Q: Hi Peter, you articulate well your reasons why 5I does not issue target prices, and I agree with same and it makes perfect sense. I note brokers are normally "behind the curve" when setting or revising target prices. Usually it occurs right after earnings. If there is a big earnings beat, miraculously the target price is revised down, and conversely if it is an earnings miss then they revise down often. When target prices are set without reference to recent quarterly earnings, aren't they set using some valuations method, ie. price/forward earnings, price/book, price/affo etc. I don't buy or sell based on target prices, however is there not some limited value in them in that at least it allows one to examine the price based on a valuation method, and at least pay attention to the stock. And as to a potential purchase, if a stock is at its target price(s) should I not at least confirm there is no obvious reason why the stock cannot go up from there? I do keep in mind your advice that generally if nothing has changed fundamentally there is usually no reason to sell. Thanks for the great advice 5i provides. Bill Y.
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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: a comment
You can post this in the forum if you like Peter and team...
First off, enjoyed your session on Market Call. Very well done.
More importantly, what I really took from it was the consistent 5i message which has now repeatedly (we must drive you nuts) mentioned the philosophy of not using any kind of "target pricing" expectation/strategy. Ironic for me personally, considering just yesterday I asked where you thought Amaya might end up. I will be doing my very best moving forward to not ask about target prices although I admit, it will be tough.
I appreciate more than you will know the lessons you consistently emphasize - faith in metrics, long term investing, and not trying to invest/divest based on target pricing and/or timing the market. All things every once in a while I am guilty of not observing.
Have patience with me 5i team. I will try and do better.
Thanks for all you do
Gord
You can post this in the forum if you like Peter and team...
First off, enjoyed your session on Market Call. Very well done.
More importantly, what I really took from it was the consistent 5i message which has now repeatedly (we must drive you nuts) mentioned the philosophy of not using any kind of "target pricing" expectation/strategy. Ironic for me personally, considering just yesterday I asked where you thought Amaya might end up. I will be doing my very best moving forward to not ask about target prices although I admit, it will be tough.
I appreciate more than you will know the lessons you consistently emphasize - faith in metrics, long term investing, and not trying to invest/divest based on target pricing and/or timing the market. All things every once in a while I am guilty of not observing.
Have patience with me 5i team. I will try and do better.
Thanks for all you do
Gord
Q: Peter,
I know it is repetitive on my side and repetitive on your side..
but, tell me even this type of information is not even make you blink?
''Corporations are now the single largest buying source for U.S. stocks – authorizing buybacks of their own stocks to the tune of $754.8 billion in 2013 alone.
And it’s a long-term trend. According to Birinyi Associates, for calendar years 2006 through 2013, corporations authorized $4.14 trillion in buybacks of their own publicly traded stock in the U.S. — raising the question, just what kind of a bull market is this?
JPMorgan Chase, the largest U.S. bank by assets, has turned share buybacks into an art form, buying back a whopping $17,945,000,000 of shares from 2010 through 2013. In just the calendar year of 2011, JPMorgan spent a stunning $8,827,000,000 on stock buybacks''.
There is debt attached to that, it is not gone! 4 trillions buyback!!
To me this is madness in proportion of the 2000 and 2009 madness.. So ''they'' think they can get away with it this time.. Of course attached to that is the explosion of derivative (http://www.advisorperspectives.com/dshort/updates/NYSE-Margin-Debt-and-the-SPX.php?utm_source=Triggermail&utm_medium=email&utm_term=Markets%20Chart%20Of%20The%20Day&utm_campaign=Moneygame_COTD_072914) leverage but everybody is on the same side of the trades as usual. Give me a serious black swan and you still do not worry?
Thank you for having again the patience to explain the reasons why you are so little worried.
CDJ
I know it is repetitive on my side and repetitive on your side..
but, tell me even this type of information is not even make you blink?
''Corporations are now the single largest buying source for U.S. stocks – authorizing buybacks of their own stocks to the tune of $754.8 billion in 2013 alone.
And it’s a long-term trend. According to Birinyi Associates, for calendar years 2006 through 2013, corporations authorized $4.14 trillion in buybacks of their own publicly traded stock in the U.S. — raising the question, just what kind of a bull market is this?
JPMorgan Chase, the largest U.S. bank by assets, has turned share buybacks into an art form, buying back a whopping $17,945,000,000 of shares from 2010 through 2013. In just the calendar year of 2011, JPMorgan spent a stunning $8,827,000,000 on stock buybacks''.
There is debt attached to that, it is not gone! 4 trillions buyback!!
