Investment Q&A

Q: 3:21 PM 2/11/2014
Hello Peter
The Northwest Company NWC has been dropping but I am still up 13.4% and I am wondering if it would be prudent to just sell and take my profits.
Sadly my Liquor Stores LIQ is down 28% from my purchase price. Should I just cut my losses here and move on?
I am down $23K on LIQ and up $6K on NWC so the gain is more than offset by the loss.
I do think consumer stocks will continue to fare badly and other market sectors seem to me to have much more promise.
I am inclined to buy some of PZA, T, MIC, RUS, AFN, WCP with the proceeds if I sell either or both.
Regards and thanks....... Paul

Q: I am looking to move $120k from bonds currently managed by a large discretionary money manager into some higher income dividend stocks that I will manage (with your guidance!). My goal is to increase my after tax income stream and grow the capital (or at a minimum preserve capital). My current manager shies away from smaller companies.

I have prepared a list of 10 funds that I am considering buying, spreading the money equally: CHE.UN, CPG, IPL, SGY, WCP, RUS, WJX, AW.UN, BPF.UN, VSN. There was no magic in choosing ten, it just seem like a number that allows me to diversify by company and industry and perhaps hold my greed in check!

Is 10 too many (or not enough) for what I want to accomplish? I am fairly comfortable with the risk in terms of the dividends continuing and I do want to grow the principal.

Eagerly looking forward to you comments. Thank you as always.

Paul F.

Q: Hi Peter and team My question relates to Alta Gas (ALA). RBC has a sector perform rating while NBF has an outperform. In looking over their reports I see virtually identical estimates of dividend increases for 2014 but NBF goes further with a projection of a 15% increase for 2015. RBC says it is fully valued at the current price while NBF maintains it sells at a discount to the "high payout group" with 2015 estimates P/AFFO of 10.4 cf. with group average of 12. I would like to know your opinion.

Thanks

Ross

Q: My question is on CXI. Can you give us your updated comments on this stock? Revenues and cashflow are starting to grow but NI was flat. This little company looks to have good growth prospects especially in the US and has applied for bank status in Canada. The balance sheet looks decent. Any chance you'll do a report on it for us?

Thanks!

Q: Hi folks. Thanks for all the great advice. Could I have your thoughts on gold ETFs, particularly HGU?

Q: Hi Guys.....Can you let us know which oil company you prefer pre.to or cve.to? Thanks!

Q: Hi Peter. Crescent Point Energy seems to be a top pick for just about everybody these days. I have held it for about 7 months. The dividend is nice , but growth has been virtually nil. Do you see growth ahead? Should I be in another company that offers both yield and growth. Keep up the great work. You and your team are an oasis in the financial advisor arena.

Q: Enterprise(E) vs ENT or MCR for growth?

Q: Pure Technologies closed at an all time high today.
Would you buy now or wait and hope it drops?
How do you rate the management and how does their orderbook look?
When will they issue their next financial report?
Thanks,
Ron

Q: Hi 5i,

please comment on ABT earnings. do you still recommend Absolute: buy, sell or hold?

Q: planning to sell CPG and switch to another O?G div. payer like TOG or VET for growth/income - your thoughts - as always thanks

Q: What do you think of Master-Limited Partnerships (MLP) as incoming generating securities?

If there are any that you're following or recommended, can you please state them.

Thanks.

Q: I have held some XRB in my daughter's RRSP both up and down in price. Would it be an idea to add to this position for her? (her age is 31)
Thanks

Q: Is there an 'RRSP' effect on the Canadian Market?
By this I am referring to an influx of money in the first 60 days of a year that is looking for a home whether through mutual funds or direct investment in the market.
I seem to have an impression that the markets take a dip after RRSP season.
Your opinion is, as always, appreciated!
Thanks!

Q: Peter . Looking to buy Dundee reit and Artis reit for long term income. Are the dividends safe? What would the payout ratio be. Looks like Dundee has not raised its div. for years. Thanks for the info, Ken

Q: I'm one of your newer subscribers having joined in Nov '13 and I have been doing much better with my investing since then. I ditched my Financial Adviser/Broker about a year ago when I finally stopped procrastinating and acted upon long held realisation that she was making more money from our accounts than we were.
I now manage both RRSPs and RRIFs for myself and my wife. We own 40 shares in the four accounts, most of them dividend producing, but also some growth stocks and they are fairly widely spread across different sectors and different geographical areas.
I have a few duds, or at least equities or ETFs that I bought at the wrong time when I was out in the wilderness learning to do it all by myself, and I intend to sell them when the time is right to take advantage of your advice given in your answers to members.
It doesn't seem to be too onerous a task at the moment as long as I ignore events like the recent selloff, but are 40 stocks too many?

Q: Hi 5i,

Wondering what your thoughts are on the ALX/RPL merger? Suspect Peter knows RPL from his Sprott days?

Your view on the merger would be greatly appreciated. Do you think it's a buying opportunity?

Q: With seemingly positive updates and guidance and high $ oil Whitecap and Surge seem to be falling off-any particular reasons you think.

Q: i purchased ax.pr.a , a while back. At this point it is paying 5.8 Percent, what are the risks and downfalls of owning a stock like this in the income part of your portfolio.

Q: Just a comment, but whenever a company announces bad news like mccoy did yesterday and horizon north logistics did 3 weeks ago, for me this is a huge warning sign, i immediately sell and never return, your first loss is your best loss. There are so many great opportunities , why wait months until maybe these companies recover and that is a big maybe. I owned both mccoy and horizon and i am now long gone. I am averaging 16 per cent annual average return forthe last 10.5 years so i feel i know what i am talking about.have to disagree with you to hold mccoy, that was one awful announcement. Dave