Investment Q&A

Q: Hello,
With regard to funds that are guaranteed through the deposit insurance program...if you have $150,000 in a savings account and take $75,000 out of it and place it into a GIC where the annual earned interest is deposited back into that same savings account....then is the remaining $75,000 in the savings acct and the $75,000 in the GIC both considered as separate deposits and would therefore be insured?

Q: Hello. Could your opinion on AUN. It keeps making new lows. share consolidation has been approved. it seems that news flow is positive. thanks

Q: Hi 5i team. This is a general economics question. is there evidence that the US economy is capable of growth in the absence of stimulus? My simplistic calculation (14 T economy, 1T pump-priming) suggest that if QE is taken away, GDP growth will be zero or even negative. If that is the case, is the euphoria in the markets thus far this year based on the notion that, at least, things have improved so that we no longer slide towards recession (assuming the Fed will not stop QE) and actions taken by the Fed later against a better growth background (when it happens) will not affect the economic outcome drasticlly and this, against a backdrop of negative real returns on 10 yr treasuries now has push the markets up? Do you not find this going-in-because-it's-the-best-of-a-bad- bunch a little worrisome? Thanks. Henry

Q: Hi Peter, I have not been able to follow the market for a bit but have seen the decline. Is this a correction, are we going down much more or are there other factors driving the market lower. Thanks, Nick

Q: hi
can i get your opinion on MTY
thanks

Q: Hi, Clearwater (CLR) has been taking a hit lately. Is there something behind this? Do you think they'll recover or is it time to look elsewhere?

Q: Impeccable timing on the Goldcorp recommendation. I think the contrarians are right in calling for gold to continue its run. That being said, I would like your opinion on some of the "double" ETF's such as HGU, HNU etc that outperform in a bull market for gold (HGU) and natural gas(HNU), and take big hits in a bear market. Thanks

Q: Hi Peter and Team, TIC-X has moved up in the last Day's. Can I have your opinion on it

Thank you,
Johann

Q: Can you please an analysis of RET and whether I should continue to hold it or hold an alternative replacement? RET has been a long time steady dividend payer but now I'm down 50% and cant take anymore pain after JE, CLC, IBG and PGF. Thanks.

Q: HI
i received an email discussing the new Tory budget.
Can i get your opinion of the part on page 144-145 of the new Tory budget, were I understand it to mean our chequing and savings accounts at our local bank are liabilities of the bank. Which gives the bank the power to seize your bank account to make the bank solvent in the case of a needed bank bailout.
thanks

Q: My TFSA doesn't have enough cash yet to diversify. I decided to use a broad index ETF to diversify 75% of the account and to specify a single stock for the remaining 25%.

I feel that an investor has a moral responsibility to buy specific stocks based on merit and not just indexes. As the portfolio grows I'll be able to diversify later and add a variety of specific stocks.

I just joined 5I reseach this evening and I've got 75% invested in a ETF covering the Canadian market as a whole (VCE - FTSE Canada Index) with the remaining 25% invested in Blackberry (BB). I plan to select from your "A" stocks in small and midcap companies to replace Blackberry if it becomes overvalued.

I can afford to lose the money in my TFSA but hope to build a TFSA that can withstand rough waves. Is this a reasonable plan and how should I go about selecting from your lists to replace Blackberry when the time comes? Should I replace it with one of your picks now?

Thanks for being there to help - I look forward to your answer - Doug

Q: Peter - concerning the model portfolio I have quite a bit of personal hesitation entering into some of the names due to valuation. I am ok holding high PE (or P/CF or P/B or low PEG) stocks but the valuations on some of the portfolio seem stretched when compared to their historical average and max valuations. Specifically, K-Bro or many of the other industrials or business services stocks in the portfolio seem like they are stretched which then causes me caution. Of course, depending on where we are in the business cycle if earnings or cash flow are accelerating they may be cheap. Also, the sector usually plays a bigger part of total security capital gains than individual stock selection so maybe they are in the right sectors. I understand all of that but then I still pause and want to go for a stock trading within a historical range. Any advice for someone like me?

Q: Peter - as people enter into the individual issues in the model portfolio (or a reasonable chunk of one) for Canadian holdings do you consider using a stop-loss to limit downside after a position is entered into? Thanks!

Q: SHR-T Sure Energy
Do you have any opinion on this stock, I hear they are close to doing well. Thank you

Q: Hello 5i, Could you comment on Edleun Group EDU as to there recent quarterly report and the company itself.Also do you know if they are in the Quebec market as I think the daycare's in Quebec are heavily subsidized by the Provincial Government.
I was wondering if this would be a good entry point.

Q: Hi Guys
When looking at MDA on Globe Investor Gold they show 86 million
in profit for 2012 like you reported, however they show a profit
in 2010 of 130 million, where you guys report only 63 million.
What have I missed here?
Thank's Gord

Q: Hi Peter, Saw your comments on BNN market call tonight regarding ZEN. Thanks for the nice commentary on it! First drill hole of 40 drill hole campain hits 323m, largest intercept they have had yet. Is there a website or spreadsheets to help figure out tonnage on plays like this?
Thanks
Don

Q: Hey Guys
I would like to ask what your thoughts are on Rifco inc. RCF.V. I see a great track record and a nice chart. Seems like they are doing things the right way. do you see any red flags.

Q: OSK I bought that stock a while ago and it keeps falling but I am incline to buy more stock or should I look more closely to ELD or Barrick Gold. On the longterm I am not that worried but still the emotion get you once an awhile

Q: Hey Peter. Masterful job on MarketCall.

Question on strategy: Seeing the larger discount, than its historical average compared to its peers, I am accumulating a position in National Bank. If I get to a full position (5% of my portfolio) and the large discount remains compared to its peers, would you overweight National Bank or would you start accumulating a second bank, as they also seem to look attractive at these levels. Currently National Bank is my only financial.