Investment Q&A

Q: Last night I asked a question as per bellow. I am re-sending it as it may not have reached you. Thanks. Joseph


I have some US$ to invest and am looking at the technology/internet sector in the US: PNQI (Powershares NASDAQ internet), FDN (First Trust Dow Jones Internet Index), IGM (iShares North American Tech ETF). (All of these have a heavy weighting in Amazon, Google and Facebook). I am also considering to invest in the US financials sector through an etf such as XLF or through a few individual bank stocks such as WFC, BAC & JPM. My goal is to invest in the US sectors that are best positioned to grow in the next 12 - 18 mos. First, do you see these 2 sectors of technology/internet and financials as the best sectors to invest for the next 12 - 18 months and if so, please suggest your best choice for each sector and explain why. Second, is there another sector other than tech/internet and financials worth considering at this time and if so can you suggest what I should invest in for a hold of 12 -18 months?

Q: It had a nice pop today ...your thoughts on the earnings report ?

Q: I hold BEP, BIP, TRP at roughly the same 1.5% weighting of my total portfolio in each stock. Utilities (ex telecom), oil and gas and infrastructure (mainly pipelines) make up approx 13% of total portfolio. with TRP now yielding 5% or close to it and the others over 5%, which would you prefer for an additional 1.5% weighting and a long term hold within an RRSP? I'm looking for avg annual 5%-6% total return and relatively low risk. Thanks

Q: Do you think that DH stands to benefit from the Fintech threat to the big banks? Or is DH vulnerable due to its close connections with the banks?
Thank you, Peter

Q: James Teifser (Aventine Management) on BNN says Amaya is a Sell. Is Amaya a Sell now?

Q: Dear 5i,
Would you trim/remove any of these holdings from my “pipelines” sector?
ENB 2.0% weighting (down 9%)
PPL 1.5% weighting (down 21%)
TRP 1.5% weighting (down 11%)
VSN 1.5% weighting (down 28%)
The yield on some of these names is quite something. Will we all look back in 3 years and wish we mortgaged the house to buy them? Or is it “different this time”..? 
Thanks for a great “go to” for professional advice.

Q: Hi Peter,

Just wondering which company would be a better choice for a retired person. From your answers on previous questions both have relatively safe dividends and are around the same cost per share ($25.00).

Which would you think is a safer choice?

Thank you,
Charlie

Q: Do you have any opinion on this stock?

Q: Any effect on the Notice of Intention to Make a Normal Course Issuer Bid.

Thanks,

Bob

Q: Hi, What is causing the huge price drop(-5%) in HBC today? Any reason? Is it a good buy right now? Please comment.

Q: While Savaria does not have a rating yet, would you expect it to start with a similar rating to Prism, given its size and liquidity issues? Or would it fair a bit better with slightly higher liquidity and a good level of insider ownership?

Thanks!

Q: I seem to be noticing a trend over the last few earning seasons (particularly this last quarter and in Canada). If a company’s earnings (and general outlook) surprise to the upside, the stock price may move up a bit but usually not by much. If earnings are in-line with consensus estimates, the stock price might just hold steady but more often drops anyway. If there is a small earnings miss the stock gets severely punished, and on a large miss the reaction is often brutal (i.e down 30%-50% in the following days ex. Amaya). The daily moves that some supposedly steady large cap names can encounter these days on a single piece of news is getting more and more exaggerated. It almost makes me believe that selling an entire portfolio before earnings season and buying back immediately after could make a lot of sense. The downside risk seems to be so much more amplified versus the upside potential when quarterly numbers are released. I would obviously never expect you to endorse such a timing strategy, so my question is simply: 1)Am I imagining this or have you noticed this trend? 2) If this is in fact the case, what are your thoughts on the reasons why and when /what might stop it? Is it just a function of current investor sentiment?

Q: I am down approximately 40% on SCR, I realized there was risk going into this one so I wasn't blindsided by a downturn, just didn't expect it this quickly. I hold it in my TFSA so there are no advantages to a tax sell off I can see. I can afford to hold it longer term so am wondering if you think I should hold on, add or cut my losses.
Jim

Q: 1:34 PM 11/11/2015
Hi Peter
Both TDWaterhouse and Morningstar show PrairieSky Royalty Ltd. as having zero debt. Also the list of Oil&Gas stocks on page B12 of Globe&Mail's "Stock Analysis" article shows PSK with a Deby/Equity ratio of 0.00%
Surely the company must have a lot of debt. Can you clarify this issue and comment on the future stability of the dividend and the potential for future dividend increases.
Do you consider it a reliable income stock for a very long hold?
Thank you........... Paul K

Q: Referring to your earlier comments of the bought deal, as I have a small position in PPL and a larger position in IPL, do you feel PPL is a hold or sell and if PPL is indeed a sell would converting the sale proceeds to IPL make sense as IPL has a higher dividend.

Thanks,

Bob

Q: Hello Peter & Team

Interesting article re Management buying stock...

http://www.midasletter.com/2015/11/element-financial-corp-tseefn-powers-up-on-ge-fleet-acquisition-q3-revenue/

post it if you feel it will prove a valuable contribution

Thanks for all you do

Gord

Q: Good morning guys,I see Badger is at 52 week low,do you know of problems with the company or their any catalysts for the stock in the short term and would you be a buyer here at this price,thanks

Q: Are you aware of any company specific problems with Theratechnologies or has it just been caught in the general health care malaise? Either way, would you expect much improvement before year end?

Thank you

Q: I'm looking to increase my exposure to the U.S. technology sector. Which of these etf's would you recommend for a Canadian investor. What are respective advantages and disadvantages?
As always, thanks for your much appreciated guidance.

Q: I would like to add international stocks to my portfolio for diversity. My current mix is 90% Canadian stocks and 10% US. I know I should not be so heavily weighted towards Canada therefore I am considering 50% Canada, 30% US and 20% International. Many of my Canadian companies have US and global business. My US exposure is through two low cost ETFs with Vanguard, namely VFV and VUN. Although VFV is comprised of US companies, more than half of those companies have international exposure. Although I am hesitant to buy mutual funds because of their high fees, I note that Mawer funds have lower fees than others plus their performance is much better than passive ETFs. I would appreciate your comments on my goals for diversification, and any other mutual fund companies or actively managed ETFs that you would recommend for international exposure.