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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I submitted a similar question last night but it seems to have been missed.

I am looking at managing the portfolios for a couple of family members and I have some questions as to the basic construction of these portfolios. Each of the portfolios is valued in the mid 6 figure range.

First, I am considering using a Canadian broad market ETF for perhaps 15% of the funds and then spreading the remaining money among 25 fully diversified stocks. I am thinking of the ETF as a way of providing a foundation but am I really only diluting the effects of the growth of the other investments?

Secondly, I would put 25% of the money into US dollar investments. When doing this, is it best to treat that as a "separate" portfolio, meaning that it should be fully diversified in its own right or are the Canada and US markets similar enough that I can ignore the border when diversifying?

Finally, do you treat spouse's investments as two separate portfolios or as one, meaning theoretically should two spouses have identical holdings?

Thanks for the insight.

Paul F.
Read Answer Asked by Paul on June 10, 2015
Q: Re: Brian's question today about NXPI...just got this news (seems good news) about NXP:

-Switzerland's Finanz und Wirtschaft has reported local firm AMS (OTC:AUKUF) has lost deals to supply NFC signal-boosting ICs for future iPhone and Apple Watch models. Going forward, Apple will reportedly rely exclusively on NXP (NXPI +2.2%) to supply NFC parts.

-AMS fell 21.1% in Zurich on the news. NXP is joining tech and chip peers in rallying. Various teardowns have uncovered NXP NFC controllers and AMS signal-boosting chips in the iPhone 6 and Apple Watch. NXP also supplies NFC controllers for Chinese Galaxy S6 models; Samsung NFC controllers have been found in international models.
Read Answer Asked by Silvia on June 10, 2015
Q: Hi Peter and Team, My wife's TFSA is doing very nicely, thanks in large part to 5i's suggestions. (Allied Properties REIT is the only stock she owned prior to joining 5i). At present, the holdings are:
AP.UN 25.4%
CXI 15%
DH 13.2%
XHC 3.2% (a place to put distributions with no fee)
KBL 43.2%

She just deposited $4500 to get to the $10K allotment for this year's contribution. Where would you suggest putting the $4500, either in something new to improve diversification? We also expect that some re-balancing may be necessary. Thanks as always for your great service and advice.
Read Answer Asked by Jerry on June 10, 2015
Q: How would you rank these stocks in terms of Growth and Safety combined and which one would you buy at this time.

DRT, CMH, XTC, CRH, QHR, PEO, ET, SYZ.

Thanks
Read Answer Asked by Imtiaz on June 10, 2015
Q: Hello team,

Would you swop FB for LULU (lululemon) for a bit of more momentum? I know they have nothing to do with each other but which one will you think would do better in the next couple of years? I appreciate how you change my mind by shedding light on what is hidden to my untrained eye. Have a wonderful day@
Read Answer Asked by Saeed on June 10, 2015
Q: Inflation/Deflation

Inflation/Defaltion
After listening/reading to some of 'smart' market people that I respect, I am coming to the side that deflation is now an old worry and inflation is the new worry. To that end I have been buying some stocks out your growth portfolio but I haven't sold any of my others. Most of this has been done on LOC and now I want to pay that back. Given the above scenario what kind of stocks should I sell?
Read Answer Asked by Gerald on June 10, 2015
Q: Does this new deal add materially to win bottom line and is this now a cheap stock ,,,, thx
WiLAN (TSX: WIN) (NASDAQ: WILN), today announced that its
wholly-owned subsidiary, Onpa Technologies Inc., has acquired a
portfolio of patented microphone technologies from Japanese
electronics company, Funai Electric Co. Ltd. ("Funai").
Read Answer Asked by Bob on June 10, 2015
Q: Some investors assess a company's share prospects by looking at the company's debt. Since Argex announced its offering (on June 1), it has lost more than half its market cap, yet its debentures are getting a $66 bid. I agree that $66 on $100 face isn't exactly a vote of confidence, but given the 'failed' offering, wouldn't we expect the debenture to follow the share price down? Or does the relative stability of the debenture serve to recommend the shares?
Read Answer Asked by John on June 10, 2015
Q: Guys: do you have an opinion on this company? Thanks Ted
Read Answer Asked by Ted on June 10, 2015
Q: If you were about to enter the market with a portfolio at this time, would you wait until after the Greece situation is clearer at the end of the month? 5 year timeframe.
Read Answer Asked by Gregory on June 10, 2015
Q: Could you please comment on CXI earnings report and could you please provide your long term outlook for the company?

Thanks

Dave.
Read Answer Asked by David on June 10, 2015
Q: Hello.Could you please dive me a couple of etf in biotech, healthcare and pharma. In Canadian stocks with or whitout hedge.And in USA stoks in American money. Is ibb the best in class for bio.
Read Answer Asked by Denis on June 10, 2015
Q: Much discussion lately on BNN re divergence of the Transports
and the Dow. It is believed to foretell a correction.
However, one guest said that Dow Theory is outdated.

Your opinion please.
Read Answer Asked by claudette on June 10, 2015
Q: Hi Guys

I have been interested in Brookfield (parent company) and Onex. They have returned 20% and 16% respectively annualized over 20 years (from what I read recently elsewhere)

What are thiughts going forward and would 5I consider issuing reports on these companies?

Thank you
Read Answer Asked by Andrew on June 10, 2015
Q: Peter,
`A TFSA just opened
`$21000 maximum allowed and therefore available

1/would you park the money in a high savings account let us say till the fall/early winter and therefore wait for better market500 opportunities.

2/In case you can find solid opportunities now what would you suggest in pure stocks allocation percentage (for example 4 stocks, 8 stocks.. 1 stock?)

3/ Within this split what would you suggest as specific target companies.

Thank you very much
Read Answer Asked by claude on June 10, 2015
Q: In a recent Globe article dealing with ''when'' to consider selling a stock,''when the stock rises above it's intrinsic value''was mentionned. How does one determine when a stock has risen above it's intrinsic value?

Thanks for your help on this one.

Jean
Read Answer Asked by Sherrill on June 10, 2015
Q: Pair trade question asked by Steven on June 10, 2015:

Shorting difficulties could be offset by subsituting Puts
on the short side.
Publish at your discretion.
Read Answer Asked by Russ on June 10, 2015
Q: DRT closed at $7.70 yesterday, but the bid/ask is 7.07 this morning. I haven't found any news (but that doesn't mean there isn't any!). What's happening?
Read Answer Asked by Brenda on June 10, 2015
Q: Hi team. Any thoughts on pair trades? For example, any recommendation of a weak stock (that you'd rate as a C or lower) that should suffer as rates rise and a high quality stock that may benefit as yields increase? Thanks and best regards.
Read Answer Asked by Steven on June 10, 2015
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