Investment Q&A

Q: Hi,

I currently own ATD.B, CGX, MFC, TD, HCG, CNQ, PEY, CPG, PPL, CCL.B, ESL and TCK.B (half position) in my RRSP. I'm thinking of selling ATD.B and TD going into the summer in the hopes of picking up SJ and CSU to increase exposure to industrials and technology. What do you think? Also, I noted that you no longer have exposure to pharma with the sale of Valeant. Is it a sector that you're avoiding since its had such a good run?

Thanks again,
Jason

Q: Hello 5i Team,
I have a few tobacco stocks and would like to sell one, currently I own, Vector Group (VGR), Lorillard (LO), Altria Group (MO) and Imperial Tobacco Group PLC. Which of these would you say good bye to, looking at the longer term.
Thanks

Q: Hello 5i,
I have the following holdings on my RSP and spousal RSP:
CDZ, CGX, T, DH, CBO, CF, ZRE,ECI, CEW and XCS (slightly overweight on CDZ, CGX,CEW and XCS): I have about 15k to invest on my RSP could you suggest some additions trimming..I love growth but also like dividents. This is for long term 20+ years. Thanks for your valuable service. cheers,

Shyam

Q: hi , els[ equity life style]on the ny exchange . it is a reit . do you have an opinion and how do i get an analyst report on this company? brian

Q: Hi Gang, I was hoping to find a site that gives clear, easily readable, information indicating which sectors of the market are seeing the biggest influx of money and, more importantly, which companies lead the way.
Thanks
Kyle

Q: Hello 5i Team,
Belgacom (BGAOY) looks like a good buy to my untrained eye, with a wonderful dividend, to purchase this I would probably sell China mobile. I’m looking for a good long term trade and do not want to flip flop between stocks for no reason. Also, can you give me your best two or three stocks outside Canada that have excellent long term potential with a great dividend, market cap is not my primary concern? Sorry about all the questions outside Canada, but I do follow your portfolios.
Many thanks

Q: In the past weeks our full position in HR.UN has dropped almost 2.5%. What would you tnink of selling it and dividing half of the money between REI.UN and AX.UN, in which we now have 1/2 posn's, and half into NFI in which we have a 1/4 position? We do depend on dividends for much of our income.

Q: What is your view on Concordia health care corp? CXR on Tsx. another valiant in the making? Thx

Q: Do you have any thoughts on Rav.un?
Thanks

Tony

Q: Hi there,
Would you people have any info on any new fundamental reasons
for the recent price rise in BYD.UN, or is it just going up ? 39+ the other day.

Thanks again
Larry

Q: Hi 5i,

I would like your assessment of a New Issue/IPO just made available on TD's Direct Investing web-site. It is for approx $250 million of common shares in Aurigen Capital Limited. It seems this company has been in existance since 2007 and offers Life reinsurance to primary insurers. The CEO (Alan Ryder) has
previously led the launch, growth and operation of two other successful reinsurance start-ups and previously (2007) raised
$505 million of equity capital from respected private equity &
industry investors. Is the CEO and other members of the mgmt team known to 5iResearch? Who are their competitors in the CDN market? Do you recommend purchasing this on the IPO, later after it settles, or not at all for sector reasons? (price has yet to be determined...)

Thanks for your great service!

Scot

Q: Hello,

Do you have an opinion on RFP? Thank you.

Q: What is your opinion of:

SPM...good time to get in?
ENT...has some insider buying, and price seems cheap?
HME...down 10% today, is this a buying opportunity?

Lastly, how much consideration do you give to a stock that has a lot of inser buying?

Q: Hello Peter and Team. I have owned WCP since July, 2013 (with help from your advice). There has been 2 dividend increases and I am up over 30% since then. My weighting is about 6.5% now. With the recent gains, should I take a little off the table, or wait until it is a higher portion of my overall portfolio? Lots of good news and an exciting stock for sure. Thanks for your insights!

Q: Hi folks,
Would you know of any fundamental reason for BOYD,S BYD.UN latest run up ( better than 39 dollars?

Thanks again ,
Larry

Q: RBC has raised its estimate on CF to $12 from 7.50.Is the investment business this strong and will the rising tide lift all the boats such as GMP?
Thanks for your opinion.

Q: Could you please provide an update on CFN?
Bought at 9.15 and 9.00, now at 8.90.

Q: Hello Peter,

What are your thoughts on Savanna Energy (SVY)? Good time to sell? It is hovering around $8.75 right now and I don't see much growth potential in the future.

Thanks,

Q: Hi Peter, As for Paul's holding of ALC.DB, I see a few more considerations for the analysis of this investment. Yield to maturity in 4 years at 2.5% assumes the debenture will be redeemed at par then, which is unlikely if the normal growth assumptions for the shares are applied and the debenture, now at a 12% premium to conversion, will be in the money, and the current $113 price will be a bargain then if the shares were to lift to, say, $24. If that is to be the route the shares will take, then conversion at a later date will be more advantageous or sale at a higher price for the converts, and a current yield of 5.3% is a fairer comparison to the share dividend of 1.8% than YTM of 2.5%. Only a flatlining or downtrend of the common would cause redemption at par in 2018.

A current 12% premium to conversion isn't large compared to lots of others including converts of FCR and MRT that I hold in RRSP where I tax shelter the interest, which is more advantageous than a taxable account. In fact I might switch for the lower conversion premium. If I'm making any false assumptions here, please correct me. Thanks, J.

Q: ALC.DB question of Apr 26/14 asked by Paul:

"Converting ...you would need to sell the debentures at the quoted price, buy the stock at the current price, pay taxes if you sold the debentures, and pay two commissions"

I don't follow the above answer. There are no commissions to convert as the broker informs the transfer agent and the shares are credited to the account. I have never seen a conversion fee at full service brokers such as McLeod.
The current yield is 5.30% (6/113) versus 1.77% for the common.
The yield to maturity losses will be gradual since the bond has 4 years to redemption. The bonds will hold up better than the common on the downside because because of embedded 4 year warrant in the bond. Conversion destroys the embedded warrant. Publish at your discretion.