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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: My daughter turn 25 this year . She wants to start investing ,she completed a risk aversion test that puts her at a moderate. She got approximately 5000$ cash . She also recently got approved for a 10000$ line of credit at the bank . What would recommend for her to start investing? Thank you
Read Answer Asked by Denis on March 23, 2015
Q: Just haven't the time to build up a reasonable knowledge base in the US...so would appreciate your best pic on 1 or 2 US based ETFs covering Health/pharma, consumer discretionary & possibly Tech. Thanks.

Read Answer Asked by Robert on March 23, 2015
Q: Hello Peter & Co.
My exposure to Health Pharma (11% of my RRIF portfolio comprises CCT,CPH,CXR.GUD and VRX.
I hold in my TFSA (approach: buy and forget): small amounts of RX,PLI and would like to add equally small amounts of CRH and PHM; I value your opinion.
I also own in the TFSA: DHX Media but do not have any "small & torquy" Info Tech; would you please suggest a couple of names other than CSU,DSG,ESL,CGI,MDA and OTC which I hold in my RRIF?
Thanks,
Antoine
You may count this question as two questions.
Read Answer Asked by Antoine on March 23, 2015
Q: On PHM's recent conference call, management claimed they could reach $125 MM revenue run rate by end of summer 2015, and then stated that their new year end "goal" (not guidance) was for $175 MM run rate revenue. Taking this announcement into account, how does PHM stack up on a risk reward and valuation basis with CRH Medical and Nobilus Health Corp? For a risk tolerant investor, are any of these stocks buys today and in what order?

Thanks for the great service!
Read Answer Asked by Scott on March 23, 2015
Q: At what point does it become ridiculously nonsensical to buy a small number of shares? Since the new TFSA limit restricts us to $5500 once again this year, I was toying with the possibility of picking up CSU stock -- which essentially would give me 12 shares. I have been wanting to own it for a while, but am too happy with the ones I own to sacrifice any of them. This is the only new money I could put into my account for at least 6 months. Perhaps I should look elsewhere?
Read Answer Asked by Sylvia on March 23, 2015
Q: On the questions from Gary re. transfer to TD: For same reasons, I transfered recently from other institution to TD. The branch can handle the paper work for you and Web broker will reimburse the fees. You need to simply call them and let them know how much once transfer to TD is done.You can them follow the Great suggestions/ideas from 5i.
Good luck
Jean
Read Answer Asked by Sherrill on March 23, 2015
Q: Pli volume yesterday was 22,463,456 compared with a 2,500,000 average(Aprox.)with kind of volume one would expect the price to go up ( no bad news), but it went down. Does this seem strange? How would explain the relation ship between volume and price with no bad news in this case. Is this pure manipulation by the 'big boys'?
this service is great
as usual thanks
Yossi
Read Answer Asked by JOSEPH on March 23, 2015
Q: I know you have expressed your own frustartions with this stock. Me too! So -

Decision time for me: -27% (-22% factoring in the dividend).
With WIN very near its 52 week low, do you see any upside catalyst that might generate a significant pop (10% or more) that would justify buying more. The charts suggest that it is very oversold - therefore a tempting buy.
Or would you recommend selling WIN and investing elsewhere; and if so do you have a strong recommendation?
Read Answer Asked by Donald on March 23, 2015
Q: It's been over a year since Cipher's price has met it's 200 mva. Must be quite a shock! Plenty of CPH stock available for small fry like me. I have some small cap pharma winners that I could take some profit in PHM/GUD to make room. Is it worth buying now or should I wait for bigger fish to start nibbling?
Read Answer Asked by Gerald on March 23, 2015
Q: Greetings 5i and thank you for your great service. I read your recent and excellent article in the Financial post.I currently hold 39 stocks in my portfolio.
I am holding all of your model and income and portfolio stocks except:
FLOT, AYA, CSU, and Magna.
In addition I am holding:
BYD-UN, ECI, TMA, DHX-B, GC and GWO
I understand the point and concept of only holding 20-30 stocks for diversification purposes and beyond that number it won't make any difference.
Each stock represents 2-3 % of my portfolio and I have done very well since joining 5i in 2012 (THANK YOU)
My current losers are FM, BDI, SGY, TMA (flat) and SYZ
My question is two part related to the Financial Post article: Do I need to pare down my portfolio to 30 stocks, will it hurt me to keep all and do I sell my losers to achieve the 30 stock level?
I am retired but I am not worried. I survived the 2008-2009 meltdown.
Many thanks!
Martin
Read Answer Asked by Martin on March 23, 2015
Q: Good morning. Many Canadian ETFs covering the US market are CAD-hedged e.g., XSU. Can you please help me understand what hedging means to the retail consumer at the present time when the Canadian dollar is worth less than 80 cents US? Does it de-risk currency exchange so that, for example, an index ETF like ZSP gets the full benefit of an increase in the S&P 500?

