Investment Q&A

Q: Hi Guys,

I have a large loss with a Fairfax Financial preferred (FFH.PR.I).

I was thinking of selling it and then purchasing FFH.PR.G. I would be in almost the same position as if I kept the original preferred but I would have a large tax loss to use. I would lose 29 basis points on the new rate and the reset would be a couple of months earlier but I would gain on the selling of FFH.PR.I ($15 bid) and purchase of FFH.PR.G ($13.70 ask).

Your comments would be most appreciated on this move.

Regards
John

Q: Are we seeing early warning signs of more downside to the stock markets given some of the recent bank results. National and CIBC in Canada, HSBC and Deutche Bank come to mind.
If we can legitimately connect the dots between these banking numbers and some of the softer US data numbers and the decision to hold off on interest rate increases might lead one to look for more safe havens if not head for the sidelines for a while.
I would appreciate your assessment of this environment.
Thanks.

Q: Hi Team,
Thoughts on dsg because I am debating adding to my position. However, could you recommend some companies with a strong balance sheet, preferably with low to no debt and that show a history of good use of capital. Are there any lesser followed/known companies that fits this criteria?
You guys still do an amazing job!

Q: Hi. I believe that CREIT is one of the more venerable and respected Canadian REITs. It has a beta of less than 0.3 which should useful in these volatile markets. It yields a respectable 4%. It is off approximately 20% from its high. It was upgraded this am. Can you comment on NAV, AFFO, and balance sheet/debt risk. It looks like a good buy here with a 10 to 20% total return over a year. UOM

Q: Hi there, please give me your opinion on the below allocations for Financials, Health Care, and Industrials:

Financials (18% weight)
BNS.TO, CSH.UN, EFN, FSZ.TO, MRC.TO, SLF.TO, TCN.TO

Health Care (9% weight)
CPH.TO, CXR.TO, GUD.TO, PHM.V

Industrials (11% Weight)
DRT.TO, LGT.B, NFI.TO, PUR.TO, STN.TO, WSP.TO

To me its a solid bunch of companies but I need to trim this list (or perhaps remove and add others) but am having a hard time - looking for your opinion.

Thanks!

Q: Dear 5i
I'm considering investing in the auto sector but am having a tough time deciding on which one of these three ...mg , lnr or xtc . I currently own bos and will likely be topping up it shortly but I wasn't sure if it belonged to the same sector . Acq is also down significantly and thought this might be the the time for a half position as well . Which of these stocks would you favour at this time ?
Thanks
Bill C.

Q: I would appreciate your comments on Colabor's latest results. What do you think about taking a small position at this time?

Thank you!

Q: I own the following stocks and I'm interested in the security of capital and income. I'd like to cull the 5 weakest. Which would you choose? Thanks for the ongoing help.

ET POW CSH SIA AD ISV CHE SPB ZWB ECI VNR

TMA FSZ SLF FCR HSE IPL GH ZPR

Q: It seems that the company had excellent results posted with earnings of 8 cents per share. Do you like these results and what do you think about the possible stock reaction tomorrow

Q: I am starting a new position in either AX.UN or AX.PR.G. It would seem the distribution is safer with the preferred, but there's more upside in the actual unit price of AX.UN. Is this accurate? Of the two, which one would you pick?

Q: I am nearing retirement and would like to sell some stocks and purchase a 1 to 5 year bond ladder. But, a bond ladder can be difficult to manage for a retail investor. Can you recommend a good 1 to 5 year bond ladder ETF? Will a bond ladder ETF actually perform like a bond ladder, where every bond is held to maturity or would it be more subject to capital gains and losses with fluctuating interest rates? Would I be better off with a 5 year GIC ladder at today's rates?
Thanks,

Q: How come no railroads in your equity portfolio? CNR and CP look a little better with the recent price correction and some seasonal strength coming. What's your thoughts on CN Rail value and share price upside?

Q: Interesting in your view of CDN banks? Are you seeing value? They are looking like decent value to me and going into some seasonal strength. BMO has been under the radar a bit but appears to have some upside with the new purchase etc. What's your opinion on BMO?

Q: In reviewing the growth portfolio the biggest winners are kinaxis and tucows. On your theory of averaging up not down if not owned would these be the two to buy or go with the few showing a small profit ie dhx media and element financial or any other that you woukd prefer at this time.

Q: hi folks:
below was your dec 2014 update/report on CTY ---- can you update and offer any idea (aside from low volume and possibly no institutional interest) why it sits at multi year lows?

the chart says something doesn't add up

"No new concerns other than the usual with Calian. It continues to buyback stock, and is still sitting on $25 mm in cash with no debt. Earnings growth has certainly slowed, with governments simply not spending as they used to. But it continues to be quite profitable and generate excess free cash flow. The stock is cheap, and we would consider it a decent income stock, but not much else. With its balance sheet and cash flow, we think it would make a decent candidate for privatization, but this is not really expected. Insiders do not own much (1.4%) so we would like to see this change."

thanks

bob

Q: What do you currently think of CGI Group currently? It some numbers that disapointed but it is now off by about 18%.

Q: Could I please have your thoughts on fortis vs. canadian utilities for a 5 year term or would you recommend an alternative to the above.

Thanks, David

Q: Good morning Peter and Team,

There was recently an article in the Globe and Mail that praised the virtues of this REIT. The last question in 5i was from January, and I'm wondering what your current opinion is. Would CRT.UN be a nice addition to a RRIF to provide some extra stability, or are there other REIT's that you prefer? (At present I have a full position in FCR which I realize is not a REIT, but don't have any REIT's in an otherwise balanced portfolio.)

Thanks as always for your valued advice.

Q: hmmm ... I'm seeing that Mainstreet Equity, which owns apartment houses in Western Canada, hasn't risen along with the oil stocks. It certainly declined along with the energy sector. But now it's not going back up. What do you think the disconnect is? Is it a sign the MEQ is mis-priced?

Q: Team

Why does the market cheer everytime Enbridge moves assets down to the income fund? To me it is just financial engineering.
The whole company is worth the same but the parts are moved around.
Enbridge keeps adding debt with new projects but still trades at a premium due to its stellar past. What am I missing?