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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: Good afternoon, team. This morning on BNN it was announced that CP is planning on developing a hydrogen locomotive. The G&M had an article identifying stocks it felt were positioned to make a pivot to the "hydrogen ecosystem". These seemed to be mostly drillers: HAL, BKR, SLB and, in Canada, PD and EFX. Also today my Economist arrived with an article hydrogen powered flight. Something seems to be happening here. I have had Ballard Power but it hasn't ever made a profit. Is XBC in this field? Can you identify two or three US and Canadian companies that might be good for investment now?
Read Answer Asked by Ken on December 19, 2020
Q: Hi!

As part of my industrials sector weighting, I have 4% allocated to transportation. Given the current environment, I believe airlines are the best value, but probably also the riskiest. Nevertheless, my portfolio is reasonably well balanced. Do you think it is prudent to invest my 4% allocation entirely in AC? It clearly provides better value than the railroads and trucking, but as I said, with increased risk.

Thank you,
Jason
Read Answer Asked by Jason on December 19, 2020
Q: Retired, dividend-income investor, who normally employs a buy-and-hold strategy. I have long term core positions of mostly conservative equities (ETFs = CDZ, XIT, ZLB, ZWC, ZRE, LIFE; Stocks = AD, AQN, BCE, CSH, FTS, MFC, NTR, NWC, PBH, PLC, RY, TRP, WSP) and fixed income of annuities, Fisgard and Gov't-Private pensions. I believe my portfolio is set up fairly conservatively.

I have cash for another position in my Cash Account. I have been reading several 5iR questions lately about various themes for 2021 (Recovery Trade, Swap from Growth to Value, Emerging Market improvements, Take-Over Candidates, etc.). While I'm not even sure if this is possible, I'd like to ask you to screen for as many of them as possible (all thrown into one big ball) to create a half dozen candidates for me to do more research on. I'm looking for a starting point. I'm not even sure where to start, hence the request.

I'm looking for a Canadian (preferably) or USA company, potentially a take-out target, benefitting from the recovery of the economy. I lean towards the Value spectrum, as I inherently find it difficult to buy a stock that has already had a good run. If a dividend could be thrown in, that would be a bonus. Market cap and sector do not matter.

This is sort of a "kitchen sink" kind of question. If that results in zero candidates, then please use your discretion and drop various filters. As you can tell by my current holdings, they are for the most part, blue-chip companies. If we could identify something like an Enercare (that was taken out by Brookfield), that would be a homerun.....happy to hold it but ecstatic to have it taken out. But Enercare is just an example.

Please rank them from best candidate to least...maybe 3 Canadian and 3 USA companies or all 6 from Canada if possible.

If you can run this exercise, then I'll do some further research on your list. I know this is a crazy request...thanks in advance. Take as many credits as you need to throw some brain power at this....I'll never use all of the credits I currently have.

Much appreciated...Steve
Read Answer Asked by Stephen on December 19, 2020
Q: I would like to diversify a little more internationally in the coming year. I was looking at these two ETFs EZA and ZWP for a combination of yield from ZWP, and growth and yield with EZA. Naspers, I believe has a large interest in Tencent and has not followed the SP growth to the same extent so I am thinking this might be a good way to play this within an ETF. Could I please have your thoughts or other recommendations to expand internationally?
Thank you
J
Read Answer Asked by Jeremy on December 18, 2020
Q: In a previous question I asked the following:

I am looking to purchase both XEF and ZEM to increase my international exposure. Any recommendations of percentage allocations to each? Thank You
Answer:
We can't personalize allocations, but if we owned these we would look to 10% XEF and 5% ZEF.

In relationship to your answer, Portfolio Analytics suggests I have 35% in foreign market exposure and the answer given would make up 15% of the 35%. Are there any other ETF's you would suggest to make up the remaining 20%? I realize you don't give personized advise, however I'm looking for a generalization to increase my international exposure?
Thank You
Read Answer Asked by Kevin on December 18, 2020
Q: I have a full position in MX in my TFSA. Even after the recent rally, I'm still down about 15%. It seems to be having good momentum, so I'm a bit hesitant to sell, especially when I can't claim the tax loss. But a part of me just wants to just get out and buy something like WELL, XBC, or STC.

Any thoughts, or advice? Thank you for all that you do.
Read Answer Asked by Ed on December 18, 2020
Q: BEP's recent share split announcement indicated, if I read it correctly, that any fractional shares resulting from the split would be rounded up to the nearest whole share. I owned, pre-split, an odd number of shares. My broker rounded down, and I think I've been cheated out of a share. Is my understanding correct and do I have grounds to go after the broker? Not a huge amount on an individual basis, but if a broker does it to hundreds or even thousands of investors . . .
Read Answer Asked by Lotar on December 18, 2020
Q: Hi Folks,
I currently have the above companies in my Non-Registered account. I am looking to add some money - can you tell me what company you would add to OR can you recommend another that I can take a look at. Appreciate your comments.
Thanks
Read Answer Asked by JOHN on December 18, 2020
Q: I note that Covid has ignited a lot of demand in modular construction throughout the world. Today's New York Times has a nice article spotlighting the increasing usage and it appears this is a long term upward trend. Dexterra is about the only pure play stock in Canada and it also pays a nice dividend. Fairfax is the largest holder. I think a long term holder will be amply rewarded.
Read Answer Asked by Murray on December 18, 2020
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