Investment Q&A

Q: I'm down 8% on ZUT during this latest sell-off. Do you feel this latest sell-off in utilities and interest sensitive stocks was overdone or is there more pain coming?

What sectors would benefit from higher interest rates and inflation?

Q: Any changes in opinion around RVX? Is it still as big, bigger or less a risk than it was in 2012, when you were last asked about it?

Q: Hi Peter and team,
I have been following Premium Brands for a while now. I like the juicy dividend yield on this one, yet the payout ratio is still quite reasonable. I already have plenty of financials, telcos, etc. in my dividend portfolio. Would Premium Brands be a good addition as a means to diversify my holdings? Many thanks.

Q: I have been put in the situation of looking after the financial affairs of an elderly couple both are 79 and their health is not the best at most they have 5 years left. Should he pass first her income will be $35,000, presently it is about $70,000 (these amounts include CPP, OAS, RIF, and other pensions). They will have $350K cash after the sale of their condo, plus another $200K with cash and RIF's. I feel if I were to follow your model portfolio if would meet their needs and would strike a good balance. If you have any suggestions I am always willing to listen.

Thank you

Q: Can you point me to some decent Canadian commodity stocks. I had TCK and POT awhile back but dumped them when they started to tumble.

Q: Hello 5i, Could you comment on Longview oil LNV as to the company and dividend.
Thanks

Q: Painted Pony has seen a bit of a correction recently. Is it worth stepping into this name. I already hold Vermillion and Whitecap and am looking to add one more name but with no dividend the grwoth has to be worth not getting paid to hold it.

Q: I purchased BMO equal weight utility index etf zut about 18 months ago. It has dropped steadily. It is about a 15 % allocation of my dividend portfolio and the only utility holding. What should I expect from this over the next few years? Is it worth keeping?

Q: There are a bewildering number of ways debt can be maesured in a company. Debt to equity, total debt to total capital etc. Some value investors like to see net current assets greater than long term debt and others look for total liabilities to be no more than five times earnings before taxes. I noticed in previous answers 5i like to compare total liabilities to cash flow as a metric, with debt no more than twice operating cash flow. Could you comment please on your choice of debt metric.

With regards to Rogers RCI.B it seems to be carrying large debts in comparison to cash flow and also its peers. I am considering selling and consolidating into Vodafone as I prefer to have only one holding in the telco space. Do you think Rogers has too much debt? Would you agree that Vodafone is a better bet?

Q: About fixed income. Should I sell my corporate bond CBO, HAB and XCB etf ? They gave me 5-6% for the last 3 years but now are in a serious downtrend in 2013. At this point would GIC, or individual bonds be better ? Also, same question about CPD ?

Q: People keep saying that since the market has been going up so fast, it was time for a breather. However, the CDN market has not gone up much at all and yet it is getting hammered right along with the US market as if we also had been "frothy". Are there better values in parts of the Canadian market now, as compared to the US?

Q: The Venture is down to levels equal to what it was a decade ago... is there a buying opportunity in the small cap space over the course of the next few weeks? What ETF might you suggest as a proxy?

Q: what are your thoughts on lumber and osb producers? i own shares of ainsworth and west frasier.... while lumber and osb have outperformed the other resource shares in this latest correction, do you think it will continue? would you add to positions?

Q: Hi Peter and 5iresearch team,
I know you are very knowledgeable regarding US exchange traded funds. The Global X Top Guru (GURU-N) was introduced on BNN market call and I would appreciate your thoughts on this ETF. GURU is comprised of Hedge fund top picks. Thank you.

Q: ttek dropped because of a potential lawsuit. Should I be getting out of this stock?

Regards

Q: Could you kindly comment on Legacy Oil & Gas (LEG), including the management.
Many thanks. Bob

Q: Hi Peter. Could you give me an updated opinion on CWT.UN. The shares have doubled since I bought it and it now represents ~2.5% of my portfolio. My weighting in REITs is ~8%. My concern about selling some shares would that I would have a smaller after-tax amount to re-invest and would require a higher return to justify the switch. Would you recommend selling some shares? If so what would you recemmend for long-term investment?

Q: Peter I purchased CBO - 5 year laddered corporate bonds ETF. It has dropped in price significantly in the past month. My purpose for buying this eft was for the low risk and 4.4 % percent monthly payout however all gains have been wiped out by the price erosion. Is there further downside on this eft? Should I move to another name. Thank You.

Q: I hold 6% in rei.un would you reduce this as of june 20 I was at break even on cost but have held it for 2 years .
Stan

Q: ANS
The lumber prices has crashed in the last 3 months, back to last October level. Is it because of China stop buying?
I also heard from building materials people that some plywood are selling below OSB prices. Will ANS new plant make the OSB market more bearish with over-supplies?
Despite the lumber price crash, CFP WFT NBD ANS IFP.A WEF prices have held up quite well. What do you think of the home building industry prospects?