Investment Q&A

Q: Having 150K in cash that will want to investment.

1. how many stocks should be in the portfolio?
2. based on the number stocks, then that establishes what a full position or half ?
3. how many sector should be included?

any other items to consider?

Thank Ed

Q: Hi 5i
I would like to know your evaluation on RACE?

Q: Hi,
Both these gold companies are having production and political issues.
Should I consolidate sell one to buy the other one, or do you have a couple of recommendations in the gold sector to replace them.
Thank you
Ed

Q: is there a way to buy The Keg on its own?

Q: I want to buy these stocks in my RRSP account for a 5 years hold. Please comment on the financial of these stocks. Why is QSR down in recent few days while the market is rising so much. Why is Warren Buffett interested in this stock . Thanks a lot .

Q: Kraken was up a fair bit today. I read some ambiguous, difficult to understand news story about a notice of takeover. Could you explain it more clearly in your usual professional fashion if possible?

Q: Comment and a question; About 40 years ago I was junior eng. on a non-starting LNG export project from Canada's Prince Rupert area to Japan. In the evaluation stage LNG was compared to methanol as a vehicle to transport methane (natural gas) to market and I heard that Japan would not import methanol due to its solubility in water and toxicity to fish as this was deemed too risky to a major source of food for Japan. I appreciate that there are methanol markets where this is not a consideration and that methanol is only one component of diverse energy and petchem supply. However, could you or your members or Public Affairs at Methanex add any relevant info on this subject.
I have no investment in Metanex. Private or public is OK.

Thanks for your insight, as always.
Cyril

Q: Hello 5i team,

I have 1/2 position in each of the names listed above in a TFSA and have funds to top up two of them to full positions. Objective is growth with long time frame and OK with risk.
Which two would you recommend and why?

Thanks and Happy New Year!

Q: Hi, I assume this might be common among your readers. I have had 2 kinds of promo calls. One fellow calls periodically, offers a name, but no follow up, so it does not bother me.
The other call I received about a year ago there was a boiler pot operation going on in the States, calls were from NYC. Over the course of several calls, I got to know the fellow at some level. Their company was paid to elevate the stock price of various companies. So they had a system where they established a databank of customers. The deal was they would give out the tip and they knew how widespread the information was . You had to buy at the level. you received the information They would monitor your compliance by watching the block trades going thru . Of course, the price lifted as expected since their database was buying...then at some point outside people watching the technical indicators would see the stock rise and also buy in. The company would then give a call when to sell and sure enough it was like letting air out of a balloon since the stock rise was all based on hype and not quality. I never engaged this fellow beyond trying to find out how it worked since for me it is immoral . Some poor person is left buying high and getting stuck with valueless paper. I don't know if this is helpful.

Q: Hello again,
Further to my most recent Question, I just went into the Forums now and there is already a forum for Tax and FX strategies and some address Norbert's Gambit. Perhaps Youssef and others might want to engage in the forum and see if people can or will update FX strategies for them and the rest of us.
I am as guilty as anyone, but it is disappointing how little the Forums are used. I never thought to check them before posting when that is the first thing I should have done.
Cheers,
Mike

Q: Mike Rose (founder and CEO) has been buying TOU stock often during most down turns in the price over past months. What is your opinion of his continued buying of TOU stock? Sincere interest or merely a stunt to halt the slide? Other suggestions? Thanks.

Q: Hello,
I am thinking about buying VGRO for my RRSP account and have a question about management fees. According to Vanguard Canada website the management fee for this fund is 0.22%. However, the only holdings for VGRO are seven other Vanguard ETFs... will I be paying these 0.22% on top of management fees for these seven ETFs or this number is a weighted average of management fees for holdings?
In other words, if I buy a Vanguard ETF that holds other ETFs, will I be paying just the management fee for main ETF or I will indirectly pay management fees for both main ETF and "nested" ETFs?

Q: Hi 5i: You recently answered my second question on MEG Energy - specifically that it was trading at approximately 13% below the value of the Husky offer. It doesn't seem that this has changed much in recent weeks - and I don't think Husky has raised their bid. I don't want to own Husky, so based on documentation sent by RBC Direct, I have to chose between, (a) selling the shares in the next few days or, (b) a cash option that reads "To receive C$11.00 for each share of MEG Energy Corp tendered, subject to proration." [This option is for "Non-Electing Shareholders (Non U.S.) only. I am Canadian, residing in Canada, and I hold the MEG shares in my RRIF.] Could you advise which option I should select? I don't have the data to calculate the proration amount. Your assistance would be greatly appreciated. Roland T.

Q: Can you compare FCD.UN with FC with respect to risk and potential returns in the current interest rate environment ? Thanks, Joe

Q: I would be interested in adding an oil name at this point and wondering in what direction you would point me. It should be quite liquid, Canadian, worth over $5/share and be 'best in class' to handle whatever happens next in the oil market. Thanks!

Q: Is it a good time to buy one of the Canadian Banks?
And which one is your favorite choice.
Please rank. Thank you.

Q: In today's (Tuesday) Globe and Mail, there was an article about "covered bonds". Could you explain to me how these differ from the mortgage backed securities that lead, in part, to the 2008 financial meltdown?

Q: Greetings,

ATD is hitting all time highs - i have not seen anything that would be driving this. Have i missed something or is the stock price catching up with the acquisitions and growth?

Q: Hello 5i,
Today Youssef asked about converting $CAD to $USD and getting the best rate. I would suggest that in his research he look into Norbert's Gambit. I have just used it for the first time with RBC's Direct Investing and one thing I discovered that DI is fully aware of the process and actually seems to condone if not encourage it. When I needed some help with some of the technicalities of doing it, they were extremely good about assisting me.
Once my trades have settled and I find the time, I will be going over the numbers to determine for myself just how beneficial the process was in terms of the actual rate I received.
In a nutshell, the theory is that you gain by not paying the spread that the banks charge on CAD - USD FX but lose your trading costs - which should be a pittance as compared to the spread.
It is my understanding that RBC's D.I. is one of the better platforms for executing Norbert's Gambit, but that is only surmise.
Perhaps Youssef or others might want to open up a "Norbert's Gambit" topic on the Forum for further insights from other members?
Hope this is of some help....
Cheers,
Mike

Q: Good morning,
I'm 70 years old and with yet a new year upon us and a review of the holdings in my non reg equity portfolio, I'm concerned that my $650K non reg equity portfolio has slowly grown into a "hodge podge" of miscellaneous holdings that need to be trimmed, better concentrated (minimum 5% per holding) along with the addition of a few additional names in sectors that are not currently represented. My current holdings are as follows:
AQN (3.3%),BCE (11.6%)BAM.A(3.8%),CU (4.5%),DIV(2.8%),EMA (2.4%),KEY(2.2%),XIU(5.2%),XIC (33.2%),XDV(18.4%),SLF(3.6%),T(2.9%),T(2.9%),MAW120(3.1%)MAW102(3%).
I would very much appreciate your suggestions on how to best to adjust my current non reg equity portfolio to make it easier to manage and follow. I'm open to adding an appropriate mix of ETFs or Mawer equity funds as need be. My RRSP and TFSA are pretty much all populated with a mix of relatively low MER Mawer equity funds which have performed well over the years. I thank you in advance and look forward to hearing your sage advice and recommendations.
Francesco