Investment Q&A

Q: Peter and team:

What to make of the investigation that is going on at Amaya. As a result IT was also down. Is there reason to be concerned? Would you sell or just hold or since IT is down quite a bit is this a buying opportunity?

SS

Q: Hello Peter and 5i team,
In the question and answers section I remember you answering questions regarding the ¨tax loss selling rule¨ in a non-registered account. I would like your opinion on the value of this strategy and how to use it efficiently.
This year is exceptional and I have capital gains to declare for 2014 in my non-registered account. In order to reduce my capital gains I’m considering selling two stocks that got hit hard since I bought them Serge Energy down 39.8% and Teck Resources down 55.6 %. Selling this two stocks would reduce my capital gains and therefore I would save about 1 400 $ on taxes for 2014.
Here is where I see a catch 22 situation if I buy back the two stocks after the 30 day ¨tax loss selling rule¨ and on a proportion of the number of stocks in question if SGY has done up .38 per share and TCK.B 1.50 $ per share it would cancel the 1 400 $ savings.
My first question is can I replace SGY with a similar energy stock and TCK.B with a similar materials stock in case of bounce back of the market during the 30 day period? Second question what two stocks would you recommend in case of a bounce back for the 30 day period? Last question have I missed something or goes this seem a good strategy. Thank you for your guidance, Ronald

Q: Just comment.On 12/11 Seeking Alpha analysed BNS,CM & TD on the following :-1)Forward P/E 2)Dividend Yield 3)P.O.ratio 4)Dividend Growth rate-a) 5yr & b)1yr 5)Dividend yield-5yr average.6) EPS BNS---1)11.09 2)4.13% 3)45.83% 4a)5.53%& b)6.45% 5)4.10% 6)$5.03 CM---1)10.45 2)4.15% 3)43.40% 4a)2.53% & b)7.3% 5)4.6% 6)$8.29 TD---1)11.27 2)3.61% 3)40.64% 4a)8.68% &b)9.3% 5)3.6% 6)$4.04 Conclusion,BNS or CM for higher yield,lower growth.TD for lower yield,higher growth rate,slightly higher P/E,lower yield. Strongest banks in the world in 2013--BNS rated 7,CM #3 & TD #8 The big 6 canadian Banks been hit over the last 2 weeks. Peter,your expert opinion please.Thanks a lot for your usual great view & services

Q: Hi Peter and Crew,

I rarely ask questions as the database provides most of what I need. I searched the DB for DIV-T prior to asking this question.

The question is for my TSFA. I am into dividends and DRIP opportunities. Many of the companies I love (Cineplex, K-bro, Badger) don't provide a large enough dividend to purchase a share - if I maintain a diversified TSFA of about 10 stocks. DIV-T may be a candidate due to the higher dividend and lower share price ($2.66). Could you recommend a few others in the category of a reasonable dividend (5% ?) and low share price, that you would be happy with for a long erm hold. The 2015 TSFA time is approaching and I am researching opportunities.

LOVE your wonderful service !

Q: Hello 5i team,
I am wondering if there is an update on the growth portfolio. Are you still planning on initiating this in the new year? If so, would it likely begin at the start of the year, in March like the other two portfolios, or potentially later in the year? One final question: is it safe to assume the growth portfolio will have roughly 20 stocks as well?
Thanks in advance,
Rory

Q: I've had a look at my portfolio allocations and would like to know your suggestions of what stocks to add to the following sector at this time: materials, telecom, consumer staples and industrials. Where should I start?

Q: Hi Peter,

Many analysts are recommending diversifying by moving money from bank stocks to Life Insurance companies such as Sun Life or Manulife. But then someone on BNN mentioned that long term bond yields would drag down Insurance companies as well. Can you clarify? If interest rates are going higher, thats great but how can we monitor and take actions based on bond yields?

Thanks,
Neeraj

Q: Hi Guys
Would you guys know what STRADS debt/cash flow ratio would be at 60 dollar oil, and how you would calculate it, if it is not to much trouble

Thanks Gord

Q: Good day 5I Team,

Thank you for all of your hard work.

Do you think now is a good time to buy RUS? Their yield is around 6% as I write this question.

