Investment Q&A

Q: i would like your opinion of LAS VEGAS SANDS(LVS)

which appeals to me as it operates in south east asia

and the asians are BIG GAMBLERS

Q: Hi Peter and 5i: a couple questions about convertible debentures (“CDs”) and also could you please let me know if anything that I am saying suggests I may be misunderstanding these instruments. First off, it seems there are two typical situations that result in CDs trading above their face value. One is if the common share price appreciates to the point where the CD’s are primarily of interest for their potential conversion value. I’d like to leave this aspect aside, as right now I am more interested in their characteristics when they are behaving more like bonds. The second situation seems to occur mostly when they get relatively closer to their maturity dates. I would guess this is an effect of their relatively high original yields in combination with the fact that the perceived default risk can decline more steeply and from relatively higher levels for these corporate debt instruments than for “safer” fixed income alternatives. If they are issued with 6 or 8 years to maturity, that is a long time in the world of corporate business and who really knows how some of these companies will do over that kind of timeframe. On the other hand, in a CD’s last year before maturity, the visibility of the solvency and continued existence of the corporate issuer may be extremely good. With a short enough time to maturity, one might even think that the default risk is not materially worse than with government backed securities, that is, probably still somewhat worse but the overall risk is small enough that the difference is not that significant. So my first question is: Is it common for professional money managers to purchase CDs with short remaining maturities in order to boost short term yields in their fixed income funds? Would that be a significant component of what causes CDs to trade above par as their maturity dates get nearer?
Second question: Are there any standard “catches” or pitfalls in the construction of individual CDs that retail investors really need to be watchful for? I know it is important to go right to the filed prospectus document when evaluating a CD for potential purchase but it would be helpful if I had a better idea of what kinds of features to be on guard against when I am doing that research. (Feel free to refer me on to another info source on this one, if that would make the most sense.)
Thanks for any help, as always!

Q: Junior oils took a pretty good hit yesterday,WCP,SGY,CPG-any particular reasons ?

Q: I am a brand new member (Canada) and would like to open a self-directed TFSA account. Can I choose my own investment combination (eg. pick my own stocks)?
Many thanks.

Q: Hello,

I have the following portfolio in my TFSA account (about $13000 worth): Canadian Oil Sands (COS), Manulife Financial (MFC), Whitecap Petroleum (WCP), Intel Corp (INTC) and Templeton Global Income fund (GIM).
I also have the following stocks in an investment account (about $10000): Imperial Oil (IMO) and Sun Life (SLF)
In my RSP account so far I have only one ETF (CEW) about $5500 worth
Can you give me suggestions to improve my portfolio considering the long term, some good divident paying stocks/etfs which have long term growth prospects. Please also let me know which of the existing stocks I should sell.

Also is there any particular good time of the year to buy/sell stock. In my limited knowledge my general observation is I see are that stocks tend to dip in the month for March to May . I am not sure why. . So it seems that Jan Feb may be a good time to sell the ones which I should sell. Does this logic make sense? Thanks

Q: Regarding MCR: What's managements explanation of the growth in Trade Receivables and Deferred revenue since 2011? Looks like a great growth story, but some earnings have been invested in higher current asset balances. Is it due to changes in customer base /contract terms?

Q: Happy New Year! What are your thoughts on a weighting in gold stocks at this time - just the Goldcorp in the model portfolio?

Q: Given the fact that all Americans will be required to have health insurance coverage in 2014 are there particular Insurance companies that would benefit more than others and could prove to be very good investments?
Happy New Year and thank you so much for all your advice.

Q: I am holding 3 pipelines:
ENB - 7% of portfolio
IPL - 6.4% of portfolio
PPL - 5.7% of portfolio
Balance of portfolio is very diversified.

In your opinion (which I value greatly) am I OK with these 3 pipelines of is it over weight. If I were to trim 1 pipeline which one should go.

Thank You as always.

Q: You have mentioned that we should pay attention to companies that start paying a dividend. Where can we find that information for TSX or S&P companies? And secondly, I would like to thank 5i for setting a new era of investing advice in Canada!

Q: Congratulations to the 5i team. This morning's Financial Post lists the five best performers in 2013. Two of them - VRX and MGA - are in the portfolio.

I have been a member for only a short while and already I have a lot more confidence - I had a great December. Thank you for that, too

I very much like STN and intend to buy as soon as the distribution phase works itself out.

Q: Hi,

I'm interested in your opinion on Niko (NKO) in light of the new loan deal, and the conversion notices that seem to have had an effect on the market's perception of the viability of this company. My understanding is that their revenue should increase greatly in April under a new gas pricing agreement. I hold a small position in NKO that is down from a $10 entry point. would you recommend holding on or averaging down at this time? Thanks for your great service!
-Jeff

Q: Thank you for this opportunity to ask a question. I have held 3M (MMM) for over a year with good results. I sold it a month ago to lock in my gain. Is this it overvalued now and is it opportune to reinvest.

Q: Stantec (STN) has now fallen 10% from it's high of over $72. Any concern or is this normal after the big run-up of 2013? Might it be a good time to add to my position?

Q: I see that sy is getting hit hard today, after reading the press release is this over done? My cost is .40 cents should I be worried here and looking to get out?

Q: Can you recommend a conflict-free research firm like yours that specializes in U.S. stocks?

Q: Hi Peter,
Ishares has 3 Russell 2000 ETF's, growth, value, and not focused. Is there growth and value in small cap? What are they doing here?
Thanks, Mark

Q: Peter - I like the Technology and healthcare sectors in 2014 and long term (+5 Years). Rather than selecting stocks in these sectors, I am looking at IYW (US Technology) and IYH (US Healthcare), however I am concerned at the low daily volumes. Can you provide your thoughts on these two ETF's and can you recommend any alternative ETF's in these two sectors? Thank You and Best Wishes in 2014!! Thank You for providing us with an excellent service.

Q: Gentlemen,
Is Italie possible to suggest 2 or 3 shares for your sectors suggestion
Industrial 15%
Materials 15%
Cons. Discretionary 10%
Cons. Staples 5%
Utilities 5%
Financial 15%
Energy 10%
Info Tech 15%
Telecom 5%
HealthCare 5%
Thanks a lot
All the best to I5 team

Q: In your answer to Behrouz re a Mining and Metals ETF, you mentioned CMW and XME. I, too, have been looking for a decent ETF in the sector in Canada. The problem in this country is that there are no ETFs in the Mining and Metals sector, just Global Base Metals. XME is listed as having about 9% in gold and another 10% in Precious Metals. I'm sure CMW and a second iShares entry, XBM, have considerably more than that in gold (I can't find out how much). If you wish to avoid gold in a M&M ETF, it's difficult. And besides, both Canadian products are thinly traded. There is a third Canadian entry, this one from BMO, ZMT. Surely one of them could be a more pure M&M play.