Investment Q&A

Q: In the global economy that we live in is the printing of money by central banks really as inflationary as past experience would indicate? Since the value of a currency is measured relative to the other currencies of the world, including gold, then if everyone (Fed, BofJ, ECB)is printing money will it really drive the gold price higher relative to any one currency?
Sort of like, if your at a party and everyone is drinking, does anyone look drunk at midnight?
Thank you
Brian

Q: From the response to Paul's Sep.21 question: "There are some principal-guaranteed products offered by several brokerages also available."

The problem with Principal Protected Notes (PPNs) as so well pointed out by Hank Cunningham in his excellent book "In Your Best Interest" is they are a "product designed solely with fees in mind and not the well-being of the individual investor."

He goes on to illustrate how you can create your own low cost PPN "using a strip or regular bond" plus an "ETF or commodity of your choice."

I hope this helps the discussion of a very problematic area for all on fixed incomes, J.

Q: Can I get your thoughts on Equitable Group (EQB)? Thanks, Tim.

Q: Hi,

Was looking for your opinion on SFL / Ship Finance International as a long term hold in an offshore account.

thanks,
andrew

Q: Peter and Team,

As a retired Boomer, how does one invest 40-50% of one's portfolio (non-registered) in Fixed Income products in this economic environment with the goal of producing income with no risk of capital loss? Bond ETF's have been dropping like a stone, GIC's pay a pittance, and even Preferred Share ETF's are trading near 52-week lows. I realize the income generated from Fixed Income is usually considered "interest" and therefore fully taxable in a non-registered account, but I want safety for half my holdings over preferential tax treatment. I would appreciate your advice. Thanks!

Q: hello 5i:
CCT has been on my radar screen for quite some time and is much more interesting now, since its price has dropped. However, its still trading at a much higher PE than its 5 year average (58.5 vs 41.5) though less than P/B and about even with P/CF. Can you comment on the recent downturn, and expectations for the future. Is the price downturn a reflection of perceived lower earnings going forth, or is it just market gyrations?
thanks again

Q: Would it be a good time to get back into YRI .

Jim .

Q: Peter and team would it be a good time to invest in BB .
Thanks Jim

Q: Last night I received an email from Peyto Energy advising that they are the subject of a legal action by some shareholders of their most recent acquisition. I have owned Peyto for a number of years and have been more impressed with management with each passing year. I am sure their due dillegence was better than most but I am always reminded of Lowen Group when it comes to these things. Have you any thoughts or insights on this kind of situation generally, or this one in particular?
Thanks
Mike

Q: Hi Peter, if Q3 is going to be scaled back increasing interest rates and making debt harder and more costly to maintain, what sectors / industries will be hardest hit? How should I invest to profit from this decline? Short equities which will be hardest hit by this? or buy companies which will benefit from this decline?

Appreciate your thoughts as always and thanks. Ken

Q: I buy stocks that pay dividends as I need the income whats your opinion of westernone inc symbol is weq your site is awesome thanks Barry

Q: Hi Peter and Team, regarding Gran Tierra, GTE, any reason for the price drop in the past few trading days with very high volume today? Thanks!

Q: Hi Peter & 5i: A question about analysts’ coverage. I have read your previous answers about what to make of an analyst’s rating of an individual stock. Each weekday I receive an email from Analyst Ratings Network. I am not a paying subscriber, though they try to sell me more in-depth information from time to time. What I receive is just a daily update on analysts’ coverage divided into three categories: upgrades, downgrades, and new coverage. Usually it’s a quick delete but once in a while there is something interesting, if not exactly useful. Today there were listings indicating that Goldman Sachs Group Inc are initiating new coverage of a whole raft of precious metals stocks, including Barrick, Agnico, Yamana, Eldorado, Goldcorp, IAMGold, Kinross, Newmont, New Gold, PanAm Silver, Royal Gold, and Silver Wheaton: pretty much the whole sector, at least as far as Canadian companies that have a listing on a US exchange go. The initial ratings included buys, neutrals, and sells. So my question is: what if any significance would you read into a brokerage like Goldmans initiating coverage on an entire group like that within a relatively small and still quite beaten down sector? Thanks, as always!

Q: Peter and Company,
Regarding the halting of trading yesterday... DirectCash DCI-T
You may choose not to post this . ... to ignore my comments.... or simply delete them.
Either way I feel I must vent my frustrations.

I am tired of companies such as ‘Veritis Investment Research’ that have the power to release statements and targets for a stock, but unless you are a “client” of theirs, there is no access to this breaking news or the material evidence to substantiate their claims. The claims and reports that are made by these Investment Researchers can carry so much impact it should be compulsory to make these available to the public and let the share holders decide what to do.

When the panic orders are submitted, after news, and in turn the stop loss orders are set in motion, all this can result in a very unrealistic price for a stock. The same can happen in reverse for a tid-bit of positive news as well, be it true or unfounded.

Question: When The Investment Industry Regulatory Organization of Canada places a ‘halt trading’ on a security is the company that made the ‘claim / report’ that caused the repercussion to halt trading “investigated” ?
It would very be interesting to know if that company or ‘any’ members or staff of that company may have had any ulterior motive, such as shorting a stock in question for their own gains.

I love 5i Research where members can get Totally Unbiased Informative answers to questions. Thank You. Dennis

Disclosure: yes, I do own a small holding of DCI-T

Q: Hi,
Why to big drop in KBL. Thanks

Carl

Q: Are you aware of any reason for CGO stock being down today other than the market being down? Thank you.

Q: Re:SYZ has been fairly flat and now sizeable drop today. Thoughts? Maybe time to switch out? Thanks so much. I enjoy the service.

Q: Hi Peter & Co. My question is regarding Western Forest Products, as you are already aware, WEF has news today.i got into this stock around $1.20 with the intention of at least a 5 year hold. so how should i view this recent news release ? what would you do if you were a shareholder ? if you recommend to sell what would you buy that is similar in this sector ? thanx norm

Q: Hi Team,

Is there an ETF similar to the US listed VIG that follows the same strategy for Canadian dividend stocks?

Q: How do people find good prospects from thousands of microcap stocks trading at less then 10 cents. I have heard people have made lots of money by picking enterprising juniors. How do go about doing that? An an example how would we know that EIL would be an excellent company 5 years down the road and would have say 50 times their current revenue