Investment Q&A

Q: Hi 5i team,
I've read back to the previous questions about the CSU rights and am still confused. Here are some more questions:
- when does the interest start accumulating?
- why do I get the privilege of using 10.596 rights to pay $115 for a debenture worth $100 (obviously I'm missing something)
- will the debentures be less attractive if I don't hold them until maturity?
- do the rights transfer with the stock? (ex., if I sell my CSU today, do I lose the rights? if I purchase more CSU today, do I get more rights?)
- how safe is the yield and/or principal?

I can't be the only Confused Canuck on this one!
As always, thanks for all your help.

Q: For several years I have held a small position (approx 1.5% of my portfolio) in Central Fund. I have held this out of an idea that I should have something of intrinsic value in my portfolio. I am still up on CEF by around 70%.

Given recent events in Greece and China I would have expected Gold, and precious metals in general, to have rallied a bit. They didn't seem to move very much if at all.

I don't believe inflation will be a concern for a few years.

Is it worth keeping my position in CEF ? I still will have some exposure to Gold through Goldcorp (which has the benefit of a dividend).

Q: What is your Outlook for this company, the trading range has been huge so far this year , thank you, Jean

Q: I've been watching this slide down over the past couple of months then some big volume to the downside. I haven't seen any news releases. I own a fair bit around $12.75. Can you give me your thoughts....buy more or bail? I'm using it as straight US income.
Thanks and you guys are doing a great job!

Q: Can you provide an update on EFH? Do you think it is a buy at his time?

Q: This convertible debenture's yield to maturity is over 34%. I realize that this is risky company to invest in, but do you think the reward may offset the risk considering the debentures will mature in 17 months on December 31, 2016?

Q: I have had significant realized capital gains this year in my non-registered portfolio. To help offset the gains I would like to sell and rebuy in 30 days shares that I have a significant unrealized capital loss. SDY is one of these companies. I know it is difficult to predict but would I be better selling now or waiting to the end of the year?

Q: If the Canadian loonie were to maintain it's low level or go even lower in the future should Ms.Yellen decide to raise rates. Could you give a short list of Canadian companies that will benefit from a lower Canadian dollar that make a significant part of their earnings in US dollars ? MCB comes to mind as it does 49% of it's business in the US ?
Thanks Garth

Q: Hello,

in order to diversify my investment I would like to buy some Alibaba stock... After the recent jumps at Chinese market it went down significantly and I trust it may be a good time. At the same time I know that YHOO is going to spin off it's part in Alibaba. And here is the question (or even two questions):

1)what do you think about BABA perspective for the next 12 months?

2) how this YHOO spin of their Alibaba shares will affect both parties: YHOO and BABA?

Thank you for sharing your opinion!

Q: West Jet is down over 30% YTD. Do you feel this is a good time to get in especially with low price of oil?

Q: You mentioned recently to someone question on this stock that you prefer other companies . Can you list the other companies that you prefer? I do currently own CCL . B
Thanks

Q: We currently hold TD, BNS and BMO. Is there any advantage to holding ZWB instead of individual Canadian banks in the current market environment? Would the covered-call overlay produce additional returns over holding the individual banks?

Q: Canadian wholesale sales fell over 50 billion dollars in May according to statistic Canada. Since all the analyst's were expecting it to hold steady I would think this is the cause for the poor market conditions today?

Q: Which 3 companies would you recommend to buy with our weak dollar?

Thanks

Q: Hi Peter and 5i team,

Could you please give me an update on your thoughts for Industrial Alliance? Would you consider the stock to be a buy below $40?

Thanks as always for your excellent service!

Q: Do gold-producer stock-price declines suggest sector capitulation? Understanding that gold itself may be range-bound for some time, is there bounce potential for the producer stocks? Wrt FNV, how does one assess the relative contributions of gold vs. oil+gas? Please feel free to suggest an alternate vehicle for this sector; I never expected to see so many 'blue-chip' producers so far down.

Q: As we all know now both roger greene and michael dalsin now own zero shares.In looking at insider trading report.They both sold 1 million plus shares in the market.Then they had a private sale of all the shares they had left.To me the public sales helped the price to where they did the private sale.How can one have confidence with these actions.Transparency in the markets is key.Who did they sell to?CONFUSED.

Q: Hi Team,

Blake asked a question about Goldcorp (G) and you suggested the possibility of exiting the materials sector altogether.

As a long-term, value contrarian should I be looking at that as a buy signal, now that it looks like capitulation is occurring? ;-)

Seriously, if you were to pick a handful of materials companies that will survive the onslaught which ones would they be? The more down trod the better (but still able to survive).

Sorry, I don't mean to be cheeky. I totally respect your advice and service and follow it daily. Your advice has helped me make a good chunk of money, which would not have happened without my membership and I really appreciate it. Don't know where I'd be without you!

Cheers, Michael

Q: Hello,

Would you comment on this stock?

Q: Good morning Peter. I would like to invest in the metalls/resources sector for 3 year hold as current prices seem to be historically low. Can you suggest 5 good company's that can sustain the current downturn (lower debit, good assets, reasonable cash flow) that look very attractive at current price levels. Thank you for your great service.