Investment Q&A

Q: I was wondering if an index such as XMA ever changes its stock focus? For example would they focus more on agriculture rather than gold. Thank you.

Q: Any specific reason why IPL has been going down steadily the past few days? Thanks.

Q: I'm looking at VUS-Vangard Total US Market to get more US exposure. Is this a wise choice or can you suggest something? Thank you.

Q: Hi, can i get your opinion on Pro-Or (POI-T) which had news yesterday ? i realize it is very high risk but does their strategy make sense ? i like the space as i think(hope ?) these PGM's will be part of a robust auto industry. thank you norm

Q: Could you comment on EIT.UN with regards to changes in the management of the fund.Seems pretty flat for quite awhile.

Q: GLN. Does this Verizen deal affect GLN? I see that it went down.

Q: opinions on wells fargo at this time, thanks, and investing in american or canadian banks

Q: You have mentioned that you favour US industrials and tech. Which ETFs would you suggest for that?

Q: What is your opinion on Indigo IDG in light of recent announcement to expand outside Canada? thanks - John

Q: Hello,

I read your article in the National Post regarding sector rotations and would like to ask a question about it.

Out of the 20 stocks I own, 3 are energy, IPL,TOU,HAL.
Because of the rotation would 15% considered too much to hold?
The rest of my portfolio is 10% Communications, 15% Health, 25% Cyclical and 35% Technology.

Thank you.

Q: Hello, ABX - My last question on ABX (and your answer) on Jan 8, 2013 is mentioned below. How do you feel about it now. Down 50%, shall I keep holding expecting a turnaround in 1.5 -2 years. Is dividend safe. OR shall take a loss and move on.
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January 08, 2013 (asked by r)
Question: Barrick - ABX. What is your opinion about the stock prospect in lieu of recent developments. Is it buy hold or sell.
5i Research Answer:
Barrick continues to have problems. The lack of sale of African Barrick is disappointing, but it is not a devastating blow. ABX's interest is worth just over $2 billion. Pueblo Viejo in the DR is another issue, and has not yet achieved commercial production. ABX will likely have to lower its production guidance for 2013.
But, many of its problems are reflected in the price. Down 30% in a year, trading a 8 times' earnings with a 2.4% dividend, it is attractively priced for a senior gold company with massive leverage to a higher gold price.
A few years ago, if we said you could buy Barrick below 10 times' earnings with a yield greater than most fixed-income investments, no one would have believed it.
Longer term gold investors should still be OK and do well with ABX.

Q: Peter and team:
NTB (Neptune Biotech) seems to be doing remarkably well in a difficult market in spite of the explosion/fire they had and the fact that they are still re-building. Any thoughts as to what is behind the strength and if it is worth taking a small position or do you have other 'speculative' favourites you would suggest ? Thanks for all the helpful comments you have been providing during a worrying time on the market.

Alexandra

Q: Trez Capital - TZZ

Can you give me an opinion on this company?

Q: Peter, am looking to invest with the market down. Looking at long term hold, steady dividends. Direct Cash, Cominar Reit and F P News. Thanks Peter for your timely answers, Ken

Q: Another question on CLC. I have ~400 shares and am inclined to sell soon, giving up ~$100 for not waiting for 3 months. I bought CLC for its presumed stability (wrong!) and its good yield. Do you have a suggestion or two for a replacement that fits the same criteria, perhaps tending to the more aggressive side. This holding is in my TFSA which also includes ACQ and SYZ (thanks!)

I appreciate your fine, unbiased service.

Q: Re: CPD question posed today. On the TSX web site it says the dividend is 5.75% which is not bad. My question is when is the fund fee taken out of the earnings? Is 5.75% pre-fees or post-fees.

Derek

Q: Hi There
I am looking to increase the consumer part of my diversified income/modest growth (retirement)portfolio and trying to decide between AW.un, BPF.un and KEG.un.
BPF numbers look the least attractive of the three, but you appear to speak well of it.
Going forward which would be your #1 choice given the recent market turmoil?
Thanks as always for a great commentary.

Q: Hi Peter and 5i: Can you please comment on this as one possible case against investing in gold equities: Ultimately you can't fully evaluate the situation on the basis of how much the gold stocks have come down and how "cheap" their current prices may appear compared to themselves of 6 to 12 months ago. The bottom line is all about the price of the commodity. The price of gold went up more than 450% over a dozen years reaching its most recent peaks. It has now backed off about 30% from those peaks to just about where it was three years ago. Is gold itself cheap or expensive? Will it be worth more or less in 6 months time? I have no way of knowing. Gold is just worth what people want to pay for it; there is no industrial need that it serves that could kick in and provide a reliable floor. Gold equities only have any value at all relative to some assumed commodity price. If gold itself drops to below the cost of production for a gold miner, that miner's stock has close to zero value - all that is left is what it might be worth if the price of gold turns around and zooms back up again. Thanks!

Q: Where do you think DHX will be in a year from now. Thank You Very Much. Andy

Q: Good afternoon 5i,

In the summer month usually Consumer staples do fairly well. What are your thoughts on XST an Ishare ETF?

Thank you.