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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: Is it a good time to add exposure to Japan through an ETF? Wisdom Tree has two JAPN and JAPN.B, what is their reputation and the liquidity? Does the currency (Yen) have upside? I am thinking of the unhedged version. Your thoughts on Japan and the preferred ETF. THX
Read Answer Asked by Rick on October 05, 2018
Q: I have a question about CCL.B - I know you have answered questions on this one but given the current price action (looks like strong support here in the $54 - $55) can you elaborate on who is there competition is in the space and they losing or taking market share given packing labels are moving to more self-less cashier stores? Thank you
Read Answer Asked by Aubrey on October 05, 2018
Q: A comment on the lawsuit. I am a lawyer who does lot of work for banks and I pay attention to court rulings that effect them. If Manulife has to appeal any adverse ruling to the Supreme Court of Canada, Manulife is very likely to win this case. The Supreme Court has demonstrated in other cases that it will try to accommodate the daily business of financial institutions. For those who care about such things look at the recent case of Royal Bank vs. Trang.
Read Answer Asked by Murray on October 05, 2018
Q: Good Morning
MG had been grinding higher from Jan 2016 to about May 2018. It then dropped, presumably on NAFTA concerns. Now that this is somewhat resolved I would have thought tjat it would have had a bigger pop. Is this a good time to buy the stock or is there something else going on?
Thanks for your advice.
Ian
Read Answer Asked by Ian on October 05, 2018
Q: Hello,
Do you guys have Flow thru share LP's that you recommend?
thanks
Read Answer Asked by Chris on October 05, 2018
Q: Please clarify your answer you gave to my question on MAXR.
You included in your response the following statement .“We would not see any need to add to a losing position." BUT I was not asking about adding. Did you mean “hold”? as in sell in January?



:ao:






5i Research Answer:
We would not say we are highly confident in MAXR, but the large price adjustment (down 48% this year) does change the risk/reward scenario. With expectations low, a good contract or positive earnings surprise could still result in good stock gains from current levels. We would expect tax loss selling, which may be happening already. Either now, or in early January, would likely get a better price if one was selling. On valuation MAXR is very cheap, but the debt adds some concerns. We would still put it into the higher risk 'hold' category. The worst should be over and the short sellers will eventuallly move on. We would not see any need to add to a losing position.
Read Answer Asked by Adam on October 05, 2018
Q: From today's Globe and Mail: Equity markets opened lower Thursday as global bond yields surged higher. Mehul Daya, an analyst from South Africa-based Nedbank, believes bond yields are approaching the “Rubicon level,”

“The JPM Global Bond yield, after being in a tight channel, has now begun to accelerate higher. There is scope for the JPM Global Bond yield to rise another 20- 30bps, close to 2.70%, which is the ‘Rubicon level’ for global financial markets, in our view. If the JPM Global Bond yield rises above 2.70%, the cost of global capital would rise further, unleashing another risk-off phase."

Normally, 'risk off' means purchasing the very stocks which perform badly during rising rates, ie. dividend stocks. That would not seem to make much sense here. What sectors do you believe would be most and least affected by these rising bond yields? I know it supposedly helps the banks and insurers but we have been hearing that all year without much sustained impact on their stock prices. So I'm uncertain where to put new money.
Read Answer Asked by John on October 05, 2018
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