Investment Q&A

Q: Question and suggestion: Diversification/ sector allocation/Portfolio Rebalancing is such a frequent topic that I wonder if there should be a seperate category heading for it.

I am one of those who is still trying to get "diversification" right (read burnt by being overweight Energy) and have been combing through "Market Strategy" and "Market Outlook" for guidance.

Should I be looking elsewhere on your site?

It seems clear to me that your advice currently is: 10% Energy, up to 10% Telcos, 10-15% Financials. Beyond that I am not sure.

No doubt how a question was phrased would affect your answer, but on October 8 Utility weighting was 10% and on December 24th (a Q from Ray) Utilities were 0%.

Any help you can provide here would be greatly appreciated.

Q: More of a comment than anything else-if you have a 3-5 year view and can pick energy companies that will not go under, this has to be presenting itself as a great opportunity to purchase and just wait it out. I would think Whitecap, Torc, Suncor just to name a few.

Q: Peter and Ryan and Team,

Just curious on your thoughts regarding Amaya's announcement of a normal course issuer bid this morning. It seems to me that the management is showing a lot of confidence in their company and signifying (maybe) that the insider trading investigation will not be a problem.

Your thoughts?

Q: Hello all! Can you shed some light on what is causing the Amaya bounce today?
Thanks
Dave

Q: I would appreciate your reaction to the press release issued by Amaya this morning. Thank you, Peter

Q: My wife maintains a small portion of her RRSP in 7or 8 stocks. We purchased 500 shares of Sgy at 6.90, and want to know if you would recommend buying another 500 at current prices?? Want to hold for the longer term. Thanks

Q: Just a comment on Carfinco declined today: Carfinco Financial Group Inc. lowered its January dividend to $0.025 from $0.04 in December, with management noting that the firm has seen an increase in delinquencies and losses on its receivable portfolio in recent months.

Q: Carfinco states "increase in both delinquencies and losses on the finance receivable portfolio in recent months" as the reason for the 38% dividend cut. If they knew the takeover was off would they not have an obligation to disclose with this announcement? And if the deal is off would there not be a break fee coming to CFN as damages that would allow them to continue the higher dividend? Finally it looks to me like selling has been pretty consistent through Monday so it would seem that someone knows something, wouldn't you agree? Thanks, J.

Q: Hello 5i team,

Dec 31st you finished your answer with "there is a good chance that this earnings forecast will move lower."

Today the stock is down almost 10%. Are there any other reasons other than what you mention on the 31st for this decline? Or is it purely a result of the falling oil prices?

Thanks for all you do

Gord

Q: I see Carfinco off sharply today.
What is happening??
Is the seal off??

Q: Hi Peter and team,
XLE is -10.23% and XEG is -20.93% in the last 12 months. If I were to add energy in my RRIF portfolio, would you recommend XEG or XLE and why? I own 8% energy (SU, COS % XEG totaling 8%)My intention is to sell EWH and replace with XLE
Thanks, Karl

Q: Hello Peter!

All the stocks from your Model Portfolio accept for Amaya have been trading on the TSX more than 7 years and if the Model Portfolio would be at that time in existence that all of the stocks from Model Portfolio would participate in 2008 stock market crash.

I compared stocks from Model Portfolio to Daily Frame Chart of S&P 500 and noticed that all of them would be
very much affected by "Death Cross" (EMA50 / EMA200) on S&P500 started on the middle of January 2008 and ending with "V" bottom in March 2009.
If one would ride out Model Portfolio through this, then devastation would be at least 50% or more.

My question is do you have any point like "Ded Cross" on S&P 500 or some different criteria that the situation would force you to
"go to cash" with entire Model or future Growth Portfolio to avoid stock market crash losses, and would you advise 5i Research members if the situation would arrive or would you ride it out through the crash.

Regards Andrew B.

Q: What is your view on Contagious Gaming Inc.(CNS). The volume picked up after a long decline. Also concerning all gaming companies, would the availability of software playing perfect poker (www.bbc.com/news/science-environment-30718558) discourage online palyers? Thanks for your great service.
Peter

Q: My question is on M-x as well as M.PR-x as I hold some of each. How do you feel about this stock going forward? What do you think of its underlying holdings in our current low energy environment? How much of their business is Alberta based? And how safe is the cash flow in terms of covering their preferred dividend? Thanks for your help.

Q: Happy New Year Team!!
I am looking at putting together a new TFSA portfolio of ETFs with the following considerations:
-$36500 to invest.
-time horizon 10 years +.
-target 10% growth per year.
-goal of a diversified mix with exposure in and outside of Canada.

Question: Which ETF's in which categories would you recommend? (ie. Canadian, US, International, Sectors, Bonds, Dividends, etc.)
Thank you, I look forward to your reply.

Q: I currently own some M.PR.A preferred shares in my TFSA (since they are interest-bearing and hence not eligible for the dividend tax credit). They appear to be true perpetual prefs (i.e. no issuer redemption or shareholder retraction provisions) offering $1.00 in annual interest. At their current price of $10.05, this is nearly 10% p.a.

Given their attractive interest rate and "seniority" to the common shares, as well as the seemingly diversified nature of Mosaic's underlying business, I am considering purchasing more. Can you provide me with any indication as to the risks associated with Mosaic and these preferred shares?

Thank you!

Q: Hi Peter,

The previous question was more about market sentiment than anything company specific. I hold a very diversified list of 40 stocks but the list I provided were the worst offenders.

Maybe I should find a new hobby like stamp collecting or better yet get a gym membership until the market uncertainty passes which I suspect will take a few more months.

Thanks

Q: Would you please recommend 4 small cap growth stocks.
High risk long term is OK.
Thanks in advance.
Stephen

Q: Peter and Team,
We have Tourmaline, Surge, Manitok & Corridor in ~equal amounts. Does it make sense at this time to sell the lesser known Mei and/or Cdh to top up our Tou and Sgy with the mind they are better known bigger producers and will likely see more attention when the sector turns ? Other tacts are to stay put or use the proceeds somewhere else (Wcp ?). Thank you, and have a great weekend. Paul

Q: Hi Peter,

What are my rights, if any, to ask and expect honest answer from a company where I am a shareholder? For example, am I permitted to call a person in charge of investor relations of a corporation and ask specific questions about their balance sheet or strategy or lack thereof? If I'm not satisfied with the answers in that I am rebuffed, do I have an avenue to seek assistance from a regulatory agency to discuss my experience and hence improve transparency. Thank you for your time.