Investment Q&A

Q: Can you please comment on the S&P500 valuation at the moment and going forward in this environment ? We keep hearing about the strong dollar which affects earning but it appears the index remains very high at close to 2000 (vs the last 5-10 yrs). Also, do you think the tsx will be closely correlated with the US index in the next 2-3 years. Thank you.

Q: Hello 5i!
I have the following O&G related stocks: BAD(-20%), BNK (-87%), CVX.us(-12%), ENB(-15%), EPD.us(+12%), HWO(-9%), MCR(-43%), PEY (-30%), PRW(-68%), RRX(-26%), SGY(-74%), TOG(+4%), TOU(-58%), VET(-51%) & WCP(-40%).

I am thinking cutting down the number of positions to about 6, or whatever makes sense to have a good balance with a growth profile. I understand some of the above offer services, and BAD is not 100% tied to the energy sector, you may put these aside for the exercise if required.

Biggest losers by $ are BNK, SGY, TOU & VET and I can claim tax loss for each of them.

Based on your knowledge, which one should I keep in the list?
Also, what are your thoughts on selling everything I can claim tax loss and wait a month before getting back into the market based on the current market outlook?
I recently started to average down and it seems I could be doing that for a few months! I am setting up things for the long term and can handle risk.
Thank you so much for your usual great services!

Q: Which would you prefer in the refining space, Holly Frontier (HFC.US) or Valero (VLO.US) and why?

Q: I hold XIT in both my RRSP and Cash accounts as my tech exposure, which is roughly 10%. 77% of the ETF is made up of 5 stocks = CGI-24%, CSU-21%, OTC-15%, BB-11% and DH-6%. It has performed reasonably well, even beating out it's USA cousin XLK (7.8% vs 1.3% total return over the last year).

I am reasonably positive on CGI, OTC and DH, neutral on BB and thought quite highly of CSU until recently. It appears to be rolling over. I suspect it might be some profit taking due to these ugly markets.

Is XIT still a reasonable holding for tech exposure? It really comes down to CGI and CSU, in my opinion...thanks for your guidance.

Q: Is this a good environment to invest in Gold Stocks. What is your view? How would you rank these gold/silver stocks in terms of growth:
G,AEM,THO,SEA,OSK,DGC

Also which ones have a higher probability of a takeover. Thanks

Q: I am thinking of buying more gold stocks .What is your feeling
About Pershing gold us .
thanks.

Q: SWC is at a multi-year low. Given net cash, lower costs and the relative strength of the auto industry, at what point does it become 'interesting'?

Q: DDD and SSYS have taken a beating. Do you think these are worth investing in hoping for a rebound. Or is there better value in another company in the 3D printing sector?

Q: Any information on why Agt is reaching new highs. Would you buy it now and if so what would be your exit strategy.

Q: Short term placement for $150,000 US in todays very volatile market 3 - 6 months. Growth only!
As always, thank you for your expertize.

Q: Which stocks will benefit most from the low Canadian dollar. I had thought that exporters like Magna would, but the market has not been any kinder to it. Can you suggest a few names to consider?

Q: BDI reduced their dividend from 8 cents to 5 cents a few months ago. Do you believe the 5 cents dividend is safe. I don't mind holding the stock for the long term if its dividend is safe.

Q: What are two Canadian stocks that would benefit from our very low Canadian dollar.

Thanks

Q: hello 5i team,
I have about 30 percent of my portfolio in U.S. stocks, which i thankfully bought when the Canadian dollar was high. At the risk of being called the odius name of 'market Timer' i am now considering converting about ten percent of these U. S. dollars into Canadian, hoping to ride up the other side. One candidate that i have looked at cashing in is VWO.US. I have heldthis for quite awhile and am just breaking even. I recently read an article by a resected analyist saying that his company is not betting on emerging markets for awhile yet. Heput forward a pretty reasonable case for this thesis. What do you think about using this etf for this strategy, or at least some of it?
with thanks as always

Q: Intrinsyc released 2015 preliminary results this morning and the fourth quarter looked outstanding. Since they changed their business model 2 years ago they have been consistently EBITDA positive and now revenues and EBITDA are growing rapidly. Other than risks of still being small, ITC is in a fast growing tech space. Is the market going to start picking up on this as the stock looks inexpensive still.

Q: I would like to add more US dollar exposure. For a variety of reasons I don,t want to convert any more C$ to actual US$ (t1135 and conversion fees) .I am looking for something liquid and not exposed to interest rate shocks if such a thing exists.
Thank You

Q: Psychologically, I am not usually too bothered by volatility (I rode through the Financial Crisis without selling any stocks). However, I am now close to retirement, so my risk tolerance is declining. I own HCG and believe that it is hugely under valued at 5X earnings. The constant declines in HCG, even on good days in the market, are starting to give me doubts that perhaps I am missing a major negative factor in my valuation. Is this just negative sentiment? I would appreciate your view. Great service.
Thanks

Q: Hi Peter,

Are you able to speculate on when the TSX might drop one of the bottom TSX 60 constituents (say Bombardier or Teck) and add Concordia? It's current market cap of ~2.5B is significantly larger than some other constituents of the TSX 60, and volume is reasonable as well.

Thanks!

Q: I know you are not fond of airlines, but would like your thoughts on Westjet. Would you consider it a hold, or do you see more downside?

Thanks, Dave

Q: In response to Derek's question regarding Veresen's 2 DRIP's I just point out that they do not have an OCP (Optional Cash Purchase) component.

So he cannot buy more shares via directly within the plans (for no charge).

I have DRIP'd many companies for over a decade, not referring to the synthetic DRIP's financial institutions offer, and have set up many people in Canada. I know a lot of investors like to send in an OCP regularly or occasionally and find it a component they require.

There are many CDN. companies with DRIP's with and without a 2% - 5% discount on reinvested dividends, but that do not have an OCP component.

ALA still has a 5% discount on reinvested dividends for example, ENB 2% and REI.un 3.1% off the top of my head.

There is a site where people exchange (sell) for no fee to each other to set up DRIP's. Only 1 share usually is required except NA which requires 100 as I recall. Cost is usually stock price + a stamp + $10. As opposed to getting a share certificate from one's brokerage account transferred from Street form into the individual's name and charge $50 to $100 typically.

Hope this is of help to Derek or someone.