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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: Good morning 5i team,
How do you make the distinction between heat chasing (i.e. buying a stock that has gone up significantly due to popular demand) and momentum investing which you seem to like a lot and which, on the surface at least, consists in buying a stock that has been rising in price for some time? Going by all that I have read on investing, heat chasing is very risky and to be avoided while momentum investing is an approach you often recommend. When does momentum investing become heat chasing?
Robert
Read Answer Asked by Robert on March 15, 2017
Q: My Father has finally caught on that paying the RBC +2% for their mutual funds is eroding his returns and asked for some help. He doesn't have the knowledge or temperament to jump into stocks so I am suggesting he move some investments to ETFs. He is 70, has a teachers pension and 250k of RSP "fun money" to play with. Since I view his pension as his fixed income portion of his portfolio I dont see any reason to get him into any fixed income ETFs or match your model ETF portfolio. I plan to suggest he move about 25k each into xwd, cdz and vgg for a start to get his feet wet. Then once he is comfortable move the rest into those same 3 funds ( assuming they are still on your suggested list at that time).

Any recommended adjustments to this approach in terms of ETFs or my equal weighting.
Read Answer Asked by Tom on March 15, 2017
Q: Please don't answer this with the standard reply about split corporations. I know 5i is not crazy about split corporations. No one ever mentions the preferred share side of the split. Everyone talks about the ultra-high yielding Class A shares that pay over 10%. That's not what I'm asking about.

The preferred shares yield about 5%. DFN.PR.A was priced at about 10.50 in 2004 and today its price is 10.34. There was a 30% dip in 2008. Otherwise the graph is amazingly level, showing only a fraction of the losses "normal" preferred shares showed in 2015-16. Also, distributions have never been suspended. A graph of dfn.pr.a compared to the preferred share etfs CPD and HPR may be surprising. The question is, How dangerous are preferred shares of a split corporation? Certainly they have to be safer than the Class A, high yielding shares. Seems like a good place to park some cash, which is what I've been doing. Thank you for your thoughts.
Read Answer Asked by Jerry on March 15, 2017
Q: buying opportunities for these? What is your short and long term outlook on these stocks? Thanks so much!!
Read Answer Asked by Brigid on March 15, 2017
Q: As you can see small retail investors are forced to compete in a market were self serving hedge funds are given a soap box on national tv BNN to hawk there position and fears into the small retail investor .The vast viewership of BNN are small retail investors who are influenced buy guests like last nite.
It is a very unlevel playing field.
As a senior investor it is clear to me that it time to get to hell out and the leave market to hedge fund hawkers
Stan
Read Answer Asked by Stan on March 15, 2017
Q: Hello Peter et al.

Ithaca has come out with the information circular for shareholders to tender their shares for $1.95. The circular puts the company potential down in its ability to grow. If it is so bad why are they trying to buy it lol!!!!! They must be taking lessons from Donald Trump's White House with 'False News'. I was disgusted with what I read. I believe the company has higher value potential and people invest to take risk to get reward and they say they want to protect us from the risk. It is more like they want to rob us of the reward!!!!!! I thought it was going to be a vote but from what I understand from the circular is you vote yes by tendering your shares for $1.95 and vote no by doing nothing. Is my interpretation correct?

What is your opinion of the takeover based on the circular and what is your opinion of the circular?

Thanks,

Brendan
Read Answer Asked by Brendan on March 15, 2017
Q: I have an equal position in aqn and rmw. Would you advise selling some rnw and investing it into aqn? What is your outlook for each of these companies for a 2 to 3 year hold? Is the debt a concern for either of these companies? Thanx for your excellent service.
Read Answer Asked by Steve on March 15, 2017
Q: Hi I just watched this hedge fund manager short EIF I wonder what his credentials are I doubt reading a Finance Report are his forte .I believe any can and has the right to short a stock but when as a guest on BNN you do this it has a impact on the stock .
I believe that BNN should not allow exposure to these hedge Managers to help them advertise their short position .
As a shareholder of BCE I am going to be a pain in !@@&^
for the next while BNN should be held accountable
Kind Regards
Stan
Read Answer Asked by Stan on March 15, 2017
Q: Good Morning
Today, on BNN, an analyst indicated that he is shorting both stocks. I will appreciate your views with respect to the above noted securities. I am ahead about 40% on both stocks.
Would you recommend selling TRI and EIF
Thank you
Read Answer Asked by Terry on March 15, 2017
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