Investment Q&A

Q: Greetings.
Just looking for an update on what is happening at Chemtrade. Down significantly. I own a very small position. Is it time to just move on?

Q: Shares of A&W Royalty have been dropping steadily recently. Recent news (the early warning report) plus your other comments seem mildly positive. Is there any recent news that might account for the drop?

Q: Please give me your thoughts on the the above co. as the new tax reduction in the USA. I understand they have about 80% of there production in the USA.Thanks.

Q: Hi 5i, Peyto has long been identified as one of the highest quality and lowest cost Canadian nat gas producers. It was even suggested that before PEY would run into serious trouble some of its competitors would be going broke and selling assets out of bankruptcies. With the shifting of shareholders following the dividend cut and cap ex reduction, any thoughts on where the stock may settle and find some stability? Do you think it is okay to continue to hold it (and continue the DRIP) and wait for a cyclical lift or would it be better just to exit the scene? Also, can you name any Canadian nat gas producers that sell much of what they produce at NYMEX prices(are there any?) ? Thanks.

Q: Medical Facilities Corp says it has an agreement with Kansas-based NueHealth LLC to form a joint venture and acquire seven ambulatory surgical centers from Meridian Surgical Partners of Brentwood, Tenn. The joint venture, will be majority-owned by Medical Facilities. Medical Facilities says its portion of the $46.5-million (U.S.) total purchase price will be funded by cash and a draw on its credit facility.
What do your overview of this purchase by DR and using their cash and credit facility? How soon is it accretive to cash flow, is the dividend safe and does it mitigate some of the concerns in the past regarding competition moving into the areas where they currently have operations?
Thanks
Gordon

Q: Good morning team,

Would you be able to tell me why the sharp drop despite their positive and strong earning this morning?

The stock was 8% up pre-market and is now almost 8% down. Did the conference call at 8:30am proved that bad.

Sell or hold?

Thank you for your help and have a wonderful week!

Q: Firstly, let me compliment your staff on the VERY quick response to my latest question!
Now, picking up on our changes to the Cash Acct, I have decided to move the bulk of our RIFF accounts to the US to counter the larger CDN investments in our Cash Acts.
I have picked only ETFS as I believe they best represent US national growth potential at this time.
I would appreciate your best advice & rationale on 4 or 5 of the following: UDOW, DDM, SPSM, XLE, DIA, VTI, XLF, SPY, IGM. Thank you.

Q: SYZ's earnings were mixed with many indicators up a bit but revenue down, or more importantly, not growing. Do you still have confidence that SYZ will get back on track? What will it take to get the stock noticed by other analysts? If this doesn't happen, I'm afraid it will be stale money. Your view please.

Q: Greetings 5i,

I am making a effort to simplify my portfolio, and would like your advice on my current REIT exposure. Specifically, I currently hold REI.UN and CSH.UN at roughly 4% each, and am unsure whether both are necessary for my long-term strategy. REI is attractive to me based on its ownership of some of Canada's most important retail properties, its intention to diversify into residential holdings, and its excellent yield. CSH is held due to the nature of its business within an aging population, as well its stability in what I consider to be a relatively weak Canadian health care sector (my other healthcare exposure consists of UNH and JNJ). The income potential offered by holding both is nice, but, as a relatively young investor with a longer time-frame, I feel as if the funds from one might be better utilized on something with a slightly higher growth potential.

I am 36 years old, debt-free, conservative (although not totally adverse to risk), and greatly prefer long-term holds that do not require constant monitoring. My investment portfolio is strictly for the purpose of expediting my retirement, and I have no need of its funds for the foreseeable future.

Do you feel as if continuing to hold both would be beneficial, or would you recommend that I let one go and redeploy the capital elsewhere? If the later, which would you recommend I keep as a long term-hold?

Thank you.

Q: Greetings 5i,

I am considering adding a long-term, full position (5%) in V. This addition is attractive to me based on its international brand presence, solid track record, and the rising interest rates that will likely help profits moving forward. I am not concerned about the short-term ramifications of the recent US tax reform on its long-term viability.

My current financial exposure consists of TD.TO and BNS.TO (roughly 3.5% each), as well as full positions in BRK.B and BAM.A (although, due to the breadth of their holdings, I look at BRK and BAM more like diversified "hybrids" than single financial positions).

