Investment Q&A

Q: I own three reset preferreds that were purchased at the issue price. All are underwater by large amounts. AIM.PR.C is trading at $17.52 yielding 8.8%, AZP.PR.B is trading at $19.20 yielding 7.2%, and DC. PR. B is trading at $16.20 yielding 8.8%. With the dividend tax credit the yield averages is well over 10%. How financial stable are those three companies? Are the yields adequate for the risk being taken? Are those shares sells or holds for income?

Q: Hi Peter and Gang,

Just wondering what your views are on Canadian banking industry going forward and if the 5 big Canadian banks are a buy, hold or sell.

Thanks,
Harry

Q: Hello,

I know you replied to an earlier question on pivot that their last quarter was "ok". Over the last month the market fas responded with a 30% plus move to the upside. Interested in your thoughts on its recent price action?

Regards,

Robert

Q: Hi, this company had a rough third quarter and it's share price has since consolidated to what seems to me like a reasonable level. Given it's future potential for VR , it's new and unique home theater product/content offering due to launch soon, one could see some upside potential in this stock. Considering it is not a profitable company and the stock is in a downtrend, you recommend starting a position , or wait after earning release in June ? Thanks !

Q: Hi Peter,

I have a 5% position in Blackberry. Can you please let me know your take on this stock.

Thank you,
Tom

Q: Can you give an update on D-box, they seem to be on a downward spiral. How much of their business is reliant on movie goers, and are their industrial applications not making any advances( no news). Also what was the reason for their big drop in Feb. of this year and what is a reasonable time frame to wait for some upward growth. Thank you.

Q: I am interested in an american telecom for RRSP

I was considering Verizon or AT&T

Please provide your thoughts on which one is presently the better buy based on
A. valuation
B. dividend growth
C. earnings

and the magnitude of the difference ( my perception is that the difference is small, but I would appreciate your thoughts.)

I would also be happy to consider any alternatives to these 2 in the telecom sector that you think has better upside. longterm hold.

thanks

Q: Coming off a bad year what is your outlook for this company?

Q: Would you please comment on this small thin trading company.

Q: A follow up on your recent response regarding XHY and BSJK.
What is the difference in risk factors comparing these two funds if interest rates rise as expected over the next 2-3 years.
I would expect BSJK to act like a single bond held to maturity ( 4% annual return with 100% of the principal returned in 2020 ). XHY yields 5.3% but rising rates could substantively reduce its value, resulting in a net loss if redeemed in 2020. Am I understanding this correctly?

Q: Hello,

I assume that VFV and ZSP are identical EFTs provided by Vanguard and BMO respectively. Their MER, asset allocations, sector breakdown are close to identical.

However I notice the following anomalies (VFV vs ZSP):
1) Dividends of $0.238 CAD vs $0.145 with yields of 1.565% and 1.789% respectively. Why the difference in dividends?

2) Portfolio turnover rate of 13.18% vs 31.90%. Why would there be a difference in turnover rate?

3) Benchmark: S&P 500 CAD vs S&P 500 TR CAD. What does the "TR" mean?

3) Market price (NAV?) of $56.33 vs $34.94: Is this due to dividend reinvestment and inception date?

If one were to buy one of these, which would you prefer and why?

Thank you for your excellent and unbiased opinion and service

Q: Peter and Team: This is my first question since joining this august group, as I am still in learning mode and want to make sure my questions add value. However, I think this issue is important and I am truly perplexed. I note that yesterday, 80% of CRHM volume traded were short sales and on above average volume (source: shortvolume.com), which was highly unusual, and the price closes even. Then, the very next day on much greater volume still, the price plummets. Doesn't this strike one as extremely odd, temporally speaking, and especially, as you point out, that most of the trading seemed to be retail? What could be the possible explanations for this? I would really like to understand this one for future reference. On the surface, it would suggest to me that some folks must have information that others don't (earnings leak?), because I find it difficult to believe that the short report referred to earlier explains it all. Any and all thoughts would be most appreciated.

Q: Hello Peter, Ryan et al

I spoke with Kettina Cordero, IR Director for CRH regarding the volatility which she attributes to a letter from a hedge fund manage to his subscribers, however, my thinking was related to the release next week of "Unaudited" statements. She indicated that the CRH fundamentals have not changed and that it is fairly common that unaudited quarterly financials are not audited. Any thoughts?

Thank you .... Marty

Q: I own many of your Canadian stock recommendations. However I keep 20-30 % of my portfolio in US stocks. I am now looking at CGNX and ABS. Although not your area of focus, do you have any concern with either of these ?

Q: They seem to be signing some really good new leases. DO you think the dividend is reasonably safe? How do you fell. about this entity overall? Thanks

Q: Hello 5i team, I try to better classify the whole portfolio by various sectors and I hesitate where should I put bonds - to treat it as a separate category, or to classify depending on fixed income type.. etc. Looks like a theoretical exercise but still important to assess sector weights properly :) Your advice is highly appreciated!

Q: What is your opinion on holding long bonds as a defensive tactic in a portfolio? Would one hold federal, corporate, or provincial long
bonds. Thanks, Joe

Q: I need to diversify our investments more outside of Canada/US. What is your opinion of VAH? The dividend is attractive. Thank you, Bill.

Q: Hi, I own Cdz and was looking at its long term result compared to the benchmark. It looks like they are below the benchmark every year by a small %.
Since inception the benchmark was 7.8 and Cdz was 7 % approx. is this about right and why do they fall short every year? I must be missing something.

Q: Hello Peter et al.

This could be my last question about Ithaca Energy. I have held it for a good while and now that the takeover is approved and Delek own 76% of the company is it time to capitulate and just tender my shares @$1.95. I think that the news will be good in the next year but because of the illiquidity of the remaining shares would there be a true increase as would be with a company with not one large shareholder? This money has been dead money for me since Feb so will it be dead money in your opinion in the future as there are so small of the number of outstanding shares? Are there any other risks that I am missing with not tendering my shares now? The opportunity cost is a big one.

Thanks,

Brendan