Investment Q&A

Q: Hi Peter and the 5i team,

I was wondering what your thoughts are on Home Bias and the ideal allocation to Canadian equities? A typical couch potato strategy evenly allocates 1/3rd to Canada, US, and International. Some prefer an even higher weighting to Canadian equities.

In July 2013, Mawer introduced a Global Balanced Fund (http://www.mawer.com/knowledge-centre/mawer-blog/the-evolution-behind-the-mawer-global-balanced-fund/) with a 2.70% weight to Canadian equities because they're "not convinced Canadian equities should dominate the equity portion."

I realize having a higher weight to Canada might lower some risk (ie. currency risk, familiarity with Canadian companies) but when we look at managing long-term risk and growth in a portfolio, does it still make sense to weight Canada at 1/3rd in your porfolio?

Thanks again,
Arneh

Q: I own WCP and have been considering buying POU & TOU as they were Eric Nuttall's top picks on BNN on April 17th but I am timid to do so as the RSI Index indicates that they are way over bought. He didn't think this was of concern as he says there has been huge demand for Canadian Oil & Gas stocks by US companies. Could I have 5I's thoughts on purchasing now are wait for a better opportunity? He also said he was 20% in cash?? Thanks, Bill

Q: Hello,
Could I get your opinion on questor technologies? I have a small holding that I bought at $2.18 and have seen some increase now. Do you have an opinion on whether there will be continued growth and subsequent price increase? As well I am considering buying shares in sunopta, I know they've seen a lot of growth recently, do you think there is room for continued growth for this company?
thank you for your time
dave

Q: Peter, your comment please on B.T.B. reit . The last I see is January. Love the high yield. Is the div sustainable and is the management good , Thanks Ken

Q: Hi 5i Great article by Ryan Modesto,I think every investor should read this article and the next time they go to look at their portfolio read Ryans article first then look at the portfolio then read his article again ( good peace of mind )
Thx 5i for good solid advice

Q: Hi Peter and Crew. Thanks for great service.

I see that Carfinco ( CFN.TO ) has released its 2013 annual report today. Could be get your comments on their results. It sure seems to be oversold at this point. Many thanks.Don

Q: POWER Corp financial measures indicate deep value, good dividend 3.8% forward PE 10.3, estimated earnings this year $2.12 dividend well covered. It will likely have some conglomerate discount but should benefit from European exposure. Why is it essentially static - narrow range trading?
appreciate comment.

Q: What is your assessment on Fortis 4% unsecured subordinated convertible debentures that were closed this Jan

Q: Peter what is your view on YRI now that Agnico Egale and YRI have teamed up to take over Osisko .
Is YRI a buy I own some should I hold or sell . ????
Jim

Q: Hi 5i team,
I am getting very close to aligning my portfolio with the Model portfolio, and note that I am overweight in energy stocks. I hold BAD, BDI,BEP.UN, FRC,CVE, ENB, and PEY for a total of 19.8% of my stocks. My tech holdings are at 16.3. Which of my energy stocks would you sell in order for me to better balance my holdings? I plan to redeploy the cash to pick up the model portfolio stocks I don't yet have FSV, CSS, and possibly STZ.

Q: Hi Peter et al: Largo (LGO) is poised to go into production of it vanadium mine in Brazil with Glencore taking all of its production for the next 6 years or so. It is still languishing in the 28 cent range. Once it goes to production will it take a quarter for the price to move up or income will then be known?

Derek

Q: I have purchased stock in TRN in the US, who make rail cars. It is doing well and I will hold on to that. Do you know if any companies in Canada are supplying CNR and CP with railcars and, if so, if you would recommend them?

Q: If you were to rate VET what rating would it have.

PB

Q: Peter

I do not have any pharma in my portfolio. I would like to add some Merus was mentioned on BNN last night and is 10 % already today. Knight Theraputics was also mentioned as a stock to get into the pharma space Could you comment and compare both companies and recomend what to start buying in this space

I am looking for growth and have a 3 to 5 year time horizon

Thanks so much for your great service

Q: Hi Peter and team. I am looking at adding 2 stocks to my TFSA account. I currently own ESL, STN, ACQ, CSU. looking at adding from list, BAD, HCG, CGX, DH. Out of these 4 stocks, which would be top 2? Looking for growth and dividend increases over long term time frame.
Tks Kevin

Q: Peter and Team,

I am in the final throws of my decision to buy some Stella Jones stock. I understand from your report that they essentially profit from constructing some of the hard assets for rail roads (amoung other pressure treated wood products for tel-cos, utilities, etc.).

Focussing in on the rail part a bit, does this mean that they should see increased business for replacement ties, etc. as rail is used more and more heavily for shipping oil? It seems like this could act like a bit of a hedge to exposure to oil pipelines.

It seems like a good business (not sexy) and required business. I'd love your thoughts on what makes this thing grow.

Thanks!

Q: RCI.B is down 3% today on a lowering of estimates by Credit Suisse. I'm not interested in growth, only safety of capital and income. The yield is about 4.3%. Is now a time for a 5% position? I don't have T but will buy BCE on a correction resulting in owning 5% each in BCE and T. Would a 2.5% position in each be better? How about 5% in BCE and no RCI? Thanks.

Q: Hello All, do you know of any ETF specifically targeting:

i) European Utilities and/or Telecoms, and
ii) European Real Estate

Thanks for the help,
Graz

Q: You had suggested that VRX (Valeant) was likely to need new cash, which would mean a new stock issuance, dropping stock price. Given the announcement last night about Allergen, how likely is it now that VRX will need to make a large new offering?

Q: If one was to initiate a position in ATHN <Athena> would this be an opportune time or has the picture changed? I see Q1 EPS being reported lighter than consensus, and the stock sitting on the 200 day MA hasn't had the recent bounce the sector has. Thanks, J.