Investment Q&A

Q: Hi Team,

Back in the spring, you suggested the following stocks for RESP accounts:
13 year old going to grade 9: Stantec, Badger, Boyd, Linamar, Enghouse, Stella Jones, Sun Life, Black Diamond, Cineplex.

7 yr old all of the above would still be suitable, but more aggressive names would be DHX Media, Surge Energy, Teck Resources, Home Capital, Tricon, Element Financial, Amaya and Sylogist.

Questions:
1 - Would you still recommend the listed names at current prices
2 - Could you suggests an alternate name for Amaya (non-gambling stock)? QST?

Thanks for your help.

BK

Q: Peter; There is a very interesting article in todays Globe , pge.B8, by John Reese , on market
corrections. It really paraphrases 5i's mantra very well.
Rod

Q: Good morning! I am about to have 350K proceeds from the sale of a house, and wish to “park” it for probably 1 to 2 years. I would hope to be able to comfortably invest it into one or more equities paying a 4% dividend or more, and would appreciate the “ safest” names you might recommend (i.e low beta, not much downside risk). I am also looking at preferreds and would ask for a couple or more of names you might suggest, again with the payout of a minimum of 4%. My goal here is twofold – sustainable income and security. Growth is not a key element. Your comments and any alternative thoughts are appreciated!

Q: Hello:
I have a fair number of shares in Bell Aliant. With the recent announcement that BCE is going to take over complete ownership I do not know how this will affect my investments in Bell Aliant. Should I continue to hold or sell now. BCE has not announced to my knowledge how this would affect Aliant shares owners.
I would appreciate your opinion and knowledge on this matter.
Thank You;
Duane Campbell

Q: I prefer not to invest in gambling stocks and since AYA is in the model portfolio what would be your next best stock for the model portfolio?
Thanks

Q: would it be possible to allow a user to see 10 pages of questions at a time rather than only one page? In other words allow 10 times the questions to be on 1 page?

This makes it easier if you have an iPhone because because you don't have to say next page as often.

Thanks,
Ken

Q: Hi 5i: A comment on Ronald’s question (Aug 1) about spreading holdings across more than one account (RSP, TFSA, Taxable). I took his issue to be that, given the amount of his total investments, two 5% equity positions would max out his TFSA capacity, resulting in his betting his potential for TFSA tax benefits on only two higher growth (and quite possibly higher risk) equities. I suffered through a period where a similar concentration that did not work out as desired seriously hamstrung my ability to grow my TFSA. Back in the first couple of years of TFSAs, when the accumulated contributions were $5k or $10k, this concentration for equity holdings was only really avoidable through an ETF or mutual fund. But now that one’s total contributions may be as high as $31k, and one may have grown from that with some years of investment returns, TFSA account balances can be large enough to warrant treatment as mini-portfolios and in my view many of the regular principles regarding diversification and stability should be applied. I agree with your general suggestion that the TFSA accounts be weighted toward higher growth companies because if you can get some of the high growth benefit in a tax free form it is great. Probably even better than no tax bill is the accomplishment of increasing your total allowable tax free investment space, which would otherwise be severely restricted by the annual contribution limits. However, by the same token, the value of that tax free investment space makes the TFSA the worst place to suffer a significant loss. So I would say have some high growth potential in your TFSA but also have some relatively stable reliable stuff in there that will preserve your ability to salvage the account and recover in the event that one of the high growth vehicles doesn’t work out. That probably means you don’t concentrate your TFSA in just two positions (at least, it wouldn’t fit most people’s investment profiles to be that concentrated). Particularly now that an equity transaction costs most do-it-yourselfers $10 or less, you are not costing yourself much in fees to have some diversity in TFSA positions starting in the 3 to 5 thousand dollar range. And you are not costing yourself much in extra fees to have some of the same holding in different types of accounts in order to have a stabilizing or growth effect on each of them. Thanks!

Q: I have a balanced portfolio and some cash on the side. Can you suggest two or three stocks that represent good value and growth potential at current levels?
Thanks

Q: Hi Peter and 5i team,

I'm looking for an industrial stock to add to my portfolio. I currently own CCL.B and SJ, but I'd like to add a third stock in this sector? Do you have recommendations?

I also wanted your opinion on Chartwell Retirement REIT. I currently own 3 REITS (Riocan, H&R and Chartwell), but I was thinking of selling Chartwell and buying Boardwalk for a bit more growth.

Thanks very much,
Jason

Q: Shaw Communications (SJR.B)is acquiring Denver based ViaWest Inc. Do you have any thoughts on this transaction?

Q: Hi Team, Just wondering if it would be possible for you to put the full name of the company in instead of just the stock symbol if the person asking the question hasn't done so. When one does not know the market too well it takes a lot of time to look them all up but I assume you already know most of them. Thank you so much for all your information

Q: Any thoughts on Valeant's (VRX) earnings this morning? Adding this to Valeant's recent failed bid,is this another impetus to sell (or buy maybe?)?

Q: I'm looking at small caps that have the potential to become 5 or 10 baggers. Bruce Campbell on BNN recommended PHM and ELW as 2 top picks today. What's your thoughts on these two? or others you might favor in stead[2-3 yr hold]
Henry

Q: Hi folks,can please ask opinion on Q results for Norbord nbd/t,seems a beat of eps .20 vs estimate of .10. Would u rate buy/hold and do u feel the 10+% dividend is safe,have 1/2 position @ 23.10,thanks as always,jb

Q: Is this a bad time of the year for auto stocks? ACQ continues to move downward, as does LNR while MG is basically drifting.

Q: Am I correct in assuming that the price of Bell Aliant (BA) continues, and will continue, to fluctuate because of the underlying share price of BCE, since BCE shares are part of the buyout package?

Secondly, as I own BA in a taxable account, is it best to continue to hold BA and wait until the deal closes in order to collect the higher BA dividend as well as get BCE shares on a tax free basis? (I am assuming that the BCE shares coming to me will be tax-free).

Thanks for the continued wonderful service.

Paul F.

Q: Favourite Canadian Blue Chips with Dividends

Hi Team,
You often suggest older investors looking for some income should have a significant holding of Canadian Blue Chip dividend payers.

What are your favourites in this category right now?

Thank you. Michael

Q: I know you do not like either of these stocks but if you had to pick one which would you choose air canada or chorus. Thanks dave

Q: I am considering SYZ,HCG, FSV and ESL in a TFSA as suggested in your response to a previous question. Please rank the stocks as no effect, minimum effect or material effect downside to rising interest rates. If any are considered to have a material effect would you please suggest an alternative to fit the group of 4 stocks. Thank you so much.

Q: Can you comment on SNC. I bought it as a value/trading play when they went through their crises at $36 but it seems like this is getting into a very pricey valuation! Where do you see this one going and would you recommend for a long term hold?