Investment Q&A

Q: I'd just like to thank you for your red letter notice trying to soften the panic among retail investors. It's odd but as I logged on I was thinking to myself it would be nice at times like this for an experienced adviser to try to calm people a little. People who sell in panic are foolish. The TSX was down 750 at the open, now down less than 100. As someone said earlier, for every panicky investor who screams "sell" there's a person at the other end of the trade thinking he's getting a great deal on that stock. Who's likely to make money?

Q: There were some big swings in lots of 5i covered stocks today, not just CSU. I'd like to add my thanks for the "Don't Panic" message up top! I almost regret not dabbling a bit in some buying today but I wonder if it's early for that game. I am assuming this could go on for some time. What do you think?

Q: Short Selling: I was wondering about Short Selling in this down Stock Market. What are the details in the placing the order and then coverings the order later. You can give an example to provide clarification. I understand, you have to pay the dividend while the Short is on. Herbert

Q: When the markets opened this morning, stocks appeared to be down sharply, and many slowly increasing. How do you time buying in a market like this, where there are opportunities. Is here a better time to buy during the day? And generally how do you buy in a market like this?

Q: Would you please elaborate on your answer to Joel as to which companies you would recommend to buy whose dividends have been increased and whose stock value has softened?
Thank you for your great service

Q: BMO and NA seem to have been hit harder than the other banks today. Can you advise why? I have full positions in both as well as TD, CM, RY. Any thoughts on that? I do need the dividends as I have little pension.

Q: Good morning. At 0.58 this morning, at what point does PHM become screaming buy?? Any thoughts?
GUY R

Q: I was wondering if North West Company would be a company to buy at this time. It seems to be gaining momentum after years of trading in a range. What would you recommend? Thank you for your wise advice.

Q: Good Morning Peter and team,

With the sell off we had in the market this morning it is nice to open 5I home page and see your comments highlighted in red. It's kind of like the weather channel when a storm front approaches.

Thanks again,
Charlie

Q: Anyone who put in a “STOP” was murdered today .
CSU traded as low as $454.00 today … shares were picked up by traders who had software that shows the stop orders on their screens…
By US standards CSU trades relatively thinly - buying the entire sell board of CSU is a no brainer for Goldman and others ... the retail investor is a victim who can't even protect his wealth.

There is NO price low enough to prevent deep pocketed vultures because Level 3 Quotes are available to the privileged few . This is unfair ... and I am angry. I guess this is why you aren't a fan of Stops.

Q: Banks took a big hit at the opening. CM yielding north of 5%. Looks like a bargain. Agree/disagree??

Q: Can you explain why some etfs like USMV were down significantly more than the market this morning? Do etfs get halted like stocks when they drop significantly. I bought a small amount at 29.6 this morning, but was too chicken to buy a lot because I couldn't understand what was happening.

Q: Any new thoughts on SWC? (It has been about 18 months since the last question).

Q: You DO look after your members, (the "red" is a caring and reassuring touch.) How does this compare to the financial crisis?

Q: 9:35 AM 8/23/2015
Hello Peter & Staff :

I have a large Prov of Ontario bond representing 3.5% of my portfolio, maturing soon with a 4.3% yield. The only altenative I have is to replace it with the safest most reliable dividend stock that I can find as I choose not to buy bonds, GICs, or preferreds because of the very low yields and the risk of capital loss on preferreds.

I searched today for any Provincial bond worth owning and I don't come up with much : The bond with the highest yield that I can find is an Alberta bond maturing 2029 that yields 2.49% to maturity, so any "safe" stock that can beat that return surely is better even if they cut the dividend by 50%

I am expecting a very protracted very rough time in the markets in the next years ahead. I would like a stock that I can hold indefinitely that has a rock-solid balance sheet, reasonably low debt, reliable growing dividends, and long-term stability.

It seems to me that the "safest" sectors with good yields are financials, telecoms, utilities, and the few consumer stocks with decent dividends, and I have been searching through all your answers and am considering CM, NA, GWO, BCE, FTS, EMA, CSW.A, and CSH.UN as possible candidates.

Could you comment on these companies please, indicating which you believe to be "safest" for long-term ongoing dividends, and explain your choices for me, and perhaps list them in order of preference.

Your answers are always most appreciated, Many thanks...... Paul K

Q: Hello Peter & team, You mentioned this today:

"One of our favourite moves in a bad market is to buy companies who have recently raised dividends yet whose stocks have weakened. In these cases, management has indicated all is well, yet markets have made the stocks cheaper for non-fundamental reasons." Which companies would you recommend based on the above?
Thank you!

Q: In this horrible environment, how would AYA and IT perform? Do you think it's an opportunity to buy/add at these prices?
Thank you!

Q: While unit prices in the REIT sector are declining with the market I am wondering if these businesses are/will be adversely affected fundamentally and if it might be a time to buy ETFs or individual companies in the sector? Non are owned now. Retirement income is the main interest. Your insights and opinion are so appreciated. Thank you.

Q: hello..Not selling anything but want to buy few...can you please advise 4-5 top buys. Thanks

Q: I am thinking about buying this company, but I want to see if I am missing something fundamental about them first. I see an ROE of 15%, year on year growth of 70%, a balance sheet not overloaded with debt, and the institution of a new roughly 6% dividend. Management claims they can double the lending book in the next three years. Is this not going to be an Alaris-like long term dividend grower off of a 6% base? Thanks