Investment Q&A

Q: We are overweight in Utility (15%) and underweight in Energy (5.7%). We have done well with ALA - a one bagger as they say. It has made us overweight. I think we should keep ALA & our small position in CU and sell some TRP.

KPI seems to have bottomed out - probably buy it.

Congrats on calling AVO.

Q: I am in my early 60's and still working and I consider myself a conservative investor. My questions...

1) I am currently overwieght in financials (Canadian Banks & Canadian Insurance). I am thinking of selling BMO & RBC and puchasing ESL & CSU. It would increase my overall IT weighting to about 7.5% with none greater than 2%. Does this make sense?

2) My wife bought a little OVTI because her daughter works there. I am thinking of increasing our position (but not too much). It seems like a reasonable company even though no dividend. The stock moved up on Friday. Any thoughts?

3) My broker used to tell me that insurance companies do better when interest rates are higher. Do you agree?

Q: Peter and Team, first of all this is an amazing service and I thank you. My question concerns Alpha Pro Tech (APT) which is a Canadian company listed in the States. I am seriously thinking of making an investment in this company. Your thoughts would be most welcome.

Q: PPL :Pipelines, Utilities and REIT's declined sharply last week, presumably due to fear of rising interest rates, sooner than later. It all started after recent US Fed comments. After remarkable gains in these sectors over past few years, do you think, we could see a major correction in these sectors in near term? Is it prudent to cut back these positions now? Also, which pipeline stocks are most vulnerable? Thanks for your valuable insight.

Q: I'm thinking of taking a position in INA, looks like good this are on the horizon, they will have decent cash flow and production growth in the very near future. Do you know this company and if so what are your thoughts, is it a buy at these level?

Thanks
Richard

Q: Do you subscribe to the belief in the projected up to or more than 10% decrease in the C$ vs. the US$, and if so,(1) what are a few of your top recommendations for some Cdn and/or US share purchases to capitalize on the decrease, and (2) would you invest now or wait for a pullback?? Thank you in advance for your continuing good advice.

Q: Peter,

Further to your response below re: companies / sectors to own in a hypothetical rising rate environment, and more importantly, what NOT to own (Utilities), "you could see some big stock drops, and investors might be surprised". You have Enbridge in the portfolio, as do I, I know you say its early (which I lean towards as well), but at what point do you start reconsidering the thesis that "its early" should an Enbridge consider to slide given its high PE?

Would you instantly advise your members when to sell something in the model portfolio?

Thanks team, great work.

Q: Do you have an opinion on ShaMaran SNM. I already have a position in WesternZygros. They are both in Kurdistan waiting for a pipeline to Turkey. Do you think one of these has any advantage over the other.

Q: Good Morning: As things change and bond yields rise and the risk on play becomes more evident the U.S. market is being called the place to go. With 25K to invest which of Bank of America or Citigroup would be the best choice; or do you have a better idea? Already have aig which has done very well. Regards Michael

Q: Are you planning to do a current report on BAD?

Q: hi peter, i think this is the key question going forward,do you think that now that bond yields have started rising, it will be like a freight train and people will keep selling bonds and therefore yields keep rising and second part of my question people will start rotating out of reits and utilities because their yields become less attractive. dave

Q: Hi Peter,
I am a new member. Love the service. What is your view on natural gas sector? Would you recommend 2-3 stocks in the sector? Thanks

Q: Can you comment on the most recent earnings for DSG, they seemed slow and steady to me but not spectacular?
Thanks
Peter

Q: Hi Peter I would like your opinion on Western Potash(WPX/TSX). Not sure why its share price is running up recently.

Thanks

Q: Would you have an opinion about NVA Nuvista

Thanks

Q: Peter please excuse my lack of knowledge with this question.
A guest on BNN said the FED have turned the equity market into a bond market with QE and these low interest rates - HOW SO?
- The FED keeps interest rates low (lowering yields)
- Older bonds will go up in price as yields drop?
- Treasury buys up the mortgage assets and or bonds from the banks to re-capitalize them and put money back into the economy and try to force a rotation of money out of bonds.
- Companies (equities) can borrow cheap, increase: revenue, earnings and dividends, and stock prices go up - like bonds??
Is this what the guest was talking about?
Is it creating a bubble in high paying dividend stocks?
When will it burst?
I'll let you decide if you want to post this.
Thank you.

Q: great service, worth more but …. interesting day friday where gold dropped $20 and G goes up, REITs and utilities are taking a beating / MFC, SLF increasing … does this point to interest rate increases….. question… where in the business cycle are we and what industries should i be rotating into

Q: Hello:
I have hold CNR for a few years and my ACB is around $ 60
I heard that Mr. Bill Gates is the biggest non-Canadian shareholder of this stock as recommended by his bridge partner
W Buffett.
Should I take some profit or is one of the stocks to hold
for both dividend as well as long term growth ?
Many thanks and looking forward to your insight

Q: Hi 5i Team. Do leasing companies like Element EFN and Chesswood CHW make more or less money in in increasing interest rate environment? If you can comment on how a rising interest rate environment may impact there stock price that would be great

Cheers
Darcy

Q: Is Visa fully valued or is it still a buy for long term growth? Is there another growth stock you would recommend?
Many thanks for your response.