Investment Q&A

Q: In your reply to Bill on April 17th, you commented you would have no problem with a 1% position of RRX. What about if "doubling down", in my case, means taking it to 4% of the portfolio?

With the stock weakness, my position has fallen to 2.3% of my portfolio and so was wondering if this would be an opportunity to raise it back to its original 4%. (Total sector exposure is 11%, at current prices, which includes TOG and SPE). ... Or just wait this one out?

Q: Are you seeing any news to account for the sell off in this stock? I noticed volume was not extreme. This still on your radar as an future addition to the growth portfolio?

Q: is there any sectors that may benefit or suffer when there is geopolitical issues in the world , ex. U.S and North Koria and or the Russians.

Q: Just noticed board member Darcy Morris recently sold 238,000 shares in early April of ZCL just took a full position 2 months ago in for the long haul just wandering your thoughts on this and going forward on this company. Thanks

Q: I own BEP.UN, BAM.A, BIP.UN and BGI.UN. Clearly I like the company.
Currently I am looking to deploy new money into the "income component" of my portfolios and am looking for a global real estate investment. I like the international aspect and the dividend of BPY.UN; and seee this as a long term hold.
Are there other quality players out there whether listed in Canada or on the US exchanges that would be better choices?
Or would you endorse BPY.UN?
Thanks again for your helpful guidance.

Q: Hi

I am looking at Home Capital. The market cap is ± $1.5 billion dollars. The balance sheet indicates that Home capital has $1.2 billion in cash, $535 million available for sale securities and $2.6 billion in senior debt. I calculate the enterprise value at ± $2.365 billion.

The net income for the past twelve months stands at $247 million. The net income for the quarter ending December 31st was $50 million or $200 on an annual basis. Income and cash flow provided by operating activities for the year ending in 2016 were respectively $789 and $561 million. The cash flow looks unreasonably high. Is Home capital really generating that much cash ? If Home capital can earn $200 million in net income and $500 in cash flow for the current fiscal year, would you say that the company is selling at a discount?

Also, I am aware there is a cloud over the unexplained departure of the CEO, the alleged mortgage fraud and the mortgage rles have changed. Why is it that a publicly traded company do not have the obligation to explain why the CEO was fired?

Q: I have just taken my RRSP account back from my investment adviser and am in the process of liquidating the 23% which was in mutual funds. I am looking for advice as to what to replace these with. I have four years before I must start withdrawing.

Q: Hi There,

I want to begin deploying funds towards the balanced portfolio. Can you please tell me which 5 names you would add today, based on the current price of the individual stocks. I know it's not a great strategy to try and time the market, but I plan on adding 5 at a time over the next couple months, and figure there may be 5 that I'm better off starting with.

Thanks!

Q: Hi guys,

After many years of successful investing, I've finally opted for a 'margin' account. While I don't plan on using the margin excess for further long exposure, I would like to try shorting a name or two (I'll keep the positions small, maybe 2% each for now). Are there any good short candidates that come to mind? I want to avoid the battleground stocks (VRX, HCG), but would love to find something that is just a real dog.

Thanks,
Mike

Q: How are the dividends and potential capital gains from KWH.UN shares treated from a Canadian tax perspective?

Q: Hello Team, Todays Globe reported a lot of Insider Buying last week in TWM. It's not a company I follow, but a quick look at the company business and fundamentals seems to suggest TWM could be placed on my watchlist. In addition, the 3% dividend is ok. What are your thoughts on TWM, Buy, Sell, Hold.
Thanks Team

Q: Not a Q. Keith asked about high dividend stocks. Another is HOT.un. You seemed to like it too from a March 9 answer.

Q: what is your advice on Cannacord? I have at a loss in a registered account, now about 3% of portfolio.
Thankyou.

Q: Is this a good buy at this level? How it would behave if market goes down? Do you think it is cheap on price to book value valuation metrics compared to other insurer(like Merkel, Berkshire)?

Q: Regarding Hector's question on T1135 filing on 120K of USD holding.

Just a reminder to be careful when considering "value", the 100K filing requirement is not based on current market value but the cost amount or ACB, it includes cash and only applies to non-registered account, the amount is based on an individual basis, i.e. value in joint account has to be calculated separately.

Q: We have done very well on this name, so it has become one of our top holdings from a very modest position. It just had its best 6 month on the chart. Are the fundamentals all there? I like the idea of their mobile phone offering : Ting. I think one of the big names might like to buy them to take them of their oligomarket, this is my reason for having kept so far. Your opinion is valued, always.

Q: Can you suggest any 8 - 9% monthly yielders? Willing to take risk.

Q: One report I read stated that to finance the acquisition PKI would issue 24 million shares to raise $660 million. That works out to $27.50 per share and the shares are currently trading near $31. In one of your earlier responses you also mentioned that shares would be issues at a discount. It would almost make sense for anyone like me who holds PKI to sell now into the market and buy back at the new issue price. Your thoughts?

Q: You seem to like Crius. Where are the earnings?

Q: Looking to add 2 positions with good income & some growth potential. I've been watching KWH.UN & DIV. Long term time horizon. Not drawing on income. Any feedback is appreciated.