Investment Q&A

Q: Hello Peter,

Regarding the question I ask (August 01) concerning portfolio diversification, allocation and types of accounts for tax efficiency. Thank you for your answer and also for Lance’s comments (August 04) may I say I find this most informative and educational in helping me in my investment decisions. Ronald

Q: Hello 5i team,

Questor (QST) down 33% over the last month. Do you consider the current price a good entry point? or should one wait until price stabilizes? I have a long term position in mind.
(Understood that it is a high risk holding.)

Thank-You.

Q: Hi Peter,
I initially accepted the investment risk associated with acquiring Questor, but it has been in a downward spiral since and now find myself down 20% since I bought it. If it were not for the eco-conscious potential associated with Questor`s product offering, I would typically move on; could I have your opinion towards the potential upside to this stock? If I stay put, should I be taking advantage of the current price and increase my position, or would you hold off and wait for a rebounding indication of strength. For what it`s worth, BMO have tagged a support price of $.40 ( scary). Can you enlighten me Peter?
Thank you kindly for all you and your team have done for neophyte investors such as myself.
Rick

Q: Hi there. I am reviewing my current holdings and I'd appreciate your comments on Lyondell Basell (LYB-N) in terms of the current stock valuation and on the company's prospects going forward. I've had the stock for about a year. Would this be a long term hold or more of a cyclical? Thanks.

Q: peter & Co.
May I please have your analysis and opinion on Romarco Resources (R on the TSX)?
With appreciation.
Ed

Q: would it be possible to allow a user to see 10 pages of questions at a time rather than only one page? In other words allow 10 times the questions to be on 1 page?

This makes it easier if you have an iPhone because because you don't have to say next page as often.

Thanks,
Ken

Q: Hi 5i: A comment on Ronald’s question (Aug 1) about spreading holdings across more than one account (RSP, TFSA, Taxable). I took his issue to be that, given the amount of his total investments, two 5% equity positions would max out his TFSA capacity, resulting in his betting his potential for TFSA tax benefits on only two higher growth (and quite possibly higher risk) equities. I suffered through a period where a similar concentration that did not work out as desired seriously hamstrung my ability to grow my TFSA. Back in the first couple of years of TFSAs, when the accumulated contributions were $5k or $10k, this concentration for equity holdings was only really avoidable through an ETF or mutual fund. But now that one’s total contributions may be as high as $31k, and one may have grown from that with some years of investment returns, TFSA account balances can be large enough to warrant treatment as mini-portfolios and in my view many of the regular principles regarding diversification and stability should be applied. I agree with your general suggestion that the TFSA accounts be weighted toward higher growth companies because if you can get some of the high growth benefit in a tax free form it is great. Probably even better than no tax bill is the accomplishment of increasing your total allowable tax free investment space, which would otherwise be severely restricted by the annual contribution limits. However, by the same token, the value of that tax free investment space makes the TFSA the worst place to suffer a significant loss. So I would say have some high growth potential in your TFSA but also have some relatively stable reliable stuff in there that will preserve your ability to salvage the account and recover in the event that one of the high growth vehicles doesn’t work out. That probably means you don’t concentrate your TFSA in just two positions (at least, it wouldn’t fit most people’s investment profiles to be that concentrated). Particularly now that an equity transaction costs most do-it-yourselfers $10 or less, you are not costing yourself much in fees to have some diversity in TFSA positions starting in the 3 to 5 thousand dollar range. And you are not costing yourself much in extra fees to have some of the same holding in different types of accounts in order to have a stabilizing or growth effect on each of them. Thanks!

Q: Hi 5i team,

Could I please get your recent thoughts on PTA (Petroamerica) subsequent to the acquisition of Suroco?

Much appreciated in advance,

Jon

Q: Hi,Peter

Your thoughts on CRR.US quarterly report why it dropped so
much? is it a sell or hold ? Also for TSL.UN is it a long term
hold? thanks a lot

Selina

Q: Hello Peter and Ryan,

This is a question regarding diversification and stock allocating strategy according to different types of accounts for income tax efficiency.
From what I have read I understand in the case of a portfolio consisting of 3 accounts: RRSP, TFSA and non registered account it’s advisable for income tax efficiency to have the following strategy : high growth stocks in the TFSA account, foreign stocks in the RRSP account and dividend paying stocks in the non registered account.
In my case my RRSP has done very well and spreading a 20 stocks portfolio across the 3 accounts RRSP, TFSA and non registered account in even 5 % positions only puts 2 stocks in the fully loaded TFSA account.
Although this will generate extra trading fees I’m thinking of moving the stocks around into the right accounts and also spreading half positions 2.5 % of same stock into TFSA and RRSP in order to get more then 2 stocks in the fully loaded TFSA account for growth, diversification and tax efficiency.
Please let me now this strategy makes sense for the long term and if so which 4 to 5 stocks do you recommend from the 5I Model Portfolio or other 5I stocks that have better valuations for a TFSA account?
Thanks for a great No Conflict service and helping in achieve great returns. Ronald

Q: Hi there. I would like your opinion on (RNN) Rexahn Pharmaceuticals, Inc.

Q: Question about what to do when buying or selling shares in less than 'board lots'.
I nearly always try and buy/sell shares in multiples of 100, but this doesn't always work if one wants to exit a position entirely, or if one wants to allocate a specific portfolio percentage to a stock and the numbers don't add up.
If it has to be less than 'board lots', should we aim for further multiples of 10 or doesn't it matter?
I was wondering that if one wanted to sell an obscure number of shares as quickly as possibly, would they take longer to sell if they were in random numbers?

Just as everybody else says, I really appreciate your advice. I finally feel that I am gaining control of my own destiny (belatedly, and not without your assistance.) Thank you.

Q: Dear 5i: I am thinking of selling BHP and buying First Quantum instead. What do you think of this idea in the current sector context.

Q: Hi Peter,
Sorry my question was meant for canyon services FRC (not calfrac). It has come down quite a bit from its high is there any reason or is it a good time to buy? Thanks again. Clare

Q: True North Commercial RE Investment Trust -- TNT.UN -- seems to have fallen off the map. RBC Direct Investing no longer covers it, it's not trading today, and there's no news on its website. Can you dig anything up? Thank you.

Q: Peter, LONG RUN ENERGY please. I have read your comments on it under oil sector, but could you be more specific? Management, pay out ratio, long term sustainability of dividend, amount of debt. Would you rate it B/? I hear a lot about it on BNN> Thanks Ken

Q: I have a balanced portfolio and some cash on the side. Can you suggest two or three stocks that represent good value and growth potential at current levels?
Thanks

Q: symbol: CXR
Hi Peter & Team,
Pls give your outlook on Concordia Healthcare. Any growth in the future and is it buyable at this level?
Thanks as always.
Pui

Q: hi 5i team, have very modest position in trw.us. what are your thoughts re cdn investor given German takeout? Also gut tells me trw will not be taken out & Institute dividend in response. Thoughts re share price if that comes to pass? Kinda regret not selling earlier this week bc of modest position/uncertainty.
Thx for the outstanding service. Joel

Q: Hello, Could you please comment on the Q2 earnings reported by Richards Packaging (RPI.UN)? Thanks,
Roy