Investment Q&A

Q: hello 5i team,
I have about 30 percent of my portfolio in U.S. stocks, which i thankfully bought when the Canadian dollar was high. At the risk of being called the odius name of 'market Timer' i am now considering converting about ten percent of these U. S. dollars into Canadian, hoping to ride up the other side. One candidate that i have looked at cashing in is VWO.US. I have heldthis for quite awhile and am just breaking even. I recently read an article by a resected analyist saying that his company is not betting on emerging markets for awhile yet. Heput forward a pretty reasonable case for this thesis. What do you think about using this etf for this strategy, or at least some of it?
with thanks as always

Q: Intrinsyc released 2015 preliminary results this morning and the fourth quarter looked outstanding. Since they changed their business model 2 years ago they have been consistently EBITDA positive and now revenues and EBITDA are growing rapidly. Other than risks of still being small, ITC is in a fast growing tech space. Is the market going to start picking up on this as the stock looks inexpensive still.

Q: I would like to add more US dollar exposure. For a variety of reasons I don,t want to convert any more C$ to actual US$ (t1135 and conversion fees) .I am looking for something liquid and not exposed to interest rate shocks if such a thing exists.
Thank You

Q: Psychologically, I am not usually too bothered by volatility (I rode through the Financial Crisis without selling any stocks). However, I am now close to retirement, so my risk tolerance is declining. I own HCG and believe that it is hugely under valued at 5X earnings. The constant declines in HCG, even on good days in the market, are starting to give me doubts that perhaps I am missing a major negative factor in my valuation. Is this just negative sentiment? I would appreciate your view. Great service.
Thanks

Q: Hi Peter,

Are you able to speculate on when the TSX might drop one of the bottom TSX 60 constituents (say Bombardier or Teck) and add Concordia? It's current market cap of ~2.5B is significantly larger than some other constituents of the TSX 60, and volume is reasonable as well.

Thanks!

Q: I know you are not fond of airlines, but would like your thoughts on Westjet. Would you consider it a hold, or do you see more downside?

Thanks, Dave

Q: In response to Derek's question regarding Veresen's 2 DRIP's I just point out that they do not have an OCP (Optional Cash Purchase) component.

So he cannot buy more shares via directly within the plans (for no charge).

I have DRIP'd many companies for over a decade, not referring to the synthetic DRIP's financial institutions offer, and have set up many people in Canada. I know a lot of investors like to send in an OCP regularly or occasionally and find it a component they require.

There are many CDN. companies with DRIP's with and without a 2% - 5% discount on reinvested dividends, but that do not have an OCP component.

ALA still has a 5% discount on reinvested dividends for example, ENB 2% and REI.un 3.1% off the top of my head.

There is a site where people exchange (sell) for no fee to each other to set up DRIP's. Only 1 share usually is required except NA which requires 100 as I recall. Cost is usually stock price + a stamp + $10. As opposed to getting a share certificate from one's brokerage account transferred from Street form into the individual's name and charge $50 to $100 typically.

Hope this is of help to Derek or someone.

Q: I bought some Aecon in November, hoping the election would provide a boost, but it hasn't. In terms of infrastructure, I note that WSP is in your income portfolio. If I only held one infrastructure stock, would you recommend WSP?

Q: Hi 5i GUD-T has been in a down turn. Why? Is it still a buy?

Q: BPF.UN is down ~ 10% over the past 3 days; considerably more than the TSX.

Any idea why?

Q: We depend on dividends for 50% of our income and now have full positions in BCE and T in our joint account. I would like your opinion on adding either SJR.B, which I prefer for the higher interest and monthly dividend, or RCI.B. I have several reits and AX, along with others, has dropped like a brick recently. Time to sell? - Ted

Q: Any news on AC that can explain this big drop today? Is this maybe a value pick at this price for a 3 to 5 year hold?albeit with the knowledge that you do not believe that the airline industry is typically the best place to invest.

Q: DFN pays dividends on a basket of largely banking and other large companies. Over the last few days it has dropped to levels not seen since 2012. Since the companies it holds have not dropped back anywhere near so much what could account for such a collapse?

Q: I would appreciate your opinion on which of the three oil producers I mention are best positioned for a dramatic turnaround whether due to takeover or a reversal in oil's fortunes. On a related note, which is your preferred choice of pipeline company from a reliability of dividend perspective?
Thanks for all you do.

Q: Hi 5i team,

What do you think of ATCO at the current price for a long term hold? I am looking for some growth and dividend income.

Thanks for your insights on this stock!

Q: Hi Peter,

I'm 32 years old and have $150k in new cash from the recent sale of a business. I'm looking at investing these funds in a variant of your Balanced Equity profile. I'm ok with risk and am wanting a long term investment with a higher upside. Are there are any changes that you would make to the portfolio to match my situation?

Thanks!

Q: ZWE
YOUR EVALUATION AS AN INCOME, CAPITAL PRESEVATION ANS EUROPEAN EXPOSURE PLAY ???( NO CAPITAL GAIN EXPECTED AN VERY LITTLE EU EXPOSURE )
THANKS
YOSSI

Q: Barry Critchley in the FP this morning, reported that both TD Bank and CIBC will be buying back big chunks of shares under NCIB. What does NCIB mean? And, as the article states, each purchase (at a discounted price) won't affect the daily price, it should have an appreciating effect on the price since there would be fewer shares for the same total value of the banks, should it not?

Q: Both of these appear to be breaking down technically at the moment. Would $38.00 and $55.00 be considered good entry points.
Thanks in advance

Q: your analysis of the results today please. Looks like the turnaround is going well, big increases in EBITDA and debt down significantly. Div increase also a good sign. what is the valuation like, sector compare? Takeover candidate?