Investment Q&A

Q: What do you think about Alcoa? Is this a good time to buy?

Q: Hi Peter Ryan & 5i Team
US looks interesting with the Donald at the helm. Do you have an idea for two or three US Small Caps poised for explosive growth.
Thank you

Q: I understand this may be a question you're not comfortable dealing with, so I'm prepared. However if you are OK with it: do you think Scotia Itrade's sustainable investing tools actually work? It's something I'm interested in, and would consider switching brokers for, but not if this is just a sales gimmick. Thank you.

Q: I am a 30yr old long term investor with a Canadian portfolio leaning towards growth. Consumer (cyclical and non cyclical) account for approx 10% and would like to increase this to approx 20%. I currently hold ATD(4%), MTY (4.5%), TOY (1.7%), and would like to selectively add over the next few months to achieve my target of 20%. How would you suggest i achieve this? Would you add to current names? Add a position or half position off my watch list (ZZZ,DRT,SHOP)? Or do you have any other names that you feel would fit in better? Since i plan on having these holdings long term i would also appreciate your opinion on entry point or if you think i should avg in once you have answered the questions above. I appreciate your service and feel free to deduct as many credits as necessary.

Q: Any thoughts or Comments on Mobi724Global (MOS.CN)
Greatly appreciated.
Thanks for the always great Website.

Q: Good morning,
I realize you don't like stop losses. What is your opinion of using trailing stops to continue to take advantage of upside and protect against a significant downside? What percentage to you recommend on a trailing stop for large cap, mid cap? and small cap?
Thank you,
Kerri

Q: Ten years ago in 2007 i took four hundred thousand out of the stock market and bought some segregated funds through manulife. I have with drawn one hundred and twenty two thousand in the last 5 years. The funds are now worth three hundred and eighty-eight thousand now. I am guaranted twenty three thousand three hundred a year for life. I am 67 years old and retired for 11 years with 1 million 280 thousand invested in differant investments my house not included.I receive a thousand a month from cpp and old age pensions and another twenty-four hundred a month from other investments not including the thenty-three thousand three hundred from this investment. My wife has pensions of thirty-six thousand a year. I paid nine thousand in fees last year and the funds were up 14 thousand after fees were paid.I am thinking of cashing in some or all of the funds and buying some blue chip stocks, banks, bce stocks in your income and balanced portfolio. What do you think of this. We have no debt and just wish to have a good life and retain what we have. thanks

Q: Hi Peter, Ryan and all,

I am a rational DIY investor who adheres to the diversity mantra but I am considering a slightly radical move. Here's the thesis, which is about energy: at the beginning of the year my oil and gas exposure - 6 stocks, all solid choices - was already on the light side at about 8% of my portfolio. Just shy of 1/4 through the year they are down a cumulative 10% (9% including dividends). My thinking is that:

a) global demand will be flat-ish, as non renewable energy sources gradually gain strength, off setting increasing demands elsewhere.

b) it's somewhat amazing that the OPEC production cut is holding but I'm not confident that it will long term, which could lead to the spigots being turned on full blast again.

c) technological gains mean a decreasing cost to extract every last drop of oil, as evidenced by the Americans in the Permian Basin and elsewhere.

Bottom line is I'm not buying the global oil inventory coming into balance scenario meaning further pressure on prices. That 8% of my portfolio figure is now 7.1% and dropping. Contrary to oil I have been knocking it out of the park on the tech side - 10% of the portfolio - with NVDA, SHOP, KXS, OTEX and AT and am considering getting right out of energy and deploying that 7% into tech and healthcare.

I am well represented in all other sectors except materials - don't like the volatility - so would then be skipping two sectors.

I know this is a deeply personal investing decision but your thoughts are appreciated conceptually.

Thanks!

Q: Two children ages 11 and 15. $5000.00 just being put into a self directed RESP.

Stock suggestions please?
Pat

Q: New fund,believe IPO was $10.00 in December. why would anyone now be selling below $7.50 in only short time. Is it good long term hold if the price of oil is going up? What would be MER. (including expenses) Is Mr. Nuttall's (P.M.) track record worth the investment (high fees). Risk/reward.....Cec

Q: I am light on tech/growth stocks. Plan to add 3-4 names to total about 10-15% of portfolio. Want growth,can take fair degree of risk. I am considering the following- KXS, SIS, PHO, ITC, OTEX. Any preference among these or any better ideas?
Thanks Jim

Q: In my search for the best option available to hold cash I came across a company called Oaken Financial. They currently offer 1.5% interest in an unrestricted savings account. Do you know this company and would you recommend I use them to hold cash?

Q: I am contemplating moving my cash holdings from my Big Five Bank savings account to EQ Bank, to take advantage of the higher interest rate offered by EQ. Are there any risks in doing so, that I should be aware of? The EQ rate is higher 2% vs 1.2%, but I would not make this switch if there is any increased risk of any kind. Thank you.

Q: I'm looking for an ETF that invests in the EU countries as a whole. Are you familiar with any?

Q: Hi Team 5i!

I am building a portfolio using the Balanced Equity portfolio as the centrepiece of the portfolio and ultimately am looking to hold a 30 Fixed Income/70 Equity mandate with about 70% of the equity mandate allocated to Canada. What products should I use to fill out the Fixed Income and US/International equity positions? Ian

Q: Which would be your first choice, if any, to move to a full position from a half(-ish) position at today's prices?
ZCL, XTC, SIS, PHO, GPS, CXI, TOY

Thank you.

Q: This is to bring to the attention of those who use TD webroker. The T5008 that was sent by TD to Revenue Canada(RC) reported the full proceed of disposition without subtracting the commission. There are two issues here:
- If you are using the trading summary as an input to your tax program, the net proceed will not match the net proceed that is reported to RC which is particularly important if you have a large number of trade.
- If you are using a tax program with Auto-fill and you don't report the commission as "expenses related to the transaction then you will be paying higher capital gain than you should.

Q: Saw George's question regarding US dividend withholding tax rate, just a reminder, don't forget to complete the W8BEN form and submit to your financial institution, once completed, the form is good for 3 years and need to be renewed before expiry. With the form on file, the US withholding tax is 15%, otherwise, it will be 30%.

Q: What happens to US dividends received in a RRSP? Is the 30% withdrawal tax applied?

Q: I have been a member for a couple of years and you have been my "go to advisers" .
Thanks to you, I have built this non reg account.
In the non registered account I have the following approximate holdings:
5%--FTS;IPL;H;MFC;SU;STN;PWF;BAM.A;
7%--BEP.UN;CTC.A
13%--CCL.B;ENB

I have $40,000 in cash. Retired with a pension and medium term(hopefully) horizon.
Reading your Q&A, I should rebalance CCL.B and ENB to 5-7%

Additional ideas for the rebalanced cash and the remaining $40 thousand.
Many thanks for the usual, calm, balanced, patient answers.
Paul