Investment Q&A

Q: Hello Peter,
I sent in a question a couple of weeks ago but didn’t receive a reply… so here goes again:

I was a bit surprised by some of your stock selections for the Income Portfolio, and also by some of the exclusions.

Loblaw, for example (a low margin business with big competition, small yield and only recent dividend increases) made the portfolio while companies in a somewhat similar space like THI, PBH, NWC, HLF, CSW, ADW, BPF (having generally higher yields/better 5 year dividend growth) did not. Can you explain why Loblaw?

If I follow your advice, is there a particular company in the names I mentioned that you feel would be best switched-out to acquire L?
Thank you very much,
Paul

Q: Hello
I'd like to ask about Medical Facilities Corp. I've owned it for over a year. Todays open gaped down hard. There is twice the daily volume and it's not even lunch time! No news as far as I can see. Is this an omen to take fat profits?...thoughts?

Q: XSR
Hi Peter
I am asking about Sirius XM . What do you think of this company . Is it a buy at these levels for growth .
Candi

Q: A reason to NOT use Virtual Brokers: When I complained that they had posted 18 T5 slips for my account as opposed to the one T5 in prior years, I got this response-

"Virtual Brokers has changed its carrying broker and, as a result, has become responsible for all administrative tasks including the issuance of tax statements. For this reason you may have noticed a difference in the presentation of tax statements this year as compared to prior periods.
We have posted a T5 for each individual holding which produced income throughout the 2013 tax year per the regulations imposed by CRA."

And to finally imply that it's all CRA's fault and out of their hands! TD and Scotia had no trouble summarizing all dividends into one T5 for me. So easy to blame CRA these days!

Publish only if you feel this is instructive. J.

Q: Do you think the bulk of the correction in the general market is over or does it still seem to have more downside to do?

Thanks

Q: Alcoa
As a follow up on Alcoa earnings, I noticed that Fitch has downgraded its debt to junk status (BB+). At least someone is showing some concern.

Q: Peter and Team
I totally revamped this TFSA in January according to your group' sure commendations, but did hold back on what is now 7% cash, of the portfolio and am ready to invest that.. I currently hold 17% in REITS, 13% in BCE , 13 in ZWB, 11% in BAD, the remainder , evenly spread, in CDZ, XIU and XCS.
What would you recommend that would provide substantial growth prospects and would it make sense to add a Canadian company with good foreign exposure?
In other accounts I own SGY, SYZ, SLF,, AVO, and ESL.
Thanks for your consideration. I have been pleased with the January changes made to this TFSA.
Ruth Ann

Q: Hi, I would like your views on Centerra Gold generally and in terms of value. Also, do you think the dividend is relatively safe? I am looking for a small exposure to the gold sector. Would you have another name that you would recomend instead, which pays a dividend. Thanks for your input.

Q: AUP seems to be holding up well in difficult market. There was also some insider purchases. Would you be more constructive on this small company compared to your November comment.

Thank you for your great service, Peter

Q: Greeting Peter & Co.
While I am currently a little nervous about the stock market I don't want to miss buying opportunities for quality stocks. I am considering adding to my very small position in Sun Life Financial, my only financial holding. Also, I am considering increasing my exposure to Canadian financials by initiating a new position in TD Bank.
I would appreciate you thoughts on these two potential purchases.
With appreciation,
Ed

Q: Hi, Gibson Energy(GEI)appears to be getting favourable comments from analysts and BNN guests, as a unique mid stream energy infrastructure co. benefitting from several business segments. Recent quarter was good and management guided for a strong 2014, besides a 9% dividend increase. I noted that you consider Gibson expensive and good for income only. I am considering increasing my position for income and growth. I would appreciate your comments.Thanks

Q: peter
could you comment on the recent news on PM is it a good buy on the current level

Q: Re NA palladium. The price has tanked because of poor results recent financing and dilution of stock. However I have read that because of recent Russia. Ukraine problems the demand for production here and anticipated commodity price increase this could be an attractive speculation. Your comment?
Stock symbol pal. ( seems to show as pdl in some places)

Q: The other day you recommended AYA, SJ, BDI, SLF, CSU, MDA, ENB, ESL, FSV, BNS for a TFSA . We have an 35K low risk RESP for our 16 YO son but it hasn't really gone anywhere ... ( We finally ridded the account of its mutual funds , actually LOSING money in 2013 when everyone else was making 30% ). This is a big investment for us and we would like it to grow . Should we be following your TFSA model for the RESP ?. Thanks .

Q: As for diversifying equities where you have an RRSP, TFSA and stocks "outside": is the diversifying done over the total equity component or in each of the containment areas?
Thank you.

Q: What do you think of Concordia Healthcare CXR? Do you have any knowledge as to why the recent activity and increase in price of the stock. I do own it and cannot find any news to explain the sudden interest. Thanks for any insight you can give me.

Q: Where and what is this "5i Report card" a few members have recently mentioned? Have I missed it or does it go by another name?
Thank You

Q: I am wondering if 5I has a mandate to educate readers as to make report cards themselves, or to teach us to start to do some of our own research. Say which websites to use , etc.

Q: I am thinking of investing in Goldcorp. Are there any concerns due to the ongoing and well published battle over Osisko. i.e. negative impact to stock price if hostile to bid fails.

Thanks

Phil

Q: Hello 5i Team,
Valuations of most oil and gas producers are moving higher, but Touchstone and Petrobank are standing still, despite what appear to be good metrics and focus for their combined enterprise; thoughts?