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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: Would you have some suggestions for reading material on covered calls? I wasn't looking for something too complicated. But I am interested in information that would cover (a) stocks and stock markets best suited for covered calls (b) logistics of how to choose the best case of option cost and duration for a particular stock ( c) option timing in dividend paying stocks and (d) what is a realistic rate of return. Thanks!
Read Answer Asked by Linda on August 29, 2016
Q: There was an article from the Globe describing an investment stratigy to look for areas where capital is scarce. I havn't seen this before, at least described like this, I guess basically the opposite of momentum investing. Or maybe this is what value investors look for. In any case they did not back the article up with any evidence that the strategy has been successful over the long term.

So: are you familiar with this conceptype and do you think there is merit to it? I guess it could help being early to a sector that will soon turn around, but it seems to me that investor capital (aside from a lot of retail) is pretty smart money and may be avoiding areas for a good fundamental reason that could last many years.

"Returns are best where capital is scarce” is one of my favourite bits of investing advice. The idea was popularized by Richard Bernstein, former chief quantitative strategist at Merrill Lynch and founder of RB Advisors."
Read Answer Asked by Kel on August 29, 2016
Q: I have held ATS for almost 3 years with a capital gain of 13%. I would like to see a larger gain in the future but note the fall in order bookings & backlog. Do you think this is a sign of future problems ? Do you think ATS is worth continuing to hold or are there other companies that you would favour. Other Industrial sector holdings are BOS, LNR, CJT, WSP, DRT, XTC, KBL.
Thank you as always.
Read Answer Asked by Alexandra on August 29, 2016
Q: I am a new member to 5I and wish to realign my RRSP investments partially with the above stocks in my balanced portfolio. Kindly give your input. Thanks
Read Answer Asked by Sriram on August 29, 2016
Q: HI guys,
I own shares in ESL which is down 25% this year so far. I am debating adding to this sector by purchasing SH or selling ESL. What are your expectations for SH for 2016-2017?
I also own MST.UN through a non registered personal account and am looking to buy D.UN-they are giving a 9.2% return. Would you consider this a good acquisition given the low real estate environment in Alberta? Do you think keeping this in a personal non- registered account is a good move with respect to taxes?
Also I plan to buy shares in Suncor and then doing closed calls. I have never done this before and am nervous about it because I don't really understand it. I also don't know which website to use to research calls and sells on a daily basis. Any suggestions?
Thanks for all your help,
Rob
Read Answer Asked by Robert on August 29, 2016
Q: Morning - I am a long time member and have done well over the years with a few of your small cap recommendations. I am curious if you can recommend a small - cap ETF for both US & Canadian markets (one for each) that you like?
Read Answer Asked by Patrick on August 29, 2016
Q: I read thru the MD&A this morning and what I THINK I see is an albeit very small company that now has competent management (Eli Dadouch of Firm Capital basically booted the previous idiot out) with high insider ownership (30%) and a turnaround that, while far short of complete is definitely in effect. Your thoughts on this impression and more importantly your estimate of the simple NAV of the company? I see about $76 mill assets minus about $51 mill liabilities for a NAV of about $25 mill against a market cap of about $10 mill. Many thx!
Read Answer Asked by Tom on August 29, 2016
Q: Parkland announced a $300 million Senior Notes Offering which will be used to fund a portion of the CST assets. The announcement said that it has entered into an underwriting agreement to sell, pursuant to a private placement, $300 million aggregate principal amount of 5.75% senior unsecured notes due September 16, 2024. The offering is expected to close on September 16, 2016.
After issue, do notes trade like an equity stock? If not, please explain "notes".
What is your opinion of this offering? Would it be a good holding in an RRSP which must soon convert to a RRIF.
Thank you.
Nadine
Read Answer Asked by Nadine on August 29, 2016
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