Investment Q&A

Q: Hi 5i,

I am curious, you often recommend BNS over other canadian banks yet of the main canadian banks it looks as though TD is in the best position to expand into the US. I know the dividend yield is slightly lower then BNS yet the growth of all the canadian banks seems to match each other. Would TD not be a better choice for growth/yield over a 2-3 yr time frame? Or are we splitting hairs a bit here?

Q: Thanks for creating 5I we have followed you for many years before 5I. My question is simple we follow insider trading reports a lot and always check them before purchasing a stock, recently we looked at purchasing DHX but its insider selling report didn't look that good. I have owned DHX before but am bothered by the insider selling. Are we reading too much into these reports as we also own Google and its insider reopt is not the greatest either?

Q: I don't know if anyone has pointed out this article: http://www.theglobeandmail.com/globe-investor/diy-investors-might-be-pushing-buy-and-sell-buttons-too-much/article20077915/
It talks about DIY investors buying and selling too much. The advice is nothing new to subscribers to 5i, but for those of us who haven't fully integrated this wisdom, it's good to be frequently reminded.

Q: I bought LIQ at 11.75. Their dividend has not changed, just like the CEO said after the stock dropped following the news that BC government will allow grocery stores to sell the same products. The dividend is 9%. You recently wrote that this stock is below book value. Do you like it at this level? I'm tempted to double my position, but I would like to know, do we know when BC grocery stores will start selling alcohol? And do we know the impact it would have on the stock? Is it baked in?

Q: AVO.The bloomberg article painted an accurate,but damaging picture.Commenable that Ceo,Alex's primary focus is growth to $550m by end,2016 & maximizing its good product to keep abreast of competition.But acceptable that he is doing it at the expense of PROFIT & ramping up hugh & excessive expenses.M.Lowry,a co's spokesman stated that AVO has no current plans for more acquistion.This is damaging especially after $100m equity financing in last April(diluting shares) Many fund managers recommend AVO,including 2(PI Fin.corp & CIBC) who increased the target price a few days prior to release of results and subsequently reduced. On Aug 11,a sharp fund manager stated a lot of hedge funds who own the stock were disappointed & try to leave at once,This is now a "SHOW ME" story Appreciate good managers like our Peter Hodson & Pat Horan who advised us to stay the course,& Pat recommended it as a "STRONG BUY" In my humble opinion,if a hedge fund,who owns a seizable portion & decides to intervene,AVO will see glory days again very soon.Note that Ceo Alex only owns a small amount(3.2%).For example,CP increased substantially after intervention,& to a much lesser extent,BXE(a few days ago. Thanks

Q: Hi Peter and Team
I have a small overall position of REIT's in my portfolio. Please compare CUF.UN and HR.UN and provide your opinion on the best to place new money now. Would like to understand how each may react in a higher interest rate environment.

Q: Hi are there one or two large cap Canadian growth companies you like that also trade in the US and is so could you please give a recommendation? We already own a full position in Magna in our Canadian accounts. Thank you. Bill Y.

Q: What is your opinion of the debenture offering by CSU through debenture rights to shareholders?

Q: Taser international ,your opinion appreciated.ebrahim

Q: PPL.DB.F convertible debentures have jumped in value together with PPL common. Can you please advise how to judge whether to hold the debenture until just prior to redemption or maturity or sell now and replace with something else that has more forward opportunity. Thanks.

Q: With regard to Mark's question about BMO's covered call bank etf (ZWB) compared to individual bank stocks. I feel these covered call bank etf's are the biggest pieces of garbage you can buy. Take a look at their distributions from a historical perspective and you can see how their monthly distributions have gone from roughly 12 cents per month to currently under 7 cents a month. Compare that to the banks continually increasing dividend and the better investment, in my mind, is a no brainer. If you've held any of the Canadian banks for any length of time you're probably generating above a 5% yield and each time the banks' raise their dividend that yield climbs higher. Its a beautiful thing.

Apologies for the mini rant but I think its important to look at these two investments from a historical perspective, especially with regard to the distribution/dividend and yield.

Q: Hi Peter & team,
Would it make sense to transfer “in-kind” slow moving / losing stocks from TFSA to cash (non-registered) account?
This way my TFSA account will have next year an extra contribution room and I will be able to use the losses against capital gains.
Your advise is much appreciated.
Morris

Q: Hello
My broker once said to me something like 'most Canadians who hold our banks, intend to hold them throughout their lifetime, so if you intend to hold them that long, you may as well own BMO's Bank Covered Call ETF. Yes you give up some upside capital appreciation, but you get increased income and some downside protection as a result o writing the call option'. What do you think??

Q: Hi, We hold Constellation Software shares. The cut off date for debenture rights CSU.rt was August 21.The rights have already started trading. Will the rights be deposited to my brokerage account? What would I need to do to exercise my option to apply for debentures? Can I also buy extra rights? Thanks for your help, as always.

Q: I bought SWKS US in mid-February from a search in Vectorvest, and I am up 80%. However, VectorVest's estimate of true value is still far higher than the price it trades at. I would be interested in your comments.

Q: Thank you for your terrific advice. Most of my investments are in 5i portfolio companies. However, I have about 30K that I want to invest short-term, between now and April, when I will need it for other purposes. The main goal here is not growth, but a fairly secure investment that will produce a reasonable return. What would you suggest. Should I wait until we get through September before putting this money to work?

Q: This is for Jeff re SAT-v Asian TV
It was a top pick on BNN's Market Call yesterday,
hence the pop.

Q: Hi With reference to Jeff's question on Asian TV Network (SAT), the stock was mentioned on BNN Market call yesterday as Top Pick, just before 2 PM. Could be the reason for spike. Thanks

Q: please rank these for growth potential and explain why - RE, SPE, GXE, LXE, DEE- already own RMP and RRX - thanks

Q: Hi Peter & Team, Is Legacy Oil & Gas (LEG) a buy at the current level? Thanks,