Investment Q&A

Q: Hi Peter and team,

In the past you have mentioned how when a company reaches a certain market cap threshold (e.g. one billion dollars) it starts to attract more interest from investors.

When the reverse happens (i.e. when a company's market cap falls below these thresholds), do these investors start unloading, helping to increase the negative stock momentum?

The case in point is Surge (SGY). As of close on Monday it's market cap is now 970 million (below the magic billion dollar threshold). A week ago Monday its market cap was over 1.3 billion dollars.

In addition to OPEC, US production increases, tax-loss selling, and year-end portfolio positioning, can this also be a contributing factor for the accelerating downturn in some stocks like SGY.

Paul J

Q: Hi,

Would your opinion on SOX change after their recent purchase. How much of their business will be impacted by Oil & Gas sector.

Q: H2O went from 33 cents to 1.65, I bought at 33. Sell? Hold? Any idea why the sudden jump in price? Also, I bought more SGY today at $4.41, I believe it's good timing - as long as they don't go out of business. Any comment on that possibility?

Many thanks, like many other customers of yours, you've made investing more interesting and profitable and I greatly appreciate and feel very fortunate to have you out there.

Dave

Q: Hi, I noticed in your last email update you mentioned you had a new mobile app available for Android phones and others but you did not mention the iPhones. Is this app not available for all of us iphone users? If not any plans for us in the near future? Thanks.

Q: Hi Peter and 5iResearch Group,
As you have noted that interest rates will likely remain low for sometime, would you recommend using ETFs for medium and/or long-term bond portfolio positions vs. purchasing individual bonds. Also, should both US and Cdn. bonds in each/either category be purchased? Thank you. Linda

Q: re: Linda's question on DBC and the Dalio formula. Linda may want to look at USCI; in my estimation its a superior ETF/ETN.
Paul

Q: hello 5i:
the Glentel sale is interesting, and good for those who hold shares. What effect, positive or negative, would the acquisition have on BCE shares (I hold BCE and have for many years). Is this an astute acquisition? Did BCE overpay?
thanks
Paul L

Q: Hi guys, as you have said oil stocks have been decimated, I have BTE & CPG, where the value has been cut in half my CNQ is hanging in haven't lost any there yet. They are in different portfolios and their weighting is pretty good in the perspective portfolio. Would it be wise to add to the positions at this time to average down. I don't have cash I would have to cut back on some of my gains. Thanks, Nick

Q: if I am looking at buying one of these 3 pipeline stocks for the dividend, which one would you recommend

Q: Good Morning
Some oil industry analysts believe that with the OPEC card no longer in play, the price of crude could fall as low as $60. Under this scenario are the companies in your portfolios (SGY, WCP) as well as VET, CNQ and SU at risk with respect to dividend cuts?

Q: I own Bdi cpg,tou and wcp. Which two are safest going forward?Thanks

Q: I have a TFSA and have 5k invested equally into the 5 etf xid cif chi cdz cud. I can purchase these commission free. My plan is to purchase equal amounts of these once a month. Could I please get your comments on this strategy.

Q: A question on buying stocks on the NYSE or Nasdaq exchange. I have never bought a stock on an exchange outside of Canada, and am very ignorant of the consequences. As an example I would like to buy Apple, and realize I have to pay in U.S. dollars, plus a small fee for exchange both on buying and selling the stock. I have a RRIF, an RSP, and a TFSA and any buying would be through one of these. Is there any problem with me holding a US stock in these programs and is there any tax consequences? Is there any other problems I am not aware of? Thank you.

Q: The price of Legacy Oil and Gas (LEG) dropped over 10% yesterday. Do you see any particular reason for the huge drop yesterday? Would you consider LEG to be a Buy at this price?

Q: Considering adding to Stantec after recent 15% pull-back from Sept. highs. Your most recent comments suggested recent performance could be result of sector rotation. Wondering if STN does significant amount of work in energy area and if this could be contributing factor in recent decline?

Q: Wife and I are both in RRIF and depends on withdrawal roughly in line with gov. age minimum. For investment purposes, is it wise to consider our CPP and OAS as fixed income? and therefore can increase our dividend equities. Right now we are both roughly 50/50 in RRIF not considering CCP and OAS. Thanks

Q: Hi Peter and 5iResearch Team,
In his new financial book, Anthony Robbins interviewed Billionaire Hedge Fund Manager, Ray Dalio, who recommends that 7.5% of a portfolio should be invested in diversified commodities. Can you recommend a good quality ETF that provides a diversified portfolio of commodities for a LT hold? Thank you. Linda

Q: Hello Peter and Team,
I find little discussion on this forum regarding this company ... the last questiona asked was in August of this year. In a recent analysis posted by the Globe and Mail regarding the best comparative value amongst the top ten Cdn Oil producers, Birchcliff scored better than the average in 6 of 7 categories. Neither the Globe&Mail, nor BMO Investorline provide dividend info, but according to BIR`s website,the most recent payouts were .50/quarter. Could you provide your own insight into this stock and do you have any info regarding their current postion regarding their dividend? Thanks as always for an invaluable service!
Rick

Q: You often make reference to diversification being the best defence against ups and downs in the market and that timing the market is a mugs game. I have seen the benefits of diversification in my own accounts but I am confused by what exactly defines "market timing".

I have two examples. One, many analysts talk about "going defensive" and buying defensive stocks, (whatever they are). Secondly, you talk about certain sectors being cyclical (oil, automotive to name a couple) and you even recently suggested, when referring to XTC "When inflation hits and interest rates rise for a sustained period of time to slow things down in the economy, it will be time to leave the ballpark.". Having made that remark, you still do suggest we stay in energy.

My question is, when is leaving a sector or "going defensive" considered market timing and when is it just good investment sense (if ever)? Or should we never really think in these terms and simply buy good companies, maintain a diversified portfolio and always ignore the ups and downs?

Looking forward to your valuable insight.

Paul F.

Q: There seems to be a real hate for this stock today compared to most others in the sector. I am holding it through all this carnage but am starting to feel queezy. Is there something else that could be causing this other than sheer market panic and stupidity?