Investment Q&A

Q: Hello Peter,
I own some Home Capital group, about 2 percent of weight. I also own bank of nova scotia, TD, and Royal all of which represent 17 percent of my weighting. I also have Ailment Couch Tard and Auto Canada which represent 2 to 3 % each. I am breaking even on HCG. I was thinking of selling it and putting the proceeds towards Auto Canada or Ailment Couche Tard or one of the existing banks as mentioned to take advantage of their lower stock values. Which one would make sense to you? I was thinking of splitting my proceeds to Auto Canada and Ailment Couche Tard as I have enough weighting in the banks. Why am I thinking of this? Simply to diversify away from stocks that could potential be hit due to a housing bubble. Your comments please.

Q: Hi- I hold a bit of XHY but it has been crashing and I hear a lot of negative comments on it- liking it to holding the mortgage backed securities of 2008- what do you think?

Q: Why is the stock so weak? Is the dividend safe and is it ok to hold for the long term? Thank you.

Q: Hi my earlier question was not answered. What replaced FSV in the model balanced portfolio when it was sold in April. ( I think)

Thx Blake

Q: I currently have a 3% position in AD and want to increase it to 5% to improve my retirement income. The stock has been falling recently. Would this be a good time to increase my position, or do you see further declines? Do you think the businesses that Alaris is invested in (1) are "recession-proof" and (2) can grow their earnings, enabling AD to increase its dividend over time?
Thanks,

Q: With all of this selling, looks like a good time to chip away a some of the Names on the Balanced Portfolio.

Which next 5 would you recommend at these prices in order?

Already own CSU, CGX, BNS, AYA, ENB, CXI, WSP, BIN, SYZ.

Q: any idea what caused the large drop today

Q: With the volatility happening in Healthcare stocks, can you recommend a Canadian ETF that covers the US Healthcare Sector? I think ZUH is one, what is your opinion on this ETF, are there better ones out there?

Thanks,
Paul

Paul

Q: On this latest pullback I am looking at adding the following. How would you rank them in order of attraction? Progressive Waste Solutions (BIN), Royal Bank (RY), Stella Jones (SJ) and Sienna Senior Living (SIA). My portfolio now is well diversified so just consider total future gains with medium to low risk.

Q: Hi

Just my 2 cents on "Josh" and when to sell. I believe this service, while one of the better ones, does not distinguish between a good company and a good stock price to buy that company.

If you could sharpen your pencil to tell members if the stock is attractively priced at the moment, Josh may not have purchased when he did.

Regards
John

Q: Just wanted to add a note of encouragement to the discouraged ones out there. I used to feel as Josh feels when I was out there on my own, but then 5 I came along.

Through 5I

Bought ATD.B at $30. It's now $61.09, as I write this.
Bought BYD.UN at $35. It's $59.65
Bought CXI at $21.22 It's $26.77
Bought ESL at $30. It's now $53.22
Bought WSP at $31.65. It's now $44.95

These are awesome returns -- by anyone's standards.

Certainly, I've had a few losses, but by and large, the gains outweigh the losses by quite a margin. Additionally, I would add that these losses tend to come from my lack of patience -- or my fear. I end up selling too soon, then kicking myself all over the block once the stock bounces back to all-time highs.

I realize the frustrations that may come in the investment world, but sometimes we get so disappointed in a few things that we end up flinging the baby out with the bathwater. Our money -- which is always hard-earned is a very emotional thing to us all: we end up taking the losses much too personally, and glossing over the wins by patting ourselves on the back too much, and not giving credit where credit is due.

If I make a 60% return on a stock, I tend to take the credit. If I make a 15% loss, I'll blame Peter (smile) ... or in my case, my brother Frank, the famous Frank Effect guy. ; )

This is simply a note of encouragement to Josh, to hang in there. ... And an extra note of thanks to the "swamis" at 5I, who though they do not claim clairvoyance, I swear they must at least have been reading the tea leaves!

Q: In response to Gerald's question about Amaya and New Jersey approval, David's reply during the Q4'14 earnings call on April 1, 2015 was:

"As it relates to New Jersey, I would say that we feel that this is coming. We would expect to receive and launch, I would say, in the next quarter."

David followed up on this in the Q1'15 earnings call on May 14, 2015 with:

"I think we’re still on track from what I said on the last call in terms of New Jersey."

Those statements (in my opinion) in no way guarantee a launch in Q3. Investors seem to have unfortunately taken it as fact though.

Q: To me the key to knowing when to sell is knowing one's temperament. Once you know it, you can listen to what 5i suggests or google "when to sell stocks" and get a bunch more ideas. Choose the ideas that align with your temperament. I don't think an investor is going to be happy following some stranger's temperament. You have to follow your own.

I see a lot of people writing 5i, unhappy with their 30% and 40% losses. What they're saying is that their temperament can't handle those losses. No law says they had to suffer those losses. They were free to say, "Screw this, I'm getting outa here." But they didn't. They were aligning with 5i's temperament, not their own.

For me, I don't follow 5i's long term advice or their portfolios. I get my value from specific recommendations, answers to questions, and the basic integrity of 5i.

Q: Andrew McCreath on BNN this morning had some very negative comments on CXR's debt in relation to being forced to reprice its drugs. How do you view this potential problem?

Q: Based on today's market trading of Concordia shares versus Valeant, ie Valeant shares are recovering somewhat today while Concordia is maintaining its downward spiral, you have to wonder if the market thinks that the share sale will not be finalized tomorrow or that the terms of the sale could be renegotiated. What is the probability of this happening, and if so, what happens next? A second related question has to do with the EPS for Concordia assuming that the deal is finalized. I have read a research report that has EPS around $8.50 next year. Do you concur?

Q: Hello Peter and the 5i team,
In response to Dennis's letter/critique regarding CXR and a presumed position of Jason Donville's, you mentioned:
"If a BNN guest sells a top pick we are supposed to email BNN and this is supposed to get distributed to viewers".
I am not aware of any such policy at BNN; is it 5i research's position?
By the way Dennis, it is dangerous to ASSume anything; as of this morning, Jason Donville is of the opinion that the fundamentals of CXR and VRX have not changed.
Regards,
Antoine

Q: when 5 i sold fsv was it replaced with CXI in the model portfolio. I have some cash to put to use.

Thx Blake

Q: What do you make of Prometic at these prices. Has anything changed with the company or their plans?

Q: I would like to add a member's perspective to Donald's question about "when to sell".
I have been watching BNN since the network started. Please know that the analysts who appear are for the most part there to promote themsleves and their funds. They are not "bad" people, it is just the way the game works. If you look at their funds performance over time, I can assure you that most are not raking in the profits and killing the market. They amplify their winning calls and downplay their errors (even when they have gotten things terribly wrong). I watch only to glean the odd bit of info on a company I am following, or to guage how others are thinking in the market.
If you think market timing is a good strategy, please reconsider. One might do as well betting on NFL games. Maybe there are a few souls who can succeed at that, but they are surely very rare.
For a nominal cost, Peter has provided us with a diversified portfolio of quality companies. It really dosen't get any better than that. Hold them and they will recover when the market eventually does. Resist the urge to trade too frequently. Don't be swayed by the boasting of those on BNN.
Cheers
John

Q: Although most of my holdings are blue chip dividend payers, I decided to take a position in healthcare stocks several months ago and bought PHM, CPH, and GUD. I'm considering tax loss selling at least the first 2 of these and buying Concordia. Since the current move in healthcare reminds me of uranium stocks 10 years ago, I wonder if you feel it is worthwhile to stay in the sector.
Your insight is always appreciated.