Investment Q&A

Q: It would be very helpful if your report card also included the peg ratio to give a better idea of how cheap it is relative to growth. Thanks for your excellent service

Q: Hi Peter, I just signed up as a new member & I have to say, the investment advice your team provides is extremely helpful & economical for the DIY investor. The question/answer section is a great way for people to gain confidence with a professional second opinion.

I noticed the highest letter grade is an “A” in the summary sheet. Has your team every given a company an “A+” rating? If not, what would a company need to do to receive that level of confidence?

Q: Peter Unfortunately I was not able to watch you on BNN or watch your Dividend Ninja presentation Will you be posting a link anytime soon in the 5I website I would really like to watch both

Thanks

Paul

Q: What are your thoughts on mortgage prepayment vs investing the same amount in investment and or TFSA account with current mortgage rates less than 3%? Is one better than the other or should we do this half and half (ie. if I have 2000 saved I put 1000 as mortgage prepayment and 1000 towards investment? Also what about investing using a home equity line of credit and writing off the interest costs?

Q: Is there a place (for the average guy) to see those large block sales such as what occurred with WCP today? Also, why do they blast shares out like that since it is probable that it will drive the share price down and they end up getting less for their shares?

Q: Peter; I gather that stocks are usually traded in blocks of 100 Is it difficult to trade in non 100 blocks? I have 100k to invest. Do you advise me to buy 20 stocks at a low weighting---say 5% or 10 stocks(50 shares) or(100) shares at a high weighting. Thanks

Q: Hi Peter and Crew,

Just a FYI. On the members home page (first page you go to when we sign on), the large box for viewing members questions indicates over 15,000 questions have been asked to date. Does that number need to be revised (maybe a real time counter - that would be cool ?).

Jim,

PS. Enjoyed the Dividend Ninja Webinar.

Q: I commend you,Peter,for your knowledge,foresight and advice regarding recent market events.I have been in the equity market for 30+ years and I can say that I have made more mistakes by selling early than by buying selections that didn't work out.I am very happy to be a client of 5i. Publish at your discretion.

Q: CWA. I hold some shares in Coasy whole sale appliances and have had a call to tender to the recent offer for the company . could you give your opinion on weather to accept this offer or not. the Offer is at .65 per share.

Q: Linamar is up 12% today on good earnings. It received a sell downgrade recently from a Canaccord Genuity analyst very recently. My question is when an analyst make such poor calls, is there any consequence for him or her. Do they get fired? How should retail investors react to these upgrades and downgrades. Can we be sure they are not manipulating a stock?

Also who is behind Seeking Alpha,giving out all kinds of free information on stocks when we know that nothing in this world is free. Thank you very much for your comments.

Q: Just wondering Peter why your appearance on BNN would affect the response to questions. Does Ryan Modesto not also reply to questions? By the way it was a very good Market Call segment on BNN! Are you the only one of the 5iResearch Team that replies to questions?

Thamks for the unique service you provide.

Q: I understand that one of the tests for the suitability of a dividend stock is the distribution rate. For some industries e.g. REITS one should calculate based on cash flow not earnings. Which industries does this theory apply to and why? Is the theory that, for example, depreciation can be ignored due to value increase in assets? Non comprendo.

Q: Good afternoon 5i,

I have a non-registered account as well Tfsa and RRSp. Should I treat each account has one portfolio or all accounts has one portfolio?

Thanks

Q: As for the unfilled CSU odd lot order I always believed the market maker for each stock has an obligation to fill odd lots out of his inventory at a certain level below or above bid or ask. I'm not sure what this level is now, perhaps you do, but when stocks traded in fractions, it was an eighth. Sometimes market makers make mistakes so perhaps Bill has a legitimate beef. Would you agree? J.

Q: Hello Peter and company,
In the pharma/health care/biotech sector of my RRIF portfolio, I only hold Valeant and 2 ETF's XHC (global) & ZUH (US).
Would any of the following add value / diversification in the mix (Cipher, Concordia, Knight and Merus)?
Thanks
Tony

Q: Morning,

In response to Ben's question about REIT or corporate structure, I believe the main reason is one of income tax. The REIT structure passes the tax liability to the unit holder and therefore the pension plans would not pay tax on the higher income they receive. They don't pay tax on the income from a corporation either, but the corporate entity does.

Regards
John

PS Post if you wish

Q: Webinar? Where was it announced and is it archived? Thank you.

Q: Hi:
In iffy markets like this , I usually grab some profit and duck for cover ... even when I react OK I never get back in the market soon enough ...
This time I am taking the daily blows and am staying put ...
Are there stocks I should be looking at as best buying opportunities or sectors to which I should focus ???
Your site has helped me immensely . Thankyou .

Q: Greetings Peter, Lana and Team:
Dori Segal was on BNN today. He stated that its incorporation
as a corporation vs a reit is not an advantage to individuals
but is advantageous to pension funds and rrsp's. Please explain.

Thanks in advance,
BEN

Q: Good webinar today. Lots of great tips and information. Much appreciated.

One of many points I picked up was the comment on dividend ETFs, which included CDZ, iShares Canadian dividend growers. I've owned it for a few months on 5i's recommendation and it's up 8% in that time not including dividends, which seems fine to me. But I noted the comment today about dividend ETFs needing to own high dividend payers. CDZ was mentioned, specifically it including AGF Management in the fund. When I checked the current top fund holdings, the top 3 are AGF, EIF and BDT.

CDZ's profile states:

"The investment seeks to replicate the performance, net of expenses, of the S&P/TSX Canadian Dividend Aristocrats index. The index consists of common stocks or income trusts listed on the Toronto Stock Exchange which are constituents of the S&P Canada Broad Market index (BMI). The security must have increased ordinary cash dividends every year for at least five consecutive years, and the float-adjusted market capitalization of the security, at the time of the review, must be at least C$ 300 million."

Do AGF, EIF and BDT fit the profile? Or are they in the ETF solely for their high dividends? Thanks.

p.s. Would a webinar on ETFs some time in the future be useful for 5i and CMS members????