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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: Hi, Magna's recent acquisition in Germany has received praise from most analysts. However, stock price appears to languish and trade even below the level stock was trading before this announcement ($72).There was also huge volatility/trading, on first two days after this news ( high of $74.50 and low of $68.50).I started a position in Magna recently and would appreciate your comments. Thanks
Read Answer Asked by rajeev on July 27, 2015
Q: This is perhaps the most naive question you've ever answered in your life, but I just have to ask anyway. How do ETFs actually work, in respect to dividends? That is, where do all the dividends go, from the respective companies within one ETF?

For example, I note that VGG has a dividend yield of 1.5%, while any of the single companies within the ETF outperform its yield -- Microsoft, as an example, has a present yield of 2.6% and JNJ is at 3.0%. If one were looking for a decent income stream, wouldn't it be better to simply put your money into the individual stocks and then reap the better reward?

I understand the diversity that is provided by holding an entire basket, but I have found that ETFs very rarely outperform good equities, if they went toe to toe -- and there is always the risk of the under performing equities held within that basket.

In any case, I am still wondering where all the dividends go, from the individual companies, and whether the end consumer ever really profits much from it.

Does the fund manager rake it all in, from the equities? Who wins, who loses on this type of trade.

My apologies if this question should be in the Stupid Queue, but I've just never understood why ETF yields are so much lower, for the most part, than the equities they hold.

Thank you.
Read Answer Asked by Sylvia on July 27, 2015
Q: Could I have your opinion on their acquisition of Keller Fay Group?
Read Answer Asked by sandy on July 27, 2015
Q: I have some Eld shares I got at $5.50 do you recommend buy more,hold or sell sell sell?
Read Answer Asked by Mark on July 27, 2015
Q: What's your outlook on Sears. I'm underwater on this name, have held since Nov 2013. Should I move on? I'm a new member, really appreciate the site. Thank you
Read Answer Asked by Gilles on July 27, 2015
Q: The junior gold space is looking quite enticing to me.
Do you think a toe could be put in the water here and would PLG and/or TMM be good candidates?
Do you have a favourite junior gold?
Read Answer Asked by richard on July 27, 2015
Q: Mr. Hodson,you seem to have both admiration and some ambivalence towards VRX, which might have some Nortel flavour to some extent. In fact, you feel it might have too much debt, and this makes it a risky stock.
Read Answer Asked by Serge on July 27, 2015
Q: Hello Peter et al,
I am still holding the Tuckamore Debs TX.DB.B. They mature Mar 2016 and are supposedly secured. Insiders own about 15% of the common stock and I thought their holdings would go to zero if necessary to pay off secured debt. But with the debs trading at about 80 there appears to be a fly in the ointment. Any thoughts as to what Mar. 2016 might bring.
Read Answer Asked by Robert on July 27, 2015
Q: You may have read the Barrons article of a few days ago. I would think it may have contributed to the further weakness of the SP. It sounds like a bit of a hatchet job but do you consider it has much merit? I currently own 600 shares at an average cost of $41, and although I still like the stock, think it might be prudent to sell half in case of further weakness or a prolonged sideways slide. What would you do? It is still just 5% of my portfolio. I continue to berate myself for falling in love with companies. Thanks.
Read Answer Asked by Jim on July 27, 2015
Q: I keep wondering if exchanging these 3 increasingly weakening positions for alternate positions with more optimistic horizons might be a more prudent move. What sage advice might your team have? As well, are you holding steady with Whitecap? I have difficulty in seeing the oil market with any upside over the next couple of years....
Read Answer Asked by Claus on July 27, 2015
Q: Now with Catamaran Com being removed from my portfolio I am wondering if I should replace with with GUD or with several of the ones mentioned in the growth portfolio? I have no health care stock currently. I also have no tech stocks and wondered if this would be better than a health stock?

Thanks
Dolores
Read Answer Asked on July 27, 2015
Q: Thoughts on PFB corp? Good dividend, good price to book, debt seems manageable. PE is a bit higher then I like.
Read Answer Asked by Rob on July 27, 2015
Q: Could I have your current opinion of Wilan please. A good time to buy? I have a half position and andother half would bring me to about 1.5% of my total portfolio. Thanks
Read Answer Asked by Bob on July 27, 2015
Q: Curiosity has just got the best of me...how did 5i Research get the name 5i Research?
Read Answer Asked by David on July 26, 2015
Q: Peter; I feel like throwing the towel in on my oil stocks - so does mean total capitulation is close and one should slowly be adding some of the material sector? Thanks.Rod
Read Answer Asked by Rodney on July 24, 2015
Q: Good Morning.

I was wondering if you could give us your view on the company given the recent Mr. Lube trademark acquisition.

Thanks Scott
Read Answer Asked by Scott on July 24, 2015
Q: Further to my question a couple of days ago, Superior Plus from your Income portfolio has been placed on webbroker action list buy. Thought you might be interested.
Thanks again for your help

"Superior Plus Corp. (SPB-T) C$11.46 ...... 7
ACTION LIST BUY  (Prior: BUY);Target: C$16.50  (Unchanged)
Buying Opportunity on Q2 Miss; Upgrading to ACTION LIST BUY"
Read Answer Asked by Rick on July 24, 2015
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