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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: After the stock price of DH rose significantly and then dropped back today, trading has been halted, presumably because of the company's news release that, "a process has been established by its Board of Directors, including the formation of a Special Committee of independent Directors, to address expressions of interest from certain third parties to acquire DH. No formal offers have been received and there can be no assurances that any transaction will result from this process."

Once the situation is clarified please comment on the implications for holders of this stock. Thank you.
Read Answer Asked by Glen on December 07, 2016
Q: In a reply today, you suggested a swap of SJ for MX for quality. In the past five years, MX is up 182% and SJ is double at 363%. Am I missing something here?. You recently added MX to your Balanced Equity portfolio and I would like to follow it but lack the cash right now. SJ is certainly "correcting" but is still in your portfolio. Are you expecting softer returns going forward?
Read Answer Asked by Fred on December 07, 2016
Q: Since your last question and answer on MEG, he stock has dropped from $20 to $7.75 just as you predicted - GREAT CALL. The stock seems to have bottomed out and appears to be showing signs of life. The stock has increased in price by 15% in December so far. Do you think taking a position is still too risky?

Thank you for your advice.

Don
Read Answer Asked by Donald on December 07, 2016
Q: I'm down 26% in D.UN and down 88% in ALL, a tungsten co. D.UN has been moving up somewhat lately. Either will provide a tax loss of about $2,500. If I sell D.UN I recoup about $7,000 to allocate anew. A sell of ALL recoups only $300. I'm concerned a US interest rate will knock D.UN & REITS back a bit and a 2nd rate hike spring/summer will really push them down. ALL finally has the Korean tungsten mining play going forward it seems, so maybe some hope for price increase in 2017. Sell one? Sell both? Thanks 5i.
Read Answer Asked by Mark on December 07, 2016
Q: Which of these 2 stocks would you recommend for an initial position? Could you comment on each of their growth prospects,debt levels dividend growth/stability and their prospects with regards to their forays into markets outside of Canada? Also, what might be an attractive entry level for each. Thanx.
Read Answer Asked by Steve on December 07, 2016
Q: As a retired investor, I have a small defensive position in Goldcorp (which is underwater)and was wondering if Detour Gold would offer better upside potential going forward. I could use the capital loss to reduce this year's capital gains.
Also I'd like to know if you feel gold has lost its defensive nature and is no longer a "must own" in portfolios. Thank you
Read Answer Asked by Isabel on December 07, 2016
Q: I have had my eye on these 2 stocks for a while and the current prices look reasonable for a long term entry point. Both have been very acquisitive. From what I can glean from the annual and quarterly presentations CGI is in the process of delevering from their last acquisition and could be setting up for another. ATD is in the process of digesting their latest acquisition too. My question is has either company issued equity to fund some or all of their prior acquisitions? Or have they all used cash/debt?
Read Answer Asked by Richard on December 07, 2016
Q: Hi 5i: I am in the process of aligning my equity portfolio more closely with the 5i Balanced Equity portfolio. Re the tech sector, I have KXS and SYZ as does 5i. However, instead of CSU and ENGH I have GIB.A and DSG. Would you recommend that I sell the latter two and pick up CSU and ENGH, or is there some intermediate step that you would recommend? Both GIB and DSG have done well for me so far. Thanks for your always valuable advice.
Read Answer Asked by Roland on December 07, 2016
Q: THE REAL ESTATE AND UTILITY SECTION OF MY PORTFOLIO INCLUDES THE ABOVE. I AM A LONG TERM HOLDER AND AM CONSIDERING REDUCING THIS EXPOSURE BECAUSE OF THE IMPENDING POSSIBLE RATE INCREASE, AND REPURCHASING SOME AFTER A SUBSEQUENT DECLINE. ALSO INCREASING MY INFRASTRUCTURE EXPOSURE WITH BIP.UN. WHICH OF THE FOREGOING WOULD YOU RECOMMEND SELLING AT THIS TIME REGARDLESS OF WHETHER OR NOT THEY ARE REPURCHASED LATER? WHAT IS YOUR OPINION OF A SWITCH TO BIP.UN FROM H? THANK YOU FOR YOUR CONTINUED ADVICE.
Read Answer Asked by Harold on December 07, 2016