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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 have found myself sector heavy in some areas and need to increase my positions in both Health Care and Basic Materials. I am looking at CRH for health care and would like to add one more. Suggestions?

For basic materials do you additional suggestions in addition to SJ and MX

Thx


Steve
Read Answer Asked by Stephen on March 29, 2017
Q: Looking to add another full position to each TFSA. Could you recommend a stock for each. Also, would you change any of these stocks, if so, what would they be changed to?
JAMES TFSA: CRH 26%, ECN 6.52%, EFC 11.39%, GUD 10%, PHO 12%, PBH 10.76%, SIS 16.61%, TOY 5%

LORETTA TFSA: GSY 14.67% KXS 15.41%, MTY 15.82%, SIS 18.91%, SHOP 15.82%, WCP 13.77%, TOY 5.58%

Much appreciated.

Read Answer Asked by James on March 29, 2017
Q: Could you list 3 US stocks in each of materials, utilities, consumer defensive and cyclical sectors for purchase in a growth-oriented portfolio, please?

Thanks
Read Answer Asked by Ryan on March 29, 2017
Q: Can you please advise if this is good ETF for Dynamic iShares Active Global Dividend ETF. I am looking for growth and dividend increase ETF in Global Market. Would you suggest ETF or is there any similar ETF. I currently own one Europe XEF EFT 2%.
Do DXG pay a monthly dividend or quarterly and dividend amount.

I currently own most of the stocks in Model Portfolio

Thanks for the great service.
Read Answer Asked by Hector on March 29, 2017
Q: I often see posts about members saying they are down on ALA-tsx or some other dividend paying company and wonder if they should sell (nearsightedness).

I offer my approach for consideration.

I own ALA and every months when I receive a dividend payment my ACB is lowered. It is like getting some of my original $$ back.

The present dividend yield is 6.7% annually, paid monthly at $0.175/month.

So every month my cost basis is lowering. This is great in a non-taxable account such as a TFSA or RSP (also good in a taxable account).

Eventually I will have 100% of my original, out-of-pocket $$$ returned to me.

At that point in time, lets say we got to a $0.00 ACB for example purposes, then no matter the price of the stock and any dividend I receive the return is incalculable. This is because a dividend of say, $1.00 is an infinite return on a ACB of $0.00.

What % return is Warren Buffet getting on his long held KO, Coke shares? I suspect he is near the infinite, incalculable figure = pure 100% profit. Or is it 100,000,000%... percent profit?
--------------------------------------------

Example (with made up #'s):

ALA bought at $30.00/share.
Get 6 dividends totalling $1.05 ($01.175*6 = $1.05).
New ACB: $30.00 - $1.05 = $28.95.

** So if ALA is at $29.00 now the investor is still up $ 0.05/share ($29.00 - $28.95).
But in a taxable account the investor on paper is down $1.00 ($30.00 - $29.00) so they could sell @ $29.00 and declare a capital loss even though they have a gain in reality.

This is 1 way the long term investor get richer and richer without getting out of bed.

Hope this is clear and helpful to some one.

It is like with real estate income property in that once you have your original down payment returned all future incomes are 100% profit (minus normal expenses like hydro, insurance..).

Have a great and prosperous day/year.

PS. The other 2 great things I have learned over the years:
1. To not listen to the media, financial tv shows....
2. Once a person knows how basic Options & Shorting works they can make $$$ in any market (up/down/sideways) easily.

Read Answer Asked by Stan (1) on March 29, 2017
Q: Hello,
This is a question more about portfolio management than a specific stock. I need to make a fairly large purchase soon and I have been debating about taking the money out of my TFSA, which thanks to 5I has done amazingly well, ( i would immediately buy the stocks sold in the TFSA in my RIF, thus not losing out on future gains). Better start another sentence :).

Or, use the opportunity to prune my portfolio. I do have too many stocks and would be glad of an opportunity for pruning. But, the ones I would prune have a capital gain of at least seventy per cent. Because I have a number of smaller positions in many cases this comes to only ten or fifteen thousand dollars per stock.

Or, should I just let them ride and live with the chaos?

thanks for any help
Read Answer Asked by joseph on March 29, 2017
Q: I have taken small positions in TV and MX as I like the demand/supply metrics for their products as well as latest company news, being the arrangement with Glencore for TV and the activist shareholder for MX.
I am holding them for a trade over the next 12 months.
What tools would you use ( commodity price, technical analysis, price momentum, target price etc.) to determine when to sell?
Thanks
Derek
Read Answer Asked by Derek on March 29, 2017
Q: Hello Peter et al:

What would you expect the share price to do if the 50%+1 vote is not achieved on April 20th? If Delek are serious about the deal would they increase the offer? There has been no word from the institutions on whether they are going to accept or reject the offer. Would it be wise to sell now and take the $1.92 and buy back in if the deal falls through if the price goes down on rejection of the deal? Any advice on possible scenarios here would be appreciated. My money in Ithaca at the moment is dead money and the difference between the $1.95 and current $1.92 is only 1.5% or so. Is it worth the risk because even if you tender your shares for Apr 20th and it does not go through you will not get your $1.95.

Regards,

Brendan
Read Answer Asked by Brendan on March 29, 2017
Q: You stated recently: (the investment strategy of DFN) "and the strategy could be quite easily duplicated." Holding the banks in a self-constructed portfolio would indeed be easy, but it would produce a 4% yield, similar to ZEB. How would you construct the portfolio, as you suggested.

Thank you for your services, esp of stocks not usually covered by analysts.
Read Answer Asked by Kurt W on March 28, 2017
Q: Could you please comment on Pivot Technology's earnings release. Is the debt still a big concern? I initiated a 1/2 position last week and wonder what indicators I should wait for to add the other 1/2 or if at all. They indicated a commitment to the dividend but I guess I would too if I was a board member trying to increase share price. Thanks.
Read Answer Asked by Brent on March 28, 2017
Q: I watched Cohodes on BNN this morning, and he didn't offer anything remotely substantial to back up his claims. It seems to me there are two real issues with the company 1) did they fully disclose in a timely manner the amount of fraudulent mortgages some of their brokers wrote and 2) are their loan loss provisions high enough considering those mortgages and their overall riskier loan portfolio. I obviously don't know the answer to the first, and for the second, I think the answer is no, they aren't high enough. Thoughts?
Read Answer Asked by Alex on March 28, 2017
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