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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: Hello,
Have you any idea why cmh is down 6.60% this morning? I can't find any news that could account for it.

thank you
Read Answer Asked by Charles on November 30, 2015
Q: Can you explain why U.S. preferred share ETFs like PGF and PFF have considerably outperformed their Canadian counterparts such as CPD and ZPR ? Thanks, Joe
Read Answer Asked by Joseph on November 30, 2015
Q: I am thinking of buying 5,000 shares of Chesapeake Energy, now down close to 80%, and just holding and forgetting about this investment for five years. What do you think of this plan?
Thanks.
Read Answer Asked by Steven on November 30, 2015
Q: Hi folks,I know FM/t has app $6B debt I believe but was wondering if they are near any debt covenants any time soon,I heard that was reason acq/t had to raise money as they were near breaking some debt covenants. Is fm/t in any similar situation. Thanks again and just renewed 2 years for great service,jb
Read Answer Asked by John on November 30, 2015
Q: Maybe this is not an easy question to answer, but when you say a particular stock is cheap or very cheap how do you determine this? Also, how would you determine if a stock is cheap AND high quality? Thanks!
Read Answer Asked by Hussein on November 30, 2015
Q: I am considering buying the new Westcoast minimum rate RR issue once issued. Because it is owned by Spectra and just has pref shares O/S I have had difficulty finding much on financials. If possible, could you please comment on creditworthiness, safety of pref dividends and payout ratio if possible. Would you recommend it for very safe income. Thanks.
Read Answer Asked by Gary on November 30, 2015
Q: If most of the present value of Trimac is in the current 5% dividend as stated in your report and it's over 3 years since a raise, what are the prospects for an increase with any upturn in the economy? To me buybacks, even initial ones, don't line my pocket like a dividend bump. For dividend payers such as this one would be possible to have the 5 year dividend growth rate shown in the report card as this info is not always easy to find on a company's website.

Also I wonder what is the probability of TMA going private since the management owns such a big chunk and the US operation is already private, presumably owned by this management. My charts on this co. only go back to 2005, if that's when it went public as an Income Trust, it must have been about $12, so I guess it would be a take-under around half that. Or could the much larger TFI be interested at this level?

Not sure how your report arrives at a revenue increase 1 year out as revenue has been declining in 2015. How about the age of their fleet and what is the replacement rate/timetable? I see they already have high debt.

Willing to hold on for a few years if need be but willing to take my lumps too if surgery needs to be done here.
Thanks, J.
Read Answer Asked by Jeff on November 30, 2015
Q: Good morning,

Further to my question on the 2 covered call ETF's of BMO. I have just learned that ZWA is currency hedged and ZWH apparently is not although it trades in Cdn dollars.. Does that affect your response. I really prefer the dividend growers but not sure of the impact of the un-hedged ETF. I would appreciate your input.

Ted
Read Answer Asked by Ted on November 30, 2015
Q: this question is about rebalancing for "balanced positions" and those for "small cap growth positions" within an overall portfolio.

for example, ATD.B in the balanced portion of the overall portfolio now has a market value of about $25,000 or 5% of the overall portfolio.
as it understand the i5R investment approach, when it reachs 7%, then I would sell some ATD.B share to get back to a 5% weight, right?!

now for the small cap growth positions…..with the position cost being $2,500…..or about 0.5% of the overall portfolio,
what is the rebalancing rule of thumb?……..do I hold until a small cap growth stock gets to $25,000, or to some lesser amount that is less than the 7% of the overall portfolio???
Read Answer Asked by Tom on November 30, 2015
Q: Hi Peter & Team,

In my RRIF, the only real estate holding is a position in FCR, which has been a nice "steady eddy".I'd like to add an "apartment" type REIT or real estate holding. I know you like TCN, but I see that they have some Alberta exposure. Which of the following would you suggest at this time for a position: TCN, MST.UN, or RUF.UN? (My feeling is that the apartment market might be better in the US, so that's why I've focused on these three names).