I am 36 years old, debt-free, conservative (although not totally adverse to risk), and greatly prefer long-term holds that do not require constant monitoring. My investment portfolio is strictly for the purpose of expediting my retirement, and I have no need of its funds for the foreseeable future.

Does the addition of V sound like a reasonable course of action at this time?

Thank you.

Q: With the better results and turn around at Sobeys ,do you see an improvement in Crr.un.The dividend has been unchanged and a flat line for quite awhile ?

Q: Good Morning. UTX is approaching 7% of my portfolio and I will soon need to sell some of it for portfolio allocation reasons. I would like to deploy the proceeds to a stock, either Canadian or US based, in the same sector. Do you have some suggestions? thx JR

Q: can you compare similarities and differences between DSG /OTEX. also compare prospects to BB

Q: Stonegate Capital put out a favourable update today on Input Capital. They listed details like the market streaming initiative INP launched, noting the 180 new farmers y over y signed up, that this product has much higher margins than their legacy capital streaming contracts. In short Stonegate is endorsing INP. If Input Capital is not looking to raise money thus Stonegate has no opportunity for underwriting business then what motivation would they have for publishing this report... other than taking the report at face value? Should I be looking for bias here?

Q: Hi Peter,
I have been researching answers from 5i on TFSA's. I am looking for a little help to define criteria for growth stocks in a TFSA.
Using TFSA for growth only
Using RRSP and Non-Reg accounts to balance portfolios (including consideration for TFSA)
In a growth model TFSA, is the TFSA to contain a "mix" of sectors or just the best growth stocks available (in recent history this would be almost all tech stocks)?
If you were to select 10 growth stocks from Canada and the USA, what would those 10 stocks be (ranking if possible) at this time?
Is a US stock without dividends the same as a Canadian stock in an TFSA.. i.e. not subject to any taxes or capital gains yearly or when cashing in the stock?
Our assumption is that we are missing out on growth potential if we do not have high growth US stocks in our TFSA. Should we be adding US tech stocks now?

Please take the number of points that are appropriate to answer our question.
Thank you for your great service.

Jerry and Debbie

Q: Hi. Peter and 5I.
I have also, as Carl, noticed the significant increase of questions on ETF's. This is one of the numerous red flags that are started to pop up all over the market universe in my opinion.
I have taken action against what I consider a risk reward more and more tilted to the downside and am way more concern today about terminal losses (unrecoverable losses) than I am about simple losses on further potential gains(opportunities costs)
I consider ETF's to be purchased only where I cannot buy company stock in certain asset classes or I need to buy in a foreign market that reflects a potential opportunity.
I have a general question about ETF and how they work. If ''everybody'' is buying ETF's now, does that means that the underlying stocks will also grow no matter their intrinsic value. In other words, would it be possible that the ETF's buyer may have now a predominant impact on the market than ''all'' the direct buyers of the underlying stocks. Tail wagging the dog kind of...
A comment on the extract from A wealth of common sense that you mentioned.
If the 16000 mutual fund are buying ETF does that not add to the overextended existing situation?
Passive investing is not just the domain of retail investors.
Thank you
CDJ

Q: I currently own small positions in CRT & CHP which seem to be lying fairly dormant. To get a bit more momentum, I am considering switching these to REI . Is this a good strategy. My thinking is that mall owners may be switching to condo development as online shopping increases.

Many thanks, as always.

Joanne

Q: My wife is looking to invest 40k in a TFSA investment portfolio. Which would you recommend for long term? KXS, PHO, SIS, TOY, PBH, SHOP and DOL or
IEFA, IEMG, XIC, XSH, VTI, ZFM and VUS.

Q: Pure Industrial AAR.A is going to be acquired by private equity. Can you suggest any REIT to replace it?

Q: Hello 5i team,
Under the energy sector I currently hold MCB and RRX. I am thinking of selling MCB and adding another energy company from the balanced portfolio. I was wondering which of the 3 listed would be the best in terms of growth? All three have a decent dividend but I was leaning more towards Enbridge since it is the largest and most stable of the three.
Andrew