Investment Q&A

Q: Hello all at 5i and thank you so much for this forum.
I am grappling a bit with the concept of reaching for yield. What is a healthy stretch vs an unhealthy or perhaps irresponsible overextension?
I am retired, no pension and rely on my investments for my income. I am very comfortable with 4 to 4.5% from dividends, distributions etc. My portfolios are made up of approx. 15% fixed income (etf's) and 85% equities. I am comfortable for the most part with this division as well as overall diversification.
Some of my portfolio anchors, gwo, slf, kbl, sj, stn, fts, sap, dh, t, td, bns etc have dividends below this level. Other like esl, dsg, aya dhx.d, have tiny or no yield but are intended for growth to purchase future income.
I also hold companies like vnr, win, che.un, eif, mkp, rus, wcp with a higher yield to bring the portfolio yield up toward my target range.
Today you replied regarding d.un 8.9% and cuf.un 8.2% yield - “We would consider both buyable within the context of the REIT sector. Their valuations largely reflect rate concerns already. Distributions are quite secure. We think the sector will relax a bit once rates do move up: we do not expect a big increase in rates, and the market is good at anticipating. Like last year, we think investors will eventually reconsider the sector's merits.”
My question is how do you determine a healthy stretch vs over extension for yield? What do you think of my plan and could you provide a few names that I can consider to bring portfolio income up to my target 4 to 4.5% range. I apologize for so many words
Thank you very much,
Brian

Q: CNR appears to be trading at a discount price. Do you agree? What would you think of me adding this stock to my portfolio that more or less replicates your balanced equity portfolio? If I were to replace one of your suggested stocks for CNR which one would you recommend I change? Also can you comment on holding railway stocks in general now and if Canadian Pacific would be a better pick than CNR. Thanks for all you do. You are awesome!

Q: Would you, please, update your comments on Opsen (OPS) that you last reviewed in January, 2014.

Q: DSG has been strong recently in spite of a weaker market overall, any explanation?

Q: Hi 5i,
I have received this "Daily Bull & Bear Report June 15, 2015" from TD Direct Trading.
"Cipher Pharmaceuticals Inc CPH (TSX)
Head and Shoulders Top -
Trading closed at $10.92 to confirm a Long-Term Bearish Head and Shoulders Top pattern
Tells Me: The price seems to have reached the end of a period of "distribution" at the top of a major uptrend; the break down through support signals a reversal... more details
Bearish Event - 83% move possible"
Their target price range is "$1.00 - $2.75"
Is this bleak forecast realistic?, should we have "fire sale"
Thanks,
Morris

Q: How safe are these bonds in a portfolio? Barry Schwartz on BNN mentioned that " We would avoid bonds like the plague."

Q: Hi guys, the following 8 stocks have a half position within my balance portfolio, I can increase 2 of them into full positions, which ones and why. 3 to 5 year hold.
They are PKI, BYD.UN, MDA,MG,DHX.B,DOL,ESL & STN.
thanks
Jim

Q: Could the Tahoe deal going underwater have a material impact on joint bookrunner GMP'S share price and 2015 guidance?

Q: Who would you recommend as a Natural Gas holding.

Thank You
Craig

Q: Hi Team, Thank you for clarifying several 5i Portfoilo stocks' sectors. I think I'm almost there. Can you Please also confirm if all the following 5i portfolio stocks are in IT sector?
WIN. ESL. OTC. All IT sector? Thanks for your valuable service.

Q: Any idea for the big jump in price today? Thanks!

Q: Here's a snip from a proposal for the July AGM

"We are seeking to increase the number of common shares that may be issued under the current stock option plan (the
“2010 Stock Option Plan”) from 26,193,643 shares to 20% of the Company’s issued and outstanding common
shares as at the date of shareholder approval of the amended 2010 Stock Option Plan (56,407,097 based on the
number of issued and outstanding common shares as at the date hereof)"

Does that seem unusually high? Is it time to exit this?

Q: Hi 5i: With respect to the question asked by Dennis about AVO buybacks: I recall reading quite recently a statement by AVO to the effect that the AVO board figured that their shares were undervalued, and that they therefore planned to support their shareholders by doing a series of buybacks. In other words, they have been up-front about their motivations.

Q: In reference to another member's question from earlier today, isn't it likely that there will be no Grexit and that the EU will simply force a Cyprus-style bail-in of the Greek banks and country? If so, I'd expect to see very little contagion but I would be highly concerned if a citizen of Greece or any other financially "borderline" EU state.

Post at your own discretion, of course.

Q: You guys are amazing. Best investment service out there! Keep up the great work.

Q: Your opinion on NRI? They seem to have some plans for their p2 product and wf10 trial.

Q: Which stocks that you guys cover, including the growth portfolio, have a decent chance of becoming ten baggers, I fully understand the risks associated with this, thanks?

Q: Hi Peter and the 5i Team,

I presently hold 1000 shares of CVD in my RRIF and it's down about 5% (excluding the dividends, so it's down only marginally). I saw an ad in today's Globe describing Fiera's "Canadian Preferred Share Trust", where you can exchange shares in CVD for this new fund. Do you see any advantage in doing this? The Fiera offering is actively managed, but since it's essentially a closed-end mutual fund (am I correct?) wouldn't the fees be higher than CVD's? I know you like Fiera as an investment, but would this translate to liking this product? (Don't buy mutual funds; buy shares in mutual fund companies?) As always, I appreciate your advice and recommendations.

Q: Both Dream and Cominar's dividends are about 9%. Would you consider then a buy, sell or hold at this time in light of the prediction of higher interest rates in the future.

Q: What would be your advice to your members with respect to a possible GREXIT before the end of this month if the Greeks do not pay monies owed to the IMF??
Do you see a catastrophic collapse of the Canadian stock markets as was the case in 2008 with the bancruptcy of Lehman Brothers?
Would you advise your members to sell ??