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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: Any thoughts on this company? The prospects seem better than ever.
Read Answer Asked by Murray on March 24, 2015
Q: Are rate reset preferred shares an investment vehicle that should be avoided?
I am referring to the present practice of companies issuing rate resets by increasing the INTEREST RATE SPREAD (which is added to the 5 year Government bond) higher and higher each time they issue these shares.

For instance, yesterday Veresen issued VSN.PR.E with a spread of 4.27%. Prior to that the VSN.PR.C had a spread of 3.01% and VSN.PR.A had a spread of only 2.92%. Naturally, as soon as news got out of the higher spread of VSN.PR.E both VSN.PR.A and VSN.PR.C were hit hard.

My question therefore is should we stop buying the rate resets? I presume one will keep losing money because a company will keep raising the interest spread whenever they issue new preferreds. It is not only Veresen that is doing this but Husky has done it as well.
I currently own both VSN.PR.A and VSN.PR.C and both have been hit hard after the announcement of the new issue (VSN.PR.E). Should I sell them or is there a chance that they will recover in the future.
Read Answer Asked by Terry on March 24, 2015
Q: I have taken 50000.00 for a quick trading account and it is split into my wife's and my TFSA's. I plan to actively trade these accounts and the plan is to profit from quick price changes in active companies: like BTO, SGY. I have been doing this for the last couple of months and have increased the account value by 7000.00
My question is this.
On BNN yesterday I heard that TFSA's may be taxed on quick traders. Have you any information that can help me on this. If the gains will be taxed I might as well put the money into RRSP's and RESPs.
Thank you
Read Answer Asked by Ronald on March 24, 2015
Q: Hi Peter and team,
It seems that ACQ is oversold and I'm thinking about starting a new position - it looks attractive to me at $32 range it trades today. What is your advice on this stock in current market conditions: full position, half position, or nothing? In terms of portfolio allocation I have less than 6% in Consumer Discretionary, despite it's indirect exposure to oil prices I assume ACQ should still be considered a CD sector? My timeframe is 3-5 years.
Thanks.
Read Answer Asked by Michael on March 24, 2015
Q: Hello 5i,

My CAN/US REIT portfolio needs some rebalancing and I'm thinking of buying National Health Investor (NHI)or Health Care REIT (HCN). I already hold HCP(HCP)therefore think NHI is the better choice here. What are your thoughts on this. I like to buy stocks for the long term with stability and some growth in mind, cuts down on maintenance.
Thanks,
Read Answer Asked by Mark on March 24, 2015
Q: Is Badger Daylighting a good buy at this price range, and if so
why?
Read Answer Asked by Howard on March 24, 2015
Q: There is something I do not understand with CSU borrowing at current 8.5%( 6.5+inflation-cpi). I compare with Potash offering ten year notes at 3%. and 5 yr mortgages at 3%.
I would rather be a cheerleader for CSU having it since 3years. I know that the rights trading price will be a way for the market to let the current shareholders benefit from this. Coulnt't CSU find cheaper financing? If not wouldn't it make one a little uneasy on the continuing holding it.
Read Answer Asked by francois on March 24, 2015
Q: Goodmorning Peter and Team!!!! It's minus 9...got the reggae playing and am eyeing the shorts and flip flops...please tell me that this weather has to improve. On that note, what are your thoughts on Brookfield Asset Management? Is it a buy at this level or should I wait for a pull back? Thinking warm thoughts, Tamara
Read Answer Asked by Tamara on March 24, 2015
Q: What Canadian Companies benefit from Low Canadian Dollar and have lots of sales in USA. I thought of CLR,SAP,HLF, GIL, ADT.B,MRE, DRT,TD ( with US branches and Ameritrade ),Lumber WEF.
What are others and what do you think of names above?
Bob Kirvan
Read Answer Asked by bob on March 24, 2015
Q: I consider a 4.5% loss of capital a very poor trade for a 6% raise in div
Stan Zuke
Read Answer Asked by Stan on March 24, 2015
Q: Is this a good time to step into Europe, using FHB as an
introduction to European banking.
Read Answer Asked by Howard on March 24, 2015
Q: Good day Peter, Ryan and gang. I have a friend who may be joining 5i quite soon, who has just come into her inheritance and she is going to start with her first TFSA. She will probably want to buy slowly as she learns. I offered to suggest a bit to get her started on her journey. She is 60 and a newbie to any type of investing. I am thinking of growth with a bit of dividend (or visa versa or both) Canadian ETF(s). And maybe a few stable good dividend stocks to start learning about. She plans to hold and let them grow (hopefully) while she learns. I much appreciate your help with this. Thank you as always. You are the best and I boast about you a lot.
Read Answer Asked by El-ann on March 24, 2015
Q: What do you think of CYS Investment, a US company. I understand that it is a REIT with a high dividend. What can you tell on this company? How it will be affected by a raise in the interest rate? Do you think that the dividend is safe and do you recommend to buy it for income? Or do you have better suggestions?

Thanks for your great service, Michel
Read Answer Asked by Michel on March 24, 2015
Q: Hello, when I step back and review my investing style over the years I come to the conclusion that I am:

1. Too chicken to buy gold
2. Too greedy to buy utilities
3. Too bored with telecoms.

Do you think it is ok or possible to be properly diversified without holding any of these sectors? Or should I seek therapy? Thank you.
Read Answer Asked by Adam on March 24, 2015
Q: Hi Peter and team. I have opened a $35,000 TFSA for my daughter and would like your recommendations for 4 to 5 names for income and growth.
Thank you,
Nick
Read Answer Asked by Nick on March 24, 2015
Q: Can you please comment on their latest figures and short-term prospects. I've held it for a long time and have a nice profit. I'm wondering if there is much more upside or I'm better off with cash for something more worthwhile. I don't really need the money otherwise.

Thanks to everyone on the team.
Read Answer Asked by Molly on March 24, 2015
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