Investment Q&A

Q: Is there a point at which you advise against putting new Cdn money into a US$ investment? Given the strength of the greenback, a US investment would have to earn 12% or more just to break even with a comparable Canadian investment. I remember one advisor suggesting that they stop putting new money into the US when the Cdn $ drops below 85 cents so we are long past that point. I do have about 15 - 20% of my portfolio in US$ already, if that matters.

Thanks for the sage advice.

Paul F.

Q: Hello,
I have small position in High Arctic and it is down 35% from it's June high. At current price the company pays 4.8% dividend and trades at very low P/E. I am considering increasing my position, what is your opinion of the company in 2-3 year term? How safe is the dividend? Do you consider HWO a sell, hold, or buy?
Thanks!

Q: Just a comment, feel free to publish.
During this massive market correction, instead of answering members questions is this a good entry point on this stock or that stock,why not just advise them to wait until this correction blows over.it is far better to buy a stock on the way up rather than the way down,and far better to miss a few points on the upside than trying to catch the proverbial falling knife. Personally i am up to 45 per cent cash and i am concentrating on just a few stocks that are working such as easyhome, intertape polymer, patient home monitoring etc. the amayas and surges are long gone at much higher prices.the key point is there is always another bus, always. Dave

Q: I have noticed that cfn has held its price during this latest correction. What you think is going to happen to the stock once the deal gets done? Is there a chance the stock price will crater?

Q: In the context of geographic diversification of a portfolio, would holdings in a Canadian company with significant operations in and revenues from foreign countries be a reasonable proxy for direct holdings in foreign countries' equities? e.g. Ag Growth International / AFN or WSP Global?

Q: Just in case it hasn't been asked. What do you think of the BAR report and business update coming out of Amaya this morning?

TIA

Q: Hi Peter,

Is it time to start picking away at BNS/TD or is there more pain to come. Thanks for all you and your team do for us less experienced investors.

Carl

Q: Peter and Company.... General Question
With great restraint I have resisted from buying at some very attractive prices during this down market.
Waiting to see a bottom.
I'm totally aware that anything sold there had to be a buyer.

My Question is... Who are these buyers right now?

Thank you
Dennis Mc

Q: Follow up to my previous slf question .... Since I am way underwater having followed the buy and hold mantra Should I be adding to Manila and sun life ... Seems to be falling on low volume

Q: Why are insurance companies getting hit hArd

Q: Hi Peter, After the recent market weakness I am looking to deploy some funds in some non-energy sector small caps.
I noticed from your report on TMA the following "Trimac transports products for many industries including forest products, food processing, mining, oil and gas, manufacturing, automotive and chemicals. Trimac has enjoyed a long-term relationship with the majority of its major customers. In 2013, its 20 largest custom- ers accounted for 67% of revenue. One customer accounts for 9.7% of revenue".
You also state that lower fuel costs should be a positive for TMA.
With the recent downdraft in oil I am considering TMA. My question is,approximately how much of their revenue is from the oil/gas sector and who is their largest customer and is that customer from the oil/gas segment.
Thanks for your valuable advice.
Rob

Q: Hello- Lyondell has been really hammered in the last day or two-
apparently their margins may be compressed and their CEO is leaving- is the stock reaction overdone? Would you buy here?
Thanks

Q: Which Canadian companies should profit from 20% lower oil prices? Companies that use vehicles? Airlines, waste management, truck delivery, construction companies? How about CN and CP? Those might actually loose since oil production should decrease (less shipping)?

Q: Hi- can you comment on the use of hedging by SGY, do you know if they have a program in place like CPG and WCP? thanks

Q: Hi 5i team. I am 15% energy with WCP, SGY, BTE, TOU, VET for 7.5%
ENB 3% VNR 2.5% and BDI 2%. I also hold all of the stocks in the two model
Portfolios plus a few extra large caps.
Should I stay the course with energy or trim some?
Thanks for your assistance
Kevin

Q: I finally took the plunge in early Sept, and sold my mutuals to buy your equity portfolio, minus CSS, plus positions in AVO, DHX, SGY, and QST, for a little extra zest. Not so zesty now however! At some point would you consider raising some cash from the model portfolio to average down on the zest? If so is there a position(s) worth culling, or re balancing to achieve this. From previous comments I expect you might say "just stay the course".
Your hand holding over the course of this correction has been invaluable.
Many thanks, Peter.

Q: Just an observation, I have noticed the REIT sector really has held up fairly well during this correction. Obviously REITs still seem to hold some value even with the threat of increased interest rates. Would you agree with this observation, or are they just flying under the radar while everyone unloads their oil and gas stocks? Thanks.

Q: I'm looking for a Canadian Consumer Discretionary stock with good fundamentals going into this seasonal period for a 4- to 6-month trade. Any ideas?

Q: Can you advise whether it is time to buy AVO now or should I wait ?

Insiders showed significant support for the stock in May 2014 at a price of around $20. Since then, however, the stock price has continued to trend downwards and for the past few days has been around $14. The most recent financial reports seem to have disappointed investors. From a technical point of view, it seems to me that the stock has support in a range of $11 to $12, and if it goes that low I would be inclined to buy.

90 % of analysts reported at TD Securities rate the stock as a Buy or Strong Buy, but analysts on BNN seem to be a bit more cautious and generally take a “show me” position.

I like your analysis of the company and it seems like a good investment. Without trying to pick an absolute low, what is your recommendation as to a reasonable entry point ?

Q: With the current slide in the Cdn Oil Sector, and with the likelihood of the US economy to continue to strenghten, US equities are looking more and more interesting to add to my portfolios. My question is in regards to US stocks that pay Divs in US dollars. What is the industry practice in terms of dividend distribution? Would the dividend payout be at the exchange rate of the date of distribution, or is it fixed to the rate set at the date of purchase. If the latter is the case, who absorbs the differential? Lastly, can you offer input as to the merits and / or pitfalls of Canuck retailers ( such as myself) buying US stocks? Thank you, as always, for a terrific service ... particularly in volatile times as these.
Rick