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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: In your report, it recommends to tender the Burger King offer. How would that work for capital gains. For example if 100 shares were bought at $50/share. You would receive $6550 in cash and 80.25 Burger King shares.
Read Answer Asked by Ian on November 24, 2014
Q: Hello Peter & Co,
In the fall of 2008 (I was then 65) I converted my RRSP portfolio to cash with the intention of taking over the responsibility of managing the investments; the objective was to generate a 7% compound annual return with the assumption of a 3% annual inflation rate on the income for the next 25 years. My retirement would have been 60% from the RRSP (now RRIF) portfolio and 40% from fixed/guaranteed sources such as CPP, OAS and a very small private pension.
Since the portfolio's inception date of June 30, 2009 (I am now 71) I have managed to get a much higher compound annual return of 17% (all in equity at a low beta volatility of 0.4), which has allowed me to double the RRIF income (vs the original plan) and assuming a reversion to the original 7% compound return for the next 20 years.
As a consequence, the original income split of 60/40 will now be 70/30; in light of that, I a wondering if I should reduce the equity portion of the portfolio to arrive at 60/40.
Would it be wise to do so?
Thanks,
Tony
Read Answer Asked by Antoine on November 24, 2014
Q: Could you please give me your views on crtx. Would you buy at this level or do you like constallation software better?
Read Answer Asked by Darryl on November 24, 2014
Q: Hello everyone,
I have a bit of cash hanging around and debating on either of the two above-mentioned stocks...I'm aware it's foolish to try and time the market; however, both stocks have an impending deadline for me:
1) ATD.b will drop, rise or flatline tomorrow based upon earnins report, hence the time factor;
2) SGy ex div is the 26th, once more the time factor...

Would like to know your input on both options.

cheers

Stu
Read Answer Asked by Stu on November 24, 2014
Q: While on the topic of the role that analysts play, while I do not make a purchase based on the usual analyst's comments (that is where 5i comes in!) I do find it useful to know what they think as it prepares me for stock movements and does sometimes provide food for thought.

I am often confused, however, by how they phrase their recommendations. For example, the following was taken from today's Globe: "Raymond James downgraded Chevron to "outperform" from "strong buy" with a price target of $140 (U.S.)" Given the current price of Chevron ($117 US) and its 3.7% dividend, that represents close to a 25% gain they are expecting! Does this mean they expect most oil companies to grown more than 25% this year, since this would not represent out-performance? What should we take from this type of comment - anything?

Your opinion is greatly valued.

Thanks.

Paul F.
Read Answer Asked by Paul on November 24, 2014
Q: In the event that the Trans Canada Pipeline gets approved, which company names do you believe would best appreciate? Trp?
Read Answer Asked by Duwayne on November 24, 2014
Q: would appreciate a comment on the co. and last quarters less-than-stellar earnings. Thanks
Read Answer Asked by george on November 24, 2014
Q: Okay, of the two American Express and Discovery- your preference and why and is there a third I have not considered- that perhaps I should. looking at a 5 yr hold all things being equal.
Read Answer Asked by Warren on November 24, 2014
Q: I see CHW dropped another 4.5% today to a 52-week low. Is there any apparent reason for this decline? Is there an imminent risk that it will not be able to maintain its 6.5% dividend?

Your thoughts would be appreciated

Jim
Read Answer Asked by James on November 24, 2014
Q: As you know there have been concerns regarding Baytex debt level in the face of falling oil prices and the falloff in stock price is blamed on the risk of a cut in the dividend. Information on the company website shows that their heavy oil is 51% hedged at $96.45 for Q4 2014 and 45% hedged at $96.45 for Q1 2015. They do have $1.38 billion in long term debt but almost none matures until 2021, and they have a very low payout ratio. It seems to me that the concerns are overblown, what is your opinion?
Many thanks.
Read Answer Asked by richard on November 24, 2014
Q: I've been looking at AHF as a buy with the recent stock weakness and the dividend now at 6%.
One thing I noticed in the stock quote summary was the large discrepency between the share float vs outstanding shares - 55M vs 89.9M.
Is this due to insider ownership?
I also noticed they have some convertible debt.
Are any of these factors something to be concerned about?
Read Answer Asked by Rick on November 24, 2014
Q: I currently hold 10% of my portfolio in four energy companies.... CPG, FRU, SGY, and WCP. This morning the Globe is running an article that states oil could drop to $60 a barrel if the Saudi's don't cut their production. How will these four companies fare at $60 oil? I bought all four near the bottom and am up on all of them, with FRU being up over 10%. Thanks for your input.
Read Answer Asked by Paul W on November 24, 2014
Q: Hi - your comments on the acquisition in Korea today. It looks like an accretive buy, and could provide some nice synergies. thoughts on the issuance of more shares to help finance?
Read Answer Asked by Scott on November 24, 2014
Q: Hello Peter, Ryan, and Team,
Fam Reit is undergoing a transformation under new managers. It is to become solely an office reit(suburban focus).Fam is to acquire a seven building package from Slate with a 91% occupancy. With these major changes, it will not be the REIT I purchased. With many uncertainties, could I have your assessment of whether it is a hold or sell at this time?
Read Answer Asked by Bruce on November 24, 2014
Q: Good day 5i
I am planning to adjust my energy E&P holdings which include TOU CVE ECA BNP. I believe this sector is undervalued and would like to strengthen my holdings. BNP is in a loss px but I can use that to offset some CG rqd to adjust weights of some long time winners.

I plan to sell BNP due to its poor performance. M-star anylysts are critical of its mgt of resource assets.

Could you rank my holdings along with a few others, that I know you like, to enable me to take advantage of sector undervaluation to restructure.

As always, your advice is appreciated

ernie
Read Answer Asked by Ernie on November 24, 2014
Q: Hi..I could you tell me anything about MCW Energy Group MCW.V ?
Thanks
Read Answer Asked by Mike on November 24, 2014