Investment Q&A

Q: Hi 5i team. There was a time,if bank dividend yields (Canadian banks) are over 55% of the 10yrs, government bond yields, they are considered a reasonable buy. At 80% of 10 yrs, a strong buy. It would be screaming now but, of course, we know that the whole yield curve is manipulated. What if things "normalize"? Again, it used to be that long term government bonds were generally around 3.5% (+/- 0.5% say) above the expected rate of inflation. Based on this, if inflation hits 2.5% as we normalize (afterall that is what the central banks want it at). Long bonds should be around 6.0% (+/- 0.5%). Assuming not too crazy a yield curve, 10 yrs bond should be about 3.75% to 4.25%. That means our banks are still goodish buys (based on the 55% assessment). That also means that if inflation moves up to 3% gradually, bank shares, given a stead earnings picture, should be able to sustain their value. Is any of this reasoning valid any more or is it really different this time? Thank as always. Henry

Q: Again Horizon North being kicked to the curb. I was going to switch out for BDI but now am considering averaging down. Your thoughts are welcome.

Q: Could you please provide an update on RZZ? Thank you.

Q: On April 15 I asked you about significant insider selling. More took place (at $11) on the 24th just past. Is the selling timed to avoid any drop on the announcement of closing a financing and/or issue of new shares? Should we worry that the CEO's shareholding has dropped in stages from 2.4million back in February to 370thousand now?

Q: Hi 5i Last comments on PLZ was Nov. 2013. Do you have any new thoughts on the company. Thx Gerry

Q: When you discuss pipelines you never seem to mention Veresen as a top pick or a pipeline It owns 50 % of the Alliance Pipeline and has just done a major deal and aligned themselves with Kinder Morgan What classification do you give VSN if not a pipeline

They are just waiting for final approval from the DOE.It has almost 6% yield . I am thinking of taking it up to a 5 % weighting in my portfolio Could you give me your opinion on the potential earnings growth and dividend safety Thanks so much Paul

Q: My US exposure is underweight. I am looking at Barclays (BCS), Lloyds (LYB), National Bank of Greece (NBG) as 3-5 year holds with the wishful thinking that they may return to their previous and glorious highs of 2007. Am I dreaming?
Alternatively, can you suggest any US regional banks for a similar timeframe and which large cap US bank, if any, is your favourite?
Thanks.
Steven

Q: Hello Peter
Before I sign up for 5i Research my portfolio was made of 3 ETFs HSU.TO , SSO.N US and UPRO.N US.
My buying and selling was done based on Daily frame of S&P 500 and 3 EMAs. I my say that I was pretty successful with this technical approach and this method save me from loosing about 50% of my portfolio in January 2008 when EMA50 made "dead cross" with EMA 200.
My question is since from last September I follow your model portfolio (with small changes of stocks) will you be able to issue warning us if big correction like 2007/2008 will be coming on the horizon or should we go through correction like 2007/2008 without selling entire portfolio.
Id like to add that I still have separate portfolio of HSU ,SSO and UPRO based on three EMAs unfortunately this technical approach method does not work with individual stocks .
Thanks Andrew B.

Q: Would you please give me your opinion on Bird Construction?

Q: Do you see hzu as a good straight forward proxy for silver prices. And if so, how does the internals work to follow accurately those prices. Any lag? Any derivatives that could cause wild changes?.
And if I may, could you rank Silver Gold and Platinum in order of preference.
Thank you
CDJ

Q: Would you have any recommendations for the most cost effective method of protecting an all equity portfolio from 10%-15% downside market risk? Specifics would be appreciated.

My non-registered portfolio primarily consists of large cap US and Canadian companies.

Q: Dear Gentlemen,
I want to increase my Income PF.
Your opinion on Aston Hill VIP Income VIP.un
Any better suggestion for high income.
Thanks
Best Regards

Q: Hi Peter

Is it finally time to buy CGL and SVR or is there still more downside coming? Or,is it better to buy the larger US versions GLD and SLV because of the rising US dollar? Do you see the dollar hitting 85 cents or lower?

Q: Is this a good time for a purchase for a 1 year hold? thanks

Q: Hello 5i,
My strategy is to buy and hold dividend paying companies for the long term and I’m currently looking to pick up another financial company for my portfolio. I already own 12 companies in this sector, which of the companies listed below would you chose.
Mercury General Corp (MCY), Oritani Financial Corp (ORIT), HSBC Holdings (HSBC), Banco Latinoamericano de Comercio Exterior (BLX).
Thanks,

Q: Hi Peter & Team,
Re: Drone Manufacturers / UAV-UAS

I have found these big manufacturers of UAV-UAS:
1) AeroVironment, USA (“AVAV”- Nasdaq)
2) Aeron Labs, Waterloo, On.
3) Prioria Robotics, Florida
4) Aerosight, Oregon
5) Textron (NYSE - “TXT”)

Questions:
1) Do you see future growth in using drones (not just military use)?
2) Is it too early to get into this area?
3) Which company would you recommend? (I guess my list is partial)

Q: CCL Industries has been quite volatile, lately, unlike for its business characteristics (packaging).It did n't participate in Friday's bounce after previous sell off. INK has reported that insider selling has accelerated in this company. My average purchase price is just where it's currently trading. Should I hold on or move to names like Inter tape Polymers for higher dividend and growth? Thanks

Q: Hi Peter & Team,
Following your answer to Selwyn, Sep. 25th, please explain your comment"...and it is very cyclical"
Did you mean seasonal cycle (winter, summer etc.) or housing starts?
The chart shows a straight growth of 250% in 3 years.
Thanks,
Morris

Q: Hey Team

Your comments moving forward please.

Thanks for all you do

Gord

Q: Anything changed with Sylogist? It's been down the last month and dropped like a rock this morning on an up-market day.