Investment Q&A

Q: Hello,

I read your article in the National Post regarding sector rotations and would like to ask a question about it.

Out of the 20 stocks I own, 3 are energy, IPL,TOU,HAL.
Because of the rotation would 15% considered too much to hold?
The rest of my portfolio is 10% Communications, 15% Health, 25% Cyclical and 35% Technology.

Thank you.

Q: Hello, ABX - My last question on ABX (and your answer) on Jan 8, 2013 is mentioned below. How do you feel about it now. Down 50%, shall I keep holding expecting a turnaround in 1.5 -2 years. Is dividend safe. OR shall take a loss and move on.
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January 08, 2013 (asked by r)
Question: Barrick - ABX. What is your opinion about the stock prospect in lieu of recent developments. Is it buy hold or sell.
5i Research Answer:
Barrick continues to have problems. The lack of sale of African Barrick is disappointing, but it is not a devastating blow. ABX's interest is worth just over $2 billion. Pueblo Viejo in the DR is another issue, and has not yet achieved commercial production. ABX will likely have to lower its production guidance for 2013.
But, many of its problems are reflected in the price. Down 30% in a year, trading a 8 times' earnings with a 2.4% dividend, it is attractively priced for a senior gold company with massive leverage to a higher gold price.
A few years ago, if we said you could buy Barrick below 10 times' earnings with a yield greater than most fixed-income investments, no one would have believed it.
Longer term gold investors should still be OK and do well with ABX.

Q: Peter and team:
NTB (Neptune Biotech) seems to be doing remarkably well in a difficult market in spite of the explosion/fire they had and the fact that they are still re-building. Any thoughts as to what is behind the strength and if it is worth taking a small position or do you have other 'speculative' favourites you would suggest ? Thanks for all the helpful comments you have been providing during a worrying time on the market.

Alexandra

Q: Trez Capital - TZZ

Can you give me an opinion on this company?

Q: Peter, am looking to invest with the market down. Looking at long term hold, steady dividends. Direct Cash, Cominar Reit and F P News. Thanks Peter for your timely answers, Ken

Q: Another question on CLC. I have ~400 shares and am inclined to sell soon, giving up ~$100 for not waiting for 3 months. I bought CLC for its presumed stability (wrong!) and its good yield. Do you have a suggestion or two for a replacement that fits the same criteria, perhaps tending to the more aggressive side. This holding is in my TFSA which also includes ACQ and SYZ (thanks!)

I appreciate your fine, unbiased service.

Q: Re: CPD question posed today. On the TSX web site it says the dividend is 5.75% which is not bad. My question is when is the fund fee taken out of the earnings? Is 5.75% pre-fees or post-fees.

Derek

Q: Hi There
I am looking to increase the consumer part of my diversified income/modest growth (retirement)portfolio and trying to decide between AW.un, BPF.un and KEG.un.
BPF numbers look the least attractive of the three, but you appear to speak well of it.
Going forward which would be your #1 choice given the recent market turmoil?
Thanks as always for a great commentary.

Q: Hi Peter and 5i: Can you please comment on this as one possible case against investing in gold equities: Ultimately you can't fully evaluate the situation on the basis of how much the gold stocks have come down and how "cheap" their current prices may appear compared to themselves of 6 to 12 months ago. The bottom line is all about the price of the commodity. The price of gold went up more than 450% over a dozen years reaching its most recent peaks. It has now backed off about 30% from those peaks to just about where it was three years ago. Is gold itself cheap or expensive? Will it be worth more or less in 6 months time? I have no way of knowing. Gold is just worth what people want to pay for it; there is no industrial need that it serves that could kick in and provide a reliable floor. Gold equities only have any value at all relative to some assumed commodity price. If gold itself drops to below the cost of production for a gold miner, that miner's stock has close to zero value - all that is left is what it might be worth if the price of gold turns around and zooms back up again. Thanks!

Q: Where do you think DHX will be in a year from now. Thank You Very Much. Andy

Q: Good afternoon 5i,

In the summer month usually Consumer staples do fairly well. What are your thoughts on XST an Ishare ETF?

Thank you.

Q: i've been buried by a well known mutual fund, pur.@ $72+ and now heading towards $25. i see no future in the precious metals sector or in recovering any investment dollars.i was thinking of selling and buying several hundred shares of bns with whats left.good idea? or wait.talk about wanting to sick up.

Q: I have $11,000 currently sitting in cash of a RDSP account. I would like some advice on how to invest it. Of course I want to make money, so stability and return are important. It is for the long-term.
A related question: In the worst case scenario, if the beneficary loses the CRAs disability tax credit and the plan has to be be collapsed, what happens? (The medical credit is up for renewal this year).
Please use your judgment as to whether to publish this question or not.
Thanks

PS. I LOVE your service!!!

Q: Pete, could I have your opinion on Russel Metals please. Looking for stable long term yield. Thanks Ken

Q: All the talking heads on BNN say sell your utility,telcos,banks and Reits-and buy what? If you are retired like me and don't mind volatility-they never < dividends during the worst financial crisis ever & telcos are planning to > dividends -eg. T why would you do that if you want mostly TSX exposure (pref. tax treat). I have some USD exposure in companies like J&J, MSFT (up nicely), MO, GE, KFT etc-held for over 4 yr.

Q: BAD-why only covered by 2 IAs: too small of a capitalization-ACQ covered more. I own both companies.

Q: Hi Peter, "T" and "BCE" are getting hit again is there a particular reason for this and can this be an opportunity to add to existing positions as I hold both of these or can they fall further. Thanks, Nick

Q: Hi 5i,

Brookfield Renewable Energy (BEP.UN) has come off so is it a good time to enter? I am interested in maintaining it for the longer term.

Thank you.

Q: Hi Peter,
Any thoughts on BlackPearl's (PXX) decsion to defer their $350 million term loan for the Onion Lake thermal project due to the volatile debt markets? I see they had a positive announcement though on the Blackrod pilot production and cashflow. New 52 week low , looks like a good entry point perhaps? Thanks.

Q: What effect on Bce do you feel if their is a positive approval from the CRTC tomorrow
Stan