Thanks as always.
Read Answer Asked by Thomas on March 23, 2015
Q: Hello, I have a question about the fixed income part of my portfolio. I have a total of 5 bond etf`s each at 5% for a 25% allotment of fixed income.

ZHY + 1.78%
ZCM + 4.01%
ZIC + 10.12%
ZEF + 2.06%
PSB + 1.65%

This works out to an average gain of 3.93% since January 1st 2015

Would I be better off to simplify my holdings by holding only VAB which is up 4.18% or a combination of the above?

I am also thinking ahead when interest rates may rise and that is why I have PSB.

Thanks, Mike
Read Answer Asked by Michael on March 23, 2015
Q: Hello, when you come out with your new and updated portfolios could you formulate a best balanced model. This including something like 20 selections or whatever is appropriate from your 3 portfolios. I hope this reasonable.
Read Answer Asked by dale on March 23, 2015
Q: Hi Peter and 5i team, what are the catalysts driving Canadian/Global health-care/pharma sector at present. What s your near and mid term outlook for the sector and what headwinds do you foresee for the sector
Read Answer Asked by RAJITH on March 23, 2015
Q: I would appreciate your thoughts on the gold sector and Yamana in particular. Thanks again, Bob.
Read Answer Asked by Bob on March 23, 2015
Q: Hi guys, I have both ipl and su but don't have any enb. Your thoughts on selling both and buying enbridge.
Thanks
Jim
Read Answer Asked by jim on March 23, 2015
Q: Hello Peter & Co,
Does it make sense to invest in US$ when one does not have any US$?
It would have been OK if I had converted a portion of my RRSP/RRIF in US$ when the CAD$ was at par. If I do so now, I would lose 25% or so right off the bat; mind you, I would regain my F/X loss when I sell the security +/- the exchange rate at that time.
But...Would I get a better return from US investments?
The 5i Model Portfolio had a return of 80 to 90% since its inception; ditto for Jason Donville’s Capital Ideas Trust, adjusted to the same start date. These 100% Canadian portfolios have inspired me a great deal and, consequently, my RRIF Portfolio of 40 diversified holdings generated around 60% over the same time period, which I believe is quite respectable.
Is any additional return from US investments worth the additional F/X risk?
Thanks,
Antoine
Read Answer Asked by Antoine on March 23, 2015
Q: Peter and team:
Could you please recommend a couple of options for"Dividend Aristocrat/Growers" style ETFs for US Companies. My preference is one that trades on the TSX, and unhegeded vs. hedged, though open to both at this stage.
Second part (perhaps unfair) how do these products compare with the "low volatility" products offered by BMO and iShares?

Thank you as always for a great service.

Phil

Read Answer Asked by Phil on March 23, 2015
Q: Hello,
I'd like to check out my understanding of capital losses/gains in various types of accounts. Like everyone else, I feel I pay my fair share of taxes and don't want to pay more than I have to....
TFSA - very clear, no taxes... but when you have an unrealized capital loss (for example, due to an out of favor sector) isn't there incentive to "hang in there" unless you KNOW your money will gain better returns in something else in the short term?
RDSP/RESP - are contributions and grants/bonds recorded as absolute amounts??? If so, that would mean everything else is "earnings", taxed upon withdrawal, and this results in an offset off capital losses to capital gains... true? or am I missing something?
RSP - a tax break is granted for the year of contribution, at whatever tax rate you are at... upon withdrawal, if you have overall capital losses (which no one wants) you pay tax (presumably at a lower rate because your overall earnings are less) on the lower amount, so you are getting a tax break... if you have net capital gains, you are paying tax on 100% of these gains, which obviously is less advantageous than if you held them in a non-registered account.
So, in a RSP account, isn't the same effect (as long as you have more capital gains than losses) equivalent to offsetting capital losses to capital gains, with the exception that you have to pay 100% tax on net capital gains (versus 50% according to current rules)???
I realize you aren't tax professionals but I think these are pretty fundamental questions for which you have the answers.
As always, thank you tremendously for offering this service.

PS. I was reading the previous Q&A, as usual, and want to know whether you are looking at no longer allowing new members as of a certain time...
Also, please clarify what is or is not happening with these "new portfolios/ETFs" I'm seeing on the Q&A. Thanks!!!
Read Answer Asked by Brenda on March 23, 2015
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