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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: My question is general in nature though uses phm as an example. PHM recently announced two LOI. The purchase price will be cash and PHM shares (in one case some 7 million shares). My question is, when a company purchases another in this way, where do the shares come from? Also, would this type of purchase tend to put a lid on price appreciation as the purchase shares hit the market? Thanks as always and best for the new year.
Read Answer Asked by Neil on January 09, 2015
Q: If you were to pick only one, which one for a 2 year time frame?
Read Answer Asked by Glenn on January 09, 2015
Q: Hi,
I currently have no healthcare exposure. I would to allocate 10% of my portfolio to healthcare. My question is would you put together your own mini etf of Canadian companies or purchase an etf like IBB? I was leaning towards my own. What companies would you suggest to construct my own. A mix of large and small companies would be great.
Thanks for the help,
Luke
Read Answer Asked by luke on January 09, 2015
Q: Is there an etf on the Toronto or US stock market to participate on the Shangai index?

What the difference between the Hang Seng an Shangai stock Market?

To wich of these markets are related xch and zch?

Regards
Read Answer Asked by Claude on January 09, 2015
Q: To team and peter
I have a small holding in my TFSA [ my only energy 2% ] should i add
or go with another energy stock. Can your team give thier opinion
on this co. buy, hold, or sell
GREAT SITE Thxs. Bob
Read Answer Asked by bob on January 09, 2015
Q: Seems like India has done very well and the preamble I hear seems to suggest that the same will happen going forward. I understand Prem Watsa is opening an India Fund, and there are the excel funds. Should I consider either of these or perhaps a couple of blue chips india stocks. What are your thoughts. I also would have the same question about investing in Vietnam, Thailand & Indonesia. Any suggestions would be much appreciated. Thanks.
Read Answer Asked by Maureen on January 09, 2015
Q: In a recent response on a question about Surge, you mention a bought deal but I can't find any reference to it. Can you let me know the details. Thanks.
Read Answer Asked by wendy on January 08, 2015
Q: Hi Peter and Team,
Using COS as a proxy for the oil price because its production is unhedged, Im uncertain if this asset is mis-priced relative to its peers and unto itself. For example, the last time COS was $8/sh was in '04 and oil averaged that year @$35/br U.S in inflation adjusted terms. If most often the market is efficient and correct, what do you think is really going on with this security? Something here is amiss. Thanks very much for your support.
Read Answer Asked by mark on January 08, 2015
Q: An observation re Warren's 2 ?s re VSC : I note from Vanguard's website that distributions paid are mostly "Other Income" (not eligible dividends) which are not as favorable for tax reporting.
Read Answer Asked by Terrance on January 08, 2015
Q: I have 5% weighting in the Materials sector between Russell Metals, Teck, and Rio.
Do you think I should drop any of these and if so which one(s).
And if so, should I replace with Goldcorp or Silver Wheaton or Quantum or any other that you may suggest.
Read Answer Asked by Deborah on January 08, 2015
Q: This is the only question I'm going to ask since start of my membership. I need to start investment in two registered account: RRSP and RESP. Both of them are over 80% cash. RRSP is for someone in 30s. I wanted to use the names that you already provided in your model portfolios, but most of them are already increased in value enough to make me skeptic of their further growth. I'm not sure if they have more room to go. So question here: Please provide me then names, best of crop, for a diversified portfolio with a long term approach. I have some XMA and ZWB in them which I can sell and switch to those you will name. Thank you
Read Answer Asked by Farn on January 08, 2015
Q: Brookfield has a number of listed equities(dividends in brackets): BAM(1.23) BOX.UN (4.4), BIP.UN(4.4),BPY.UN(4.1), BEP.UN(4.7). What is the relationship between the income/unit trusts and the 'mother' company? This group seems to provide a diversified range of options: office properties, infrastructure, property,renewable energy- What are your thoughts on this group? (or other family related listings?)Why is BAM dividend out of line with the others?
Read Answer Asked by Richard on January 08, 2015
Q: Hi Peter and Team:
Your service is the best $120 I invest every year!
I would like to select 3 ETFs for my children's RESP. Can you recommend, in your opinion the best:
Canadian Index ETF
US Index ETF
Bond ETF

Thanks!
Read Answer Asked by Chad on January 08, 2015
Q: To increase my US exposure rather than selecting specific stocks and not risking dollar price exposure I was considering purchasing the Dow30 index.
Would this be an appropriate fund or are there any others that you would suggest?

Thank you,

Bob
Read Answer Asked by Robert on January 08, 2015
Q: Thank you for today's updated report; and of course for drawing my attention to BEP in your original model portfolio.

I intend to add more BEP to my holdings now and would like to know if there is any benefit to buying the US version (BEP-N)? And if the dividend in the US would likely be return of capital, as you pointed out that it is here in Canada?

Thank you.
Read Answer Asked by Donald on January 08, 2015
Q: For some cash to park for 6 months plus, would you stay with a high interest (LOL) investment account at 1.25% or would you have another suggestion for somewhere to park this cash?
Not necessarily low risk but better than 1.25%.

Read Answer Asked by Peter on January 08, 2015
Q: I intent to buy BPY.un in my wife TSFA. It is at a 52 week high & year end result is due on Feb 4. Should I buy now or wait for year end result? Your comments on the timing & the company.
Read Answer Asked by ray on January 08, 2015
Q: Hello 5i team,

Please help with my education.

I have read "The Company (TOU) has 327.6 mmcfpd of natural gas production hedged at a price of $4.38/mcf during the first quarter of 2015."

Today NG is at $2.94. Can you explain TOU's hedging on this commodity, why $4.38 and what it means (or what they think will happen) moving forward? Hope I asked the correct question.

Thanks for all you do

Gord
Read Answer Asked by Gord on January 08, 2015
Q: SGY Paul Colborne has stepped down as Chairman, however remains as CEO. Dividend cut by 50%. How secure is their reserve credit line?
PETER, You know the management of this Co personally. What is your current judgement?

ARX New issue as a Bought Deal. Current price is now down approx. 33% to 22.5 from 33.68. Does this represent a buy or a sell after the rebound in O. Thank you - Bob.
Read Answer Asked by Robert on January 08, 2015