Investment Q&A

Q: Could you comment on stop loss orders: when to use them, when not to use them, how much of a loss in percentage terms would you use (and would it depend on market capitalization or sector of the company), how long to have them in place, how frequently to review them and adjust them, using technical analysis to find support levels, etc. Some investors have told me they don’t use stop losses on stocks they plan to keep forever (e.g. Canadian bank stocks).

I would like to put some stop losses on my “riskier” stocks (SGY, WCP, CPG, TBE, DR, PPL) and I am wondering if a 10% to 15% stop loss from current levels is OK. I have had some of these stocks for a while and have gains up to 33%, and some are recent acquisitions and are break even.

Can you also comment on this article from the Toronto Star about never using stop loss orders to sell stock:

http://www.thestar.com/business/personal_finance/investing/2013/05/13/why_you_should_never_use_stoploss_orders_to_sell_stock.html

Perhaps you could publish an article in your research blog about using stop loss orders.

Q: I am a senior and have built my portfolio to be able to withstand
a 20% drop in the market.Do you think this is acceptable for safety long term?

Q: Hi Peter,
I noticed that the Dow is on the rise after a head and shoulders pattern. I also saw a superimposed image of the DOW in 1929 that shows a similar pattern. If the market does start to fall off abruptly after this recent rise, where should money go? I am recently retired and have BNS and a GIC with about 50% in cash. I was planning to invest, but a little hesitant now. I would really appreciate your advice. Thank you. Gail

Q: What is your opinion of selling out of the money put options for income on stocks you don't own, but would not mind owning?

Q: I have just read a member`s note thanking you for the new report entitled "5 from 5i" but I haven`t been able to find it on the site.

Thank you for the clear concise (jargon free) helpful answers you routinely provide.
e.https://www.5iresearch.ca/questions#sthash.ZQlmd33K.dpuf

Q: Hi team,
When a stock opens up in the morning down over 10% because a refinancing share issue, is it a good time to buy?
How would I avoid buying a stock just before share refinancing?
When placing a buy order, how long should you closely watch the movement of a stock before buying it? I've seen stocks up during the day approximately 3-4%, and give back all their gains when the market closes. If you buy early and this happens, are you out of luck?

Thanks,
Dennis

Q: Hi 5i team,

Thank you very much for the new report entitled "5 from 5i". I especially liked the link to an article in Aswath Damodaran's blog entitled "Facebook Purchase of WhatApp". I've always wondered why some companies can report little in the way of earnings and yet command very high share prices. I've often been told that it was because of their very fast growth rate, but this article provides another very plausible explanation and will guide me when trying to interpret the potential of "hot" but unprofitable stocks. Thanks for adding the new feature on your website.
Robert

Q: Hi Peter,
I have approximately $14000 to reinvest in a non-registered account. I'm looking for "safer" capital gains, dividend optional, to be held for 1-3 years. What are your top recommendations?
Also, since it's almost the end of RRSP season, do you suggest I wait a month or so before I make the purchase? (I realize you don't advocate trying to time the market but....)

Q: Hello 5i
can I have your opinion on a starter self-directed RRSP portfolio consisting of equal parts each VSC, XIU, SPY, and VXUS.
Thank you
Les

Q: Peter's BNN appearance: The clip is available at bnn.ca in the Video section. Look for the 10:40am segment of Business Day. You packed so much good information into your short time with Frances. The other thing I noticed is how very bright and smart the set is there.

Q: This is just a comment and I hope you actually post it because I am offended more than once by some language I see every now and then in our Member Questions section.

May I ask the members NOT to refer to Peter and the team at 5i as "gang," for example. Language Matters! Big time! Even when you want to show your casual or friendly attitude. So please address Peter and the rest of the team by names that show your respect for who they are and what they do for you and I everyday. They are "Gentlemen" as far I am concerned.

Thank you for your consideration.

Q: Regarding the dividend history. I use longrundata.com
It provides information on the last 8 dividend payments and then a 30 year history. It's a US site so you will need to add .tsx as a suffix. A disadvantage is that it doesn't seem to work where there is a dot in the address as in TCK.A or D.UN

Q: Re: David's question on dividend history. I use www.dividendhistory.org They show all dividend payments dating back to 1995 on Canadian symbols and a few years prior to that on U.S. ones.

Q: I just saw that you had a BNN appearance today. I'm sorry I missed it! Is there somewhere I can see the video????
Please!!! (and thank you!)

Q: There seems to strong bid of late into resource-related issues

Isn't this typical of late cycle moves into equities with rotation from other stocks into resources

If so, are we likely to see a more severe correction to equoty matkets in 3-6 months?

Q: Re: David's question concerning a source for a historical listing of dividends for a particular company.

I use the stockwatch.com basic service which costs approx. $5/month as my main source for company information including news releases for the past year and stock charts. Clicking on the trading symbol pulls up the trading activity for the past few sessions as well as dividend history. For instance, I just checked the history for CNR and it lists the dividends back to December, 1996.

Q: Hi 5i,
Do you know of a good source for quickly finding and comparing dividend growth rates of different stocks, i.e. a list of the dividend payouts over several quarters or years for different companies? I want to see if dividends are rising, stagnant or falling over time. Any thoughts on dividend growth rate as an investment criteria?
thanks,
David

Q: Hi Team: I am interested in your thoughts on fee based advisors- i am talking with one who charges a fee of 1%, doesnt invest in mutuals, new issues or any structured products. There is no performance fee and no conflicts that I can see? Thanks

Q: Hello Peter! Could you let me know how or base on what site do you allocate name of sector for Canadian stocks.
I'm trying to use sectors from TSE and they do not match your descriptive names for example: TELUS, ROGERS by your description is "TELECOM" but TSE shows it as "COMMUNICATION SERVICES" ,
ENGHOUSE, AMAYA your inscription "INFO TECH" but TSE shows "CONSUMER CYCLICAL", ALTAGAS, IPL yours is "UTILITIES ,TSE "ENERGY".
I want to use the same names of description of sectors as you are using, where and how do I find them.
Thanks Andrew B.

Q: Hello,
The model portfolio is soon turning one. Will a new portfolio be introduced for people just beginning to invest?