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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I am putting together a portfolio called "Big Dogs"
I broke out the 10 largest stocks by market cap in each of the 10 sectors
I will invest in 3 of those stocks in each sector for a total of 30 stocks.Determining which 3 has been a challenge,looking at the usual--
dividends--eps--p/e-- market cap etc.Also have a bias toward your favourites.
Since I am only looking at the top 10 do you think I will be overlooking some better opportunities?I think perhaps, but I would go
crazy trying to look at the whole sector or even the top 20.I feel my odds of success are better sticking with the "Big Dogs"
Over all I will put 10k in each stock but not until I see a market
pull back which I feel is imminent.Perhaps I could have your thoughts on that as well.
This is not something new---What do you think of my idea and approach?
Read Answer Asked by peter on September 12, 2016
Q: Hi 5i Research team , I am preparing for my next round of investments when the market decline broadly. I would like to capture the illiquidity premium: What percentage of a stock portfolio would you recommend for an average investor (1) and a lower risk aversion investor(2) to put in illiquid stocks (market cap between 1000 and 100 million $ and average daily trading value < 200 000$) such as VLN, TCS, TC, SCB, RX, RPI-u, PSD, PEO, MRD, MDF, LNF, LGT.B, LAS.A, ISV, HNZ, GDL, EFH, GBT, CXI, BCI, AF?
What would be your top five selections among these from total return/quality perspective over the long term? Would you have other such companies to suggest? Several of these companies do not have coverage from analysts neither conference call after quarterly results. Besides reading documents on sedar (press releases), how do you suggest following/analyzing those companies? Thank you, Eric
Read Answer Asked by Eric on September 12, 2016
Q: Hi,

I know you like the following: PPL.PR.M and ALA.PR., TransCanada (series 13), Canadian Utilities (series FF) and Brookfield Asset (series 5). With these type of minimum reset preferreds, where would you expect the prices to be in 3 or 4 years under the following scenarios:
1. Current govt of Canada rates 0.5 point lower than today
2. Current govt of Canada rate same as today
3. Current govt of Canda rate 3 or 4 points higher than today

Regards,

Robert
Read Answer Asked by Robert on September 12, 2016
Q: I have a $300,000 lump sum to invest for a little more than 10 years before there will be a need to start to taking income. What would you suggest is a reasonable time frame over which to make the purchases? I was considering equal purchases over a 3 month time frame (as opposed to a doing it all right away) but with the US presidential elections, all the talk of interest rate increases and tax loss selling I am wondering if three months is too quick.

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on September 12, 2016
Q: I have a Canadian dollar RRSP with a significant portion of US dividend paying stocks, to avoid dividend withholding tax. My RRSP is charged $10 per trade but otherwise there are no fees appearing on my statements. The dividend amounts from US stocks appear in Canadian dollars. Although my investment company has US and Canadian dollar accounts for non-registered investments, there are no US dollar RRSP's. I often wonder if, and how much, I am paying in exchange fees when my US dividends are converted to Canadian dollars. Will those currency fees be included in the new disclosure rules? Thanks!
Read Answer Asked by Linda on September 11, 2016
Q: I would like to have a decent return but preservation of capital is a priority. Please provide your opinion on CIBC Canadian Bond Index Fund – Premium Class CIB585. I am aware that you recommend the ETF CBO so would appreciate your comparison. This would be in a non registered account.
https://www.cibc.com/ca/mutual-funds/no-load-income/can-bond-indx-fund-premium.html

Thank you,

Read Answer Asked by Nadine on September 09, 2016
Q: Over the past few years I have purposely avoided the materials and energy sectors. By doing so I outperformed the market from 2012 to 2015. This year the market is outperforming my portfolio handily largely due to large increases in these sectors. Could you provide 3 companies in each sector that I may consider purchasing for a long term hold. I am interested in companies that pay a dividend and have some opportunity for capital appreciation.
Read Answer Asked by Robert on September 09, 2016
Q: Hi, probably a delicate subject but what has happened with the growth portfolio? There are some big wins, but also some big losses. Obviously, not every pick can be golden but do you not have some safeguards on your positions such as technical sell points etc?
The income portfolio is great, but it is hard to have confidence in the growth portfolio at this time to be frank.
Read Answer Asked by Mark on September 09, 2016
Q: I repeat my question. I am an aggressive growth investor and would like to know if these 4 companies fit my profile. Realizing that you do not my portfolio, I would still like you to
forward your favourite 6 or so growth companies. Unless you have a compelling case, I do not invest in resources ( mining, gold, oil/gas ).
FIRAN, EXCHANGE INCOME CORP.,DBOX,TECSYS-TCS
Thanks for your great service and advice.

Klaus Schmidt
Read Answer Asked by Klaus on September 08, 2016
Q: Would you agree this still happens daily?

For well over 100 years there have been stock manipulators, stock operators and stock traders...such as one of the classic and considered the best all time operators, and he did it back in the ~1910 - 1920 era, Jesse Livermore who was more concerned with beating the market, specific stocks & futures, than actually concerned about making $$$ even though he could and did routinely make millions in a year back in say 1920!

They, the "movers" will move a stock - buying or selling some - to get it moving and then once other investors, such as retail investors and institutional investors, take notice and start buying into the stock the "movers" starts selling or close their short for a profit.

This is often all that is happening when a stock moves and there is no news or incident to be found. Most "Investors" want to know why for everything but in reality there is nothing to know other than movers doing their daily business of attempting to make $$$ in the market.

There are so many different interests and money making approaches used from around the world.

Not everything is explainable. Such as why GUD or CSU is rising lately. Note CSU is down today as it just hit a resistance level from before. Kinda predictable I think from a technical perspective.

Have a great day.
Read Answer Asked by Stan (1) on September 08, 2016
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