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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: This question is about covered call strategies. I know that your mission is primarily to gibe advice on individual stocks but you are often good enough to share your knowledge on other points, as well. So, i will submit this question. If it doesn't fit into your framework, that's ok, too.

I know thatyou like to sell covered calls a month out. If i don't have any intention of owning the stock, i imagine that it doesn't really matter if i buy the stock one month, collect the option and then buy the same stock back again a month later at a higher price. Because i am only interested in collecting money on the money i have. Right? ( i am doing thisin a tfsa. I have googled it but haven't found a definitive answer on whether I can do this there? Am i ok with that? ). If i am going month by month is it better to take a lower payout, knowing that you are more likely to have to give up the stock, or go a couple of dollars less in the premium payout in order to have a higher possibility of keeping the stock, realising that this is a monthly process? a number of questions here so please feel free to subtract the appropriate number of points, if you decide to answer.
Thanks again for your grat service
Read Answer Asked by joseph on January 27, 2020
Q: Hi,
There are slim pickings for the retail corporate bond investor at the moment. I found a five year Ford Motor Credit bond with a BBB rating paying an effective yield of 3.55%.

Do you think the risk/return on this bond is reasonable? I am hesitant to buy it because of the history of the auto industry during recessions and the current state of personal debt in Canada.

Thank you. Michael
Read Answer Asked by Michael on January 27, 2020
Q: hi there,

looking for an undervalued US financial to add to my portfolio. I own JPM, WF and PRU. Looking at the financials, this one seems to be growing but trading at a significant discount to its peers. Am i missing something or is there another US insurer you prefer?
Read Answer Asked by kelly on January 27, 2020
Q: With two recent financings behind them, a new insider position investor from the last, a (supposedly) good order book for theme park attraction deliveries - what chance of Empire Industries gaining traction this year?

Disclosure - picked up a small amount at 0.47 today to make me follow it & consider more.

Thanks, Alan
Read Answer Asked by Alan on January 27, 2020
Q: Hi,

In an otherwise well balanced portfolio, with a slight tilt towards growth I do hold the above REITs for income. As part of a new investing philosophy (to me) I'm aiming to reduce my equity positions from 33 to 23 over this year. Thus, I need to sell one of the above and re-invest the proceeds in the other three. With an eye towards income preservation (ie. sustainability of dividend) and growth, which of the above do I sell?

Cam.
Read Answer Asked by Cameron on January 27, 2020
Q: It looks to me that SHOP is a bubble. I have no doubt that it has a great potential, but I do not see how I can justify the actual valuation. If I assume a 30 % annual sales growth, a 30 % net profit in the future and a valuation at 30 times the EPS, it would take 7 years to justify the actual valuation. Please correct me if I am off the track. Thanks.
Read Answer Asked by Jean-Pierre on January 27, 2020
Q: Would appreciate your analysis and thoughts on Seaspan. Had doubled up and was thinking of selling and putting funds into 2 more US equities. Looking more for growth and capital appreciation but fine with a dividend if possible.
Which 2 would you suggest in any sector and do you think Seaspan's recent news is the reason for the 14% drop in the last month.
Thanks Gary
Read Answer Asked by Gary on January 27, 2020
Q: In your reply to Robert on Jan 10 you mentioned a delay in returning 737MAX to service could be negative in the short term for CAE. I was going to hold off purchasing in the event of a pullback. Does the recent Boeing recommendation that pilots be trained only on the newer, scarcer simulator change your short-term outlook?
Read Answer Asked by Warren on January 27, 2020
Q: Closely follow your balanced portfolio Have money to put in tfsa. I am a little light in these stocks.
Which of these do you like best for growth in the next few years.
Are there other options in that portfolio that you are expecting to show good growth? T as always steve
Read Answer Asked by Stephen on January 27, 2020
Q: Opinion appreciated on both of these companies.Am down lots on bus and should have switched to spartan when bus signed on with them. Did this partnership make sense and what will be your educated opinion of the outcome for bus in the next 1-2 years.
Buy sell or hold for both please.
Thanx Gary
Read Answer Asked by Gary on January 27, 2020
Q: 5i's focus is on smaller company stocks. All companies need a focus of course. But this article struck a chord with me, mostly because since retiring I've reduced our equities to well below the 50% minimum for equities and the rest in bond funds or etf's that it seems most financial advisors recommend. We're now 75% GIC's. Your thoughts on this article please:

(https://www.theglobeandmail.com/investing/personal-finance/retirement/article-your-retirement-fund-in-a-savings-account-perhaps-thats-not-as-crazy/)
Read Answer Asked by Bill on January 27, 2020
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