Investment Q&A

Q: I found Eugene's question on investing in monopolies very interesting, as it has formed the backbone of my investment strategy for about 20 years. While absolute monopolies may not exist, in Canada we do have some oligopolies that are very powerful. In their response 5i referred to banks nd telecom. I would suggest adding rail and pipeline to the discussion. Think about how difficult it is to build out large scale infrastructure in N.A. these days due to politics, nimbyism etc... For example, I have owned CNR and ENB since 1997. I invite fellow members to go to longrundtata.com (a great site, previously recommended by 5i) and check out the long run returns of such companies. There is no way CNR and ENB could outperform by that margin, for so many years, without significant barriers to entry in their industry. The marketplace is just too competetive for that. These companies obviuosly have the tables tilted in their favour and in the long run have been excellent holds. Personally I add to them every year. Just my two cents, sorry for being long winded.

Q: I understand this Co. is involved in gene cell engineering, mainly in Cancer research.It is the company that has made an offer to purchase the Summerland Research company that pioneered the Artic Apple.The stock itself appears to be volatile and I know that you do not cover US stocks per se, but it appeared on BNN 10 days ago in a segment of new and innovative companies on the horizon? I wonder if you are aware of this company and could provide any further information on it?Thank you. I am "hooked" on your site.Thank you.

Q: Hello, can you comment please on the recent earnings report. I have held a position for about a year and like the fact their dividend has been sustained as well in this downturn. The market seems pleased with the results. Thank you, Bill

Q: Hi again! Doing my portfolio review so I have a few questions. Trying to increase my exposure to fixed income, what would you recommend?

Q: Hello.
I am thinking of adding to a small position in Leon. It has retracted quite a bit recently. Does that make an attractive entry point? Also the closing of future shops, which sold appliances as well as electronics should open up a window for the competitors. also thank you for the wonderful service, and I would like to express the opinion that I do not agree with the people who are in the starting block for the release of a new portfolio and ready for the market open with their orders, showing impatience to your service. Feel free to publish.

Q: Hi,
I have full positions (4%) in both TOU and BAD for exposure (mostly) to energy. I would like one more full position for energy exposure for diversification purposes, what would you recommend?
Thank you

Q: What can you tell me about PHM Is the high volume and rising price justified?

Q: Hi team.
What is your view on SAS for a two to three year hold.Seems like Sprott sold a very large holding yesterday due to "liquidation" issues.I am looking for a possible seasonal trade late September or so as my holding is to large.
Thank you

Q: Hi,

Since BCIs positive earnings report on Mar 16, the stock price has been dropping every day, even yesterday, when most companies were up?

I have about 5% of my CDN holdings in BCI and am up 30%. Should I trim, sell, or just hold on, as I am a long term investor.

Q: Just noticing CPD is at its 52 week low, also ZPR close to its 52 week low. Are they a good investment for income and if so when is a good time to buy them? Thanks

Q: Is PDP the next CRH?

Q: I can not find the changes to the balanced equity portfolio. The march update for this portfolio is not listed on the latest report section. Where do I look to find it?
Thanks

Q: Hi! I don't have much exposure to interest rate sensitive sectors such as telecoms, utilities, REITs, etc. With rates expected to rise eventually (we think!) would it be prudent to wait since historically there seems to be a short-term overreaction in the market and a short-term sell off even though longer term the impact is negligible. Should I start building a position in these Companies now or wait for a short-term interest rate correction or half now and half later. Also, do you prefer Telus over BCE and do you think the Conservatives desire for a 4th carrier will subside eventually or only with a change in government?

Thanks for your help,
Jason

Q: I'm holding on to this with a big percentage loss. Would you please comment on the results - they sound better than I expected.

Phil

Q: Hi 5i. When talking about investing in a business, monopolies (or those that don't have competition) tend to win and have this durable competitive advantage. What would you guys say is a near-monopoly companies that are worth investing in?

Q: When it comes to investing in the US economy versus the Canadian economy, how do you treat companies like SU, BNS, OTC, BIN et al. that are listed on both Canadian and US markets?

Q: Hello Peter and group: Would like your opinion on Capital One Financial. I used to think of this company (not sure why) as somehow a little "tainted" but see that it is now on S&P's "five star" list. Thanks, Don

Q: Hi Peter and Staff
Are you still high on this company? Also, confused (normal) as to where it belongs sectorwise. Think I have been told utilities but I have a hard time comparing it to the likes of Fortis,Northland,Valener due to its businesses including fuel distribution ?
Thanks for all you do

Q: I have a family RESP with: $37K BYD.un; $44K CSU; $7K FSZ; $18K RY; and $82K cash. Two of the 3 beneficiaries are in their first year of a 4 yr program, and the third beneficiary won't be out of high school until June 2019.
I'll likely be taking out about $30K per year of EAP for both currently eligible kids. My plan is to keep the contributions and take as much earnings and grant out for the first two kids as I'm not sure what's going to happen with the last child.
About $100K is due to contributions (untouched).
I think BYD and CSU are definite keepers. I believe you still have faith in FSZ (but in the last 18 months I've held it there's been an overall 2% loss). I'm not sure what to do with RY and the cash balance.
I'd love to hear your suggestions!

Q: What is your opinion of HEP for exposure to gold. Do they really pay over 10% dividend and can they maintain it? I have 1% allocation and planning to add to it.
Thanks