Investment Q&A

Q: Hi Team
Crescent Point Energy has some detractors due,they say, to the dilution of share value and the high payout ratio. It is essentially the same price I paid for it several years ago and it keeps me awake at night although I like the almost 7% payout. Would you recommend a swap into Tourmaline?

Q: Hello 5i team
With the changes in your model portfolio and the new income portfolio I have some questions regarding making changes to my portfolio.
I have owned TransCanada Pipe Line for a while, bought at $36 so I have a nice capital gain. I see you prefer Enbridge which I have avoided because of its expensive valuation. I own TRP for income and growth, I have 1000 shares, should I swap for Enbridge? TRP is in my RRIF account.
I recently bought Precision drilling but this is not in your portfolio, I was diversifying into the oil and gas services sector. Would you recommend a swap with Black Diamond Group or do you have an alternate?
Thank you David.

Q: I have a large portfolio consisting of Canadian stocks - large cap only. I think my portfolio should be more diversified and I was wondering what percent you would suggest for your model portfolio as well as US stocks. And would you put the US stocks in an RRSP to avoid withholding taxes? Thanks for the advice!

Q: Hi 5i Team,

I cannot find a consistent definition of small-cap, mid-cap, large cap, and even micro-cap (anything else?). Everyone seems to have their own definitions. Since you use these terms frequently can you define in terms of market capitalization what they mean to you (5i research) for Canadian and US stocks.

Also what are the market capitalization values that seem to trigger more investor interest in a company? For Canadian stocks it seems that once market cap reaches one billion dollars, it gets more investor interest (I think I read that here).

Thanks,
Paul

Q: Over the past few years I have made significant profits in the markets.How do I safeguard thse profits as I FEAR A SIGNIFICANT correction is looming?I have vivid memories of 2008.Is a 10% stop loss a good way? Or what can you suggest> Thank-you

Q: I have a full position in CUS Canexus and AD Alaris Royalties. I've essentially given up on CUS and am doubting AD. I'm thinking to sell both and invest the the proceeds into CCL.B CCL Industries and BDI Black Diamond group.

I generally don't do much trading and like to be patient but these two especially CUS have really messed up lately. What is your opinion on this.

Q: 5i Research team
Could I have your opinion on (spb) superior plus. Is its dividend safe? it looks like it may be breaking out.
Cal

Q: Dear Peter/team,
It is very nice for you to answer all members questions and as membership increases - I think it will - you may not have time to answer all their questions, and some members are demanding a lot.
I wish you would put some more time on the real research than answer some of the repeated questions.
Thanks Again.

Q: Thank You to 5i team for the assistance you provide,i resetting my rsp. portfolio based on your income list.For many years i kept PPL running on ours RSP and TSFA and added some TOG about 6 months ago,can ENB and SGY be replace by PPL and TOG in the same size proportion about 5% in each account i'm over 70 (yes)
Dan

Q: Hi 5i: I recently (5th, maybe the 4th) asked a question that hasn't had a response yet. Maybe I'm just being impatient, but I thought I'd repeat it just in case. I was wondering if JNK might replace XHY in the income portfolio given that I will be holding it in a RIF account. It seems to me that the JNK numbers are a little better than those for XHY. Thanks.

Q: Good day, 5i.
Can you explain the drop in Telus shares recently and confirm whether this is a good time to add to a position?

Thank you kindly,

Q: I am considering taking a position in CTC-A, but note that it is not in your portfolio. I also own Loblaws - L - which is not covered. What is your opinion on these two stocks?

Q: My first day as a member and I already I feel good about your website......your thoughts on enf as well as agf.b I love the big dividend payers that have a good peg ratio,do you think these two are exactly that? I look forward to your insight.

Q: Hello

I hold Surge energy in my self-directed RSP account and who is taking over as a merger of Longview oil that I hold in my
non-registered direct trading cash account.
I will be left with after the takeover/merger of Longview oil, only shares of Surge Energy in my RSP registered account.
How will this affect my RSP contribution amount and the tax implications in both accounts.

Thanks
Michael

Q: I have had a great run thanks to your excellent advice, and have positions with AVO BAD BYD.UN CSU ESL MG STN BDI BEP.UN
FCR HR.UN WFC ALA BNS. Most are within 3% and 8% of the total portfolio(2 RRSP accounts and one general trading a/c)However I am pushing my luck with Badger which has been outstanding, but now represents 33% of the portfolio. If I trim this back, what would be your suggestions? CSL represents only 2.6% of the portfolio. Thanks again.

Q: The website adjustedcostbase.ca lists Canadian MoneySaver as featuring their free service. Do you recommend using this service for tracking adjusted cost base and capital gains?

Q: I am considering selling my BPF.UN shares and purchasing HSE,BP gives better dividends and it has bounced back and with summer and softball season it will do better, but when it dropped these last few months I got nervous, any recommendations.

Q: Hi, I am interested in Toronto Dominion's preferred share TD.PR.O. It yields 4.85% & is presently trading above 25$. The prospectus states that after Oct 30, 2014, the bank will only pay 25$ if the bank chooses to redeem the shares. Would you at 5i have any insight as to what might happen to the yield after Oct 30? Does it remain at 4.85% forever. Thanks ... Cal

Q: What are your thoughts on Tweed (TWD) and the medical marihuana sector? Are there any other more stable companies that will benefit from the new rules governing the production of marihuana for medical purposes? Judging from TWD first day of trading it seems to have captured a great deal of interest? Would you recommend a buy at these levels?

Thanks,

DON

Q: My question is about cash flow.
1) When you look at cash flow (in lieu of net income) to see how the company is performing, are you specifically looking at "Operating cash flow"? If not, then? Additionally, when we read other analysts in various publications talk about cash flow, do they usually use the same definition as yourself?
2) When a company does capital investments (even if paid in cash), I believe this is not part of "Operating Cash flow"?
3) If my assumptions are correct above, then I have to believe that a company that is constantly investing in new capital initiatives, is therefore very capital intensive and would have to eventually demonstrate that this is not going to go on forever, otherwise I would believe that this cash flow metric may not be ideal?

Thanks again.