Investment Q&A

Q: My son is looking to add a financial company to his TFSA. He is 21 years old so has a long investment horizon. Which do you like better GSY or ECN? His only financial holding is BNS which he holds outside his TFSA.

Q: I have a question about ECN.

I have been patiently holding for over a year now after buying around 4.30. I am quite frustrated with price action and am wondering what it will take to see ECN over 4.30 (if ever) and how realistic it is to believe that there will be a catalyst that moves this stock to above $4 and perhaps closer to $5.
Thank you,
Sam

Q: Hi 5I,
The above names are all owned in my TFSA. Of these, I am underweight in COV, IWO, PHO, SDX, SYZ AND VB. I've got some cash to put to work with a long term objective. With consideration to the sector weighting, and my under weights, would you recommend I top up on any at this time or maybe introduce a completely different name or names to the portfolio? Thanks!

Q: Hi, I’m about even on ecn 1.5% and would like to switch to higher dividend paying stock 3%+ with a little growth.
For 2 years it has done little unless you were lucky and sold at the high.
Would you stick with the banks? I have TD 2.5% and FSZ 1.5%.
Thanks

Q: Hi 5i,

I'm looking to increase my current Financial Sector weighting from 5 to 15%. I currently hold BNS @ 2.2%, SLF @ 1.5%, and GSY @ 1.3%. What would you add too and/or too a new position? I don't like to have more than 5-6% of one holding, of course this would be risk adjusted down according to market cap/safety.

Last part, on sector weightings. I follow your general recommendation and I noticed you changed the following from Oct'18 to Jan'19 as follows:
Consumer disc. 10 up to 15,
Consumer staples 10 down to 5,
InfoTech 20 down to 15, and
Utilities 5 up to 10.

Can you add some commentary behind these sector weight changes?

Thanks, Chris.

Q: Ecn's preferred shares, ECN.PR.A, are down $5.00 or so since their issue last year, pay over 8% & their issuer ECN seems to be doing well. Is this quite a risky investment with a dividend of 8% percent for someone seeking yield? Is it fear of rising interest causing the drop or is there a problem with ECN that I'm unaware of? Thanks as always for your sage advice.
Dave

Q: I bought at 3.90 what option should I pick or should I just hold on to them Thanks

Q: I have a trading portfolio of about $53K, about $18K is in cash right now and I'm looking at investing it again this year after selling a bunch of stocks last year. I currently have about $22K in RBC, BNS and BAC, $3.5K in Go Easy and $1.5K in Orca Gold and would like to keep these. I have a further $7K in various oil and gas stocks which I'm underwater over 50% on, I'm thinking of still hanging onto them as I thinking they maybe at there bottom and like to recoup some of those loses.
I want to invest the $18K in growth oriented stocks that pay dividends and keep them long term, as I'm an investor not a trader. Can you give me advise on what areas of the market I should be looking at in 2019 that were very oversold in 2018 and due to rebound, also specific companies in Canada to invest in, I don't mind also looking at the US but with our dollar down so much this year I think I'm better of with Canada.

Q: I initially purchased these preferred shares when they were yielding over 7% for income in my RRSP. Today they are yielding over 9% as the price has fallen considerably. Normally I would be concerned with an investment yielding 9%, but ECN.PR.A have a minimum dividend (6.5% for $25 face value). Do I have reason to be concerned or do you see this as a buying opportunity especially since they have the minimum dividend guarantee (as long as the dividend is being paid)?

Q: Seasons greeting to the 5i team. I hold the C series preferred shares of ECN. Like many others my cost for this rate reset preferred is much higher. I understand the company has the option to redeem these shares at a specific price at different times in the future. I am wondering if at some point in the future (if held until then) the company is obligated to buy them back at par value? In other words as a shareholder can I force the company to take them back at some point and receive the $25 par value? Thanks.

Mario.

Q: I have a question about ECN auction.
At some point today on Dec 24, ECN was trading below 3.35$ which is the lower price of the band of the auction. Can ECN modified the auction price band if the price keep going down bellow 3.35$?

Thanks,
Stef

Q: You recently published a list of companies being subjected to tax loss selling. I would be interested in your opinion of the top 3-4 companies that might be appropriate for a TFSA (some growth and a bit of income) come January 2. Thanks.

Q: You answered a question on ECN.PR.C I would like to ask a similar question about ECN.PR.A. It has dropped a further $3 since last Thursday. Do you see any particular weakness other than the general conditions you have answered on previous preferred reset questions? Is the share buyback of ECN common shares weakening the company's position of paying interest? Most of my resets have been called back at reset date and new stock issued at lower rates so I have not replaced them. Is that a possibility here and with the C's? (deduct what you feel appropriate)
Thank you and Best wishes for the Christmas Season

Q: Based on your experience , what would be the more effective way to increase the value of the ECN shares, buy back and cancellation as they are trying, or, put the money into dividend increases or special dividends ?
Thank You

Q: Recently, I asked about adding to ECN.PR.C at $21 and you replied it was fine to hold but not to add (thanks). Now it's $17 and paying 9%. It is a rate reset preferred and I thought the guaranteed floor was 6.25% upon reset but you recently said otherwise in another reply.
Should I buy it now and what is the reset minimum?
Thanks.

Q: Hi Peter,
Please deduct as many credits as you see fit. I have some losers (some big) as per below:

Margin account
CLIQ down 52%
PHO down 37%
MX down 20%
TFII down 23%
ECN down 13%
NFI down 11%

TFSA
GUD down 17%
CLS down 20%
DOL down 38%
TSGI down 47%

RRSP
DOO down 43%
COV down 26%

Here are my questions.
1- Should I claim the capital loss with CLIQ and PHO and repurchase in 30 days?
2- Are there any names there that I should just sell and move on to something else? What would be your top 3 replacements for the removed names in that case?
3- My initial thought was to inject new money in CLIQ, PHO, DOL, TSGI, DOO and COV to bring these names back to my initial weight. Would this be a good move in your opinion?
These names are part of a diversified portfolio and don’t need the funds for another 10 years minimum.
Much appreciate your service. Your responses to this market volatility have kept me from panicking as I did in 2008. I thank you for that.

Q: I would like to have some clarity on the buy back of share. Just received an offer to buy back from 3.35 to 3.75
Why they want to back back? and is it a good move...should I do it?
I know that you have recommended this share before and would like to know what are you going to do if you still have it.
thanks for your help
Diane

Q: I am considering purchasing ECN preferred for the great yield. Can you explain the difference between ECN.PR.A and ECN.PR.C. I can see the yield from a stock quote but can't figure how the dividend is calculated or when the rate resets on either of these. Which of the two if any would you recommend?
Thanks

Q: how is it that only days and weeks before announcing a Dutch auction, management and the company were buying large amounts of shares on the tsx? Is the not a prime example of insider trading before the puclic announcement? No wonder so many will not invest as it is not a level playing field!!!!

Q: I'm not likely to tender my shares into the Dutch auction, would you??