Investment Q&A

Q: Hello Peter and Company
How would you rate Cash America International (CSH-NYSE) as an investment for 5 years in a TFSA account? Is it too volatile?

Q: Peter, I have a nice gain in SU and CNQ but they are now about 8% of my portfolio each, which I suppose is too much. Would you suggest selling none, all or some percentage of both and purchasing Whitecap, Surge, Bellatrix, Tourmaline, or some other energy play with the proceeds. Thanks for your help as usual.
Dave

Q: The US debt load continues to grow as does the associated interest costs.The money supply growth should lead to high inflation and possible devaluation of the US dollar. China and other nations are busy reducing their holdings of US dollars and the dollar will soon be replaced by a basket of currencies for some commodities such as oil. In addition to the obvious hedge of gold,silver and mining stocks should we consider some currency hedging? Their is an ETF for the Chinese yuan CYB which seems safer than the Forex market. Your comments would be most welcome.

Q: endeaver mining had a sharp rise the past week. is it a buy at .72

Q: Helen, re Linde Equity Report. One of his top picks on BNN is listed in Toronto (appears to do business in U.S.) was Element Financial (EFN). Globe and Mail rates it a “strong buy”.

Q: When you last rated Stantec, it was trading at a P/E of 15. Now, it is trading at a P/E of 22. Are you still comfortable buying it here? If not, how much of a pullback would you wait for?
Thanks,

Q: Re. NFI..... New Flyer Industries.
I am looking to deploy some money into some of the companies I already own as I have too many now to properly follow. I have made very good money with NFI over the last few years going in and out several
times. I would like an opinion as to the prospects from 5i point of view. I am am looking for a place for cash that is not in RRSP or TFSA. Whatcha think?

Q: What is your view of (1) the new IPO- Scotia "Europe Blue Chip Dividend and Growth Fund (2)AIM.PR.C pref shares, and (c)IShares Global Telecom Fund (IXP)?
Many thanks for your excellent service.

Q: Greetings 5i
When I subscribed to 5i back in April 2013, I was pretty green (still am) and started picking (mainly growth) stocks instead of creating a portfolio. I think I picked some fairly good stocks but I do not have market cap or sector balance. For the first 9 months or so everything went UP. But recently I learned that stocks sometimes go down.

I own Avigilon, Badger, DHX Media, Descartes, Element, Fiera, Macro, McDonald, Paladin, Redknee, and Tricon.

Now I plan to somehow transition to a portfolio, still leaning toward growth.

In addition to the stocks listed above, of the Model I currently own Amaya, Constellation, Enghouse, and Stantec.

Over the next 12 months I am wondering if I should slowly build the model portfolio, one stock at a time, or should I just add select stocks to create some balance to my current holdings?

Can you give me a sense of the order in which I might make my monthly purchases to create some sector balance. I do not need yield as I have very secure income from other sources.

Outside the Model I am looking at Boyd, SunLife, and Stella. (and maybe ACQ or Davis?)

Thank you for fabulous service.

Q: do you have an opinion or info on deswell indus.- dswl

Q: XSR: reported FQ1 miss, conversion convertible notes to shares and has come down a lot-so; worth buying now for a trade as a very small part of my portfolio??

Q: Hello Peter and the 5i Team,

In an answer to a member's question, VIG was recommended as a US Dividend ETF. I own CLU.C, and its chart seems to be better than VIG. I'd appreciate your comments regarding CLU.C. Thanks in advance.

Q: Peter I'm a new member (One Day)I held Agrium & sold at around $115; Bought 1/2 position back at $105 & it tanked since.Why is it not increasing with the on-come of the seeding season? Thanks

Q: Peter What are your thoughts on tck-b.TX

Q: Bep.un - thoughts on recent results and acquisition please. Thx!

Q: I have a significant position in mfi. Do you think someone will buy cby and do you think mfi shareholders will benefit by the company issuing shareholders a special dividend. A newcomer to your newsletter. Thank you already for the service.

Q: Hello Peter,

I have a small interest in RDK, redhawk resources, what can you tell me about the future outlook for this company?

Monika

Q: My stock portfolio consists of 19% O&G stocks, all Canadian. Of these CNQ is 41%, Cenovus (CVE) is 19%, Suncor (SU) is 21%, and Husky (HSE) is 13%. Vermillion (VET), Paramount (POU), Legacy (LEG) and Twin Butte (TBE) make up the remaining 6%. None except Vermillion are in your O&G recommendations. I was thinking of buying some of your recommended stocks but with such a high percentage already in O&G should I sell some of my majors. Although I like to hold stocks forever, it seems that I might be holding some old dogs. Do you have any recommendations of which I should sell and which from your recommended list (also perhaps more Legacy???) you feel I should replace them with. I am looking to hold for at least 3 years and probably for up to 20 years. Your recommended list from Jan 24, 2014 was Tourmaline, Peyto, Surge, Bellatrix, Whitecap, Raging River, Vermillion, Baytex, and Torq. Thank you very much, I have a great deal of respect for your opinion.

Q: Re Crude by rail ... I am thinking that *IF* and WHEN Keystone gets approved, stocks that are heavily invested in crude by rail delivery may get hit. What are your thoughts on this? Do you see any risk in this regard and if so, could you share those stocks most at risk? Thanks in advance.

Q: This is to follow-up on the question posed by Linda on Jan 9/14 re. tax issues/negative factors to be considered with holding US (or other foreign)dividend paying stocks in a TFSA. Your response was that, yes, in a TFSA witholding tax will be applied on foreign dividends: in an RRSP it will not.
I'm not sure how much weight to give this info when structuring your TFSA. Should it just be -No- TFSA is not the optimal place to hold foreign equity - get your foreign exposure elsewhere. Or - Yes - this is something you should be aware of - it will act as a bit of a drag on returns - but should be subordinate to the over-all objective of your TFSA.
Specifically, I would like to re-structue my TFSA to replicate a mini stand-alone portfolio. And to do so I was considering the Mawer Balanced Fund as a simple one step solution - 40% FI; 20% Can. equity: 40% foreign equity - MER below 1% and consistently outperforms its benchmark.
Question: should the negative tax implications on the 40% foreign component be cause enough not to follow this approach?
Thank-you