Investment Q&A

Q: Hello Team,
What would your prognosis be for United Technology as a two year investment? Would an ETF with defence stocks be a better option? Would you be able to recommend one?Thank you for your input!

Q: The market has spoken and even the Heroes have come down sharply.(They haven't become Zeroes like Nortel!!)
Which you think is a good one to buy and put it away? Apple,Google or Amazon? Can't afford to buy all of them even in this down market b/c of their price and the low loonie!
Thank you for your informative answers.

Q: I had kept a cash reserve of 12% to use when markets get unreasonably oversold. Recently , with prices falling, I used up much of that reserve which I am now looking to re-build. I have Pepsi in an RSP and thought of selling. My ONLY purpose is to raise cash for future use. I have nothing specific in mind to buy:my purpose is simply and only to top up reserves to take for those market plunge days.

Granted, PEP is holding up well relative to the market. I also recognize you dislike market timing. Nevertheless I would appreciate your insight (with substance). I sold McDonalds for similar reason only to watch it climb 20%. I can't quite see that happening on PEP, and ask your educated thoughts or opinion given I am looking only to top up cash reserve.

Q: 1st quarter financials tabled today with earnings of $2.15 per sh compared to 1.63 estimates,adjusted EBITDA for the quarter was a record $161.8 million, or 20.2% of revenue, declared a quarterly dividend of $0.20 per share payable on February 10, 2016 to shareholders of record as of January 20, 2016.

Business Outlook Based on current business trends, industry forecasts and production schedules for fiscal 2016, Greenbrier reaffirms previously provided guidance for:
• Deliveries of approximately 20,000 - 22,500 units
• Revenue will exceed $2.8 billion
• Diluted EPS will be in the range of $5.65 to $6.15
_What is further surprising the book value is $25.35 and the stock is trading today @$24.86.
-P/E is 4.8x
ROE is over 31 ROI is 36.

I know the markets tanked today however why is this stock,- to me it seems to be a screeming buy. I know it perhaps in linked indirectly with the price of oil, but what am I missing.

I would appreciate you candid thoughts and reply. Thanks in advance

Q: I bought pulte group when it was 15% higher than it is now assuming US housing sector improvement. I also hold Tricon(TCN) also down about 10%. Combined makes up about 4% of my portfolio. Do you think it is wise to hold this for the long term..or should I be looking for better opportunities..

Q: Hi, thanks for your recent response. Although, it wasn't quite what I was looking for. Perhaps I should have been more clear. I understand my APPL weight is a little high, but I was really looking for a view of selling COO to buy DIS. Where do you see more upside potential in the next year or 2? Thanks

Q: Would you buy Apple at their new below $100 price?

Q: In your answer to John, yesterday, on how to play the bear market (if it is one) you stated: "One other option is to own VXX, an ETN (different than an ETF) that is based against the VIX Volatility Index. "

What is an ETN, and how is it different from an ETF? How would this benefit the current situation? Thanks!

Q: What do you think about Kevin O'Learys ETF,s
OUSA .. which I believe in hedged against currency and is supposed to be a high dividend ETF with low volatility.
Wonder if you think it's a good and stable investment and also, as its dividend paying ETF, if it's good for Canadians ... given withholding tax and our devalued dollar?


Thanks

Q: Do you follow this company? I am more than a little perplexed at the reaction to the most recent earnings. Any thoughts? Thank-you

Q: Could I please have your comments on ATVI.us. Could you give me their cash position, insider ownership and outlook going forward. Is it a buy at current price. Thanks

Q: Hi, do you still like the potential of UTX.US after the announcement today on taking a $900M charge. Some analysts seem to think this will reduce growth for the next couple of years and it was downgraded by one today.

Q: I have a large investment in Apple.Assuming the lower sales estimates for Apple products to be true, would you recommend paring the amount when the stock price is plummeting?

Q: 2 questions:

I have done very well with ABBV, but wonder how much of an impact is likely when Humira comes off patent in 2016. Have you heard of any company plans that would offset the loss? Do you have a hold or sell suggestion?

How much and what kind of a difference is VEF’s transition from the FTSE Developed ex North America Hedged CAD Index to the FTSE Developed All Cap ex US Hedged to CAD Index? How is it likely to affect my returns?

Q: Hello Team! I purchased this insurance company in anticipation of rising rates in the US. It was doing very nicely until it fell prey to a short seller attack. It is now down 10% from my original purchase price. Do you have any insights into this company. Thank you, Jen

Q: Disney appears to be trending down. May I please have your longer term (2 - 5 year) opinion of Disney.
With appreciation!!
Ed

Q: Peter, can you provide the name of some US securities which can be used to set up a US income portfolio with call options (as per your article in the Canadian money saver)

Q: How do you feel about adding priceline as a long term hold today in a diverse US portfolio?

Thank you

Q: IOWN THIS IN A RRSP AND WAS THINKING OF SELLING AND MOVING THE MONEY TO THE OTHER ETF ZUB WHICH IS HEDGED OR DOES THE US DOLLAR STILL KEEP GOING UP. ANOTHER POSSABILITY WOULD BE TRICON (TCN). THANKS

Q: Thoughts on currency hedging these days?

http://canadiancouchpotato.com/2015/02/04/stepping-back-from-the-hedge/

"McCreath sees the supply of oil as being the key determinant as to whether the Canadian loonie hits US$0.65, taking stocks down with it, or a perceived recovery of oil prices into 2017 enables Canada to outperform." Your thoughts and to What CDN companies do you like most that are US currency friendly? I will find it even harder to invest in good US stocks for 2016 (i.e. Disney, Costco, Monster Bev etc) since we'll lose out on the currency rate this year.