Investment Q&A

Q: In March 2014 I purchased positions in the materials sector and all declined in value. They are G and CS, FM, and P with declines from 40% to 75%. The 4 positions now make up 2% of current portfolio. My gut tells me to sell and utilize losses, as no positive momentum for them in sight, nearer term, and overall weighting is very small. But first i would like your reasoned take/advice.....thanks....tom

Q: If you held this stock would you sell it or hold it for the dividend income? Thanks, Bill

Q: Good Afternoon Team,

According to the Globe and Mail site, BAM has a Trailing P/E of 7.82, but a forward P/E of 34.42. Could you please explain how a forward P/E can be so far removed from the trailing P/E? Who establishes the forward P/E - the company or analysts?

Thanks,
Richard

Q: I own roughly 5% weighting in the following equities CSE, GRC, HCG, SYZ, WEF, WIN, XSR that are down over 15% in market value. Would you continue to hold them for a better times or sell now for a tax loss?

Q: Considering picking up some shares in either Brookfield Asset Management or Brookfield Infrastructure Partners. Any preference between parent or child?

Q: Transcontinental Corp announced this week they entered into a definitive agreement to acquire Ultra Flex Packaging Corp which the company says doubles their packaging revenues and builds on their strategy to ensure their future growth path through diversification. The dividend is 4%. What is your overview of this acquisition and would you consider it a good time to buy the stock. Thanks

Q: Hi Peter and Staff
Been burned on this one so far.....keeping my patience but wondering if I should bite the bullet,take my loss(tax not an issue) and go into one of
AGT,DR,PM,RPI.UN....small position....looking for long term combination dividends/share price gains.
Thanks for all you do
Dennis

Q: Hi,

I hold both of these.
Which would you feel comfortable adding to today? Neither? Both?
I am underweight on both....thanks to their stellar YTD performance.
My time horizon is more than 5 years.
Thanks.

Q: What are the 5 stocks that you'd be comfortable starting positions today for a short term (~1 year) hold. Thanks, Jerry

Q: I currently owned this stock and this is the only stock that I own in this sector. I am down 20% and is less than 1% holding in my non registered account. I am wondering if better to sell and put this into my 2 tech stock DSG and GIB.A to increase their holding. I understand that this 2 different industries.

Thanks

Q: Been doing some research on Canadian Tire (CTC.A) and along with growing earnings per share, a share buyback in full swing, and a history of regular dividend increases, it also seems to have a controlling shareholder, in Martha Billes with 61% of the voting shares.

Just from some reading, it looks like Ms Billes is getting on in age, doesn't have any children (that I read about, anyway) and her history with the rest of her family is at times contentious.

Do you think Ms. Billes has an exit strategy in place regarding her controlling interest in Canadian Tire and what do you think those options are?

Thanks, again.

John

Q: Peter and Team:

I am down about 20% on full position of TFI. Sector weightings are good. I was wondering what the prospects for TFI are and if perhaps I should take the hit on TFI and put the proceeds and double up on BIN.
Long term hold. Unregistered account.

Thanks

Phil

Q: I read your reply to Morgan Aug.where he down huge; however the decline has cont. & is prob. close to -35% YTD?
I do not own any prefs right now; but, hold all the common shares of the companies rep. in this ETF in my non registered account. I was thinking of converting my RRSP to a RRIF before the end of the year: would a long -term strategy to add this ETF be good with the possibility of cap. appreciation in the future. I also own the XRE ETF which I've held for a long time as well.

Q: Hi Folks:
Can you recommend 3 or 4 Canadian infrastructure stocks that may benefit from all the election chatter we are hearing about new roads, bridges, etc. going to be built in Canada? Do any of them do business in the US also?

Q: At what point is it feasible to allocate a percentage value to stocks in a portfolio, as opposed to a dollar value? For instance, if an investor starts out with $100,000 in cash, it's easy to pick 20 stocks and allocate 5% to each to come up with a nicely rounded, well diversified portfolio. But, if an investor is starting out with only $50,000, or $25,000, does the same principle apply? Or should one arbitrarily assign a dollar value -- perhaps min. of $5000 per stock, and build from there ... so that a $25K portfolio might only have 5 good stocks in different sectors? Would that be enough protection/diversity?

I'm asking this to set the course for a few young adults in my family (nieces, nephews) who are starting out on their investment life, and are inheriting some funds.

As a follow up to that thought, would you structure this amount of cash differently for a 25 year old than you might for a 45 year old, with the same amount of cash?

Thanks for your help and insight, as always.

Q: Just a quick question before I click the "transfer dollar" button.
If US interest rates go up as predicted will that weaken the CDN Dollar? Some "experts" on BNN are saying 70 cents for CDN Dollar.

Thank You

Q: Hi Peter & Co,
Do you know any Canadian info tech companies with a "cloud" focus? I think OTC is one.
Thanks,
Antoine

Q: I know these are apple to oranges comparisons however, I would like to buy some of these eventually. Do you have a favourite to start out with? I already own some of wsp. I am heavily leaning towards uni-select. I know all are good cash flow machines but I would like to have some growth also.
Thanks guys

Q: I bought a half position in the following 2-3 weeks ago. Please tell me which of these you would double to hold a full position. I'm interested in income and the safety of capital. Thanks

POW, CSH.UN, SIA, AD, BPF.UN, ECI, VNR, FSZ, TMA

Q: To follow up on my question regarding adding to CXI, would you prefer ESL or CGI for a 1-2 year timeframe. I already have ESL and it makes up about 3.5% of my portfolio. CGI seems to have had not the greatest past 6 months.

Thanks,

Jordan