Thanks in advance for your valued suggestions.
Read Answer Asked by Jerry on November 30, 2015
Q: Just a quick comment. You have commented in the past that too much news is negative and investors should avoid too much media and static. I get the e-mail on black Friday and it does cast a shadow of indecisiveness. The question is simple. Are you at 5I bullish or bearish on the next 12 months in a general sense? You don't have to be specific on sectors et. but rather how do you see the market (Canadian/US) I'm just simply trying to filter out all the news and concentrate on the big picture which you guys have a much better handle on than I have. Thanks for all the good work. Cheers
Read Answer Asked by roland on November 30, 2015
Q: When looking at 'insider trading', the following appears. Can you explain what it means?

38 - Redemption, retraction, cancellation, repurchase -

thanks
Read Answer Asked on November 30, 2015
Q: I’m a bit surprised by your sell recommendation for Teck. A recent question by someone that had Teck in their RSP and wondered if they should sell, was answered with one word – “Yes”. I think they deserved a better answer.

You have earlier recommended Teck and I note that another advisory said back in August that Teck has a tangible book value of $29.59 a share. It’s Canada’s largest diversified resource company. Not just “evil” coal!

You’ve given excellent answers in the past re Teck and it wasn’t more than a month ago that you were suggesting patience. Maybe you can let us know what you’re reading for book value etc.

I recall buying Teck in 2008 at $3.40 per share. In 2011 it was trading at over $60.00 per share.

Patience grasshopper ;-)
Read Answer Asked by Dean on November 30, 2015
Q: Hi,

You recently answered a question from Question: "Hi 5i: The stock market situation has changed a lot since I last did any rebalancing. Could you therefore tell me what weights you would now recommend for the 10 TSX sectors. Also, what sectors would you assign to MAL and BOS which Morningstar calls Basic Materials, and to DRT which Morningstar calls Services. Many thanks.
5i Research Answer:
These are general guidelines, and may vary somewhat from prior answers. Sector allocation needs to be highly personalized based on your needs and goals.
Info Tech: 15%
Industrial: 20%
Telecom: 5%
Financial: 15%
Utilities: 10%
Materials: 5%
Energy: 5%
Cons Staples: 5%
Health care: 10%
Cons. Discret. 10%"

Can you give me 2-3 stock picks for the next two to five years in some of those categories? Specifically...
Info tech.
Industrial
Financial.
Utilities
Consumer discretionary.
Healthcare.
Read Answer Asked by Graeme on November 30, 2015
Q: Your thoughts as an all-in-one for registered plans
Read Answer Asked by Anthony on November 30, 2015
Q: Jean-Coutu has fell 15% since yesterday because the governement will effectively make generic drugs cheaper. This is a huge part of Jean-Coutu's business. Could you discuss the impact on the company? (1) Considering the extent of the impact on their future revenues, how much do you think the stock could contract? Technically, there is some support at 15$. (2) If you were close to retirement, who you buy? I like the nature of the business, 2.5% dividend and the dividend growth history. However I don't want to see the stock fall another 15%. (3) Insiders were buying a lot at 19$ very recently, they must have known about the possibility of this happenning? Thank you team.
http://www.bloomberg.com/news/articles/2015-11-26/jean-coutu-slumps-most-in-7-years-on-proposed-quebec-drug-reform
Read Answer Asked by Matt on November 30, 2015
Q: I would never view the TVIX as investing -- unless one considers volatility an investment. That said, it seems it has a place in a PF in a very small way -- say 1% or less. The index seems to consistently settle in the 5.75-6.00 range as a low and when a world event comes along that causes the markets to get volatile, it can shoot up a lot in a heck of a hurry -- a bit of an insurance policy. The time to buy this is when all seems tickety-boo. What are your thoughts on this strategy. Thanks and great job by all.
Read Answer Asked by MARK on November 30, 2015
Q: Hi, if you owned the lre convertable debenture right now, expiring in 2018/19, would you sell right now at about 30 cents on the dollar, or continue to hold hoping that interest payments continue and a chance of being able to get capital back at the expiry date?
Read Answer Asked by Kel on November 30, 2015
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