Investment Q&A

Q: If I believe the price of oil will rise what Etfs would be appropriate to buy to take advantage of that rise in oil? Thanks.

Q: I am so glad you are now offering the same for EFTs! I just subscribed. I would value your opinion on BMO Low Volitality US Equity/ZLU & iShares S&P/TSX Consumer staples.

Thank You! Austin

Q: I should increase our health,materials,and energy sectors.Could you give me a few suggestions.I plan to sell Spectra Energy (SE-N) and Power Financial (PWF-T) in the new year to make the purchases.
Thanks.

Q: I've been a long-term owner of Allergan. The potential deal with Pfizer indicates that 11.3 shares of PFE will be granted for every 1 share of AGN. Looking at the closing prices of each company on Friday Nov 4th, AGN closed at $316.50 and PFE closed at $32.80. At 11.3 shares of PFE per AGN, this currently values AGN at $360.80.
In your opinion, why are the AGN shares not trading around the value of the deal? Is there significant pessimism about the deal? Are the targets for PFE shares significantly lower over the next year?
Seems to me this is kind of a "back the truck up" opportunity...

Thanks!

Q: I have a 25% gain in costco before currency and love the company but think I should take my profit as it is very expensive at 30X earnings. What do you think?

Doug

Q: I have held SPDR Health Care E.T.F. XLV-N for some time. At this time, it is a hold or sell? Going forward for a longer term horizon, Is there another US ETF that I should take a position in?

Q: I am a conservative retired, dividend-income investor with a pension and CPP. My portfolio includes mostly dividend-producing holdings (AD, AQN, ALA, BCE, BNS, CGX, CPG, PBH, RY, SLF, WEF, WSP, WCP, ZLB, XIT, Sentry Cdn Inc, Sentry REIT, TD Health, RBC Cdn Equity, Fisgard, and Annuities).

I am looking to add ZWH-T for income and some growth, acknowledging the T1135 inclusion and the dividends being treated as interest income. This would be held in my non-registered cash account.

Question 1 = would any dividend withholding taxes be reconciled at tax time, due to the USA-Canadian tax treaty?

Question 2 = would ZWH be an appropriate investment for my profile above? At first glance, it doesn't look like we have much foreign investments, but when you prorate the foreign holdings and/or income we have 30% non-Canadian investments (AQN, WSP are good examples). Is 30% too high for our profile?

Question 3 = I don't read anywhere about any hedging of the Canadian dollar. Am I at any currency risk?

Thanks for your help...much appreciated,
Steve

Q: Hi team. I'm trying to find an ETF that pays a dividend of 4% or more that has NO canadian exposure. The best one I have found is a new ETF called ZDH (International dividend ETF). The good: The PE is 13.3, which is surprisingly low (if you could verify), the yield is 5%, it's hedged, no holding has a weight above 2.3%, the largest sector is 27%. The bad: I don't recognize ANY company in the top 10 holdings, the MER is 0.45%, the liquidity is weak (can be a good thing when buying). Also, the dividend is above 4%, which as we've seen on the TSX this year, that often means trouble (CJR, WCP, LIQ, WIN, TMC, D.un). Would you recommend this to someone 1 year from retirement? He would give it a weight of 15%. Please take your time to respond. I'm in no hurry. Just want to be extra careful on this move since it applies to my dad. Thank you and great work!

Q: Hello again gurus!

I am interested in increasing my US holdings.

I presently hold the Vanguard Total Market and like its very low MER. I intend to add to my US holdings. What is your opinion of the BMO's ZWH?

Would you suggest that I simply add to my Vanguard Total Market Fund or put my new money into something like ZWH which, while it has a higher MER, also has a higher dividend?

Either way, I intend to buy and hold the ETF's.

Thanks.

Q: Greetings all. I'm looking to add some U.S. Growth stocks to take advantage of their recovering economy and to diversify against possible continued weakness in our own over the next few years. I understand you don't cover the U.S. here, but are there any companies that your team is excited about in terms of growth stocks in a couple of the higher weight sectors? Thanks very much.

Q: Bonjour, please comment on the future of this company.
Merci
Ronald

Q: Hello team, Any reason you know why the stock has been dropping for over a week? Is it still good to hold/buy?
Thank you!

Q: You have XHY in the Income Portfolio. It has not performed well overall. I did a graphical comparison with ZWH and ZWH looks far superior. ZWH has increased in the last year whereas XHY has gone south.

I'm thinking of selling XHY and buying ZWH. May I have your thoughts on this move?

Thanks ... Ron

Q: Hi Peter and team
Could I get your opinion on Lululemon. I've held it for quite some time, and seems in the last year or so as it gets going another negative report comes out. Is it worth holding or just move on. Thanks.

Q: Hi Team,
Could you give me your view on Netflix? Can you also explain how an investor can expect to profit given the astronomical PE, other than a pyramid structure or some other similar scam?
As always, your advice is most appreciated.

Q: Hello Peter and the 5I team
I am wondering what your opinion is on this stock? Can this extreme decline in share price be solely because of the potential interest rate hike or is there more to this story? To me the company seems to be run by good management the P/E ratio seems a little high but historically seems in line. What surprised me was that this company raises it's dividend (which is at 9.85%) almost quarterly, that does not seem like the characteristics of a business that has had its share price cut in half in the last 8 months. Would this stock be a good buy for income?? Would you start a position in this company today or wait and if you would wait at what point should a person initiate a position. I am interested in your opinion on this one.

Thanks

Q: I would like your thoughts on Kinder Morgan's business risk?

Q: Would you please give me your thoughts on this company

Q: I just bought an opening position in Disney. I wanted your opinion on cord-cutting in the industry. We've in the past year how cord-cutting and regulatory changes in Canada have impact Corus' anticipated revenues.

With half of Disney's revenue and profits coming from ESPN and other TV franchises, is the current negative sentiment (e.g. subscribers to TV declining) warranted even though there are more high profile near-term catalysts like Star Wars, Marvel etc that will continue to contribute to top and bottom lines for many years to come?

Q: Hi ...can you comment on the current apparent disconnect between the AIG stock price and the company's warrants . The stock is currently trading close to it's year high ...yet the warrants are off over 4$ . Seems too rapid in terms of time erosion on these warrants as they don't expire till 2021 ....lots of time left .. they trade over 29$ in August . ...an opportunity?