Investment Q&A

Q: Hi 5i team,

Could you please provide me with two must read investing books that should be on every investors wish list for Christmas?

Much appreciated,

Jon

Q: Each Christmas I transfer a few DRIP shares to my children's Drip Portfolio.Your opinion on Penn West or Crescent Point
Thanks,
Dan

Q: This is the Warren Buffet backed company from China.I have held this stock from $10 down to $2 and back to $6,about 4+ years.In your opinion should I hold on,do not need cash,or would it be better to just sell and buy a more stable dividend stock in Canada.Could you recommend a couple replacements if I sell?
Thanks for any imformation, Brad

Q: Hi,
Can you please give an update on the recent reorganization?
Thank-you.

Q: Velan has been holding up well in this poor market could you please give me your opinion and future prospects of this company.

Q: What would your top 3 picks be for 2015 and the reasons why?

Q: It's understandable that Bloomberg (or 5i) can't spend excessive resources in ferreting out all the nuances of insider holdings. In the case of Slyce, further digging reveals that Business Instincts Group (5.4m shares) actually include the equity holdings of co-founders and current board members Cameron Chell and Erika Racicot. Also, BBG Equity Management (John Gabriel) and their 1.7m shares has been in the picture since 2008 so the only true 'outside insider' would be Salida Capital's holdings. I therefore suggest that true insider interest is closer to 14.3m shares, or 13.4% of total issued.

Q: This is a comment to an answer to trading in a TFSA. It has always been CRA tax policy to tax stock traders differently than investors. If the CRA declares you a trader due to more than a normal number of trades, they have always been able to tax that individual on the proceeds from the trade. The newspaper article was poorly written and the writer does not understand tax rules. Just another example of newspapers more interested in selling papers rather than educating people.

Q: I am thinking that the best way to play the american turn around is through american banks and credit card companies. What's your thought on that and is American Express the best way to go

Q: Good morning Peter/Staff,could you please have your opinion on ET?
Considering initiating a small (2%)position (?)

Q: What impact will the transfer of ENB's Pipeline assets to ENF have on the risk and growth profile of each company? Will ENB now be higher risk/higher growth than previous and ENF lower risk/lower growth? Thanks.

Q: Peter and Gang:
Wondering what your view of TBE is right now. I was in @ $2.00 and made some nice dividends. Wondering what the potential of dividend cuts are vs. the rest of the sector, and if it might be a victim in upcoming tax loss season. I am willing to hold for 3 years plus if you think there is hope.

Thanks for all you do

Phil

Q: Hi Peter and 5i Team:
I have a small position in NRG and would like to. Sell and buy some more AVG as a dollar cost averaging strategy; as I bought it at $29. Do you like NRG? Is is a good long term hold . Or would you agree on my reason to sell it?
Alternatively, I was going to sell NRG and buy ELW as it has really got hammered and I like the management team for a 2-3 year hold? In your humble opinion which strategy do you think would make most sense for a above risk portfolio and greater growth prospect ? Than you so much.
Romeo

Q: I am surprised at the huge decline in the oil services stock. Savannah has reached 2008 levels? I thought this time around it was not 2008 all over again! Unfortunately things went down so fast that I did not react and am down on precision and savannah over 50 per cent. Precision actually raised its dividend before all this carnage. My question: surely the bottom is close and would you start adding to bring down the average cost. Thanks for a great 5i forum.

Q: I have just read that CRA is investigating TFSA trading accounts.Apparently if you do a lot of trades and get quite good at it,individuals or their institutions could be taxed and you cannot withdraw money while being investigated.Could you some light on this subject.As usual tks 5I

Q: Hi 5i team,

Suggestions for starting a TFSA with 10k initial investment. I was thinking of 3 stocks from diverse sectors. low - med - high risk.
SGY (or WCP) high
DHX.B med
TD low
roughly 3k each. Thoughts?

This TFSA complements a large portfolio of mutual funds that are properly diversified.

As an aside would you substitute BTE for any of the above mentioned candidates?

Q: Recently, D.UN made the following announcement that appeared as an 'Early Warning Report in Respect of Dream Industrial Real Estate Investment Trust'.
'DREAM OFFICE REIT (TSX: D.UN) announces that a subsidiary of Dream Office REIT (the "Property Vendor") acquired ownership of 2,269,759 LP Class B Units ("LP B Units") of Dream Industrial LP and a corresponding 2,269,759 special trust units ("Special Trust Units") of Dream Industrial Real Estate Investment Trust ("Dream Industrial REIT").'

What does this mean?

Q: RE: NAL.TO

I think the company may be affected by lower oil prices in two ways: First, it may get let work to do; and second, the recovered oil may get a lower price.

After taking consideration of the new reality, would you recommend it as part of a portfolio? Can we say Newalta is a potential Peter Lynch favorite that is boring and involving dirty, even disgusting, wastes?

Q: 12:06 PM 12/6/2014
Hello Peter

It is said repeatedly that stocks in interest sensitive sectors like banks, pipelines, power producers, utilities, and real estate, will suffer if interest rates rise in the years ahead.

It would seem to me that with today's remarkably low rates that any responsible company officials and boards of directors would be securing all necessary very long term low interest rate financing for a decade or more in advance. Surely they would be irresponsible and negligent not to.

Fixed Income is the only real income investing option other than stocks. Bond yields would have to rise to the 5+% range to be any real competition for Dividends in the 4-5% range, and that seems unlikely in the next 5 years or more [just look at Japan] given all the almost unpayable Government debts in most countries.

So why then are "interest sensitive" stocks vulnerable?

I really have little option but to invest in these large companies with good dividends for ongoing income. So should we be concerned?

Many thanks....... Paul K

Q: I have 40% weighting in financials in my RIF A/C, and 20% in energy. I plan to 1) sell BBT (US Bank) and buy either Telus as I have no exposure to telecoms, or Coach. 2) sell FSZ and buy AW.UN and XTC. 3)Hold on to Athabasca oil for another three years. I have lost 70% of the value in this stock.
Your advice please. Thanks always for your excellent advice.