To me this is madness in proportion of the 2000 and 2009 madness.. So ''they'' think they can get away with it this time.. Of course attached to that is the explosion of derivative (http://www.advisorperspectives.com/dshort/updates/NYSE-Margin-Debt-and-the-SPX.php?utm_source=Triggermail&utm_medium=email&utm_term=Markets%20Chart%20Of%20The%20Day&utm_campaign=Moneygame_COTD_072914) leverage but everybody is on the same side of the trades as usual. Give me a serious black swan and you still do not worry?
Thank you for having again the patience to explain the reasons why you are so little worried.
CDJ
Q: A year or so ago, you mentioned that LAS.A on T was on your to-do list. Just wondering if it is nearing the top of list and if you still expect to cover the name. I think you also may have said the same about ADW.A. And so will that be covered in the future? What would your "back of the napkin" rating by on these 2?
As a suggestion, have you given some thought to publishing a "here are the next 5 (or 1 or 10 or whatever) names we will be covering list" so that someone contemplating those names might wait for the reports. Just a thought.
Rick
As a suggestion, have you given some thought to publishing a "here are the next 5 (or 1 or 10 or whatever) names we will be covering list" so that someone contemplating those names might wait for the reports. Just a thought.
Rick
Q: Hi Peter and Team,
I hold US stocks and US ETF in a US trading account with TD Waterhouse (100k). Could you clarify to me if I will be liable to pay US estate taxes to the IRS or if I have any special reporting requirement.
IF so is it better to buy only ETFs issued in Canada of US indexes.
Any other alternatives?
Regards.
I hold US stocks and US ETF in a US trading account with TD Waterhouse (100k). Could you clarify to me if I will be liable to pay US estate taxes to the IRS or if I have any special reporting requirement.
IF so is it better to buy only ETFs issued in Canada of US indexes.
Any other alternatives?
Regards.
Q: This is a comment in response to Claude.
I have been using Qtrade for the last five years and have found them to be excellent in all respects. They have been given the top rating out of all the online brokers by the Globe and Mail for all but the most recent year, when they came second. Their real-time price quotes and ask-offer spread details are fine. I recommend them.
I have been using Qtrade for the last five years and have found them to be excellent in all respects. They have been given the top rating out of all the online brokers by the Globe and Mail for all but the most recent year, when they came second. Their real-time price quotes and ask-offer spread details are fine. I recommend them.
Q: This is a call for information about something going on with my BMO Investorline account.
I have seen over the course of the past year and some.. a complete abandonment of a true report of real prices on the bid and ask of my level 2 listings. Prices are all over the place and there is no more price discovery.
To make things even more challenging, the real time quotes are very often showing absolutely different bid and ask prices than the one from the level 2. A multitude of call to BMO has gone nowhere and I am planning an exit from my account, but no idea where to go!
So my question to the community is: Do anybody has a significant difficulty with the bid/ask from their broker, and who has not seen any discrepancy on their bid/ask, it will help any further move out of BMO.
Thanks
I have seen over the course of the past year and some.. a complete abandonment of a true report of real prices on the bid and ask of my level 2 listings. Prices are all over the place and there is no more price discovery.
To make things even more challenging, the real time quotes are very often showing absolutely different bid and ask prices than the one from the level 2. A multitude of call to BMO has gone nowhere and I am planning an exit from my account, but no idea where to go!
So my question to the community is: Do anybody has a significant difficulty with the bid/ask from their broker, and who has not seen any discrepancy on their bid/ask, it will help any further move out of BMO.
Thanks
Q: Hi Peter, From the sale of our house, we have quite a chunk of money that we need to put somewhere while we decide what to do. Where would you suggest parking this money for 2-3 months, keeping it relatively accessible, while we scout for longterm investments? Thanks!
Q: http://www.theglobeandmail.com/globe-investor/inside-the-market/the-man-who-foresaw-the-2008-crash-now-says-stocks-are-in-a-highly-advanced-bubble/article19812168/#dashboard/follows/
Hi Peter,
I would be very interested to hear your thoughts on this article. Thanks in advance.
Best regards,
Judith
Hi Peter,
I would be very interested to hear your thoughts on this article. Thanks in advance.
Best regards,
Judith
Q: I am considering moving my portfolio from RBC Dominion- to a money management firm- what are some of the pitfalls I should be aware of and maybe a couple or three questions I really should be asking- before making a decision.
Q: hi Peter and team, I want to make a move from TD Waterhouse to the RBC trading platform and I wondered if i should plan to pay for all 'sell' transactions as i move out, and all 'buys' as i move in. Do you know? Thanks -- your service is so appreciated!
