place) is leaving the "TD wealth advisor" and doing investments on my own with 5i!!!! I'm so truly grateful! I've done far better than I'd ever imagine.

Q: I am a bit confused on these stock splits. BAM announced a 3 for 2 stock split this week. What is the advantage of doing a 3 for 2 split as compared to 2 for 1 split? How is this decided? Who gains if anybody from this split?

Tnx