Investment Q&A

Q: Hi Peter and 5i Team:
I have a small position in NRG and would like to. Sell and buy some more AVG as a dollar cost averaging strategy; as I bought it at $29. Do you like NRG? Is is a good long term hold . Or would you agree on my reason to sell it?
Alternatively, I was going to sell NRG and buy ELW as it has really got hammered and I like the management team for a 2-3 year hold? In your humble opinion which strategy do you think would make most sense for a above risk portfolio and greater growth prospect ? Than you so much.
Romeo

Q: I am surprised at the huge decline in the oil services stock. Savannah has reached 2008 levels? I thought this time around it was not 2008 all over again! Unfortunately things went down so fast that I did not react and am down on precision and savannah over 50 per cent. Precision actually raised its dividend before all this carnage. My question: surely the bottom is close and would you start adding to bring down the average cost. Thanks for a great 5i forum.

Q: I have just read that CRA is investigating TFSA trading accounts.Apparently if you do a lot of trades and get quite good at it,individuals or their institutions could be taxed and you cannot withdraw money while being investigated.Could you some light on this subject.As usual tks 5I

Q: Hi 5i team,

Suggestions for starting a TFSA with 10k initial investment. I was thinking of 3 stocks from diverse sectors. low - med - high risk.
SGY (or WCP) high
DHX.B med
TD low
roughly 3k each. Thoughts?

This TFSA complements a large portfolio of mutual funds that are properly diversified.

As an aside would you substitute BTE for any of the above mentioned candidates?

Q: Recently, D.UN made the following announcement that appeared as an 'Early Warning Report in Respect of Dream Industrial Real Estate Investment Trust'.
'DREAM OFFICE REIT (TSX: D.UN) announces that a subsidiary of Dream Office REIT (the "Property Vendor") acquired ownership of 2,269,759 LP Class B Units ("LP B Units") of Dream Industrial LP and a corresponding 2,269,759 special trust units ("Special Trust Units") of Dream Industrial Real Estate Investment Trust ("Dream Industrial REIT").'

What does this mean?

Q: RE: NAL.TO

I think the company may be affected by lower oil prices in two ways: First, it may get let work to do; and second, the recovered oil may get a lower price.

After taking consideration of the new reality, would you recommend it as part of a portfolio? Can we say Newalta is a potential Peter Lynch favorite that is boring and involving dirty, even disgusting, wastes?

Q: 12:06 PM 12/6/2014
Hello Peter

It is said repeatedly that stocks in interest sensitive sectors like banks, pipelines, power producers, utilities, and real estate, will suffer if interest rates rise in the years ahead.

It would seem to me that with today's remarkably low rates that any responsible company officials and boards of directors would be securing all necessary very long term low interest rate financing for a decade or more in advance. Surely they would be irresponsible and negligent not to.

Fixed Income is the only real income investing option other than stocks. Bond yields would have to rise to the 5+% range to be any real competition for Dividends in the 4-5% range, and that seems unlikely in the next 5 years or more [just look at Japan] given all the almost unpayable Government debts in most countries.

So why then are "interest sensitive" stocks vulnerable?

I really have little option but to invest in these large companies with good dividends for ongoing income. So should we be concerned?

Many thanks....... Paul K

Q: I have 40% weighting in financials in my RIF A/C, and 20% in energy. I plan to 1) sell BBT (US Bank) and buy either Telus as I have no exposure to telecoms, or Coach. 2) sell FSZ and buy AW.UN and XTC. 3)Hold on to Athabasca oil for another three years. I have lost 70% of the value in this stock.
Your advice please. Thanks always for your excellent advice.

Q: I recently heard that this coy was a good long term hold,with good immiediate prospects Please

Q: Is this coy still going to be able to maintain their dividend,
I recently bought ,but it keeps going down Brian

Q: As far as I can determine, Slyce (V.SLC) is the only visual search pure play in which one can invest. As a public company it can raise funds to develop further and really extend its lead on the competition and become the 'go to' player in that industry niche.

