Investment Q&A

Q: REITS

My question concerns the viability at all of having REITS in an income portfolio. A Reit does not pay tax at the corporate level as long as their distribute the income to unit holders. Consequently the dividend tax credit does not apply.

Is a REIT therefore like a bond issued by a real estate company with the added tie in to the real estate market valuations ?

Would an income investor not be better off to simply buy a preferred stock from a real estate company that offers an attractive yield?

Thanks

Paul

Q: Hello 5I team.
I have positions in both BDI Black Diamond and HWO High Artic Energy. My average cost for BDI is $17.98 and the average cost for HWO is $3.75. Both positions are worth between $5k-10K and are part of my energy services portion of the portfolio. I am considering my options presently in regards to consolidating to one name or adding (3K) to either one. I am traditionally a long term holder and I am thinking I would like to bring down the cost of my BDI shares but maybe HWO is a better choice overall? Please advise me what you might do in this matter.
Thanks Jeremy

Q: hey guys
can I get your opinion on MDF please

Q: Peter; Regarding Peters question about investing books for his son- I might also suggest his son sits down and read the questions and answers in 5i. You might consider doing a book based on them too !? Merry Christmas to you and all your dedicated employees. I appreciate your in depth insight and plain talkiing advice.
Rod

Q: When I read thru the most recent MD&A, it screams to me that a turnaround is progressing very effectively. The new management had a massive mess to clean up. The sale of unleased single family properties to and post 09/30/16 as well as the resolution of all the municipal code violations/massive reduction in associated fines, gradual collection of former CEO funds owing with interest, paydown of expensive SSN and so on all seem very positive. I know this isn't something you endorse due to size and period of consistency, but do you agree with what I am reading that this ship is at least ostensibly turning around in a big way? Current management and board does have a solid track record with Firm Capital (FC) and significant insider ownership here, correct? Could you explain what the recent rights issue is about and how it works? Much thx!

Q: TD Bank lists these 11 sectors - going forward and post Trump what would 5is's top picks be for these 11 sectors:
1)in Canada?
2)in the US?
Consumer Discretionary
Consumer Staples
Metals & Mining Index
Financials
Health Care
Industrials
Information Technology
Materials
Capped Real Estate
Telecommunication
Utilities
Thanks kindly.

Q: Re HY bonds referenced in Friday articles by Michael:
Does this apply to XHY and if so is the article in line with your current thinking on XHY, and what percentage of a reasonably diversified portfolio should be held? Current holding is one percent of my portfolio.

Thank you for considering my question.

Q: I am interested in buying a Canadian energy services company. Can you recommend two or three, including one with a dividend? Thanks, Bill.

Q: Hello from the Responsible Investing Club in Comox, B.C.
Thanks for your great service!
Do you have any suggestions for an ETF that focuses on Responsible/Ethical Investing, which does NOT use a "best of sector" approach? (i.e. the "best" oil company, the "best" mining company, etc).
For example, XEN on the TSE has Suncor as its third-largest holding, which isn't something that many ethical investors could invest in.
Thanks in advance for your suggestions.

Q: A few years ago you recommended to me the Powershares ETF QQQ for the IT portion of my holdings. It has been a very good performer, thanks. I also own CSU, MDA & ENGH.

Do you still recommend QQQ as your top ETF pick? Are there any other items you would recommend looking at. It can be a stock, mutual fund or etf.

Thanks

Paul

Q: Hi Team.
In view of the current market rotation, cyclical stocks are performing better. Could you identify three US and three cyclical Canadian stocks that could still outperform in the new environment. What sectors other than finance will benefit from the new administration in the US.
I value your opinion.
Thank you
Raouf

Q: Good morning,
Please give me your opinion of SCL
Thanks
Rick

Q: We are involving our kids (ages 7 and 8) in choosing companies that they are interested in for their RESP holdings. They love watching their dividends get deposit into their accounts, almost as much as I do.

My son has chosen: CGX (because he likes going to the movies), L (because he sees how busy the grocery store and Shoppers are) and ICE (because he likes playing hockey and noticed how busy the rinks are where we live).

My daughter has chosen: CTC.a (because she likes to go to Sports Check to buy her sports equipment) and CARA (because she likes going to a few of their restaurant brands).

I added T, for some stability and extra dividends.

I realize this mini-portfolio is pretty concentrated in the consumer sectors. Do you have any suggestions to diversify things?

Also, given their age, what percentage of their RESP would you recommend being in equities?

Thanks in advance.

Q: Hi, I've sold my REITs in my cash account but am thinking of adding two or three in my RRSP accounts for long term holds. Is this a reasonable move? I've noticed that your recommendations generally include CSH, CAR, and REI. I can't help but be attracted to the yield on AX. Am I "reaching" for yield and likely to be disappointed if I buy AX? What would be your top 2 or 3 REITs for an RRSP that consists of a balanced group of etf's? I'm looking to be a bit more conservative here than in my cash account which mirrors the balanced equity model fairly closely.
Thanks, Rod

Q: Hello 5i team,
I searched the TMX site to look for the stocks breakdown by sector; but can't find it. Could you suggest a site that provides that information?
Thanks,
Antoine

Q: Mp portfolio closely mirrors you balanced equity portfolio (about 3 exceptions). I have been happy with its performance but note some analysts indicate a that the US economy will out[perform the Canadian economy over the next year. Do you think it is a good idea to pick up some U.S.stocks? What do you think. I favor ETS's at would make up about 20%of my portfolio.

Would you recommend such a move? If so, what ETF's would you prefer?

Raymond

Q: PIF dropped close to 22% this week with no news. It's technical support level is now a very weak $13.78 and today it closed at $14.60.

From a TA stand point it sure look like this will continue to fall through the bottom to the next strong support level of $8. Since my entry price was also only $8 I think I should just lock up my profit now and exit this name, even though I'm collecting almost a 7% dividend.

What is your recommendation in such situation? Even though I like this name I don't want to see so much gains vaporized. I can always buy it back later, right? Thanks.

Q: Peter and His Wonder Team
I thought there 3rd Quarter results reflected progress as they have closed 85 stores and are restructuring. However the stock dropped 2.58%. So what happened? Was Mr.Market disappointed...is the whole sector down...tax loss selling...apparel stocks are out of favour...or all of the above? Ha!Ha! Your thoughts please!
With appreciation...
Dr.Ernest Rivait

Q: Do you have any informatuon on a company called Hemostemix.

Thanks

Q: I have very little US exposure in my portfolio. What would be a good Canadian US equity growth fund or ETF that would allow me to participate in the New America under the Trump regime?

Thanks

Peter