Investment Q&A

Q: You said:
5i Research Answer:
We are recommending tendering under the exchange, and taking the EXCHANGEABLE share option.

My question is what are the pros and cons of going for each option?
If the value is higher on the London exchange do we expect the TSE price to be the same adjusted for currency differences?

Q: Now with 11 sectors in the TSX, what would be a good sector to sector % breakdown to have a balance portfolio?

Q: The last question on MDT was asked in Jan, 2016, and you were favourable at that point. Do you still think it is a good prospect? What about Vodaphone? Both were top pics on BNN today.

Q: According to the RBC Direct Investing data base MRU has a lower p/e, higher roe, lower debt to capital, higher net profit ratio, larger sales growth and a better 3 year stock performance { 50% vs 100% }. Why do you favor L so much? Thank you.

Q: Hello Peter and team:

You may want to perhaps address this question through your Blog or answer it here. Whatever you think is appropriate is fine with me.

What do think of the article in the Globe, Report on Business section, Saturday September 24 2016 edition by David Milstead on Big companies using non GAAP methods to report their earnings, profit, write downs and such. Except Imperial Oil, all the companies fail GAAP standards his article claims.
Many of the companies that you recommend don't fare well in the analysis by Veritas. For example Agnico, Manu Life, Magna, Interpipline etc., In fact 4 out of 5 companies negatively highlighted by the Globe are your favourites! Interestingly all the banks fare reasonably well which surprised me! The same bankers who "forced" the Govt to enact "opt in" measure come out as "reasonable"?
I went through the table provided by Veritas very carefully. I find that the following companies seem to have the least variance between GAAP and non GAAP measures: AGU ATD, BCE, BMO, BNS, CM, CNR,CTC, DOL, EMA, GIL, IMO, MRU, NA, POT,POW, PPL,RCI, RY, SAP,SJR,SNC,T, TD, WN.
Am I right in interpreting that these companies are "reasonably" clean in their corporate governance? Does this list by Veritas correlate with other lists by other companies that measure or evaluate ethics of a company by entirely another set of variables?

Do you folks consider this accounting issues when you choose a stock?
Thank you for your patience in advance. My apologies for this rather verbose question.

Q: Would MRE be a good investment or would one of the larger parts companies be a better bet? How is its debt.It has 3 new plants in Mexico etc. & I'm wondering how they'll impact the company.It seems cheap but is it a value trap or too speculative? Will the market for car parts hold for a few more years or have we reached a tipping point.It appears that people are still driving older cars even though sales of new ones has gone up dramatically.Thanks as always for your valued advice.

Q: CGX dropped since its last Q results,but lately is turning around with announcement of acquistion of Tricorp on 9/21 & recommendation by Motley Fool that it should be part of any portfolio on 9/23.On Sep 24,TD increased its target price to $59 with a buy rating.May we have 5I's concise views.Thanks for your normal great services & views.Looking forward to seeiny Ryan on BNN on 9/30

Q: I have held the Vertex Hedge Fund for about 15 years. In the early years the returns were acceptable. In the past 5 years the returns have been a disappointment. What do you think of that fund and its management? Should I continue to hold or sell and move on?

Q: Hi , are you able to add any clarity on why DHX seems to be drifting lower
Would earnings be that far off for Weds reporting?

Q: Looking into adding ITP for a 5 year hold, your thaughts on this company.
Thanks

Q:
Hi team :
below is info. or BK. I HAVE DONE WELL FOR THE LAST 10 YEARS.I have no other bank stocks.I mostly live on DIV.
what would you advice:
1. wait and get paid out 2018 ( I HAVE 5K BK and no BK.PR.A )
2. SELL 0.5 OF THE POSITION
3. BUY BK. PR. A TO BE SAFER { My expectation that bank stocks will be flatish)
4. HANG IN FOR A POSSIBLE BEYOND 2018
5. OTHER SUGGESTIONS AND COMMENTS
THANKS AS ALL WAYS
YOSSI

Q: Hi Peter and Team - Could you provide me with an update on D-Box Technologies including the following: level of debt, cash on hand(is it still $13 million), quality of product, opinion of management, insider ownership. TD Waterhouse shows the number of shares at 175 million. Is this a reasonable number or do you think it is somewhat diluted and what is their history of issuing shares. Also could you comment on any major shareholders holding more than 10% - I think there are at least two. DBO appears to have good potential for growth but what would be the major downside possibility(s). Thanks as always for your excellent service.
Rob

Q: A point of information.
RUF holds only US properties which, like MST, differentiates it from other Canadian REITS.

Q: /A potential class action litigation resulted in a positive reaction on 9/23 with a close of $4.79 after a high of $4.86.Please explain the class action & if the positive effect will continue.Still holding my shares & trying to sell @ possible best price.Always appreciate your normal great services & opinions.

Q: Would there be any advantage to owning both these related securities in my taxable account? I already own Enbridge with a low cost base and wondering whether I should leave well enough alone. Thanks.

Q: The press releases say that Jackpotjoy will eventually be the parent company of the Intertain group. I think I may be missing something so could you guys breifly touch on what advantages owning the exchangeable shares will give over owning Jackpotjoy.
Thanks again for your help

Q: I am in my early 30's and wanting to start a TFSA growth portfolio (modeling 5i growth portfolio). I am looking to invest 10,000 today, and 10,000 subsequent years. What names would you suggest to start with today?

Q: In view of the effect on the market of the unknowns coming up in the next few months - with US election and its aftermath, and good possibility of US bankrate going up in Dec. I am thinking of going defensive. I have quite a few of the stocks listed in both your Balanced and Income portfolios, could you please list for me which of these stocks you would designate as best 'defensive' - (whatever that means). Thanks again, always look forward to hearing your comments.

Q: I've recently moved some RRSP money from a mutual fund company to my own brokerage accounts. My cash accounts and TFSA are in 5i type portfolios but I'm wondering about putting the RRSP money into somewhat "safer" and more diversified areas. I've looked at the Canadian couch potato's model etf portfolios as well as the canadian money saver portfolios. I'm wondering if you could recommend any "ethical" international elf's. I think XEN would fit the bill in Canada. Thanks for your suggestions.

Q: I have just recieved some new money to invest and woukd like to increase my expsosure outside Canada. Im thinking of a US index fund. Can you please tell me the difference between VUN/VUS, HXS and SPY? Which one is better? Do you think this is a good time to invest in the S&P with it at all time highs?
As always your advice is greatly appreciated.
Nancy