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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: A comment and a question if I may. There's so much talk about markets being at 'all time record highs' as if this is a reason in itself to sell or short. But if markets have consistently gone up over many decades, you could argue that in a historical sense the market is almost always at an all time high.

On to my question: I need to add an oil/energy stock for diversification and I'm on the growthier side of risk tolerance. Do you have a preference between RRX and ENB at this time?

Thanks 5i!
Read Answer Asked by Rick on August 18, 2016
Q: Hi, I know that going forward, with the trend in ETF investing, mutual funds might not be a lucrative for fund compagnies like CIX and IGM, but as these compagnies are trending down in prices, at what point do you think they represent good value? I know a lot of people who are still invested in mutual funds and don't have any intention to change. Also, CIX, with the acquisition of First Asset, seem to be adjusting to this new trend. Which one would you recommend and at what entry point? Thanks.
Read Answer Asked by Bernard on August 18, 2016
Q: Any chance this company turns things around over the next 2-3 years ? I had a small position which is now tiny. Do you usually recommend to move on in these situations.

Also, i was reading stock options are offered to management at $0.48 , is it common practice for a company that has been doing so poorly. Does not feel right for investors who have paid way more. Thank you !
Read Answer Asked by Pierre on August 18, 2016
Q: Regarding Richard's question re AQN. I think he was asking about the instalment receipts in particular. They were recommended on BNN Market Call.
I participated in the EMA and FTS instalment receipt deals with their large USacquisitions. In both cases things worked out well. Of course it has been a hot market for utilities so the underlying shares increased in value while I was holding the receipts, which obviously helps.
Two comments 1) These deals make sense only if you would be comfortable owning the shares when the call for funds comes (when you have to put up the other 2/3 of cash). It is kind of like selling a put. The income is nice, but you have to be ready to buy the security if things go wrong. 2) best not to buy in a registered account, unless you have room to add the additional 2/3 cash to buy the shares. You don't want to be forced to sell the receipts at a bad time just because you are trapped by your RRSP or TFSA limit.
Hope this was useful.
Cheers
John
Read Answer Asked by john on August 18, 2016
Q: I am a senior who needs dividends. Currently preferred shares are 20% of my taxable account(10% overall). I hold PPL.PR.M and ALA.PR.I. Could you recommend 2-3 other minimum rate resets?
I held and sold my Concordia shares the day before you took them out of the growth portfolio. Your advice has been great and very consistent. I wish 5i was around 50 years ago.

Thanks, Jim
Read Answer Asked by William on August 18, 2016
Q: I have a small amount of CIX in an RSP account. I originally bought it a few years ago for the dividend, a bit of growth and the prospect of the company being purchased. I am not terribly unhappy with it as i've collected the nice dividend over the years and the current price is still over what i paid. But now with the industry moving away from high fee mutual funds it seems as CIX is dead money at best and the only attractive thing is it's dividend. I'd like to sell CIX and move it to another financial that has a bit more of a growth component to it. Would you consider a cdn bank as a good replacement? Or a US bank? An insurer? I'm not interested in DH corp, HCG, or EFN. Thanks for your advice
Read Answer Asked by Richard on August 18, 2016
Q: In a recent member's question regarding a conservative portfolio construction you said that there are good consumer discretionary companies that are growing income and dividends. Which ones in Canada and the US would you recommend other than the auto related ones? Many thanks for the great service.
Read Answer Asked by Derek on August 18, 2016
Q: Hi 5i team,

As infrastructure in various countries are now in an expansion/renewal phase, infrastructure stocks may be the new 'utility' stocks of the future. I currently already owned BIP.un. Given the current market conditions, please recommend some Canadian or US listed infrastructure stocks or ETFs that are worth investing in now. Thanks
Read Answer Asked by Willie on August 18, 2016
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