Investment Q&A

Q: Hi Peter & 5i staff.
With the US election looming, do you see a need to sell US health care related stocks, (drug companies, biotech, etc.)
Thanks,
Ken

Q: I have read the various guestions and answers on dates for dividend , yet am still confused, so I will ask another way. What is the last date you must own a stock to get it's dividend-ex div date, record date, or something else?
Thanks

Derek

Q: Hi guys,

I recently read the intelligent investor and it gives several metrics by which Benjamin Graham would analyze stocks. Given that the book was written so long ago, are the metrics still relevant or have they evolved?

I'm specifically referring to a few, such as:

1- Current assets should be at 2 time Current liabilities

2 - Uninterrupted dividend payments for at least 20 years

3 - P/E Ratio of not more than 15 times when using last 3 year avg of earnings

4 - Long-term debt should not exceed working capital

While a lot of the information is helpful, it seems some of these criteria are nearly impossible to meet in the current low interest rate environment where companies are leveraging themselves to buy back shares or do other things. While we need to keep a close eye on long-term debt, net debt to EBITDA or net debt to total capitalization may be better tools to use?

Thanks,
Jason

Q: Regarding Tom's question on Oct 26 can you explain what you mean by "If one has securities, then registering them provides the utmost protection "
I have all my securities in a CIBC Investors Edge account. Are these considered to be registered?
Thanks
John

Q: Can you provide any feedback regarding the content of the following link and its author? thx http://www.canadiantimes.ca/ct2/index.php/columnists/dr-mcvety/2274-trudeau-s-bail-in-now-law-to-allow-banks-to-confiscate-your-deposits

Q: Q: I plan to have a portfolio which is good for one year, five year and ten or more years. My objective is to have good growth, capital appreciation with moderate risk. Capital preservation over three years in spite of high short-term volatility will be fine. Please tell me what you think of a portfolio I am considering putting together consisting of V-N, UNH-N, WFC-N, NFI-T, FB-O, AMZN-O, GOOGL-O, KXS-T, ENB-T, CN-T, CJT-T, BYD.UN-T. Your thoughts on how this may compare to the BE portfolio performance, volatility, Saftey. Equal weights would be purchased. I invite you to make any changes, additions, deletions? I will appreciate if you place these stocks from high to low priority.
I apologize if I am asking too much. Thank you.

Q: Regarding the question about selecting half of your balanced equity portfolio, you mention ‘confidence ‘ ‘over the long term’ for stock like TOY and CXI over much bigger BNS and T ..
I’m not certain to understand ..do you mean confidence in over-performance over a longer period..at the risk of higher volatilty/risk ? Is it much better to buy the complete portfolio ?
thanks for the good work !

Q: out of all the stocks you mentioned that could possibly present an opportunity during tax loss season/window dressing which would be top 5 in terms of potential and safety?

Q: Hi guys,

Quick question: if I have a $500,000 portfolio with $400,000 in equities and $100,000 in bonds. I have a $25,000 position in TD, is it considered a 5% position when compared to the portfolio as a whole or a 6.25% position when compared to the equity portion? I presume it's a 5% position but I just wanted to verify.

Jason

Q: Hi, I have shares in Peabody energy which filed chapter 11 earlier in the year. Once listed with the "Q" designation, the shares lingered in the $1.50 range for about six months until the past week where they sky rocketed to what it is currently at $13.50.

Do you have an idea what machinations cause a ch11 stock to go this high? Also should I take advantage of this pop and sell my existing shares?

I read that once a ch11 company climbs out of bankruptcy they can issue new shares making existing common shares worthless. Is it possible that peabody may not do this?

Sorry for the barrage of questions, I am very curious how bankruptcies work.

Thank You,
Andrew

Q: Hi Peter and Team, Ken asked about GIC's for a not-for-profit. He may be able to get a higher rate using a simple savings account at Tangerine Bank since they have some "specials" that expire at the end of the year. Different clients receive different rates; my wife is getting 3%, and I'm getting 2.5%. I've also found that they'll "match" an offer from a competitor if you call them. These rates may be higher than GICs.

Q: RAI apparently is entertaining a buyout from BAT. Should I sell into the current price or hold for a better offer? I bought RAI for the U$ dividend but I would sell if I thought the bid would fail.

Q: Can you tell me what you think of a portfolio I am considering putting together consisting of some 5i all stars. Your thoughts on how this may compare to the BE portfolio performance, volatility, Saftey. Equal weights would be purchased. Sis, Syz, Zcl, toy, Pbh, Sh, Tnc, Esl, adw, Kxs, Gud, Rrx, Wcp, Cxi, Csu, Pli, xtc, Crh, sgy, Otc, Dbo, SJ. And a bank of you choice. Would you make any changes? If you don't think this would outperform then it will be the BE portfolio.

Q: I own a number of DRIP with SPP companies in a registered plan through a discount broker. How do I participate in the individual company's SPP plan? As it stands now the discount broker only reinvest full shares. Is this something I can only do owning shares directly with the company through a non-registered plan?
Thanks for the great service!

Q: Would you please explain what is a "sell-side" vs. a "buy-side" analyst, and why they are considered to be so different?

Thanks!

Q: When does tax loss selling start and end this year? Also what are the stocks that are most likely to be hit? The other part to my question is which, if any, of the tax loss selloffs would be worthy of acquiring?

thanks so much for the service you offer! I'll be a lifelong member!

Q: I would like to increase my portfolio exposure to Consumer Discretionary and Consumer Staples. What would be your favorite stocks in these 2 categories. Thanks

Glen

Q: PEG(PEGI:US) pays 7%,which "100% of distribution is characterized as non-taxable Return of Capital" which account is best to hold RRSP, TFSC or regular taxable account. Maybe you can explain why hold it at all , if I am only getting my own money back?
Thanks...Cec

Q: Looking for your recommendation on leveraging 1 or 2 oil plays for 6 mos. to 1yr. My choices at present are SGY, BTE, CJ & BIR.
However, as this is not for long term, you may have other choices based on current debt & overall financial condition.
Thank you.

Q: I am a volunteer helping to invest funds conservatively for a not for profit. What GICs would you recommend that combine safety and return? Period to hold is about 18 months but we want cashable GICs. Thanks.