Investment Q&A

Q: Peter and His Wonder Team
Please compare First Majestic Silver and Pan American Silver in terms of balance sheet, management, reserve life and overall value. Which one do you think is the strongest going forward? Is there another Canadian silver company that you think tops these?
Thanks for your excellent insights ...they are invaluable to retail investors who are just wanting respectable returns on there investments!
Dr. Ernest Rivait

Q: Hi
What ETF’s would you suggest for an 18 year old starting out with a new TFSA, and non-registered account?
Income is desired and would be “tax free” since the TFSA and Personal Exemption Credit would shield it from tax.
I’m thinking:

35% XIU
20% XSP
15% Mawer International
30% XSB or some QUEBEC 4.5% Dec2019 I own

I’m tempted to sprinkle some beaten up sectors like XEG, XRE or XFN, but I’m leaning towards the main indexes to avoid beating myself up for picking the wrong stuff.
How does the allocation look? And the strategy?
Any suggestions?
Thanks

Q: can you explain why the volume traded for example on td bank on friday sept 18th was so high? Other stocks were the same, ie bdi, sj, wfc, atd.b etc. I looked at a 3 year chart of td bank and the volume yesterday was huge and way higher than anything over the 3 years.
thanks

Q: When assessing the prospects of a junior oil and gas company, given the current commodity price levels, how do you determine if the debt level poses a low, medium or higher risk - what metrics do you use? For example how would you compare the debt levels of Raging River (RRX), Rock Energy (RE) and Surge (SGY) Energy and the health of their overall balance sheets? You’ve mentioned previously that RRX has a rock solid balance sheet.

Q: Semiconductor companies represent about 5% of 'folio.
For some reason, the logic of which escapes even me, I am not worried about other semis I have , all of which are down. But Micron has me puzzled. Micron's continuing and rapid descent looks similar to an object trying futilely to escape the powerful gravity of a black hole.

I look at MU's financials and my lying eyes see only a beautifully valued company. I lie to myself and pretend that I do not fall in love with my stocks , but I do. I have thus hung on to Micron. And now I rationalize (illogically) that it is ridiculously cheap,so why sell now? Am I wrong ? Do you see much more downside? (I refer herein to Micron , not more downside on my reasoning or logic).
Do you advise sell?

Q: Would appreciate your analysis of BEP. Why include it in the Income Portfolio rather than BIP or BPY? For total return, would it be better to owm BAM instead?

Thanks

Q: I am thinking of increasing my positioning in NFI. It has held up well in the current market, pays a reasonable dividend and I think, should have some growth in a positive U.S economy, even if interest rates increase by 25 basis points. How significant are insider holdings? Institutional holdings? and has the increase above $1 billion mkt. cap.already been priced in. Another sentence ending in a preposition. thanks for all you do.

Q: Can I get your thoughts on PPL.PR.A? Is this a good save investment now that preferred shares have dropped back in price?

Q: I purchased shares of ABT at $9.88. Recently received a Corporate Action Notice for a Voluntary Dutch Purchase Offer of the following:
Option 1: "Auction Tender" whereby I would specify the price I want;
Option 2: "Purchase Price Tender" whereby I accept the price determined by the Company.
-OR-
Do Nothing.
Suggestion? Will these shares see $9.88 or better in future?
And, please explain the taxability of these options. Thanx

Q: BMO have ETF's that have "covered calls"
Could you explain what a covered call is, and are there any tax implications with these products?

Q: In your Sept 18 answer on covered calls you say BNS Jan 60 call is 1.72 and if you sell a covered call you collect 1720. It should be only 172 (1.72x100).
Steve

Q: Thanks very much for your Canadian ETF suggestions below. You mentioned I did not specify Canadian, or otherwise, so you have suggested Canadian ETF's. I would be interested in international ETF's, or a mix to make a strong portfolio. If you have some international suggestions, that would be very helpful, although, in my RBC DI account I have the option to invest in US or Canada, I wouldn't know how to invest in other markets.

Q: Hi Peter: Just read your report on PKI. I purchased 3000 shares Sept 12/13 @ 17.18 per share. I am 80 years in good health. Should I sell and lock in my profit or keep for the good dividend I receive? Thank you for your opinion.
Ron

Q: Just a comment I think the rulre was every ticker send to you for comment should have the name of the company.Today many questions just was ticker. Havung the name of company is useful for your reader.THank you

Q: Any reasons why this is taking such a beating

Q: This was mentioned on BNN. Can you provide any information? Is is a buy?
Thank you

Q: Hi Peter and team,
We are considering selling common shares of Enbridge and purchasing preferred shares of Enbridge. We are up 34% in the common shares. The preferred market seems hated by everyone. The dividend yield is 5.91% and the dividend rate is 1.1% . We think the reset rate is June 2020.
What do you think of this strategy ? Thanks for your valued advise in the past and have a good weekend.

Q: it seems just last week I complemented you guys on a 40% move on PSEM that you recommended as it was taken over.

This am it was announced that another company you recommended had a very positive test outcome on one of its cancer drugs and it is up 80% this am. Again amazing recco.

When you look at the press announcement what do you recommend I do with my 2500 shares? Buy more, sell, or just hold?

Q: Hi,
I'm looking for an American financial. Not impressed with their banks in past year, but I am impressed with both Visa and Blackstone. Which would you prefer for a long term hold of five years? Also, can you comment on the tax implications of a LP?

Q: Thanks for making clear sense of a confusing prospectus!
I do have a follow-up question that maybe you can also help with. I connected my broker (RBC Direct) and asked them if there is anything I need to do now. The prospectus talks about 'exchanging' shares. RBC couldn't answer. Do you know if I will simply receive "x" number of Olin shares (based on the ratio of 0.8748 per my Dow shares) and retain my current Dow shares as well?
Again, your guidance is very helpful, thank you!