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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: IBI.BB

I own some IBI 7% Debentures that are coming due in December 2014. IBI has made an offer to extend the maturity date to 2019 and they haveattached 2 options with a yes vote:

"Option A" Debentureholders receive a consent fee, consisting of an unsecured, non-convertible promissory note equal to $195.65 per $1,000 principal amount of Debentures, payable December 31, 2016 and bearing interest at the rate of 7.0% per annum and payable on maturity; or

"Option B" Debentureholders receive a consent fee, consisting of an unsecured, non-convertible promissory note equal to $86.96 per $1,000 principal amount of Debentures, payable December 31, 2016 and bearing interest at the rate of 7.0% per annum and payable on maturity and the reduction of the conversion price for the Debentures to $5.00 per common share from $19.17 per common share.

The no voters would only get the changed conversion price.

Which option would you suggest, or would you suggest selling it. It's value presently is only about 1% of my RRSP portfolio.
Read Answer Asked by Joseph on June 12, 2014
Q: I have a diversified RIF but with little U.S./International exposure. Could you recommend one or two ETFs that would provide this - looking for a combination of growth and income.
Many thanks for all that you do.
Read Answer Asked by Alexandra on June 12, 2014
Q: I’d like your opinion on my currrent Canadian equity holdings (please note I own gold and silver as a sepearte part of my portfolio.) I couldn’t buy all of the ones in your two portfolios so had to make choices.
Is it diversified enough? Would you make any changes. Also, technically I am overweight in my Canadian holdings by one position (I should own 16, rather than 17). What would you suggest me selling? I’m wondering if I should sell ACQ because it has gone up so much.

ESL
BDI
CSU
MDA
POT
STN
T
AVO
BEP.UN
SJ
ENB
SU
TD
L
SLF (should I swap for HCG instead? Which will do better in rising interest rate market if housing declines etc?)
ACQ
BAD
Read Answer Asked by Carla on June 12, 2014
Q: Hello Peter- Could you please rank in order of your preference, Whitecap, Tourmaline, Surge and Delphi in order of total return, using your ABC grading.
Read Answer Asked by RANDY on June 12, 2014
Q: Peter, given the seasonal "sell in May" scenario, even though it seems irrelevant this year, combined with the extremely high TSX near record levels, would it not be prudent to wait till the summer to rebalance or increase current holdings, even in growth names like DHX, SJ, ACQ, AVO, AYA, BAD, SGY and WCP. Or are today's prices ok for a 3 year hold. Thanks as usual
Dave
Read Answer Asked by David on June 12, 2014
Q: Hi 5i team,

Assuming a balance portfolio, I was thinking about switching CGI Group for either Surge or Whitecap resources. Although in very different sectors, I am looking to switch into a company with more growth. CGI is cheap on a valuation basis, but doesn't seem to have current momentum.

Your thoughts and suggestion is much appreciated.

Regards,
Read Answer Asked by Jonathan on June 11, 2014
Q: Bought BNP a few years ago for gas exposure when it was a market darling with an attractive dividend. The dividend, while still attractive, was cut and the share price has been a roller-coaster ride and I'm still down 7%. I'm considering switching and as it's in a taxable acct I can use the tax loss. Can you suggest a couple of stocks with a good and hopefully growing dividend with some capital upside. I'm retired so the dividend is important.
Read Answer Asked by Bruce on June 11, 2014
Q: Hi Peter and Team,

I'm looking to add an energy stock to my TFSA holdings (which currently include AYA, ENB, BNS, T, and STN). I've seen you recommend BAD, SGY, and TOU and have also been seeing various articles suggesting SU might be a good purchase given that it's relatively inexpensive at the moment.

Do you have a preference between any of these four?
Read Answer Asked by James on June 11, 2014
Q: re: Canada's big banks

Seeking Alpha commented today that Moody's lowered Canadian Banks outlook to negative.

"Affirming the ratings of Canada's largest banks, Moody's cuts their outlook from stable to negative, thanks to the government's plans to implement a "bail-in" regime (i.e., creditors to take a haircut) for systemically important lenders."

I have a 5% position in TD and have done quite well with an excellent dividend. Is this something I should be concerned about moving forward?

Thanks for all you do

Gord
Read Answer Asked by Gord on June 11, 2014
Q: Hi 5i Team,

Can you please comment on the report from Seeking Alpha today that Moody's has downgraded big Canadian banks (e.g., BNS) to "negative" due the prospect of "bail-in" legislation being passed in Canada?

Also, any quick thoughts on how investors with discount brokerage accounts should respond to the possibility of a "bail-in" occuring should something really go wrong with their bank? Does it mean investors would take a haircut if they held stocks and bonds in their brokerage accounts?

If so, is there any defence an investor can mount?

Thanks so much.

Michael
Read Answer Asked by Michael on June 11, 2014
Q: Hi Peter,
I have been a member for about a month, and must admit, your advice is very good. I have two questions: i like the aapl stock, but i cannot see it going very high. If it doubles, it would get to a 1000 billion market cap, is this possible? I do not recall seeing a stock hitting those highs. Second, i have been looking at a company called the Buckle, BKE in the US market; it is a high end retailer competing with the gap with high insider ownership. It has done very well and the ROE is high followed by lower PE under 15. The stock has not moved much in about two years. Any comments please? Thanks very much.
Read Answer Asked by umedali on June 11, 2014
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