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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I’m thinking of selling one or two of these holdings, all currently in a RRIF, and re-buying them in a TFSA. I’m thinking that the best ones to transfer would be the most “growthy”. What would you advise? Could you list them in order of expected growth?
As always, thanks for this great service!!
Read Answer Asked by Jim on June 15, 2018
Q: Follow-up comment to the question asked by Cameron on CSU ever having been approached for a takeover.

Suggest reading the old annual President Letters for some very interesting CSU history.

Several years ago, when the shares were around $50, some large shareholders were unhappy with the stock valuation so the board of CSU tried to sell the company. They were unsuccessful. The sale process itself resulted in a rise in share price and liquidity for investors who were looking to get out. The board found the process to be very time consuming and distracting and were glad to put it behind them and go back to growing the business. Stock is up 20 fold since then.

Lets hope the business can continue for several more years before the last chapter is written.
Read Answer Asked by Joel on June 15, 2018
Q: Risky but growth possible similar to pho,which other stock would you recommend?
No consideration to sectors.
Read Answer Asked by Nizar on June 15, 2018
Q: Would like your opinion on what company to add to my RRSP. I currently have BNS, TD, BCE, T, TRP, ENB and PFE. Would like some something with growth potential and a small dividend. I notice you seem to like SIS - would that fit in OR can you suggest others I can look at ? Thanks for your help.
Read Answer Asked by JOHN on June 15, 2018
Q: In response to the question below, First United was recently added to the Russell 2000 index. This would explain the recent run up. My question would be, is there any research on how long the boost for being added to an index lasts. Is it short term (ie. a week) or do stocks added to an index trend higher over a 6 month or 1 year time frame.
Read Answer Asked by Ralph on June 15, 2018
Q: I hold BABA.us in a registered account. I bought believing Chinese sponsored ADRs are subject to SEC disclosure requirements. Your response to my question on MOMO.us confirmed the above. But I am not so sure now that you or I are correct in our beliefs. I was not necessarily surprised to hear Jim Chanos say he was shorting BABA.us. That’s not odd per se. I was however startled to hear him go on to say his SOLE reason for shorting BABA was that he didn’t trust its accounting and filings. He went further and said BABA-- and I now presume other Chinese ADRs--- do not follow US or international acctng rules (IFRS, FASB etc. and not SEC regs). Yet BABA is by law required to file disclosure with the SEC. Please comment on the issue of the RELIABILITY of financials AND those all-important DISCLOSURES, that BABA and its auditors need to file with SEC. Should I believe those filings as much as you do? Chanos’ argument and puzzlement were over the fact that net value of BABA was lower today than when it did its IPO. Chanos wonders where the profits and cash are flows the company has generated and reported since IPO ! Chanos or his shop is do not slouch when it comes to doing homework on filings. What gives? Should I believe those filings (as stated in your response to my question on MOMO?) I have a lot in Chinese Tech ADRs and this issue now has me re-thinking the basis for my buy decisions.
Read Answer Asked by Adam on June 15, 2018
Q: Rising interest rates have definitely put downward pressure on bond-proxy types of companies i.e. those that pay dividends. I am an investor who believes that those companies that pay dividends and have the ability to raise those dividends consistently over time tend to outperform. I would like to purchase 6 such companies for the income portion of my portfolio, and would appreciate the names of your favorite companies that pay, and have a history of increasing, their dividends.
Read Answer Asked by Les on June 15, 2018
Q: Very disappointed in your CGX trade in the Income Porfolio. You don't seem to follow your own advice when it comes to the income portfolio and recommend stocks that are in a downtrend/negative momentum simply to chase yield.

Aug 30-2017 you stated - Rationale: While the growth potential behind CGX is lower, now that the yield is in the 4.7% range, we view CGX as a good addition to an income portfolio. Cineplex offers size and stability along with an attractive dividend stream, making it a good fit for the income portfolio.
June 14-2018 you stated - Trade Rationale - Cineplex has been frustrating to say the least. On one hand, we do view that it has been unduly punished but on the other hand, management does not appear to really be helping the case. They have not done a whole lot to address the specific concerns against their core revenue base and while diversifying into the Rec Room business has potential, it is a slow roll-out and capital intensive. One could argue it is also akin to doubling down on the current business model.

Everything that you stated June 14,2018 also applied Aug 20, 2017, yet you still bought it seemingly for the yield.

The Balanced Portfolio seems to be where all the 5i focus and interest is, where the income portfolio is an afterthought. I assume most in the income portfolio are like myself, retired and living off dividend income. Yet you are recommending stocks simply for yield, even if the fundamentals and technicals are both negative.
Read Answer Asked by Curtis on June 15, 2018
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