Investment Q&A

Q: Hi Peter and Team,

Thank you again for your unbiased service.

I have been very fortunate to have selected two growth & income investments that have stood the test of time. They are CMG-T and BAD-T (BAD at another all time high as I type this note). I have others as well, but these have been my best and most consistent long term holdings. I believe in the businesses, and they are in the Oil industry, which has very deep pockets (pay their bills) and which, I suspect will be here for a long time to come. Therefore, they are still long term holds for me.

My question is, if you were to pick three long term (+20 year) equities that provide both growth and income ? Take your time in answering, as the long time frame may cause you to ponder a bit longer.

Thanks again,

Q: I have some cash sitting in my direct brokerage account in my RRSP and TFSA accounts and the bank doesn't pay me any interest on it. Is there anything that I could invest in and have access to the cash right away when I see an opportunity to invest in a stock? ie a no fee money market funds etc... any recommendations? Thanks

Q: Aug 8/13 Globe article of Peter Hodson re #stocks to own for diversification.

The answer given (15?) assumes the investor has sufficient capital to implement same, and if they don't when do they start
investing?

William O'Neil (Investors Business Daily (IBD) founder ) feels investors should start investing with as little as $500. using IBD principles and in that case 1 or 2 stocks would be adequate.

Just my thoughts on another excellent article.

Q: If you had to buy 5 stocks today that you couldn't sell for 5 years, what would those stocks be?

If a similar question has already been asked, feel free to reference that question/answer to me as opposed to creating a new response.

Thanks for the great service!

Q: Hello 5i Group
I am a new member to 5i and to investing although watching and reading for the last year and a half. I see your Model portfolio. Is this " model portfolio" updated annually? then tracked for 12 months? If I am looking at this list now as an " investment start date" how do I determine which ones on the list you are still recommending as " buy" positions?
I am looking for a combination of income and growth. Based on your reports that I have read I have recently bought small positions in AW.Un, BEP.UN and HR.Un
Thanks for your comment.

Q: Peter I own some UUU stock I know the company is being taken over I did not vote to sell my stock I felt that $2.86 was to low , I don't know the process what will happen to my shares .

Jim.

Q: Hi Peter and the 5I team
I have finished the CSC (Canadian securities Course) and I suggest the course to every Canadian that wants to run their own portfolio as it gives a good base of knowledge to work from. My question is, what other courses/books would you suggest to a retail investor to expand a persons knowledge base even more?

Thanks

Q: EEP - You might mention to the members that EEP and all other MLP's are subject to a withholding tax for non-US citizens "to the maximum prescribed tax rate..." which currently is 35%. It is theoretically possible to claim it back by filing a W8-B tax form, but good luck with that and do you really want to start filing US taxes.

Q: Hi Peter and Team,
Yours service is superb!

I realize your are getting busy with many more questions but I would appreciate if the month end statements retain some of the information that your older statements contained e.g. dividend rate, industry and previous ratings. I found these fields to be very useful when looking to make a purchase and/or ensure I am reasonably diversified.

mike

Q: Great Info with short-to-the-point answers. When your team selects a company to do a formal anaylis and report on, what selection critera do you use to choose that particular company?

Q: Hi Peter & 5i: I’m interested in knowing more about the execution of corporate share “buy-backs.” I know that there is no obligation for the company to actually purchase that goes along with the permission to do so and the announcement of the maximum that could be bought/spent. I also know that you usually can’t find out about any actual buying until at least the next following quarterly report. But how does it work behind the scenes? Can companies have direct access to the exchange or do they have to buy back the shares through a brokerage of some kind? What kind of transaction fees are they looking at paying to execute the buyback – is it a per transaction item or would it be structured otherwise? Are there any “usual strategies” that are employed in making the buys – e.g. putting a floor under the stock or maybe waiting until a large block is offered for sale at an acceptable price? Often the potential size of the buyback is many times the average daily trading volume. Are there strategies for dealing with that obstacle if the company does want to max out its buyback potential? Thanks for any insight!

Q: HI 5i When an LNG facility it built on the west coach, which
companies do you feel would be most involved in either the pipeline to the coast and which n/gas companies would benefit the most.
Thx Gerry

Q: Ref: Doug's question on discount brokers: I believe there are articles available online showing rankings and recommendations for various discount brokerages. It takes some homework to decide which one might suit your specific needs. Rob Carrick at GlobeInvest also reports on surveys of online brokers.

Q: How do we source information on executive insider trading? Tx

Q: Comment to David re:

Have you or any of your team had experience with Stock Investing software such as Metastock or Vector Vest. Something i am exploring to support my research.

Why on earth do you want Metstock or Vectorvest when you have 5i

PB

Q: Hello

Do you have a preference among discount brokerage firms.

Q: Peter
Have you or any of your team had experience with Stock Investing software such as Metastock or Vector Vest. Something i am exploring to support my research.

Q: Peter Lynch question
In Peter's graphs he plots stock price on the right axis and earnings on the left axis. He is looking to see if if the earnings line is above the stock price line (a stock to review further).

He uses $1 in earnings per share to $15 in stock price. This would mean that the earnings line is equal to a stock price P/E ratio of 15.

Question what variable of P/E do you think makes sense to use - or is it industry sector based.

I guess a follow up question would be - is this a good idea to look at companies that the earnings line is above the stock price?

Thank you
T

Q: Hello 5i team, I have a question I can't wrap my head around. How can a support a dividend if they have negative income? I know that in most cases they have to raise equity or debt to maintain the payout. But how can it be that cash flow supports a payout ratio but its net income doesn't? Take BEP.UN for example.
Thanks

Q: I own shares of ANS. The shares are now trading above the purchase offer of $3.73. In your opinion, is there a real chance for a higher offer ?