Investment Q&A

Q: Recently Citi’s chief US equity analyst, Tobias Levkovich, responded to the current no growth school of thought by suggesting, that virtual and augmented reality will be a very strong driver of growth over the next decade. His estimate is for $650 billion invested over that period. He expects it to be transformational and to impact all sectors of the economy.
He suggests that “ current infrastructures will require major upgrades to handle the virtual world given more limited installed computing and graphics capabilities versus the new technology’s requirements”

I am wondering what Canadian companies you think will be able to take advantage of this?

Also, it suggests major expenditures by the telecoms, and I would appreciate your opinion on which of the “homegrowns” are best positioned to take advantage?

Many thanks
Mike

Q: The big 6 Canadian banks are amongst the world's strongest & safest banks.BNS rated 18th in 2012 & 7th in 2013 strongest ,whereas CM is the only one to appear between 2012 to 2015(3rd,3rd,15th & 18th respectively).All @ historical low PE.eg BNS @ 9.7(trailing) & 9.3(forward).Majority of guests on BNN opined that there are short term headwinds plus "short" by Americans,but recommended hold for 2 years or longer.They have generated decent & stable returns over timer expect for last year.Please advise if the negative factors including the effect of sharp drop in oil prices & its knock on effects are priced in.Each stated that the loan exposure to oil is no more than 2% & it is manageabl.,All report next week with BNS on March 1.

Q: Would you still choose BNS if this was the only bank you were to hold or would should suggest another bank? This will be the first stock for a TFSA that has $4000.00 in it and will be holding and adding to it monthly.
Thanks

Q: What are your thoughts on ACD last results? I already have a full position in EFN , GSY and CXI. I feel a little overweight in financials, and I'm thinking about selling add, what do you think ?

Q: What are your thoughts on the new Purpose Premium Yield ETF (PYF). It is advertising a 7% distribution by holding quality Canadian and US companies and selling puts and covered calls.

Q: Hello! Having some VSB and CBO already (short-term bonds), I would also like to consider some modest exposure to high quality/longer term government bonds, 5-10yrs, and fairly liquid. Would like your recommendation in that space.
Appreciate your service always, member's input as well.
Thank you!

Q: What stocks would be classified as foreign investments to be reported on T1135 form even though listed on Canadian exchanges? I am referring to stocks covered by 5i or frequently mentioned in the q&a section.I believe you have stated CXI, PHM and TCN fall in this camp. Might I assume BPY.UN any others? Is this information available from other sources? Thanks as always.

Q: reading the q3 and year over year results I thought they looked pretty good yet the share price has not moved. $23 mil sales, 87% operating margin, $.22 per share cash flow, 18 new streaming contracts, $119 mil total equity and no debt. Makes me think I should be adding to my holdings... what am I not seeing

Q: Would appreciate your advise on sector allocation by criticing what I have now with your opinion looking forward. What I have today is as follows:
Energy 4%
Cons disc 16%
Cons stap 18%
Fins 16%
Health Care 5%
Industs 10%
Mats 7%
Utilities 10%
Info Tech 15%
Telecom 0%
My Health C is GUD & EXE only
I am not looking at long term, 0 - 5yrs or so.

Q: Hi Peter, have some money to invest but have difficulty to pick the one best/safest for the next 2-years. Will appreciate your ranking. Perhaps a another one you can suggest.
Regards, J.A.P. Burlington

Q: Is there anything wrong with buying 1000 ABC shares @ $10 today that pays a 10% Div, with Ex date of 2/23. Selling them all on 10/27, and then repeating with another stock with an approaching ex Date? Seems too simple to be making a G every week?

Thanks!

Q: How often do you recommend rebalancing a portfolio and what does that process look like?

I started with a 5% position in CXI in January and am up 38% and want to know at what point I should sell some shares, how many and what to do with the proceeds of the sale.

Thanks!

Q: Exco closed at $14.69 today,Feb. 18, after its announcement of taking over a US company for 83M several days ago.Is it a buy or would I be chasing it at its current price? Thanks as always for saving me from myself on many occasions.

Q: I'd appreciate your thoughts on CBL, please. Thanks

Q: In your reply to Tim, you stated that CSU is actually cheaper on a valuation basis than it has been for some time. I missed it when it was down to $438.00 but today it is about $520.00 a jump of about $82.00 in 10 days. At $520.00 is it still good value?

Q: Hi Peter. Is this a good time to add to my position in Enghouse (ESL). It was soaring a few months ago but has since fallen. Is there a reason for this. All news seems to be good.
Thanks.
Cam

Q: Peter and His Wonder Team
I am looking for an under valued junior gold. I have been researching NMI. I know you have liked Mandalay. Would you please compare these two companies. Which one has the best future potential. On the other hand...do you have a third consideration?
Thanks for your always reliable service...
Respectfully...
Dr.Ernest Rivait

Q: Any thoughts about Garmin, given their recent results? I'm looking for a reliable dividend with some potential for growth, does this fit the bill?

Q: SCB rose 17 percent in the last 90 min. of trading. I cant find any news, and the volume was only average. Have you heard anything?

Q: Hello Peter and the 5I team

I have been having a debate with a friend as to how interest rate hikes affect stocks (especially REIT's, pipelines and utilities shares) in the North American stock markets (FED and the BOC). His take is that it only increases the cost of borrowing. My take is that it 1.increases the cost of borrowing, this would put pressure on all businesses not just pipe, REIT's and utilities. It would actually put pressure on all asset classes. 2. Make bonds a more attractive asset class to own compared to stocks. The risk/reward balancing act would slightly tilt in the favour of the bond over say REIT's, utility or pipeline stocks which are generally known for their safe dividend yields. So people would flee the equity market and go toward the bond market causing the stock prices to fall. Would you say that I am more right then my friend??? Is there more to it then my rather simple explanation???

I was curious about BEI.UN, what is the pay out ratio? What is the P/B ratio and would you consider this a ok place to put money?

Thanks