Investment Q&A

Q: I have 2 preferred share ETFs (CPD and HPR) that are both up about 6 percent over the last few months. I have noticed a slight outperformance with the actively managed ETF (6.01% vs. 5.59%). The fees are slightly higher with the actively managed ETF (0.64% vs 0.51%). Is it advisable to switch my holdings in CPD and put everything in the actively managed ETF? Is it worth it or is the outperformance a red herring because of the short time period?

Thank you,
Jason

Q: Peyto and Alta gas have fallen lately for different reasons. How secure is their dividend, and their price ? Which one would you rate better for a 5 -10 year hold ?

Q: We have just returned from a five week trip to Singapore, Vietnam and Malaysia. We really were impressed with the work ethic, entrepreneurship and the tremendous growth in the middle class in all three countries. We always look for the presence of Canadian companies when travelling and were disappointed in the lack thereof. We saw Manulife, A&W, CIRCLE K and RBC. With the possible change in our trade pattern to the south would you have any investment suggestions for companies that are selling into these above-mentioned countries?

Q: I have owned National Bank for a number of years. I have read the posts and your preference for TD and BNS. I presently feel that this may be an ideal time to make a switch. The P/E of National Bank (according to Google) is presently quite high, especially for a bank, in my opinion. It is presently a few points higher than both TD and BNS (and also has a slightly higher dividend as well). Is there something going on at the National bank that justifies this higher P/E, is it simply investor sentiment, the higher dividend...? If the P/E is unjustified, in time the stock will retreat and I would rather switch over when the price is higher. Your thoughts on switching over (dollar for dollar). Normally I do not like doing this because, it is not a dollar for dollar switch, after I pay taxes (but I am sure I can sell some losers as well). If you recommend the switch, why do you like TD and BNS more. Looking at the 5 year charts, I see that TD has performed well in comparison. BNS and NA are at about par (assuming NA can sustain the PE or increase its EPS at a higher rate than the other banks). I assume that if the switch is recommend, I do it 50/50? Thanks.

Q: I am interested in building a portfolio based on the Balanced portfolio, Dec 2106. It currently consists of 23 holdings, not including cash. Of the total portfolio 7 holdings are NR which I presume is "no report". I believe you add these with the following comment:
“The portfolio contains some stocks that 5i Research® does not currently cover. We needed to add these names to increase the average market capitalization of the portfolio, and to add sector balance. We are very comfortable with the companies we have chosen, and will cover the 7 companies in due course.”
My question then is what are the metrics that you have initially applied to reach a comfort level such that these are included prior to a report being completed?

Q: Hi 5i,

I know you generally don't research U.S. companies but I thought I would ask your opinion on Nike. I bought a small position last year for $59 and change. I have watched it continue to go down and really not be able to get above $54. Would you advise I just sell and cut my losses or should I wait things out?

I really appreciate your opinion. Thanks.

Q: Hello 5i Team,
Given the cyclicality of Commodities, would they not be suitable for "trading" as opposed to "investing"?
Thanks,
Antoine

Q: Hey guys! I have been watching New Gold for some time now, waiting to buy on a dip. With their bad news today, the stock is down 25%. Would you view this as a good entry point for a 3-5 year hold, or would you hold off until they turn things around?

Q: Do you have any insights into the likelihood of Hunter Harrison taking over at CSX? Could you assign a probability to it? Is it something that could take more than a year to happen? Are there reasons to think it won't happen?

Q: On January 27th, I receive a notice from TD Direct Investing dated from January 16th. In that notice, I was proposed to choose between two options: option 1 to transfer my Intertain stocks to Intertain Exchange (ITX) or option 2 (default) to transfer my IT stocks to JackPotJoy (JPJ) on the London Stock Exchange (LSE).

I called TD on the day I received the notice. After arguing with the clerk and his coordinator, they said that the delay was expired to choose any other option than the default and that TD was not responsible for the 10 days' delay. It was either Canada Post's or the transfer agent's fault. At some point, the clerk said that I was not the first client to complain.

The alternative given is to trade the JPJ stocks after they will appear on my account and TD would wave the commission.

Please give me your opinion on this situation, what are the possible consequences and what can be done.

I think that
- Canada Post is the usual suspect in any delay but 10 days is too much and TD and the transfer agent should take some blame in the matter.
- The default option to transfer Canadian securities to a foreign exchange is borderline incompetent decision.
- What if there is an impact of the FX from GBP to CAD with the sale of JPJ stocks on the LSE.
- Is there anything that can be done or compensation that I can claim in that situation?

I started a blog on 5iR on this subject, because there could be a class action case, in my opinion.

Thank you for your support in that matter.

Q: Will putting this ETF in my TFSA trigger a US withholding tax? My feeling is that this tax only applies to dividends and seeing that his ETF is a small cap one, would the dividends be negligible? Tnx

Q: Could you please assess the Frontline offer for DHT and explain the rights offering component of the deal Thanx Robbie

Q: Middlefield is proposing to make Aeu.un a mutual fund company. Is it best to sell now or to go with the change?

Q: Big hit on New Gold the morning. Any reason why? Gold and gold producers are up buy New Gold is down significantly.
Thanks

Q: Based on your previous answers you seem to have a luke-warm response to Visa as a stock and appear to favor U.S. banks for example over Visa. Can you expand on that preference and what your thoughts are on Visa alone. Folding Visa Europe into the company seems to offer a lot of potential. Do you think the risk of different payment alternatives becoming available puts Visa at too much risk given its relatively expensive multiple. Thanks for your input.

Q: Jan 30/17 ? asked by pascal re US research:

Many of the Valueline services are available
online from the Toronto Public library and other libraries. A library card is required.

Q: What are your thoughts on The Cheesecake Factory. Great Service and Location in prime areas and entrances to the most popular malls. Everyone I know who visits the United States always says they have to eat there. Last year stock went up 25%. Any thoughts of buying at this level. Thanks.

Q: Hi There. Could you give me your thoughts on BHP Billiton. With Trumps insistent on Keystone pipeline being built by U.S. steel would you be a buyer at this time?

Thx/Rob

Q: What is your incite on what is happening to MPV diamonds. Is it worth keeping ? Do you think shorts are driving down the price ? Do you think a dividend is in sight this yr, ?

Q: Lately there’s been a profusion of articles warning about the deeply negative effect Trump’s policies might have on Canada, with respect to trade agreements, taxes on imports, foreign investment shifting from Canada to the USA, etc. To the extent an investor should be influenced by this new outlook, I was wondering if you could list the sectors and associated companies in Canada which you think would be hurt the most if the dire warnings come true, and which ones would be the most resilient. Also, are there any particular foreign investments Canadians should be considering at this time? Let’s assume a time horizon of at least four, and possibly eight, years. Thanks for your insights.