Q: Hi Wonder Team
Please give me your advice or guidelines on "Averaging Down"! For example I bought a junior company recently that was going through a rough patch. It had declined 35% in the past year so I thought it was a good time to buy. However I was early and it continues to drift down. So here are the questions...If you still believe in the company and nothing has changed since the purchase at what discount would it be worthwhile to buy more...in other words does a stock have to be down at least 15% or 20% before it makes sense? Also, if your original purchase is 4% of your portfolio where is the upper limit? Lastly is it wise to only average down once...in other words do not fall in love with a stock! Ha!Ha! Thanks!
Dr.Ernest Rivait
Please give me your advice or guidelines on "Averaging Down"! For example I bought a junior company recently that was going through a rough patch. It had declined 35% in the past year so I thought it was a good time to buy. However I was early and it continues to drift down. So here are the questions...If you still believe in the company and nothing has changed since the purchase at what discount would it be worthwhile to buy more...in other words does a stock have to be down at least 15% or 20% before it makes sense? Also, if your original purchase is 4% of your portfolio where is the upper limit? Lastly is it wise to only average down once...in other words do not fall in love with a stock! Ha!Ha! Thanks!
Dr.Ernest Rivait
Q: Dear Gentlemen,
Can I say that all stocks I5 follows are in the I5 Summary spread sheet ?
Thanks and Best Regards
Can I say that all stocks I5 follows are in the I5 Summary spread sheet ?
Thanks and Best Regards
Q: Is there a free website where I can see all the previous days closing prices of TSE stocks? Thanks for your time.
Q: September is near and the market is near all time high. I would like to hear your ideas regarding protection for Canadian stock portfolio.
What do you think of ETF HUT. Would you recommend using it and if so, what amount one needs to buy for protection of $100K portfolio. Thanks Peter.
What do you think of ETF HUT. Would you recommend using it and if so, what amount one needs to buy for protection of $100K portfolio. Thanks Peter.
Q: Recently you replied to a question about tourmaline that you would hold it in a tfsa account or, taxable account because of favourable tax treatment on capital gains. I thought an rrsp would be a better place if you didn't have roon in tfsa. In an rrsp you won't pay any taxes at all. Obviously, you know more than me in this area and so i am wondering if i have overlooked something
Thanks as always for the great , informative and interesting service
Thanks as always for the great , informative and interesting service
Q: Have you ever thought of putting your model portfolios in an ETF?
This would make it alot easier for subscribers to buy into your portfolios as opposed to buying the individual stocks.
This would make it alot easier for subscribers to buy into your portfolios as opposed to buying the individual stocks.
Q: re: TD, MFC Interest rates plus Amazon & VISA missing forcast
the market in general after the Amazon/VISA reports became public have fallen yet both financials TD & MFC saw nice gains.
What is your take on this and does this in any way indicate what might happen with interest rates?
Thanks for all you do
Gord
the market in general after the Amazon/VISA reports became public have fallen yet both financials TD & MFC saw nice gains.
What is your take on this and does this in any way indicate what might happen with interest rates?
Thanks for all you do
Gord
Q: I am of the belief that interest rates are set to rise in the near term (although I have held this belief for the last Year). To play this thesis, I am looking at PROSHARES SHORT 20+ YEAR TREASURY ETF (TBF;NY). At today's price, this ETF is at a 52-week low so I feel that there will be greater upside potential than downside risk. I am looking at a 5% position as a hedge to my positions in interest rate sensitive stocks in the telecomm and enegy infrastructure space that will decline if interest rates do rise. Does this thesis make sense?
Also, in the event that the 10 Year Yield moves higher (say 3.0%), what impact will there be on Canadian and US Financials?
Thank You.
Also, in the event that the 10 Year Yield moves higher (say 3.0%), what impact will there be on Canadian and US Financials?
Thank You.
Q: Hi Peter and team, this question is regarding the article you wrote on concentration. I have a high concentration of XTC (bought at 3.30) and FSV (bought at 33.60), respectively about 15 and 20 percent of the portfolio. I am quite happy with the results, and am of two minds on whether to continue holding or take profits.
I don't feel that either company has a dominant market position even though they are both growing nicely. Is it reasonable to hold XTC looking for a 5 bagger and FSV looking for a 2-3 bagger? I have already taken some profits on both, but am wishing I had let my winners run further. I have probably a 25 year time horizon minimum before I draw down on my portfolio. You have mentioned some other high growth names that are appealing, and I am considering allocating profits to those names. Any thoughts?
I don't feel that either company has a dominant market position even though they are both growing nicely. Is it reasonable to hold XTC looking for a 5 bagger and FSV looking for a 2-3 bagger? I have already taken some profits on both, but am wishing I had let my winners run further. I have probably a 25 year time horizon minimum before I draw down on my portfolio. You have mentioned some other high growth names that are appealing, and I am considering allocating profits to those names. Any thoughts?