Investment Q&A

Q: I hold almost all of the stocks in both of your portfolios plus a few more miscellaneous stocks.
Currently I am doing a portfolio review with the objective of improving the overall quality of my portfolio.
My biggest "dogs" are CHW (Chesswood), WIN and also RFC. Do I need to be more patient with these stocks; or should I just bite the bullet and add sell them in order to add to existing holdings?

The stocks that I am looking at include AVO, CSU, ET, MG. I do not own ACQ so that is also a consideration.
Can you provide some guidance for me here.

Any help will be greatly appreciated - as usual.

Thank you.

Q: My husband has mostly bonds and GIcs in his TFSA and we are looking to add a few equities. He's looking for a good dividend with little volatility in stock price. So far we have purchased Boston Pizza. We are considering adding either SLF or BCE as they have good dividends. Would either of these make sense given our goals or would you suggest something else?

Carla

Q: What are you thoughts on AIG? Is it a good investment for the long-term?

Q: Your views on Novagold Resources NG. Thanks

Q: Hi,

You seem to really like SGY and it is having a nice run right now. I do hold some in my non-registered account.
I am thinking of adding BXE as it has lagged a bit.
What are your thoughts on BXE or add SGY as I only have half a position?

Thanks,Irshad.

Q: Hi guys,
I've held KMP for about 2 years and down about 15% in regular account. I'm thinking about selling my 700 KMP shares and buying 300 shares of BPY.UN to maintain real-estate exposure. Or do you have another thought or suggestion? I also own some AP.UN and happy with what they are doing.
Thank you for all your help!
Brent

Q: I get the sense that most investors are focused on the risk of the AYA deal getting done. Correct me if I'm wrong, the real risk is the US regulatory approvals for the online gaming after the deal is done. Amaya will take on a ton of debt will they be able to service the debt without US approval for PokerStars.

Q: My question is on market cap balance / diversification in a portfolio. When I google market cap definitions, I came up with the following from a couple of sources:

Micro: < $300MM
Small: < $2BB
Mid: < $10BB
Large: $10BB+

Using this metric, my portfolio split for Micro-Small-Mid-Large is 10% - 35% - 25% - 30%. Since I am a young investor (30) who doesn’t need cash anytime soon, making regular contributions to my portfolio, long time horizon and higher end of risk threshold, I was ok (prefer!) the small cap bias. Especially with 5i research giving me insights on everything I own.

Having said that, I was going through some old questions in the members forum and found one where 5i defines market caps as, based on Cdn / Us Equity:

Micro: < $50MM / $75MM
Small: < $250MM / $500MM
Mid: < $1BB / $5BB
Large: $1BB+ / $5BB+

Using THIS metric, my portfolio split for Micro-Small-Mid-Large changes dramatically to 1% - 9% - 20% - 70%. This strikes me as very conservative as over 2/3rds of my portfolio is large cap.

My questions are:

1. Is the second breakdown described the correct way we should be looking at market cap definitions?
2. What would you suggest is healthy Micro-Small-Mid-Large cap split for my general investment profile?

As always, thank you for this excellent service!

Q: Hello

I unfortunately own G and ABX bought at higher prices. Together they total 2% of our port. Would you suggest dumping Barrick and buying more Goldcorp?

Q: Good morning!
I’m wondering if there are any relatively solid income stocks that would be correlated to the Canadian housing market. Ideally such a stock would have a reasonable dividend, the higher the better, perhaps in the 4% range as a minimum to at least match mortgage payments. If housing prices went up, it would rise accordingly. In theory, this would be a hedge for someone deciding to rent instead of owning a house, and the renter would then not lose ground against a higher housing market.

Q: Do you have a recommendation/report on CNQ?

Thanks

Q: Hi Peter & Team
Do you consider the oil sector too volatile to be in a RRIF portfolio? I have done well with SU & COS (12% of my RRIF portfolio) and wonder if this is good time to bail out oil and replace them with a few from your income portfolio. Thanks

Q: Good Morning:
I am more fearful on the Northern Gateway Project outcome ... Investor confidence is waning due to First Nations and Kitimat opposition ... I just received notice of a new share offering . ( is this bad timing ? ) . Is this going to be a 5 year legal trap ?
Does your opinion of Enbridge change with these events ? Thanks

Q: What is wrong with Fay.un, First Asset Yield opportunity Trust? It has never missed or reduced it's dividend payment,even during the recession, but still trades near it's 5 year low. What am I missing? Thanks.

Q: I was mere minuted away from purchasing Chemtrade Logistics below $20, but the stock has been up about 6% over the last 2 sessions. Still ok for a long-term hold? I'm interested in the yield as well as some capital appreciation over time.

Thanks,
Jason

Q: I read with interest your US stock recommendations and Ship Finance (SFL.US) caught my eye with a current 9% dividend. What are your thoughts on the company and is the dividend safe or is it a telltale sign that all is not well with the company?

Q: Is it possible for you to post your conversation with Globe & Mail from yesterday on the website?

Q: What are the implications of the Federal Government's proposed "bail-in" legislation for investors? Thanks. Michael

Q: I have yet to put this years TFSA contribution to work. Can you provide a high growth non speculative name to invest, considering I have 20+ yrs before I need to access this money.

Q: I own Direct Cash (DCI) and am thinking about moving on. They seem to have a stretched balanced sheet and I wonder about the long term future of the ATM business. The last quarter showed improvement in their results so what are your thoughts? Am I selling at the bottom of a turn around? THANKS