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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: Dear Gentlemen,
My Financial sector (including REIT) is 13% actualy.
After selling PWF, CUF.un I want to add 5%
Actual holding : SLF 3%. BNS 2.5%, TD 2.2%, GS 1.8%, BAM.A, 0.7%, PWF 1%, CUF.un 1.1%,
Please suggest 2 Can or US stocks and 1 US/Global ETF for long term (don't need income).
Thank You.
Best Regards
Read Answer Asked by Djamel on December 11, 2017
Q: I appreciate that to date, you haven't been overly enthusiastic about TWM, however, given that its recent results seemed to be good, the POR on its 2.5% dividend is only 34%, it just graduated to the TSX and finally, two days ago it entered into an agreement with TransAlta to build an inter-Alberta pipeline, might it perhaps be worth closer scrutiny?

Management certainly seem to have their eye on the ball.

Regards. Karl
Read Answer Asked by karl on December 11, 2017
Q: I am managing my children's RESP account. Both of them are in university. Every year I am liquidating assets to put in a high daily savings account that is not earning anymore than 1%. It is used to pay for their schooling for the year. I expect my children will still be going to university for another 5 years. I thought an alternative to this strategy is to buy a basket of rate reset preferred share with guaranteed rates? Could you give me a list of 5 rate reset preferred shares with guaranteed minimum rates? Also what do you think of this strategy?
Read Answer Asked by Robert on December 11, 2017
Q: Hi Peter, I am wondering if you have heard about this US stock. I find this REIT pretty interesting in owning properties of data centers rather than commercial, residential, shopping mall developments. Their financial statements looks pretty sound since 2005. Is this the only player in town? If all they hold is the land and tech just keeps advancing long term, what possibly could go wrong with this company (besides bad management)? Your thoughts? Thanks.
Read Answer Asked by Michael on December 11, 2017
Q: I'm thinking of selling my position in Stella Jones. Its had a great recovery from $37, I'm up a decent amount, I think its showing some resistance around $50. I still think its a great company with a bright future, but am thinking of switching out of it for another stock that has much higher growth prospects or at the very least pays a much more reasonable dividend. It makes up the smallest portion of my portfolio (my other holdings are FTS, ZWE, BEP-UN, GSY, and MJN (Cronos)). I'm 39 years old, make above average income, and I definitely have a high risk threshold.

What are your thoughts on switching out of SJ right now for another company with faster/greater growth prospects? A dividend paying stock is nice, but definitely not necessary as all of my holdings pay dividends except for Cronos. I've been watching BTL since the spring when it was below $3, but that ship may have sailed as of this week.

If you're ok with selling SJ, can you please suggest some names that you think would make a good addition to my current holdings

Thanks - have a great weekend!
Read Answer Asked by Jason on December 11, 2017
Q: Hi 5i. Just a comment, further to your December 8th answer to Paul’s question on opposite direction same-day moves exhibited by WPM and precious metals prices. In addition to the points you made, it is probably worth considering that the value in the market of either a royalty streaming company or a metals producer is more tied to available futures contracts than to the present day's spot price for the metal. It makes sense to value a producer by the expectations for the entire period of time it will be producing. Generally what people see quoted is either spot or a futures price for a single delivery date, rather than something that extends out over the range of the futures contracts for the next several years. As futures pricing can shift relative to spot, and different futures dates’ pricing can shift relative to each other, it is not only possible that individual companies will move opposite to a commodity quote on a given day, it is almost certain to occur fairly frequently.
Read Answer Asked by Lance on December 11, 2017
Q: Just a comment on Earle’s post on Friday on the 30 day waiting period on capital losses and being able at least to adjust your cost base. I am an “active” investor, which is a polite way of saying I trade a lot. I am not recommending that for all but here is my approach to taxes. I really don’t pay much attention to the 30 day rule during the year. If I sell a loser and change my view in a week or so due to new information, I will buy it back right away so as not to lose potential upside on that stock. At year end, I get my detailed trading statement. When I am calculating my capital gains/losses for the year, I check each losing security to see if I bought it back within the 30 day window. If I did, I just don’t claim the loss. For me, missing a taxable capital loss feels a lot better than missing the opportunity to get back onboard a stock on day 10 or 15 if my view has changed rather than waiting for day 30 to pass. I agree with Earl that taxation should always be secondary in your investment decisions.
I assume my approach is fine with CRA as I do not try and claim my capital losses if they are not past the 30 day window. Your views are appreciated.
Thanks again,
dave
Read Answer Asked by Dave on December 11, 2017
Q: I presently hold this reset preferred which I bought at $16. I see the chances of interest rates rising not great. So I’m cashing in this investment to buy a minimum rate reset preferred. My object is to supplement my income with reasonable preservation of capital. I’ve had a good run on equities, the market is expensive, I don’t want to be caught offside. My portfolio is a dividend portfolio.
Read Answer Asked by Roy on December 11, 2017
Q: Hi, I work for one of the big 5 Canadian banks. I have the majority of my portfolio in shares of the bank I work for. Simply through unvested and vested shares. Some are paid via performance and others are through an employee share plan. I want to manage risk so should I sell the shares as they become vested and put elsewhere or leave them be. Seeing I work in banking I understand the business moreso than other sectors so there is a comfort factor here. Has Peter experienced such a dilemma at any of the previous companies he worked for and how was it managed? thank you
Read Answer Asked by David on December 11, 2017
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