Investment Q&A

Q: Peter and talented crew. Andy Nasr was on BNN today, suggesting that Box.un was undervalued,the best value in retail office properties co., with a decent dividend.Has the US holdings concern now lessened? and your opinion please re growth ?
Thank you,Phyl in BC

Q: This is in response to Kelly's question about good books for recent grads. I've found the rich dad poor dad series to be informative. One concept that's very helpful is the author's suggestion of looking at investments through young eyes. The younger generation knew about facebook, Michael Kors, Under Armour, Chipotle, LULU well before they became mainstream. In the same vein Peter Lynch, how to beat the street is an easy to implement investing strategy that compliments the above.

Q: Can not find the income portfolio that was to be posted on the weekend. Was it done?

Q: Would you please give me your opinion on TNP going forward. Thanks.

Q: Good morning team; in view of this mornings announcement re Entwisle stepping down. what is your opinion of telus going forward.I am currently overweight and am planning on selling some in the near future.Should I pull the trigger now or place a covered call order? keep up the great work thanx for your answer

Q: I am overweight with BNS in my rrsp account . I am prepared to sell
500 shares at $67.00 Is there any advantage in trying to do a covered call while i wait for the share to reach $67.00 and if so is there a risk I might have to
settle on a price below $67. I have never used an option in the past and want to know if it might be feasible in this instance .
Also I really liked the video did on the most popular 5 questions . It was very well done , relevant , clear , and brief . Hope more will follow ., When will the revised model portfolio be released . Thanks Rick

Q: I would like to add a small cap oil & gas stock to my TFSA . I already own BXE and I'm looking at SGY, TOG or RMP. From a price to cash flow it looks like RMP is the best buy today. How would you rate them? Thank you.

Q: please suggest a good agriculture ETF. US or Canada? thanks

Q: Hello Peter & Co,
How do you explain the recent drop in CAE?
Thanks,
Tony

Q: AYA has just touched its 200 day moving average. Is this a good buying opportunity or should one wait for the upcoming financial reporting? I am presently down about 6%, but don't want to throw good money after bad. Thank you.

Q: Hello
Not a question- but a response to Kelly's question on financial reading. I found William Bernsteins book "The Four Pillars of Investing" to be very good. It may be out of print- but I'm certain could be found online. Highly recommended.
Regards

Q: Good morning 5i,

I owned Home Capital Group and I am wandering if the latest Mortgage rate decrease by the banks, will this affect HCG?

Thanks

Q: Now that ATD.B has declared a 3 for 1 stock split would it be wise to buy before or after the split?
Look forward to your reply.

Q: Good afternoon 5i,

Methanex has been going down ever since it hit an all time high at the beginning of the month. Something is going on and noe news is out. I have been trying to find the insider if they are bying or selling and I have no luck. I am wandering if you guys know something that I don't. Your thought would be graetly appreciated.

Thanks

Paul

Q: Could you please give me 5 or 6 potential takeout candidates. Thanx Robbie

Q: Peter et al,
You have used the term "momentum shift" and "momentum investor" recently. I wonder if you can explain these to this old but still learning investor.
Gary

Q: On March 26th, an article appeared in my local paper written by Martin Pelletier. Martin quoted Hulbert Financial Digest as follows," Corporate Officers and Directors in recent weeks have on average sold six shares of their company stock for every one they bought. This is more than double the long term adjusted ratio since 1990 and is the most pessimistic insiders have been in more than 25 years".

The article also said that research by Bank of America showed that institutional clients have been large net sellers of stocks since mid-February despite receiving large inflows from investors.
This sounds like a pretty significant warning. Could you please provide your thoughts?

Q: AVO's current swoon began on the day their COO was released and an new COO was appointed. The technical chart shows the price today has rallied off support established on November 20th last year. The primary trend (up) is still well established and won't be broken unless prices reach $27 to 27.50. I'm underwater on the stock but won't be a seller unless both support and the trend is broken. If there is a question in here, I guess it is to ask if my thinking can be shared with you.

Q: Hi Peter & 5i: Just a comment on Mike’s question about diversification and allocations across various types of accounts for a given individual: One thing that people forget about sometimes is that the after-tax value of a $5k position in a taxable account or TFSA is “bigger” than an equivalent dollar position inside an RSP, because the whole of the RSP position will subject to tax at the rate equivalent to earned income or interest income upon its withdrawal from the RSP. So in some cases it may look like people are over-weight interest bearing securities in their RSPs when in fact they aren’t. Since (apart from changes in one’s tax bracket) the tax payable on the interest income is the same in a taxable account as it is on the withdrawal from an RSP, there is no loss of a favourable tax treatment by having those securities inside the RSP. Then the potential for one to be in a lower tax bracket at the time of withdrawals from RSPs or RRIFs (the “deferral effect”= growth of pre-tax investments combined with a potentially lower tax bracket and tax rate in retirement due to reduced income) creates the possibility of gaining a favourable tax result on the withdrawal of the interest bearing security. If the RSP is loaded up with dividend and capital gains securities in a bid for significant growth, what one is doing is banking on the benefit of the deferral effect being sufficient to outweigh the relatively favourable tax rates that would otherwise have applied to dividends and capital gains achieved on corresponding (but smaller) investments in a taxable account. That is some tough math to figure out though and it has some unpredictable variables in the equation. Maybe best to have some growth prospects both inside and outside the RSP account, just in case? Thanks!

Q: Hi Peter.
Are you still positive on Riffco(RFC). Stock continues its downward trend, I only have small position, should I relax and stop looking at it?
Thanks for your advise.
John