Investment Q&A

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

Q: Telus/BCE - are these over sold or does Verison present a real threat?

Q: Hello 5i Team,
On a question re: CLC you stated:
"CML is still paying one dividend. However it went ex-dividend yesterday, but anyone buying yesterday will get a $0.135 dividend."

My understanding of Ex-Dividend is different and found this online:

The ex-dividend date is the date on which investors are cut off from receiving a dividend. If, for example, an investor purchases a stock on the ex-dividend date, that investor will not receive the dividend. This date is two business days before the holder-of-record date.

Perhaps you can clarify?
Thanks,
Ron

Q: Hi 5i. I have a very basic investing question: If I sell everything now, when should I buy everything back?

Q: Peter - can you please provide your thoughts on CPD - IShares Cdn Preferred Share Index? I would like to add this to my fixed income portion of my portfolio - 5% position. What are the risks in this name regarding rising interest rates? Thank You!!

Q: CLC. If I bought 50k at 10.50 (at today ) and sold in Sept. 10.75 would I NOT EARN 50000 X0 .25 = $1250. WOULD YOU DO IT. YES OR NO AND WHY.
Thanks
Yossi

Q: Hello,
Would you recommend to start building a position in the silver market through SLW at this time ? I have a 3-5 year time horizon. Thank you agsain for the great service. Regards.

Q: Enercare (TSX: ECI). Any thoughts on it since your last report and any comments on the reason why it's dropped off a bit over the last few weeks?

Q: Hi Peter - I have read that this might be a good time to buy forestry stocks. Am just wondering if you agree with this and if so are there any specific companies you would suggest. Thanks.