Investment Q&A

Q: I have a question about bond yields and interest rates. I just read an article on marketwatch saying that the 10 year bond yield "has an effect on all parts of the economy, as it influences everything from borrowing costs for the smallest and biggest companies, to rates for fixed and adjustable mortgages, car loans and credit cards".

I think i understand how it impacts borrowing costs (firms that need to issue new debt have to pay more?) but I thought the fed rate is what influences the prime rate which effects adjustable mortgages and other loans.

I understand that a higher yield on bonds makes some stocks less attractive in comparison (like dividend stocks) but i don't get how the 10 year bond yield is so important/scary for the market.

Could you please explain?

Q: I'm interested in GSY and I notice you've been giving it some more praise lately as a good option of a beaten up stock. When doing my own DD I find it looks very good on many metrics but it always has negative cash flow and many years has negative ROIC, both of which at first glance would deter me from this stock. I'm sure this is due to the fact they are loaning out money or something along those lines but can you help me understand this? Thanks

Q: Would Amazon's announcement of doing their own shipping affect CJT here in Canada, or would our market be too small for them to enter?

Q: Good afternoon. Could you give me your opinion on CWX . I bought some just over a year ago and done well and would like to buy more. It has pull down under 6.50.. Is this a good entry price again after growing there business with purchasing a company in Hawaii
Thanks Hubert

Q: I would like to replace TOU with another energy stock.
We already own Wcp and Pki. Could you help with suggestions in Can and/or US

Thank you

Q: Good day,
Grateful for your views on Nuance Communications (nuan-q). I understand they have a promising technology of artificial intelligence to allow you to talk to your car, with an advance on Amazon, Google and Apple. BMW would apparently be about to use this technology. And it seems undervalued presently.
Have a good day,
J.D.

Q: I'm wondering if you like the idea of investing in Cdn forest companies in view of tariffs and NAFTA negotiations. Are there any which have become attractive with the recent pullbacks?

Q: Hi, could you please comment on the earning release, this morning. Thanks

Q: I own both of the above and am still above water, but they are not holding up well in this current environment, so should I hold or move out.. If so do you think intc is worth pursuing or some other stock perhaps would be better going forward.
Another question HD is another stock similar position, what do you think buy,sell or hold. If buy what would you replace it with. Thanks.

Q: Can you help me clarify my thinking about CDZ? I own it as part of a global portfolio of four ETFs in a growth-oriented long-term horizon RRSP. It's the Canadian piece. But looking back at the 5 and 10 year total returns is a bit depressing given that we are/were in a bull run.

Would you recommend a switch to something else to serve this purpose? Whether or not you recommend a switch, could you provide your next best suggestion for a growth-focused long-term RRSP. I have heard that there is some evidence that companies that raise dividends have tended to outperform, but I'm nonetheless suspicious. Perhaps this ETF's strategy is not effectively set up to capture those gains.

Thanks as always.

Q: What do you think of the above two rate re-set preferreds - good dividend yields currently of 6.863% and 6.796% respectively - have been pretty stable and though not that liquid - seem like a pretty good place to put some money for income?? would appreciate your opinion - regards - Karen

Q: Most oil&gas yeildcos were losing value before the correction, but now even VET is testing 6-month lows. Are there any that stand out as so grossly depressed that the reward outweighs the risk? (Please add to the supplied list as you see fit.)

Q: What do you see as the best strategy to benefit from downturns like what we’ve seen lately. Is it just make sure you always have cash to deploy when one happens or is there some stock/fund that is average most of the time but really benefits from the pull backs somehow?

Q: I want to add some silver to my basket of PM. Do you still prefer FR, considering the recent drop in share price, for the next 12-18 months or another? Would you chose it over FVI or maybe half position in each?

Q: Dividend payments from US stocks like T generate a withholding tax which is not insignificant. Is there a process for getting a refund of this tax under dual taxation with the US?

Q: Whit REITs under pressure as of late, how do you view this DRG.UN with all it's investments in European office properties. It has renegotiated it's debt quite well and exited from it's over reliance on Deutsch Telekom in the last 2 years.
Compared to RioCan, H&R and Canadian REIT for example.

Q: Given Buffet/Dimon's plans to enter the pharma space would you still see an opportunity in McKesson and amerisource bergen regardless for the long term

Q: Dear 5i,
During the past week I had been deploying extra cash to rebalance my lower weighted holdings. I hold most of your BE Porfolio, some growth and a handful of US stocks. I have limited dry powder left to deploy and have significant losses in RRX and AEM (only energy / gold holdings except for ENB). I know you don't recommend buying the tsx index b/c it is weighted in resources and financials. I also have a little USD $ left. I am thinking of selling the loosers above for the capital loss and just buy the TSX index and the S&P 500 index with my remaining USD$. What do you think of this plan? Which index funds do you recommend?
Thanks,
Kerri

Q: Hello team,

Since downgraded by BMO in Dec 2017, FR has fallen by almost 40%. I bought some at $8.80, knowing that you consider FR as a decent company. Since then the company acquired Primero (which you consider as a nice move) and also issued new debentures, which I think resulted in further weakness in the stock price. I have three questions for you:
1- Is the significant drop today (7%) market related or company specific?
2- What are their cash position and debt position now
3- At the current price, would you buy more if you had a 2.6% position?
I have no other exposure to metals/mining companies.

Thanks a lot for your invaluable input.

Q: currently own this in my TSA and thinking of buying more to make it 2.5% total weight and just wonder what your thoughts on the latest report by CAE?
Thanks