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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: Peter, Since sin stocks, amaya, great canadian gaming, gamehost are all doing well, I own a position in century casinos on new york exchange. I am underwater for now but like the growth prospects and they keep winning awards for best run casino as well as running casinos on cruise ships and they are building in calgary which will include racehorsing. Can you tell me how much insiders own of this company. Because it is not followed very well, I feel that if all things go well this is a company that could surprise on the upside and start to be followed more closely.
Read Answer Asked by Helen on November 02, 2014
Q: Morning folks: HWO is listed in Toronto but does the bulk of it's business in New Guinea where the energy industry is still
going strong. The numbers look good and it has a 4.5 percent yield. Appreciate your comments on this company.
Read Answer Asked by Charles on November 02, 2014
Q: Hello Peter and Team,
I have available cash in a non-registered account which I will not need to access for several years. My goal is long-term capital gains WITHOUT any other income along the way. Currently, I hold non-dividend payers TOU, AVO and GUD in the account. Which one or two of these would you feel best about for a solid long-term gain? Also, if I were to add two other non-dividend paying shares for the long-term, can you please suggest two? PS. Any explanation for the wild (10%) ride on DHX today? Thanks for the terrific service!
Read Answer Asked by James on November 02, 2014
Q: Hi,
The equity portion of my Income Portfolio contains the following with % weightings shown. Any names you would remove or add to? Any sectors you would trim or add to? Any names from your Income Portfolio you would strongly suggest I include? My average yield is 4.3%.

Consumer 1% (CTC.A)
Banks 20% (BMO,BNS,NA,RY,TD,TMC)
Insurance 11% (MFC,POW,SLF)
Utilities 8% (EMA,FTS,TRP)
Telecom 15% (BCE,MBT,RCI.B,T)
Precious Metals 6% (AEM,TCK.B,SLW)
Energy 19% (CNQ,COS,CVE,CPG,FRU,IMO,SU)
REIT 17% (CAR.UN,CHP.UN,D.UN,DIR.UN,HR.UN,REI.UN,TCN)
Technology 2% (ET)

Looking forward to your Portfolio Analysis feature/service.

Thanks for this,
Carlo
Read Answer Asked by Carlo on November 02, 2014
Q: Hello Peter, IGM has corrected back to the $45.00 range. Is this a good entity point for the dividend yield and a 1 or 2 year time frame back into the $52.00 range. Is this a stock worth holding?
Read Answer Asked by lori on November 02, 2014
Q: Please recommend several fixed income etf's. Thank you for your advice. MR
Read Answer Asked by michael on November 02, 2014
Q: Hi Peter and team,

What do you think of Canadian Energy Services and Techonology? Is it worth investing in this company at this time? I am a long term investor looking mainly for growth, but I am not against companies that also pay as nice dividend.

Thanks in advance for your insights.

Michel
Read Answer Asked by Michel L on November 02, 2014
Q: Do you agree that earnings multiples can be higher in a low interest rate environment due to a lower discount rate on future earnings? Hhow do today's P/Es in Canada and the US compare with P/Es in a more normal interest rate environment? How substantial is the risk of lower multiples when interest rates normalize?
Thanks,
Hans
Read Answer Asked by Hans on November 02, 2014
Q: Peter,
If there were 12 important items you reviewed of a company before buying a stock, where would ROE rank in this list as its level of importance? What might influence your decision to buy a company despite having a sub-par ROE?
Read Answer Asked by Barry on November 02, 2014
Q: I have this stock in my TFSA, can't imagine why. Down over 40%. Should I just throw in the towel, and hopefully purchase another company having the potential to recoup some of this loss. Suggestions? Doesn't have to be this sector, don't care. Or is there some remote chance of recovery for TGL within a year or so.
Thanks
Read Answer Asked by Phyllis on November 02, 2014
Q: I have a significant position in this stock Can you give me your outlook given that lumber prices stay relatively stable. As a general comment I recently became a member of 5I and I am getting tremendous value. I like that. Excellent format.
Read Answer Asked by roland on November 02, 2014
Q: If you had to choose between these 2 stocks, which would you pick?
Read Answer Asked by Jacques on November 02, 2014
Q: stock seems to have a difficult time breaking through
the 16,00 level--any thoughts as we approach Q3 on the 4th
Read Answer Asked by donald on November 02, 2014
Q: Do you have any insight as to why TMC continues to be so weak? I know they cut their distribution in July. Would you consider it interesting at current levels?
Read Answer Asked by Greg on November 02, 2014
Q: Hi Peter & Team,
Should I consider my wife's TFSA & RRSP as part of a consolidated family portfolio (diversification, % of allocation, etc)? or a "stand alone" portfolio (which may mean duplications etc)
Thanks for a VERY good service!
Morris
Read Answer Asked by Morris on November 02, 2014
Q: Hello to the 5i team

I have always struggled with diversification as it relates to management of a portfolio. I understand the wisdom always being offered (including here at 5i) along the lines of ensuring that proper diversification is maintained. I read something recently that indicated an academic study demonstrated that the maximum effect of diversification is achieved with 18 positions.

My concern and understanding is this: while diversification offers the investor some greater degree of protection on the downside, it also prevents, I believe, any chance of accumulating significant wealth because of diluted positions in any given security.

There was a recent article in the G&M discussing the merits of owning a portfolio consisting only of Canadian banks. Most of the investment professionals consulted on the matter considered this to be a very bad idea. However, I think the idea merits serious consideration considering their long-term performance.

I know 5i advocates diversification but what is your take on a smaller concentrated portfolio?

Thanks very much. Your service is very much appreciated.
Read Answer Asked by Brad on November 02, 2014
Q: Hello Peter and the 5I team
When markets correct as the tsx has done so, I like to search for companies that are able to hold their own in down times. I was surprised at how well CXR held up throughout the correction so far, the SP seemed to hold its own while the market came down. I was wondering if you could give us a few names of stocks that surprised you on their resilience to the market correction. Or maybe a few names that have a habit of holding up in down times.

Thanks for your response
Read Answer Asked by Darren on November 02, 2014