Investment Q&A

Q: Hello Peter, I’m very pleased to join you as a new member. Hoping you can respond to a question.
I have a well-diversified RSP, but have a good amount of uninvested cash in my TFSA. I don’t expect to need any money from the TFSA for at least 5 – 7 years, and feel I can take somewhat more risk. I would appreciate your suggestions for a mini-portfolio of about five stocks for longer term gains. I would hope to double the portfolio over the next 5 years between dividends and capital gains. (I already own FSV, HCG, and SJ.) Thank you in advance.

Q: ABT-RKN-AVO -TD says all "buy" -your preference and why?

Q: What are your thoughts on BXE Bellatrix issuing more shares to pay off debt? Is this generally considered a positive move? Will the increase to capex make a significant increase to their production?

Q: As a beginning investor what would a good resource be for looking up the data behind the acronyms and phrases commonly used when discussing stock evaluations: EBITDA, P\BOOK, PAYOUT RATIO, P\E, ROE, P/CASH, debt levels, etc. I know what they mean but where can I go to research the information on specific companies so that I can invest wisely, with a long term plan.

Q: Can you provide a recent rating and comment on Absolute Software ABT-T.

Q: Hi Peter, CF is ticking up again today. Its been another great pick of yours Thank you ! What are your thoughts here ? Is it getting ahead of itself ? Paul

Q: Peter et al,
You recently reported on Fiera (Fzv). I had considered it previously but forgot it when you recommended Element Finance which I bought. Considering that they are approximately the same price and Fiera pays a dividend and Element does not and Element is bigger which would you recommend or are they more or less equal?
Gary

Q: Good Morning Peter and Team,
For the global / international equity portion of my portfolio I have looked at ETF's and mutual funds rather than individual stocks. In my view the best global / international equity manager that I have found, so far, in terms of performance, low fees, people, and process is Mawer Investment Management located in Calgary. They appear to run equity portfolios much like you (albeit less concentrated). In other words they only own the really good or great companies and completely ignore the many "cigar butts" and "value traps". Would you agree that their style has some similarities to your own and what is your opinion of their firm and are they a good choice for global / international equity exposure ??? Thank you very much for leaving Bay Street and helping the retail investor. DL

Q: Would you buy cpx.pr.a for income and some growth?

Q: 5i team. I recently purchased TCN for $8, then read that they have increased the # of shares from 42 -- 109 mm. over the one year period. I concur like you that this is great dilution. Is this a good invest. or take my loss and move on. Also, I have a theory that gold & silver sector goes done when the rest of the market does well and usually goes up when investors feel that they cannot make money on the many other stocks in Canada and US. Is there a better stock than TCN? thanks, REne

Q: I am nervous about gold and so hold none, yet many, including you, suggest the need for some. Am I being foolish?

Q: ITP (TSX): industrial tapes & pkg HQ in MTL-ROE 50%, PE 10 and BETA of 2.2 -was thinking of a purchase to hold in RRSP during this business cycle. Your comments please.

Q: If I need to choose, for divi and growth, between CGX.TO or DH.TO, which one it would be ?
I will keep it for 2 yrs.

Q: Hi 5i,

What did you think of the Spartan deal announced today?

Q: I notice that you are getting a lot of questions regarding fixed income in a portfolio. Yesterday, for instance, someone asked about using utilities and other dividend paying stocks as a substitute for fixed income. I think the sense of the question was not really that dividend paying stocks are actually a substitute for bonds, but that under the current environment, it might be a viable option. Today, Ron asked about fixed income as and you responded that the Money Saver portfolio has a 20 per cent allocation to fixed income. I have sometimes seen 30 percent mentionned here as a reasonable amount.

I am not sure quite where to go with this, but I know that I am a little bit like a deer in the headlights regarding fixed income at this time, and I believe others are, as well. I don<t understand that asset very well. But, it seems counter intuitive to buy something that everyone says seems to have a high likehood of losing you money in the current or near future economic environment.

And even the amounts mentionned seem not to do what you would like them to do. What I mean is this: Fixed income, it seems to me, is meant to make the ride easier. You don<t go too far down, when you go down. And if there is a long term market crash, you protect some of your money. But, I am not sure how happy I would be if, say, our of a portfolio of one million, I managed to protect 200,000, or 20 percent; or even 300,000 at 30 percent. But, when you start getting to 40 or 50 percent, you wonder whether, again under the current environment, you are not being a little foolish in alloting this much to fixed income.

As I say, I am not sure where to go with all of this. But, it is a concern that I am coming to believe many here, as well as myself share. Possibly an article focused on this subject ands with explanations on the pros and cons of the various vehicles available might be an idea. I know that much depends upon the individual's situation and risk profile but the current economic situation is making it a little more problematic, I think.

I know that your work here is principally Canadian stocks but I thought I would express this anyway. So, please publish and answewr or not at your discretion.
thanks once again

Q: would u buy zjg at 7.15 in tax free saving account

Q: I have question about preferred shares. I noticed anew issue Brookfield Asset Management Inc. 4.50% Rate Reset Preference Shares, Series 4o. They cost $25. I understand one would get the interest rate for 5 years. But is the principal safe??? Can the principal increase decrease, and under what circumstances??? If ordinary shares go up or down do these shares follow suit. I don't understand these so your help in educating me about this type of product is appreciated.

Thank you

Q: In my RRIF I am holding the First Asset Convertible Debenture Fund (DCD.UN) which trades at a discount to NAV and yields about 7.4%. It seems to be structured on derivatives - a forward agreement with a bank - a setup that is different from that of CVD, though the past performance looks similar. CVD trades at a premium to NAV and has a lower yield but I wonder if it is safer overall and in your opinion would you recommend a switch? Thanks, J.

Q: As a new member I have a question to ask. What are your thoughts on using technical analysis and seasonal analysis in your investment decisions. This concept has come very popular with Don Vialoux and Brooke Thackray. They feel it is superior to buy and hold. I know your service mostly does it from a fundamental perspective but would like your opinion on this subject.

Q: Hello Peter
Currently my portfolio has 9 stocks :CSU,BAD, ACQ, RRX, HWO, STN, ESL, SJ, BDI of total value $118,500. I have extra cash $48,000 to invest into my portfolio. Please help me with suggestion of 4 to 5 stocks with good growth & value like MG or DHX.

Thanks Andrew.