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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I'm stunned by this asset class I had not known about until seeing the link you provided in a recent answer. I had lost interest in preferreds after having them decline in share price upon reset to a low rate of yield.

These seem different. The reset is guaranteed to be a good amount of yield (e.g. 3.5%) no matter what. Which is more than good for me. It looks a lot like the safe bond that I wish existed but doesn't. (I am retired, don't need to touch my investments, just want them to grow a bit more than inflation, and NOT DECLINE, until such time as I need to start taking some income.

So what's the catch?
a) if interest rates rise, the value of the shares will go down? But that may not happen so much with these will it? Since the reset is also based on then-current interest rates plus the guaranteed amount. Plus most of the BNN experts say inflation seems to be the last thing that's going to happen anytime soon so rate increases won't be very rapid or substantial. And suppose they are wrong - as long as these are higher than bonds they wouldn't get sold off too much would they?
b) the company could get into trouble somehow and default. Let's say we pick a company that's stable and that won't happen.
c)..... what else do you think is important to consider.
Read Answer Asked by John on August 25, 2017
Q: CM reported good results today similar to RY's yesterday--beat expected eps by 0.11,increase domestic banking(by 8%),mortgage volume(12%) & US wealth management(76%) with decline in provision for loan losses,but capital market decline 10%.Please help me to understand why it dropped 2% today after an initial spike of some $1.19.Thanks for u usual great services & views.Is this a good entry point?
Read Answer Asked by Peter on August 25, 2017
Q: SIS has sharply declined from its peak of $17.55 in late May.It is priced to perfection. After miss of expected EPS the last 2 Qs(May by 0.01 & Aug 0.05(0.07 vs 0.12 expected),investors are very unforgiving in this climate(eg geopolitical,Trump,seasonally weak period-mid July to mid Oct,talks of big correction & high valuation) despite 2 good US earnings period & slow & steady growth in economy.Look at similar negative impact on KXS & CGX.On the flip side,see PBH & SHOP.SIS was top pick of 5I on 3/3/16 @ $5.85 & 5/16/16 @ $7.99.I am now looking for an entry point,so please advise what is the catalyst(s) for a turnaround.Thanks for u normal great views & services.
Read Answer Asked by Peter on August 25, 2017
Q: Hello 5i,
If I am looking at starting a position in SIS when it starts showing positive "price momentum", what are the 3 -5 primary factors that you consider to determine "price momentum" and also could you please quantify the parameters that you prefer (for example, if one of your factors is RSI, do you favour 14 or another value)?
Read Answer Asked by Richard on August 25, 2017
Q: I have held CXI for a long time and am willing to hold longer. However, I am intrigued by PEO, particularly because of Peter's continued interest in it. The question is, do I cash CXI in and buy PEO? Does PEO present a better growth option than CXI or if/when CXI comes out of its doldrums would you expect CXI to show better growth over the next few years? Given I have held CXI this long and consider myself a long term investor, I am wondering if I would be "betraying" my philosophy if I sell or am I just being unreasonably fearful that I would miss out on CXI?

I am looking at exchanging these two as it would maintain my financial sector holdings.

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on August 24, 2017
Q: I purchased cgx late July and subsequently lost 25%. You mentioned that they need to diversify so that their earnings are not so tied to the box office. In reading their results,it seems that they now have more assets in "other" entertainment venues. Given their previous track record,would you advise holding for a year and how did you view their continuing foray into other venues and what do you see in the future for price appreciation? Thanx.
Read Answer Asked by Steve on August 24, 2017
Q: Hi 5i
I'm contemplating creating a Norberts Gambitt using TD in my TFSA and having my broker(TD) transfer it over to the US side of my TFSA. I'm hoping to make a bit off our higher dollar as the US dollar creeps back higher (as time goes by)? ...And that TD will do a bit better as well and then sell my US TD to buy another US holding (not sure which at this time). So the question is "Is this a good idea at this time?"

Thanks for holding my hand
Read Answer Asked by El-ann on August 24, 2017
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