Investment Q&A

Q: Hi Peter and team,

I know you are generally adverse to options but they have been a hugely useful tool in getting incremental leverage in my TFSA, which is otherwise constrained by the contribution limit.

I keep my options exposure relatively small, typically <20%. I currently hold OTC and CWB, but am looking to add a US bank and maybe a second US position that is rock solid and could give a small call option some torque.

Which bank would you recommend? Does anything juicy come to mind for the second position?

I am educated on these tools and am comfortable using them, so please don't answer the question with an overly apprehensive stance :)

Mike

Q: Good morning, could you offer your opinion in GTE, it seems to have dropped over the past few weeks. Is this the consequence of their recent announcement with Madelena Energy? How do you view their potential for growth? Thankyou.

Q: Hello 5i!

I have a relatively balanced portfolio mostly of Cdn stocks recommended by 5i. I would like to have a little more US exposure and I know its not the focus of your research but looking for a couple names that you would recommend for me. 2-3 year horizon or more. As always, thanks for the great service.

Q: Need your detailed analysis with this one. Looking at the latest quarterly earnings from SNC-Lavalin, most of their net income comes from what they call their ICI or Infrastructure Concessions Investments which consist of the recently sold Altalink and 407ETR (to name two.)

The former management took a strategy to diversify SNC income precisely to ensure a more predictable income quarter to quarter rather than the more risky and fickle revenue that comes from the Engineering and Construction side of the business. So, while they have a new strategy and now 3 billion more dollars, my concern is that their dividend from quarter to quarter is in jeopardy.

It's safe to say that the SNC-Lavalin of 2012 is not the same company as SNC of today anymore, so how secure and safe is it's dividend with this massive change in strategy?

Q: 5i Team,

Thanks for the good work. We own CDZ in our portfolio, can you recommend two similar ETFs (Large cap dividend) in CAD$ for US stocks and International(ex North America), we are thinking of owning them in RESP and TFSA.

Q: Hi Peter, My wife has within her TFSA 3 U.S. stocks, CVX, MET and MSFT, all equal weighting. How do these rate with you, do you have any better ideas. This is for a long term hold.
thanks

Jim

Q: Thanks for all the ideas, both from staff and fellow members. Am interested in Algonquin Power (AQN) for growth and income, but fear that growth may be muted over the next 18 months. Is that a fair assessment?

Q: I have a small registered account where the earnings are taxed upon withdraw. Currently it holds 100 shares of: BAD, ESL, HR.UN and STN (with only a small net gain over the six months it's been open). I have an additional $2000 to invest. What is your suggestion for about a 10 year time horizon. I don't want to take on too much risk but do very much want to increase the returns (like everyone does!) What's your suggestion?
Thanks!
PS. I love that you are biking for personal challenge and kids' cancer. I'll definitely contribute to the cause!

Q: Hi

I would appreciate your comments on the recent rise in Linamar stock.
Any takeover talk?

Thanks

Q: Hi Peter, TCL.A seemed to put out nice earnings this morning. I wonder if you could comment on the numbers.

Thanks!

Q: Could i get your updated views on two names please? Questor and Ceiba Energy? Your past posts suggest you like them both, but both have had enormous runs of late. Which one would you prefer if you had to add one to your portfolio? Would you be a buyer or either at today's current valuations?

Q: Thank you 5i for being here. Stumbling across your site just under 2 years ago has been the best investment I have ever made.
Speaking of The Best Investment - if you had to buy just 1 name for 5-10 year hold (I am 62 years old) which name would it be.
Thank you as always.

Q: i have just taken control of our 13 year old grandson's RESP - value 25,500 cash - i am looking for suggestions of stocks to buy preferably with DRIPs - thinking TD, CNR, CPG, a pipeline and some small caps - appreciate your expertise - thank you

Tom Sinclair

Q: I am thinking of adding to my shares of BCB Cott due to the fact they are acquiring aimia foods. What is their debt level? It looks like the stock price has bottomed and to me the risk/reward looks good. Would you agree?

Q: Can you give me your thoughts on Counsel Corp, CXS, poor performance in the past few months and it's outlook going forward. All my other financial stocks, CM, BNS, TD and HCG have done well but CXS has mystified me despite reasonably good results last quarter.
Also I got shares of HGP as part of their special dividend and while I would like to sell these shares the price changes from day to day but my discount brokerage account shows no trading activity. Why is that?

Q: BPO.PR
Hi There
I hold approx equal amounts of the L and R series (~1.5% of each).I am thinking of selling R and buying more L with the proceeds, for higher current and reset yields and shorter time to reset.
Am I missing something, as the yields appear not to be what you might expect?
Thanks as always

Q: Orange Capital LLC is offering $5 per unit for Partners Reit, and Hudbay Minerals is offering to purchase the shares of of Augusta Resources. The Augusta Board advises rejection.Please give me your reasons and view as to whether or not I should tender to one or both or neither of these offers. Thank you

Q: Good morning Peter and Team,
I have been researching the various pros and cons of the companies in the Capped Utility Sector. Would you mind ranking the following companies under "buy" "hold' or "avoid:
AQN;ACO;ATP;CU;CPX;EMA;FTS;JE;NPI;SPB;TA and BEP.UN
Many thanks for the wonderful service.
Paul

Q: re: AYA

has come back a bit (11%) over the past week. Considering your last comment regarding "rumors of a big acquisition at Amaya" and "it is still a solid company but will likely drift back to $8 or so" is there anything you have seen or can add now regarding what might happen over the next short term?

Thanks for all you do

Gord

Q: Is Davis & Henderson considered a financial for sector allocation purposes, or has it moved into consumer services, and if so, is it discretionary or staples? Many thanks.