Investment Q&A

Q: re: general question on Energy

First off, great job yesterday on MC...

Energy is down across the board and the big story for allot of us is AVO cracks the $20 mark - the wrong way.

First on AVO, this is why we diversify. Is there any reason to think in a year from now this week for AVO won't be a distant memory? Results looked fine from what I can tell.

And can you please comment on Energy in general and any catalyst that may have seen SGY, BTE, XOP, WCP etc... all take a significant hit today?

Thanks for all you do

Gord

Q: Hello Team. Could you please provide you assessment of High Liner Food's results.They reported yesterday. Thank you.

Q: I am thinking of switching from MRT.UN to MRG.UN to convert from an office/retail focus to a residential one with the view that future interest rate rises might be better absorbed by the residential sector. I would appreciate your view of this exchange.

Q: Hi Peter and 5iResearch Team,
Can you please provide an update re: West Fraser Timber, WFT - trading today at $53.08 and I am up 9%. You discussed a positive mid-term outlook the last time I asked about this stock. Can you please comment on the seasonality of this stock and if you think I should continue to hold it LT.
Thank you.
Linda

Q: Hi Peter:
there were some M & A frenzy in the health stocks in the US
are there any EFTs that one can buy to participate in this trend ?
My 2nd question is that when M & A activities are increasing, it pushes the P/E ratio of the sector very high, would one see it as the beginning of the end of the bull market?
would one also anticipate some M & A in the Canadian energy sector?
I look forward to your comments, it would be educational to alot of investors like me, I learned alot from being a member for over a year,
Many thanks!

Q: Hi Peter & 5i Team,

I have noticed that for several general questions and advice as well as for several stock picks in one Question, your Answer appears without any Symbol name (for obvious reasons). However, would you please consider marking such Q&A with a general symbol name for eg. MISC (for miscellaneous) or AAAA or ABCD etc. This way your subscribers could easily filter/search these gems of information in the past using this "symbol" in the "Search by Symbol" area.

Thanks for your great service!

Francis

Q: hello 5i:
A question was previously asked by curiously enough, someone named Paul, that went:
What sector weightings would you recommend for a conservative middle age investor, with a balanced focus on capital gains and dividends. Your advice included a 15% allocation to Consumer Staples and 5% to Consumer Discretionary. Could you give me your top 3 picks for each sector? I apologize if this question has already been asked, but couldn't find an answer by searching.
thanks
Paul (not the one that asked the question)

Q: Hi, I'm looking at adding some higher-yielding municipal bonds to my portfolio and the
Short High-Yield Municipal Index ETF (SHYD) caught my eye. I like the relatively shorter duration but please let me know your thoughts.

Q: That is a great essay on, "WHAT TO DO WITH A TEN BAGGER".
You mentioned to ignore the old price.
That got me thinking on dividend yield on the historical acquisition cost of a stock. I've liked it for decades. But I have been reading on line that one should not consider that. Only look at the current yield.If it [current yield] goes down enough, that might be an indication to consider selling; the stock might be over valued. Likewise, if the yield goes up too much, that too might be a reason for a sale as the stock price has fallen too far.

What do you thing about 'it's the current yield, not the historical one, that counts'.

Thanks.

Paul

Q: Hi Peter
I noted your answer on IBM . I will take what little profit I made . If I were to replace it in my RRSP ,how does google fit ?or can you suggest another stick for a 5 year hold .
Candi

Q: Peter TOG is down about 20% over six weeks any advice on this one I am still up about 40% . ( hold ?? Sell ?? ]
Thanks Jim

Q: Peter and crew:

I really like the look of your model "income" portfolio, and am looking to largely mirrror it in a non registered account with a 10 year + time horizon. My concern is with the tax implications of XHY, CVD, CPD and ZRE in a non registered fund (higher tax than dividends). Would you be able to suggest three of four solid dividend companies (not included in your other portfolio) that may be used to replace these. I understand this would make the portfolio more aggressive, but am comfortasble with that due to bond exposure in registered funds.

Thanks as always for a great service.

Phil

Q: Much has been written recently about "growth" stocks being out of favour.
1. What is in favour? Any suggested stocks?
2. What will it take for growth stocks - like ESL, AVO ... to be in favour again.
3. Is there any reliable historical data to indicate how long each of these cycles takes?

Thanks again.

Q: Fantastic presentation on bnn.Please give me any info.on aif.Jim

Q: Hi team. Love all the work you guys do, I read the shared questions on a daily basis and this is by far one of the better newsletters out there in terms of info, layout and searchability.

I'm looking to start a new, concentrated portfolio for long term growth. Could you please provide 5-6 picks? Thanks, you guys are doing an awesome job!

Q: Hello Peter and Team:
What is to stop AVO from its free-fall down already 75% from its recent high of 34.5? Maybe the tech sector will follow the health sector Tecmera, a popular health stock down 200% from 34.7 to $12 in a short period of time with a lot of others. The oil/gas sector RMP and BTX for example, down 8% recently - could they get down 50% over the next while? I know this is more like three questions, but hopefully you can advise me on these 3 points. Dennis

Q: Hello 5i,
There are two US banks I’m looking to top up a position in, and I would like your opinion on, they are People's United Financial (PBCT) and New York Community Bancorp (NYCB).
Thanks

Q: It would be very helpful if your report card also included the peg ratio to give a better idea of how cheap it is relative to growth. Thanks for your excellent service

Q: Hi Peter et al.

I'm a 30 year old mining engineer. I currently work for ABX… ugh, I know.

My planned investment breakdown:

RRSP/LIRA (maxed) (54%) = XIC, RSP, VWO & VEA
TFSA (maxed) (10%) = Canadian growth equities from your model portfolio
Non registered (30%) = CDZ & ZDV
Cash (6%) = CAD & US Cash

Questions:

My goal is to have a balanced global ETF RRSP/LIRA portfolio.

Q1 & 2: What are you thoughts on the combo of XIC, RSP, VWO and VEA to achieve that goal? Am I missing anything fundamental?

Q3: I have a poor sense of what a "reasonable" or "well rounded" split between Canadian, US, developed and emerging markets should look like (i.e. the split between XIC, RSP, VWO & VEA). Could you provide some insight from your years of experience? (I know this is a very subjective question)



PS: I learned of your existence during the reddit ama and since then I've learned a great deal from your site; the Q&A "vault" is fantastic. I'm in awe of your ability to keep cool, calm and collected when you receive choleric comments when your guidance results in a loss. You provide longterm investment advice, with the best information you have at the time, stemming from the experience gained from a career on Bay Street… nowhere have I seen you ever say that you're always right.

Feel free to omit the above comment, or anything else for that matter, prior to posting.

Cheers!

Brian

Q: Hi,What do you think of DOMTAR?Thanks.Ebrahim