Investment Q&A

Q: I read with interest your recent article in the Post and was intrigued by the comment that research shows 90% of portfolio returns come from sector allocation - if a person wanted to take advantage of that, in a simple, easy to manage and inexpensive way (ignoring taxes for the moment) what would be your view be on an approach where one's equity component of their portfolio consisted entirely of a number of ETF's with each one of the ETF's focused on a particular sector, with a periodic (say quarterly) rebalancing? What specific ETF's would you suggest for such a portfolio? Thank you.

Q: It would appear that much of the success of leading tech/internet companies like Google and Facebook (which I currently have shares in) can be attributed to their ability to align themselves with, and then capitalize on, emerging technological and communication trends in society such as internet information gathering and social networking.

For investors, serious money can be made by identifying and forecasting such trends and identifying, at an early stage, the companies that can best capitalize on them by dominating the niche (think of the number of search engines that had proliferated before Google became the go-to web-browser of choice).

Based on this line of thinking, could you name a few companies that you consider best positioned to capitalize on emerging trends in communications and technology (Canadian or US)? Is there any hope for TWTR which seems to be in the right place at the right time but has been a basket case so far?

Q: I am in the process of creating a balanced portfolio and am underweight in commodities area and would like your recommendations on an ETF.

Q: What does it mean when a company is a good allocator of capital ? Can you please give a few exemples as part of your explanation ? Thank you.

Q: What is your view on TOS regarding their prospects going forward? What do you think of their current fundamentals? Are they close to being cash flow positive? I like the fact that they have very low debt.

Clarence

Q: On May 5, They offered a pursuant to private placement which consisted of 18,666,666 units @0.375cdn/each unit, consists of 1 share & a warrant for another share for .50 with a 5 yr. duration. My question is does this company appear that attractive to you. Why would the share price climb after that amount of dilution. I assume there must be other news as for what they are going to use the funds for that I'm not aware of.

Q: K-Bro is near an 18 month low. The dividend is now 3% and I'm tempted to buy it as a long-term hold for relative safety and some income. (I'm content with 5 or 6 percent long-term annually.) But I'm a bit concerned about the 'falling knife'. I've read your recent comments on the company. Are you aware of any new or more serious concerns to explain the drops? Do you suggest I wait, or is this as good a time as any to buy? Thanks!

Q: On the "growth profile" discussion, I am wondering if you have estimates on the expected growth in earnings/revenues/and cash flow for DHX Media. My broker has no information on these.
Many thanks.
Mike

Q: CWB & NA recently declared provision for loan losses related to energy loans resulting in sharp drop in their stock prices.Meanwhile the big 5 Canadian banks are doing well with 4 reporting next week starting Mar.25 & BNS on June 1.What will the effect when they report their results & loan losses? Please advise if I should sell some of BNS & the 4 prior to release of results.Always appreciate your great services & views.

Q: Do you think it's a good time to start adding back into CXR? I am a little concerned that the recent improvement might be due solely to short covering. Your advice would be appreciated.

Q: When does CXI report their second quartet results.
Thanks

Q: This is an interesting company that one might regard as up and coming and worth watching. Your thoughts please.

Q: You keep referring to Nemaska as high risk. I agree it has risen exponentually but have you actually looked at the company? ie the source of its lithium,the state of its mine,the relationship with the Cree people, the source of its hydro,the method of ore transportation,the compositiom of the board,the nature of its financing,and the progress of the company towards production and the price it will get for its product and the state of the market overall. Given that ( except for the enthusiasm and momentum ) what is the nature of the risk in your mind from one to three.?

Q: I bought Echelon Financial (EFH) about two years ago, it is now trading at my purchase price. Last quarter was a bad one and I am contemplating selling. Could you please give me your opinion if a switch is good idea and what would be your suggestion on the switch. Thanks

Q: Could you please comment on $NWH recent earnings and would you recommend for a small purchase.


Thanks Valter

Q: Looks like a great div (6%), is the div./investment safe? would you be able give me the conversion details( price and date etc.). I would appreciate having your assessment of it, perhaps can suggest another alike investment. Many thanks. J.A.P., Burlington

Q: Yr thoughts plz, esp now it has declined so much recently.

Q: What are your thoughts on this company for income and do you recommend it or have another suggestion?
Many thanks, Peggy

Q: In a question Oliver asked on May 18th you answered "In our Q&A we have a tab for 'Interesting Companies not yet followed' as well as 'growth companies'.

I'm sorry, but I cannot find the tab. Can you be more explicit as to how to get there.

Thanks

Sheldon

Q: It is my understanding that some of the Cdn. forestry companies have a fairly large holding in the US(land & timber rights). I was thinking of buying WFT, on pull backs, but I was wondering what percentage, if any, is due do there holdings in the US. Also, are there other Cdn. companies, that have a larger footprint in the US.