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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: dear 5i team: can you tell me what happens if i do not tender ? does cos still survive? and also could you advise ? I am considering taking a 45% loss on cpg and purchasing xeg do you think this could be a better way to hope to recover my loss? or what? thanks for input Larry; if possible as an add to my previous question would a switch from cpg at a 45% loss to rus be a better bet to regain this loss than xeg? thanks Larry
Read Answer Asked by Larry on January 21, 2016
Q: Aside from Whitecap Resources, the two hardest hit stocks in your balanced portfolio YTD are Stella Jones and Enghouse. I know Enghouse was highly priced, but are there other reasons why these two have been hit harder than others? I would have thought SJ would be a fairly conservative, low beta stock insulated from world problems, including oil. Is this likely to continue or is this a buying opportunity? Do you regard Enghouse as still being highly priced after its 20% fall?
Read Answer Asked by John on January 21, 2016
Q: What do you suggest doing with SLW? I am overweighted in it and it is down 50% from what I paid and still dropping daily. I am aware of the tax issue. I keep thinking I will sell it when it goes up some, but it doesnt seem to go up! I dont need the cash now, but I hate to see it tanking daily! Thanks for your response.
Read Answer Asked by Pat on January 21, 2016
Q: I hold a position in General Motors (GMM.U) that trades on the TSX in US funds. I have been thinking of selling my holdings and I'm wondering if it is a good time or if I should hold on? I bought the stock in early 2014 and since then the price has dropped from $36 to $29.5. Due to the exchange rate I am still ahead.
What are your thoughts on GMM.U?
Read Answer Asked by Giovanni on January 21, 2016
Q: How do you feel about Vet and Arx maintaining their dividends going forward.
Read Answer Asked by terrance on January 21, 2016
Q: I thinking of buying Evert for long term hold. It has come down and pays a good dividend. Evert would approx. 4% of my portfolio. Is it a good and well manage company?

Thank
Paul
Read Answer Asked by Paul on January 21, 2016
Q: For a conservative income investor looking for more diversification, do you think that Chemtrade's sector and specific product lines are an appropriate choice in current economic conditions? I would be adding to a current holding in Chemtrade.
Read Answer Asked by Carl on January 21, 2016
Q: Can you explain how this company makes money, and if its yield is sustainable? Thanks Cameron.
Read Answer Asked by CAMERON on January 21, 2016
Q: What are your thoughts about BAC's current valuation and why it is underperforming on a day when the market is moving up?
Thanks for all your work.
Read Answer Asked by Rudy on January 21, 2016
Q: Your opinion please on Chesswood in light of its recent sale of EcoHome Financial Inc. subsidiary to Dealnet Capital Corp.
Thanks
Read Answer Asked by John on January 21, 2016
Q: Please comment on the results from CP. the market does not seem to like them.
HOw do you feel about the attempted take over of Norfolk southern?
Is the fall in price justified? At what point would you consider CP a good buy?
Thankyou.
Read Answer Asked by maida on January 21, 2016
Q: Stocks in my Industrial sector are: ATA, BOS, CJT, DRT, XTC, KBL, LNR, WSP. (BOS, DRT & LNR as very small positions). I have some cash as a result of selling BIN yesterday and would appreciate your thoughts on how to re-deploy it in the same sector, either by purchasing different or adding to currently held stocks. Also, if you feel any of my existing stocks should be sold & replaced.
Ryan's article this morning was a good read. Many thanks.
Read Answer Asked by Alexandra on January 21, 2016
Q: Hello Peter,
Any idea why Newalta is surging higher for the last two days. I have not seen any news to reflect such increases. Could it be due to Progressive Waste Solutions ticking higher and Newalta being possible takeover? Also, would you consider adding to Enb, BAM, and Banks as 5 year holds? My weights for ENB, Banks, etc are greater than 5% but given the dividends, it is enticing to increase the weights for monies needed 5 years down the road(RRSP etc). Much appreciated.
Read Answer Asked by umedali on January 21, 2016
Q: When CSE is taken out, what will happen to CSE.PR.A, will it be redeemed at PAR?
Thanks
Cec
Read Answer Asked by Cecil on January 21, 2016
Q: Hello, would you recommend this fund over HFR? VSB has a management fee of .10 vs. .40 for HFR, and VSB has lower mer as well. Is one lower risk than the other? I have a fair bit of cash and wish to "park it" in a low risk bond fund. Thank you. Bill.
Read Answer Asked by Bill on January 21, 2016
Q: In my well-balanced portfolio, and with no need for cash, is there any of the following you would recommend selling at this time in this down market, and the reasons for any sale recommendations.
Chase Corp CCF-US: Bellatrix BXE-T; Thomson Reuters TRI-T; Interrent IIP.UN-T; Inovalis INO.UN-T; Onex OCX-T; SK Telecom SKM-US; Dream Global DRG.UN-T; Chemtrade-CHE.UN-T; Partners-PAR.UN-T; Premium Brands-PBH-T.
Thank you in advance for your comments and opinion.
Read Answer Asked by Harold on January 21, 2016
Q: I am retired and hold GE, Wells Fargo and JPM inside my RRSP. I am still a few years away from having to convert my RSP to a RIF. Considering where the Can dollar is trading I am thinking about realizing my currency gains by selling these 3 stocks and replacing them with Canadian financials and maybe a pipeline such as Enbridge. What are your thoughts on this strategy ?
Read Answer Asked by Ken on January 21, 2016
Q: 3rd submission:

I forwarded an question yesterday regarding this rant and I guess it was missed so I will resubmit. I have reviewed many of the concerns today on your blog, and wish to obtain your views further.
A bear market condition in which the prices of securities, and widespread pessimism causes the negative sentiment to be self-sustaining. As an investor anticipate losses in a bear market and selling continues, pessimisms only grows. Although figures can vary for many, a downturn of 20% or more in a multiple broad market indexes over a month period is considered a bear market. This has occurred since Jan 1-2016
A bear Market should not be confused with a correction, which is short-term trend that has a duration of less than usually two months. While corrections are often a great place for a value investor to find an entry point, bear markets rarely provide great entry points, as timing the bottom is very difficult to do. Fighting back can be extremely dangerous because it is quite difficult for an investor to make stellar gains during a bear market unless he or she is prepared to short the seller.
My gut feeling that is not a simple correction as well I have been kicking around markets for over 60 years, I cannot remember an incident as severe as what we are presently experiencing. I felt in the first few days of this year it was going to be a usual correction, however within the past week I made the decision (right or wrong) and have liquidated over 70% of my portfolio to capital gains on the ones I was above water on.
Coupled with this our government is arranging a major restructuring for Alberta and Saskatchewan as well as major funding to kick start "infra structure" which is going to take some time in put in place. In addition, Canadians have now been labeled as have the highest personal debt levels of all G7 Nations and if we get an much as 1/2 to 3/4 interest rate increase, we have a bubble in real estate and the consumer cannot service debt. We all know what happened in the US when this occurred. Real Estate will be the next thing on sale.
So My Rant is, as we work through this, and we will, what can 5i offer in suggestions and recommendation for us an investors to get through this delima. If this stays with us, will we have to change our investment style to shorting and putting. :)
I would appreciate your usual and frank suggestion and comments as well as Peters take on the present day situation.
Read Answer Asked by Rick on January 21, 2016