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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: Liquidity. As general rule regarding liquidity, I've tried to ensure that the number of shares held do not exceed 10% of the average daily trading volume. For a sizeable 20-30 stock portfolio this eliminates many thinly traded stocks including some in the Model portfolios.
I would appreciate your comments on liquidity considerations when buying/selling a security?
And, is it different for ETF's. Thank you.
Read Answer Asked by Lloyd on March 29, 2017
Q: Ran a screen for companies with good dividend, high ROE, and reasonable P/E. Seems a lot of REITS appear on such a list. Could you indicate your general thoughts at this time on REITS and related companies. Could you also please rank the following on stability of income, with some growth potential. Thanks much.

FN First National Financial
AAR.UN Pure Industrial REIT
SOT.UN. Slate Office REIT
RUF.UN Pure Multi-Family REIT
INO.UN Inovalis REIT
EXE - Extendicare
Read Answer Asked by Kirk on March 29, 2017
Q: Hello I currently own both of these stocks in a long term hold RRSP portfolio with the drip turned on that is well balanced. I was wondering which one of these stock would you prefer to purchase more of. Thanks for all the help
Read Answer Asked by Kolbi on March 29, 2017
Q: A couple of days ago, Greenspace Brands had a NR which appears to indicate that they are making serious in roads into the retail space in Canada with a multitude of products. Although a small company at this point and despite the competitive nature of the business, their rapid progress is impressive and management seem to be very switched on. In addition, the warrants also look like a serious bargain given that they don't expire for 2 years.

In light of these developments, is it possible that you may begin to analyze JTR as a potential candidate for your growth fund.

Keep up the great work.


Read Answer Asked by karl on March 29, 2017
Q: This may be an off the wall question but it relates to Tesla's quest to build electric stations throughout the world to energize electric cars and the consequential loss of market share of ATD/B in it's gas station units should Tesla succeed.
The question is: do you feel that an investment in both companies simultaneously would be a better bet than opting for one or the other?
Read Answer Asked by simon on March 29, 2017
Q: I have found myself sector heavy in some areas and need to increase my positions in both Health Care and Basic Materials. I am looking at CRH for health care and would like to add one more. Suggestions?

For basic materials do you additional suggestions in addition to SJ and MX

Thx


Steve
Read Answer Asked by Stephen on March 29, 2017
Q: Looking to add another full position to each TFSA. Could you recommend a stock for each. Also, would you change any of these stocks, if so, what would they be changed to?
JAMES TFSA: CRH 26%, ECN 6.52%, EFC 11.39%, GUD 10%, PHO 12%, PBH 10.76%, SIS 16.61%, TOY 5%

LORETTA TFSA: GSY 14.67% KXS 15.41%, MTY 15.82%, SIS 18.91%, SHOP 15.82%, WCP 13.77%, TOY 5.58%

Much appreciated.

Read Answer Asked by James on March 29, 2017
Q: Can you please advise if this is good ETF for Dynamic iShares Active Global Dividend ETF. I am looking for growth and dividend increase ETF in Global Market. Would you suggest ETF or is there any similar ETF. I currently own one Europe XEF EFT 2%.
Do DXG pay a monthly dividend or quarterly and dividend amount.

I currently own most of the stocks in Model Portfolio

Thanks for the great service.
Read Answer Asked by Hector on March 29, 2017
Q: I often see posts about members saying they are down on ALA-tsx or some other dividend paying company and wonder if they should sell (nearsightedness).

I offer my approach for consideration.

I own ALA and every months when I receive a dividend payment my ACB is lowered. It is like getting some of my original $$ back.

The present dividend yield is 6.7% annually, paid monthly at $0.175/month.

So every month my cost basis is lowering. This is great in a non-taxable account such as a TFSA or RSP (also good in a taxable account).

Eventually I will have 100% of my original, out-of-pocket $$$ returned to me.

At that point in time, lets say we got to a $0.00 ACB for example purposes, then no matter the price of the stock and any dividend I receive the return is incalculable. This is because a dividend of say, $1.00 is an infinite return on a ACB of $0.00.

What % return is Warren Buffet getting on his long held KO, Coke shares? I suspect he is near the infinite, incalculable figure = pure 100% profit. Or is it 100,000,000%... percent profit?
--------------------------------------------

Example (with made up #'s):

ALA bought at $30.00/share.
Get 6 dividends totalling $1.05 ($01.175*6 = $1.05).
New ACB: $30.00 - $1.05 = $28.95.

** So if ALA is at $29.00 now the investor is still up $ 0.05/share ($29.00 - $28.95).
But in a taxable account the investor on paper is down $1.00 ($30.00 - $29.00) so they could sell @ $29.00 and declare a capital loss even though they have a gain in reality.

This is 1 way the long term investor get richer and richer without getting out of bed.

Hope this is clear and helpful to some one.

It is like with real estate income property in that once you have your original down payment returned all future incomes are 100% profit (minus normal expenses like hydro, insurance..).

Have a great and prosperous day/year.

PS. The other 2 great things I have learned over the years:
1. To not listen to the media, financial tv shows....
2. Once a person knows how basic Options & Shorting works they can make $$$ in any market (up/down/sideways) easily.

Read Answer Asked by Stan (1) on March 29, 2017
Q: Hello,
This is a question more about portfolio management than a specific stock. I need to make a fairly large purchase soon and I have been debating about taking the money out of my TFSA, which thanks to 5I has done amazingly well, ( i would immediately buy the stocks sold in the TFSA in my RIF, thus not losing out on future gains). Better start another sentence :).

Or, use the opportunity to prune my portfolio. I do have too many stocks and would be glad of an opportunity for pruning. But, the ones I would prune have a capital gain of at least seventy per cent. Because I have a number of smaller positions in many cases this comes to only ten or fifteen thousand dollars per stock.

Or, should I just let them ride and live with the chaos?

thanks for any help
Read Answer Asked by joseph on March 29, 2017
Q: I have taken small positions in TV and MX as I like the demand/supply metrics for their products as well as latest company news, being the arrangement with Glencore for TV and the activist shareholder for MX.
I am holding them for a trade over the next 12 months.
What tools would you use ( commodity price, technical analysis, price momentum, target price etc.) to determine when to sell?
Thanks
Derek
Read Answer Asked by Derek on March 29, 2017
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