Investment Q&A

Q: I have never understood the mathematics of OPEC'S potential production cuts. If they cut between 1.1 and 1.7M barrels daily - including NON-OPECers such as Russia, that would be a 4-5% reduction. With that cut, oil will most likely rally at least 10%. So, it would seem apparent that producers could produce less of their reserves and generate more revenue/profit every day. If oil rallies to $55-60, the case is even stronger. I suppose the only hitch is the rest of the world pumping more but that can be mitigated somewhat by what world demand could handle as going overboard puts the situation back where it is now.
Sounds good to me. What do you think?

Q: I wish to buy this stock and have cash in both my rsp account and my non registered account. Is there an advantage to holding it in one vs the other? Can I avoid dividend withholding tax by putting it in my rsp? Thank you, Bill

Q: Hi 5iTeam - I'm up 28% on amazon and the p/e now at 179 is a bit disconcerning what think you for holding or selling?

Q: I have a $700,000 portfolio 50/50 including a mix of ETF's and stocks - blue chip value /dividend. I also have $60,000 in a GIC ladder with Oaken many at 2.5%-2.75% in TFSA accounts. There is $200,000 in a cash account, $50,000 with Oaken at 1.75%. I am 70.
I am expecting an inheritance of $300,000. Should I put this in more GIC's with Home Bank and Oaken or start a new series with your Income Portfolio or is there another suggestion?

Q: Hi 5i. I saw an interesting interview on BNN's 'Money Talk' (Nov23) with Damian Fernandes of TD Balanced Growth Fund. He was discussing the impact that a Trump reduction of corporate taxes would have on the S&P 500.
Hereis the link : http://www.bnn.ca/money-talk/money-talk-trump-s-impact-on-markets-and-sectors~1001584
If you have a chance to see it I would be very interested in your opinion.
As a result I am looking into investing in a S&P 500 ETF. I have looked at iShare's IVV (US$) which has 506 holdings and a MER of 0.04% - this would require converting CA$ to US$. Two other Canadian ETF's are Vanguard's VFV containing 509 holdings and MER of 0.08%, and iShare's CA$-hedged XSP which contains 1 holding (being IVV) and has a MER of 0.11%.
Two questions:
1. can you explain why XSP (hedged) MER would be almost 3x the IVV Mer that is its sole holding.
2. I assume that Vanguard's VFV is "unhedged". Can you explain how the Hedged product (XSP) differs from the "unhedged" product.
Thanks as always for your great advice.

Q: Is there any HARD evidence regarding the actual sale & installation of any DBO systems in China? If so, where & in what cities? My contact in China couldn't verify anything. Thank you.

Q: Yesterday I put in a limited price buy for 100 shares of the ETF PEJ. It was filled with one individual stock. When I brought this to the attention of ScotiaItrade using their call centre I was browbeat by the initial answering person and then her supervisor. I did not know what the acronym AON meant and since I did not use the button on the order it was my fault I got a fill of one share. I have been using a discount broker for 19 years, am a fairly active trader and have never encountered this situation. I was told by the supervisor that board lots only apply to the TSX and not the US Markets. I would like to ask you if that is true and I will govern myself accordingly in future. In passing it took 26 minutes or so to resolve this issue. Now to wait till Friday to order 99 shares using AON.

Q: Ryan,this is Peter,Vancouver who asked about Pur today on BNN when it was $4.64.The market likes your views as it closed @ $4.89.Thanks.You were great

Q: My wife wants me to buy a marijuana prod. co. which I am not in favour of; however, if I were to buy one for her, which one might it be?

Q: Peter; With TA getting some coal money will this effect the pfd., as in a upgrade and or? Thanks. Rod

Q: Hi, in my never ending quest for value I found MX; it has a negative PE.
Would you please explain what that means?
thanks,
Rick

Q: Please let me know your highly regarded opinion about CUM at current price. How would it compare with CS and HBM? Which would you like, if any
Thank you

Q: Baazov back today again with new financing. Markets seem to like it again.

Comments from 5i please. If the company thinks the offer is fair might something happen over weekend?

Q: Hi 5I team, your 3 picks in the material sector and why ? Thanks always.

Q: Held BCE for several years & the 4%+ Div. However, it's now down about 10% this year & notwithstanding their size, they have many internal problems & much more competition each year. Would appreciate 1-2 alternatives.
Thank you.

Q: Which do you prefer, pza or Boston pizza

Q: Does recent earnings report give any hope for improved performance??
Thanks Jim

Q: Good afternoon,

Eli Lilly has fallen by nearly 20% in two days after its phase 3 trial Alzheimer's flopped. Do you think there is a good buying opportunity here? Would you step in?

Thx,

KR

Q: Hi,

I have 1/2 positions in FTS & AQN now. I'm considering adding another 1/2 position to utilities. I could get a 1/2 position in BEP.un or add to FTS and/or AQN.

Your thoughts?

Thanks,

Gord

Q: Hello 5i team,
Recently a member asked about core american stocks to hold and you mentionned, amongst others, GE and JNJ, I believe.

I was wondering what would the best mix of American stocks be for a buy and hold investor who has a portfolio of about 30 stocks total.

Here are the ones I hold currently and my question is whether they make a good core holding?

Also, i plan to add JNJ and GE to this mix. Being large cap stocks, is there much advantage in buying these over times in several slices, or better to buy a full complement right away?

Here are the ones I hold, which I mentionned:
3M
Apple
Conagra foods
Ibm
Procter and Gamble
Pepsi
thanks once again for the great service!