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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: I am thinking of opening a small (speculative) position in American Apparel (APP) now that they've relieved Dov Charney as CEO and Chairman of the Board. I can't help but think that this company can't get any worse than it already is. Exclusive of the fact that the company could cease to be a going concern, do you see any other near-term risk? I don't want to engage in speculation if there are other factors (i.e. a delisting) that could vaporize my investment.
Thanks!
Read Answer Asked by Chad on June 20, 2014
Q: Good Day 5i Team,

I am a new investor who is starting late in the game, I am 49. I will be investing $700/month into my wife's TFSA and $700/month into my own TFSA. I have trading authority on hers. I have reviewed the Model Equity Portfolio and am fine taking risk in order to grow my investments over the next 15 years, not much time I understand but better late than never right?. My questions are:
1. Do I buy 1 stock at a time each month with the $700 ($1400 total between the 2 TFSA's) or should I wait and buy every 2 months so I have a larger dollar amount to make a larger purchase and also reduce my trading fee?
2. Is it better to spread the $700 ($1400 total) every month equally between 10 stocks and just purchase the same 10 monthly?
3. Do I limit myself to only 5 stocks in different sectors with one of the above scenarios?

Or do you suggest something else?

Thank you very much. I know that these questions might seem remedial but I would sure appreciate some guidance.

Paul

Read Answer Asked by Paul on June 19, 2014
Q: Hi Peter and team
Recently Michael asked about Chicago Bridge and Iron. I saw this on RBC morning notes and it may be of help.

"Chicago Bridge & Iron Company N.V. - $68.26 – Debate Over Purchase Accounting Adjustments
Guided Portfolio: Midcap 111, S&P – Hold (PT $87)
Chicago Bridge & Iron is the subject of a 38 page strong sell (recommendation) report titled “Acquisition Accounting
Gone Nuclear”. The report questions purchase price adjustments made in the last year (post the Shaw acquisition)
by CB&I, considering them “shenanigans”. The report suggests that several nuclear construction projects are having
cost over-runs and reserve accounts are being used to mask the issues. This is a nuanced issue as reserve accounts
are appropriately used to address cost over-run potential in accounting convention. Apart from the negative report,
we have a current information vacuum from sources and management. We would hope this is addressed before the
week ends"

Ross
Read Answer Asked by Ross on June 19, 2014
Q: Hi Peter, Canyon Services FRC is buying a private company Fraction Energy Services for $101 million. Can you give an assessment on the deal and what impact it may have on Canyon and do you like Canyon going forward, their management and comment on any debt. It's up 5% today.

http://www.newswire.ca/en/story/1375637/canyon-services-group-inc-announces-agreement-to-acquire-fraction-energy-services-ltd

Many thanks!
Read Answer Asked by Martin on June 19, 2014
Q: Hello,

I have invested in your stock portfolio (thank you) plus I added CAM and EFN (5% each similar with the others in the portfolio).
I have around 150k more to invest. Do yo suggest adding to the existing portfolio or adding new ones?

I was thinking about SGY, AVO, CXI, EH, CFN, WCP are they worth an entry point at their current prices or I should hold and hope for a dip? Do you have any other suggestions? I'm looking for growth, my biggest challenge is knowing when to sell.
BTW this is a non registered account.

Thank you for all your good work and patience
Marios
Read Answer Asked by Marios on June 19, 2014
Q: At the beginning of the year my childrens TFSA's were invested in ACQ,AYA,CGX,and ESL.ACQis up 115% and AYA 155% (thankyou for that). Would you recommend taking some of the gains and investing elsewhere or let the winners ride. If the former given the current stocks held what companies would you suggest?
Many Thanks Mike
p.s. the kids send their thanks too!
Read Answer Asked by michael on June 19, 2014
Q: ITP Intertape Polymer has recently had a 22% pullback. What caused this pullback in price? It's EPS is zooming upwards to + 1.50 and it's had a huge runup these past 3 years from $1 to a high of $15.62. With a yield of 2.88% and PE of 7.44. Would you recommend this stock and what price would be a good entry level? do you see it at support at it's present price of $12.19 or do you think it will go down to $9.00? thanks for your thoughts, Jan
Read Answer Asked by Jan on June 19, 2014
Q: Peter; After looking back on my trading activity for the past six months I think a new self support group
would be a good idea. Even though I am up roughly 25% If I had kept my finger off the buy/sell button
i would be up about 35%, not counting trade costs. So for those who have the same problem welcome
to TA.COM - TRADERS ANNONYMOUS.COM-. Stop watching BNN.COM , reading the Globe and the Post, listening to every pundit and paid shill about why you should buy and/or sell a stock. Buy and hold
dividend paying companies that have a long track record of increasing earnings and dividends. Buy ETF 'S that mirror the general economy both locally and internationally. Balance them equally and forget about them until you are really old- say 45- then rebalance every 5 years. This is likely as hard as quitting drinking, smoking or gambling but the rewards will be worth it. Meetings will be ervery Friday after the market closes
and admission is a copy of your trading records for the past week.
This is obviously tongue in cheek and publish if you wish and add any comments.
Rod
Read Answer Asked by Rodney on June 19, 2014
Q: Good morning; When might I expect to see stocks like Badger, Painted Pony etc on the BNN ticker tape ?
Read Answer Asked by John on June 19, 2014
Q: Hi! What to do with FAP? They lowered there monthly dividend to 4 cents yesterday.
Read Answer Asked by Keith on June 19, 2014
Q: Hi Peter and Team,
I consider myself a short term, medium to high risk investor with perhaps some long term investments (more long term once I hopefully make some money!). I only have $20,000. to invest and would like your opinion of the percentage I should allocate to each equity. Should I stick with 5%, 20 stocks, $1,000. each? Or perhaps something different 10%, 10 stocks, $2,000. each, to be more profitable? Also would you recommend a mix of small cap and large cap stocks in a well diversified portfolio?
Thanks for your Great Service!
Brenda
Read Answer Asked by Brenda on June 19, 2014
Q: I hold a couple of small cap technology stocks: QHR-V and RC-T. Over the past three months the share price of both have been stagnant. Which of these stocks do you think offers greater potential for capital appreciation over the next 12 months? Thank you in advance for responding to my inquiry.
Read Answer Asked by Owen on June 19, 2014
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