Looking thru SEDI and recent news releases, I calculate the holdings of management, officers and directors at 7.2m shares - this includes the shares given to owners of the two recent acquisitions, BuyCode and Drivetrain. There are also three entities deemed insiders which own a total of 11.2m shares - i.e. BIG, BBG and Salida.

This brings total insider holdings to 18.4m shares out of 106.2 issued, or 17.2%

Q: Hello 5i,
I'd like to get your take on Sandvine Corp. Their technoloigy is intriging and I could see sector growing in the future. Last quarter was weak but it seemed to be more related to contract timing and they have since signed a few new deals, and they've got a ton of cash on the balance sheet. Is this stock a good buy right now for 1-2 year time frame?

Q: Hello,

My investment in Enterprise Group is now down 54%. It is held in a registered account and, at current valuations, represents just 0.5% of my portfolio. Is it time to sell this stock and preserve the remaining capital?

Thank you.

Q: All of a sudden we are seeing shortfalls in bank earnings and subsequent share price declines. Albeit on a much smaller scale, are we seeing the Financial Sector rollover and/or another oil and gas type of sector rotation?

Or, if one is under invested in this sector would this be a good time to put new or additional dollars to work?

And if so what would your preferred financials be?

Thank you.

Q: This question may be duplicated. Something awkward happened during submission. Please delete if you got this twice.

I have very little exposure in oil and gaz, owning small portions of companies indirectly associated to the industry - QST, LSI and WPT/CLNE (big mistake). I have been closely monitoring the questions on O&G and would like to participate in its eventual success. I have seen questions on Surge (SGY), Spartan (SPE), Whitecap (WCP), Vermilion, Black Diamond, Peyto (PEY) and Tourmaline (TOU), High Arctic Energy (HWO), Baytex (BTE) all of which appear to be well liked (but I can't buy them all). I have also seen comments on others such as RMP Energy, Raging River, Rock Energy and Parex PXT which are debt (or close to) debt free, which is very important in these strenuous times.

I am a very long term investor and would like to keep my risk to a minimum. Normally, I am open to more risk but I believe that there is sufficient blood on the street that we can obtain high quality businesses at same discounted prices. It is like going to store. Sometimes you can buy a high quality item at same or better price than something that is greatly inferior. It really depends on what is on special.

I would like to consider 2 O&G businesses that offer growth and 2 larger O&G businesses that offer good stability that will also bounce whenever the time comes. These companies may be on the above list or not. What do you believe are the best growth / stable companies on special that are of high quality and why?

I also have a side question. I am not very familiar with cyclical companies. Will I need to get ready to sell these stocks when they go back up OR do good cyclical companies have higher highs and higher lows over time? i.e. Can these be good long term investments?

I hope that we do no inundate you with too many questions but the feedback is priceless. I am definitely learning a lot by reading the feedback you provide to all of us. Thank You.

Q: I just read that you are providing an investment seminar on Feb 28, 2015. Some of us are not situated close to your Ontario office. Would there be opportunity to host a webinar (over the internet) so that those of us that are out of town can participate? Or can it be recorded for later playback? I think that members would be willing to pay some form of reasonable fee to ensure a profit can be realized by your organization.

Q: Hi Peter & Team.
I've made a reasonable return on Magna since picking it up on the pull back in October. I've heard a couple of analysts comment that they think the stock is at it's top. I'm ready to hit the sell button but would appreciate your thoughts. Thx Scott

Q: First thanks for all the great advice.
On tax loss selling, is a spouse considered "beneficial?" In other words can I sell something for a tax loss and if she buys the same stock within the next 30 days, do I lose the tax loss?
Second,is there historically or generaly a dip in upwardly momentum stocks after the Dec 24 deadline as people who want to take profits and want to move the tax gain into the new year. ie a stock like CSU, which is not a tax loss selling canidate, will managers in general wait to shave?
Many thanks

Q: Hi 5i: I hold Citigroup and am considering adding another big US bank. Do you have a recommendation? I realize you don't specifically follow US stocks, but your knowledge will surely exceed mine. Thanks.

Q: Good afternoon,

I read most of answers on this company and you not mention if the vnr increase it's dividend. I have look in their web site and no histry of their divided payout. When was the last time the dividend was increase?

Thanks

Paul