Investment Q&A

Q: Within a fixed income portfolio, given the rising rate environment would you prefer HFR over CLF? HFR has a slightly lower yield but should have a better price response to higher rates than CLF...no? Thanks.

Q: I purchased the series E convertible debentures in April, 2017 assuming that they would mature September 30, 2017. They are in my children's RESP. It was going to pay for their tuition this semester. As you know they have made a proposal to extend the maturity date to September 30, 2020. It is in my best interests to receive the funds on September 30, 2017. I will likely vote no to the change. Do you think the debenture holders will still receive their funds if the motion does not pass?

Q: I know you do not like this company but do you think there is a trading opportunity as the shares have dropped considerably lately and trade at low levels with a significant dividend yield (about 5.0%).

Q: Hi,

Does Stella jones serve the Texas/ Florida regions. If so, do you expect an unusually solid quarter coming up? Would this be time to go a little overweight the stock?

Thx

Karim

Q: Hi, I'm not sure of you do Tax questions or not. I am a new DIY investor (March 2017). I currently have Cash, RRSP, and TSFA accounts, all with CAD and USD capability. I did not do much tax research before I started building my portfolio. Currently I hold all my US equities and us funds in the USD Cash account (about 15% of portfolio). Now it seems to me from a tax point of view this is the worst possible place to hold US securities. Of course if I want to use the US cash then it's the only place I should actually put it. But I don't think I will need to use the US cash any time soon. So it seems to me that despite the 15% withholding tax the TSFA would be the best place for US equities, since the US gains are much higher than Canadian, and I could get the money if I do need end up needing it. Does that make sense? Would it be prudent to put a portion of both RRSP money and TSFA money into US funds accts with the CAD relatively strong right now? I have cash available in both accts to do so, but would be raising my overall US funds to about 25%. Thank you.

Q: I was thinking of a position in HXS as a stable long term gainer for my RRSP. It has outperformed the SMP500 handsomely over the last few years - except in the last few months. Is that simply because the CAD I rising against the US and would this make it a good entry point?

Q: On your income portfolio is there any other company you would use to replace Loblaw. They don't have a very high dividend

Q: Would Enbridge be worried about a new bitumen technology that could eliminate pipelines transporting heavy crude to port ?? Thanks as always ...

Q: I'm switching from mutual funds to ETF's and making a portfolio makeover. I have 3 years to retire and wanted to make sure I chose the correct Canadian Fixed Income ETF (at 40% bonds and 60% equities). I'm looking at HAB, ZCS, VSB, ZAG and ZEF. Of these 5 ETF's which one should I go with?

Q: I'm seeing a substantial increase in volume since they announced the recent deal. Would you see this as institutional interest or just normal retail buying?

Q: Good morning,
It 'appears' GE's downward trend will continue. That would soon take our current US$23k investment below our book value. I prefer holding, but don't like the notion of underwater for years waiting for this ship to turn around. So I'm 'inclined' to move on, in which case probably by adding that to SPY which most of our US$ are in. Your thoughts will be appreciated.

Q: Boyd Group just announced the early redemption of their 2021 CV's. Can you tell me the common share conversion (how many per bond) for this issue.

Thanks

Sheldon

Q: I have a question about Legend Power systems.
I read basic facts about the company and like to consider very small exposure.
When Is the company expected to achieve break even and start generating profits?
Is this sector profitable ? What would be the rough profit margins for industry or similar companies?

Q: I was surprised to see the statement in your answer to Umed that shorts can only go down 100%. I had always understood that longs' exposure can only be 100% but shorts' exposure can be virtually unlimited. Have I misunderstood?

Q: If you could only own one of these, which one would you choose for safety of the dividend and growth potential of the stock price? Thank you.

Q: Canaccord has identified CanadianTire as one of their top 10 dividend stocks.

2 questions here:

1. Is there any information as to the sales volumes and comparable profitability between their 3 major divisions: Canadian Tire stores, Marks Work Wear House and Sport Check? And if so, projected future numbers.

2. Would you agree with Canaccord's opinion?

Thanks.

Q: If one was to buy a couple of natural gas stocks, what would be at the top of the list?
As always, thanks..

Q: Hello Peter,
With the increase in interest rates, i was expecting Sunlife and Manulife to go higher but they have dropped. Any comments? I want to increase my weighting to 5 percent for Enbridge and Alimentation Couch Tard but both stocks are not responding well eventhough Alimentation had good results. Would 5 percent be too much? Also, if you had a choice between fairfax africa and india, which one would you prefer and finally, I was thinking of Jean Coutu for a 5 year hold. Can you see it doubling in 5 years? Lastly, all the stocks that the shorts went after have not really recovered (CXR, HCG, CRH, etc). What does this say about the analysis that was done by various managers including ones on BNN? I am not blaming anyone but it is discouraging that the shorts were right. Thank you

Q: Looking for some energy exposure and would like your opinion on CEU.

Q: I invested in Methanex as a longer term investment but must admit that I do get frustrated by the volatility of the share price. More and more it seems like a trading stock as opposed to a longer term hold. About four years ago the shares were trading at today's prices with lots of downs and ups in between.. Definitely not a positive long term trend. Can you comment on this please with your thoughts as to why this company's shares should be held over the next 2-3 years. What is different now compared to the last four years?