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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: Hi Peter, thank you for all that you do.

My grandson told me today that he has $5,000 in an RRSP and is looking at 2 or 3 stocks to hold long term (10 - 40 years). As far as I know these are his only savings as he just finished University last year. We both agreed that BAM and CSU seem like good choices, but I had not heard much of KBL.

I know you are a fan of BAM and CSU, but wondering your thoughts on KBL and also if there are 1 or 2 stocks that you would prefer over these 3 given such a long term time frame. He is 26 years old and said he plans to contribute $5,000 each year and invest between 1 to 3 (new) companies.

Thank you,

p.s. planning on buying him a subscription for his birthday!
Read Answer Asked by Joe on February 24, 2015
Q: Do you know of a company that is in the fantasy sports, that has recently received funding?
Appreciate your answer. Thanks
Read Answer Asked by Helen on February 24, 2015
Q: Hi 5i
I have been working on our sector allocation and would appreciate your help.This commentary includes Canadian stocks only.
Financials at 24% of the total include Alaris AD,Bank of Nova Scotia BNS and Power Financial PWF.5i has recommened a 10% allocation.
To comply with your suggested allocation,we need 11% up to 15% in Information Technology and 7% up to 10% in Materials
Assuming no income tax implications I could sell our financial investments down to 10% which I am reluctant to do and invest in whateve you might suggest to bring Information Technology up to your recommended percentages.
Thanks again for all your help.
Read Answer Asked by James Robertson on February 24, 2015
Q: Hi Team,

These names would be positions to diversify my portfolio. My portfolio already has exposure to most other sectors. Eventually I would like to own all these companies however, could you comment on the pros and cons of each please. Even substitutes/alternatives within the same general sector would help too.
Thanks again for the great work.
Read Answer Asked by Marie on February 23, 2015
Q: Good morning,

I have some cash in my non-registered account and would like to purchase a couple of stocks. I am looking for some suggestions for stocks that can be purchased and held for 10+ years. I have full positions in ENB, BCE, ATD.B, CSU and AYA. Anything else you might suggest I could add to current positions. Thank you and stay warm! Janet
Read Answer Asked by Janet on February 23, 2015
Q: For sector diversification purposes, would you consider royalty companies such as AD, DIV, and GRC as financial sector, or is it better to classify them primarily upon the industries they invest in? Ie. AD - industrial / healthcare / costumer discretionary. GRC - technology. DIV - consumer discretionary. Thanks - Robert
Read Answer Asked by Robert on February 23, 2015
Q: I noticed that Rus Metals performs much better the second half of the year. Do you think it is a safe stock to own, just take advantage of the strong seasonality and get the divident as well? Expected earnings for 2015 at $1.56/share compared to $1.96/share in 2014. Thank You very much.
Read Answer Asked by Marinos on February 23, 2015
Q: I have a few shares in Salix Pharmaceuticalds which is in the process of potentially being acquired by Valeant. There is a significant breakup fee if Salix does not go through with the sale which would seem to be a barrier to a competitive bid coming forward. Salix is currently trading $2 below the Valent offer of $158 perhaps because there is always a chance that the transaction will not close.

Should I sell my shares or wait to see if a better offer is tendered?

As always, thank you for your advice.

Don
Read Answer Asked by Donald on February 23, 2015
Q: Hello, I would like to have your thoughts on Fairfax preferred share issue. The 4.75% yield seems appealing. What is the major risk ? If rates go up could I be stock with a capital loss and not be able to sell the shares in 5 years at par ? I think that is what stopped me from buying preferred in the past. The reset rate seems appealing to me.

http://www.fairfax.ca/news/press-releases/press-release-details/2015/Fairfax-Announces-Preferred-Share-Issue/default.aspx

I also saw a TRP issue at a yield of 3.8%. Can you please comment on this one as well.

I am considering buying a good position of FFH and some TRAP for the fixed incomre portion of my portfolio. Thank you.

Read Answer Asked by Pierre on February 23, 2015
Q: Hello Peter & Co,
Could you shed some light on the following, please?
Regarding CXI: it seems the share price has remained stable despite the lower than market issue because the institutional demand was very high and also because there was a 12 month trade restriction.
Regarding CGI: it seems that Computer Sciences CSC in the US is planning to split its business in government/commercial halves and that CGI is very much interested in acquiring the commercial half.
Thanks,
Antoine
Read Answer Asked by Antoine on February 23, 2015
Q: Could you please, define by $Market Cap value:

Canadian: Microcap, Small cap, Mid cap and Large cap
USA: Microcap, Small cap, Midcap and Large cap
Read Answer Asked by Jan on February 23, 2015
Q: Are you aware of any Cdn preferred securities (not preferred stock). Had no luck w google - maybe they are a thing of the past?
Read Answer Asked by Bill on February 22, 2015
Q: Hi,

I have a lot of stable lower risk stocks like insurance, banks, BAM, BEP, ZLU, ZUH, and am looking for your recommendation for a growth stock in either tech, gaming, entertainment, or whatever you recommend, for a 5% position for a long term hold. I'm wondering about AYA, AVO, CSU, OTC, CGX or what your recommendation would be.?
Read Answer Asked by Graeme on February 22, 2015
Q: Hi team:
AGU is at 135, a nice return of 20% for me
according to the seasonal investors, AGU does better in the summer months, do you think that the fundamentals of this stock is still solid to hold or should I take some money off the table ?
thanks! (I lost some money on POT)
Read Answer Asked by Michael on February 22, 2015
Q: 5i Team
Seasonality for forest products. Is it not from Oct till the end of Apr? Purchased WEF in mid Nov and has gone nowhere, except down since. Could I please have your views on WEF

Much appreciated.

Burt
Read Answer Asked by Burt on February 22, 2015
Q: Hi 5i,

Of the four listed companies, which three would be the best for income growth over the next few years?

Thanks in advance!
Read Answer Asked by Wayne on February 22, 2015