Investment Q&A

Q: I am getting comfortable enough with the gold sector to actually purchase a few more stocks. On the more speculative side, I want to take a half position in Mandalay and on the more reasoned side, I am having a personal tug-of-war between XGD (I shares ETF) and GDX (Market Vectors ETF in the US). The purchase will be hidden within an RRSP portfolio, wherein I am ready to sit it out for a year or two, and I wish to begin with 2.5% position.

My question is in regard to the huge weighting that Barrick comprises in these 2 ETFs. Within XGD, Barrick has a 17.9% weight while GDX carries a 10.57% weight. Would this weighting have an abnormally negative impact on the ETFs if Barrick starts to circle the drain one last time?

I am less concerned about the currency differential than I am about the Barrick weighting: thinking GDX has a healthier percentage of Barrick than does XGD. Your thoughts would be sincerely appreciated.

I would also like to extend a Merry Christmas to the entire staff at 5i! Thank you for your helpful comments and insightful analyses on various topics, from individual stocks, to resources and strategies. Since joining 5i, and while following Peter on BNN, I have seen my portfolio strengthen enormously and is now consistently delivering my desired returns. I also feel more protected from the vagaries of the market, having chosen the 5i approach. All these letters of praise coming in to you must feel like a revivalist meeting of born-again-stock-pickers, but it is only because you really have made a huge difference in how people approach their portfolios. At this time of year, it only seems fitting that I add my voice to the choir, and say Thank You!

Q: Hello,

I know your focus is on Canadian companies, but if you could only buy one U.S.Growth stock right now, what would it be?

Thanks,

Carla

Q: The Globe & Mail today indicated that in 2013 gold had the worst performance in three decades. (I'm not sure how they define worst - possibly percentage drop for spot gold on the LME). On Thursday gold seemed to sell off - however I'm not sure if there was an increase in volume. On Friday the price was stronger - again I'm not sure on volume. My question is - do you think gold bottomed on Thursday?

It would seem to be unlikely that the price of gold for 2014 would drop enough to "beat" 2013. Of course the price of gold could still drop in 2014 just less than 2013.

At these prices it would seem Barrick and Kinross are coming near bankruptcy even though it almost unthinkable to me that the lenders would call the loans.

Q: I am thinking of adding to the US side of my portfolio and am currently looking at Corning (GWL). I would appreciate your thoughts.

Ray

Q: Hi Peter, I have read your comments about IAMGOLD. I unfortunately hold the stock in my RRSP, this is about 5% of my portfolio. As of now, I have lost almost 35% with IMG. Should I sell now, accept the lost and move on? Since I have no exposure at all to the healthcare sector, would it make sense if I use the proceeds to buy Johnson & Johnson (JNJ)? Thank you, Gervais

Q: What are your thoughts on PRW.V with their new contract for hgy.63.Good time to get in?I am looking for long term.Thx.Gerry

Q: I realize 5i's primary focus is Canadian stocks but, are you able to recommend a US Small Cap ETF? Thanks so much for all your help this year.

Q: Peter, I have added 17% cash to my non registered portfolio that holds 25 stocks recommended by 5i. I have let some stocks run but with the cash injection I no longer have any stock above 7%. I do not have any US exposure and was looking at adding SPY, VIG, IWO and QQQ. However, I would prefer hedging and am considering replacing SPY with HXS; I am aware the fees are higher but I do not have to deal with US withholding taxes. Are you aware of any similar ETF's that would offer hedging for VIG, IWO, QQQ? The reason why I want to hedge is that no one can rightfully predict what the exchange rate will be and all of my current and future expenses are in CDN dollars. I have had a fun and very profitable first year with 5i, many thanks! Stephen

Q: Could I have your comments on the impact of a falling Canadian dollar on Winpak's (WPK) future prospects.
Thank-you.

Q: Christmas Greeting, Peter Co.
I am considering a purchase of Mandalay Resources (MND) shares for small cap precious metals exposure. Is the announced purchase of Challacollo from Silver Standard a material event to consider? Do you see MND as a survivor in this harsh precious metals climate? Is there a small cap, dividend paying PM stock that you would prefer?
Thanks,
Ed

Q: Hi 5i :win was up 4+% last two days and traded 11m shares on fri. do you have thoughts or comments .

Q: I have always been sceptical of websites offering advice and stock recommendations except the occasional guest on BNN. I had followed Peter on BNN when he was with Sprott and afterwards with 5iResearch. I was intrigued by the approach that Peter has taken with his new company and so over the past year or so have dumped most of my mutual funds and bought individual company recommendations. If I had stayed with the mutual funds my gain would have been around 20% for 2013. With 5i's recommendations I am up about 75% and the retirement light at the end of the tunnel got a little brighter. Thank you for the great advice and all the best for 2014!

Q: Could I get your opinion of Silvercorp (SVM), I hold PAA and MND I like precious metals but also like a dividend. Any other ideas on dividend paying precious metals producers would be appreciated..
Thanks

Q: hi, on WIN: it was removed from some indexes which triggered a lot of selling on friday afternoon. similar high volume was seen on other stocks added/removed, such as sgy, bxe and others.

Q: Hi I took a half position in CRT.UN and I see the stock hade a trading halt today and closed up 3plus%.Cant find out why also I see RNW up today any change on your opinion on the latter?
Alaho Stan

Q: What is your rating of gxi?

Thank you

Q: With a recent run up in share prices the fixed income portion of my portfolio is due for an injection, and I am holding plenty of cash for new purchases. I hold a reasonable mix of government bonds, preferred shares, and corporate debentures, but feel that my weighting of debentures is low and an increase would be appropriate. Can you provide your top 2 or 3 picks of convertible debentures from any of the companies you cover or if that list is too short anything outside of your coverage that looks good. I’m looking for something that pays at least a 5% dividend and trades at a slight discount (i.e. <$100). Could even trade at a deep discount as long as you have no concerns with repayment at maturity.

Q: Do you think enghouse(esl), could be a five or ten bagger like constellation software(csu), thanks?

Q: Hi Peter and Team, I really don't know what else to say except 'Thank You' for all the help in 2012 and 2013...so Thank You!

Can you please tell me if insiders of Prinecrest, PRY, have been buying during this month, how much and by whom? Would PRY be considered a very cheap stock in the sector currently at .38 cents?

Also, your outlook on oil for 2014 would be appreciated as well, especially if Iran starts to play ball finally and agrees to what is being demanded of them in order to lift sanctions on their oil exports.

Also, with fast technological advancements in finding and producing oil and gas, which I'm sure will also be applied to in Asian and other countries in the near future (fracking, etc), how do you see technology impacting oil prices downward over the next one to three years? Oil moved from $150 per barrel to under $40 per barrel just a few years ago so could this occur again with so much oil being produced now, with more oil coming on stream every year? I just can't see world wide demand/consumption meeting increased oil supply, and increased production over the years to come!

Again, Thanks!

Please ignor this question if you already received it this past Friday, thanks.

Q: Could I please have your view of the ETF Powershares Global Private Equity,PSP, as a way of tapping into private equity companies? Do you see the 13% dividend as sustainable?