Investment Q&A

Q: Good morning...we are looking at utilizing margin account..we will bascially utilize margin of approx $150,000 CDN...offshore account...we will be funding account with US$...Non- resident no tax implications...we are basically trying to take advantage of the low CDN$...so we are thinking of buying CDN equites with those funds...we will see an upside on currency of (26%to30%)...the question..we have a diverse portfolio from majority of 5I stocks (MG,BIN,XTC,BOS,ATD.B,TD,TCN,BEP,DRT,WSP.DH,GUD,SJ)...I am looking for potentail recommendations on how to invest the addtional margin funds...Add to existing portfolio? stick to a more conservative large cap/dividend /REIT etc..if you could provide 4 or 5 addtional names that would be "supportive"...we are balancing and managing the risk..will be funding account moving forward with US$ to pay off the margin within 8 to 12 months...then reasses again...

Thanks again!

Q: I realize that there is much to like about CXI, but wonder if its post-banking-license-value is already reflected in the share price; as such, what's to prevent a sell-on-news decline? Put another way: for the price to go up, there needs to be a meaningful number of potential investors who haven't bought-in, yet, because they don't think the license is going to happen (or happen any time soon.) But there seems to be a consensus that it will, so where's the driver for price appreciation?

Q: I wonder what you think of this company. Health care facilities would seem to be a good place to be, but their high dividend might be a sign of caution. Thnx

Q: My TFSA has been doing very well, thanks to 5i Research. I consider this my rapid growth account. I need to invest about $5K. I own the following: AYA, DHX.B, XTC, CXI, and CSU. (CSU now make up 50% of the portfolio.) In the last few days I added: BOS, ATD.B. I'm interested in adding CRH, CXR, and TC and maybe LNR. (small positions in each). Would you support this? Or can you suggest other stocks? Also you recently mentioned a buy recommendation for LNR, but the stock is dropping, so it's not clear why you recommend it. Thank you.

Q: I currently hold 10% portfolio position in zlb and hold all of your balanced portfolio minus Enbridge and telus...the charts show that zlb has outperformed both of these two stocks since its inception...should I consider selling zlb and taking a position in each enb and t for diversification considerations or continue to hold zlb which has performed very well for us..thank you for the great service and advise.

Q: On 7/15,Inn.un closed a bought deal of 8.4m units @ $5,in which Kingsett(18.1% ownership), Orange(9.9%) & other insiders bought 5.68m units in total.On 7/22 the underwriters exercised the option to purchase the over-allotment of 1.26m units Such confidence by insiders even though share price was on a downward trend for the last while to close @ $5.15 today.Please express your expert opinion on this transaction.Also,please advise on my thinking of buying additional shares to average down my small position of $5.94 .Always appreciate your great services & advices.

Q: I've owned LPG : NYSE since $13.00 a share. Would you hold or sell and buy GG : NYSE. Its been beaten up and pays a dividend. Your thought are much appreciated.

Q: Hello Peter
Do you still recommend holding XTC and PHM with the resent price decline ,Are they still good company going forward ?Are you going to keep them in the model portfolio ?

Thanks

Claudio

Q: there have been many many questions about phm on your site.
the thing that seems to bother people the most is if greene and dalsin sold all their shares, let us assume they did.
the 2 guys now in charge from sleep mattress who took their payment in phm shares are probably better operators than dalsin and greene who seem to be deal makers.
phm is cheap on any metric they have about 60 million in cash against about 24 million in debt, they are growing organically and they are profitable and they are buying back their shares below 1.50 to protect the recent financing at a 1.50 that comes off lockup sept. 6 or there abouts.
and what if greene and dalsin did transfer their shares into this health fund run by decter. either way why is everyone panicking. do everyone actually expect these 2 guys to be hands on running phm, convalo and inspira by themselves.. can you comment. dave

Q: Here is a link to a July 17 news release regarding the transfer in to the Healthcare Special Opportunities Fund of PHM and CXV shares by Dalsin and Greene, through their holding company Canons Park Advisors LLC, in exchange for special class U units. Hope this helps clarify things as there has been a fair bit of confusion on the part of some investors about this transaction.

http://www.marketwired.com/press-release/healthcare-special-opportunities-fund-completes-62-million-private-placement-class-u-tsx-mds.un-2039667.htm

Q: Regarding Tom's question on Prism Medical, I was watching Prism's market depth all day and at one point there was 1200 shares on the bid at $13.50 but after that there was something like only 500 shares from $13.49 to $12.00.

Conversely, a few days ago, during Prism's rise, at one point a 2000 share buy order at marketprice would have jumped the price to $19.

Feel free to share if you think this helps.

Q: Afternoon folks. Any reason you're aware of for PM's 10%+ drop in today's (Tuesday) trading?

Q: Can you please comment on Exco's earnings release. Thanks

Q: Hello Team,
Between Stella Jones and Constellation Software, which would you prefer for growth? Also, could you comment on the most recent results for both.
Thank You,
Barry

Q: Hello 5i team,
I am responding to your answe to Les concerning the amount of fixed income appropriate for a 70 year old. I think it would help many of us to have your rationale for your suggestions.

For instance, you suggest 40 per cent fixed income, even though they have enough to live on from their pensions and could thus presumably ride out a down turn. In this low interest rate environment many suggest a nuch lower per centage. You have yourself, i believe from time to time.
Should not the pension be considered a form of fixed income and thus count towards the per centage?

You also recommend xbb, which goes out to seven years. I imagine we are mainly thinking about preserving the capital. And if that is the case, why not choose the shorter term, xsb instead?
Thanks for any insight you can put on this important aspect of investing for many of us
Claire

Q: Hello Peter & Co,
A gentleman asked you about CPH but your response indicated CXR; was it a typo error?
Thanks,
Antoine

Q: Hi Peter & Team: Your comments to Allen's question today: "but expect a flat to declining sector..." I own this in my Riff and in a loss position, should I let it go? Thank you.

Q: You claim that there was insider selling, in reality according to INK RESEARCH there was zero selling and $648,087.00 insider buying.

Q: WEF reports on July 28th. The stock moves up and down by .15 almost every day. West Fraser report was not very good. So should one assume western forest will also be bad? I am wondering if I should move on. Thanks.

Q: Hi, What would be the impact of CSU being added to S&P/TSX 60 indices, effective July 24, 2015?
"S&P Dow Jones Indices Announces Changes to the S&P/TSX Canadian Indices
17:15 EDT Tuesday, July 21, 2015
Constellation Software Inc. (TSX:CSU) will be removed from the S&P/TSX Completion Index and added to the S&P/TSX 60, 60 Capped and the 60 Equal Weight Indices. Constellation Software will not be added to the S&P/TSX 60 ESG Index at this time. Also, Constellation Software will be added to the S&P/TSX 60 Equal Weight Index at a relative weight equal to the relative weight of Catamaran at the close on July 24, 2015."