Happy holidays,
Terri

Q: Do you think that with all that debt, that legacy will be able to survive 55$ to 65$ oil for a year. And what about 45$ oil.

Q: Hello, we are looking to both put the maximum 5500.00 in to our Tfsa accounts early in 2015. We have done well with Parkland in a registered account but am wondering whether it is heavily or overly dependent on the Alberta economy. Also considering Concordia/Currency Exchange/CCL as well. Our focus is 3 year minimum hold. Your regular comments to invest in companies rather than trade the market is very reassuring when there are sudden moves in the market. Thank you! Bill

Q: Hey team,

Keeping my previous question regarding MDR in mind, can you please give me your opinion of AXAS - up almost 8% today and down 57% since June.

Thanks for all you do

Gord

Q: Can I get your view of ppy over the long term (2-4 ys)? It's a company with no debt and has some good prospects for increased production.
Thanks

Q: On Friday Exxon, Connoco & Suncor bid 559 million for exploration rights 500 km offshore Nfld. Obviously they see the long term for oil and do not care that the oil price is in free fall now. I suspect it is getting very close to time for loading up on Suncor stock. Your thoughts. thanks.

Q: Good Morning 5i team,

Being an inexperienced (aren't we all) investor, one of the hard lessons I have had to learn (and am still learning especially on BNN) is not to believe everything you hear and/or read. Apparently, it is my own human nature that lends me towards wanting to believe a pundits excitement regarding the future of a company and the story he or she tells about a bright future and why a stock will go up 30% in 6 months. No question it is this behavior that is what truly makes 5i so invaluable to me... a sound and unencumbered opinion absent of ulterior motives purely for the purpose of keeping my eyes open and my gullible side in check.

As an example, I have just read an article about MDR. And from what I read, this company'is incredibly undervalued and should triple an investment within 6 months if not sooner. According to the article, they have tremendous backlog, ($4BB) tons of cash on hand, price to earnings ratio of about 5X, and it is at a tremendous discount being down over 70% since mid June. Further, it looks like an excellent take over candidate.

I was lucky enough to sell about 70% of my energy sector holdings (did especially well on Rock) back in Sept and am sitting on a bunch of cash.

Can you please tell me - especially considering your last opinion of MDR Aug 2013 - why I shouldn't put 5% of my portfolio into this company then sit back and watch my money triple in 3 - 6 months?

Thanks for all you do

Yours Truly, Gullible Gord

Q: I am interested in changing a portion of my wife’s RRSP holdings to US Oil Producers. I am looking at Chevron CVX, Kinder Morgan KMI, Devon DVN as candidates due to the recent oil price meltdown. Would you recommend any of these or do you have a favorite US Oil Producer. With the weaker Canadian peso we would have been better to do this when the dollar was at par, ah hindsight!
She is 62 and plans to roll the RRSP into a RIF when required, say 10 years. The portfolio currently has 40% fixed income and 60% Canadian equities. What level of US equities would you recommend? We are comfortable with medium risk exposure.
Many thanks for your service!
John

Q: Would you continue holding WPT : NYSE?

Q: hello 5i:
this is a follow up to my last question regarding the use of Cash Flow for evaluating companies. Thank you for a quick and precise reply. the follow-up question may be more art than science (hopefully not): When looking at cash flow for a company, are the numbers projected based on the latest data ie. if, for an oil company, prices had been projected at, lets say $80/bbl, how soon are figures updated to take into account higher or lower numbers? Hopefully, my question here is clear.

Q: hello 5i:
When evaluating pipelines or utilities, is Price/CF a better metric than P/E? Is it the best metric to use? What other sectors, if any, would utilize P/CF as the primary driver?
thanks
Paul L

Q: Hello Peter & Co,
Markets are in turmoil, for 2014 year to date TSX is up 3.4% (incl dividends). Even though my portfolio is up 11.4% over the same period (I hold most of your equity portfolio + other equities), I worry about the world economic outlook.
The strong US$ causes balance sheet problems in the emerging markets, the US yield curve is flattening (short term up, long term down), China is OK with a caveat, Europe is shaky, Russia is in trouble; but the US is fine (is it really), Canada and Australia are shaky.
In the context that I have described, 1) do you re-structure your portfolio?, 2) how? or 3) do you sail on?
Thanks,
Tony