Investment Q&A

Q: Good afternoon, I would appreciate your comments on our exposure to reits and utilities/infrastructure holdings in view of today's bank rate cut and the anticipated opposite U.S. rate increases. I am 71 and we rely on our investments for almost half our income. Currently fixed income + cash represents 44% of our investments while reits and utilities each 5%. I note in the Model portfolio utilities is 2.3% with no reits and the income portfolio 15% utilities & 6.5% reits.
It seems to me that the canadian bank rate will go up eventually but I've been wrong for years.
Currently our utilities/infrastructure holdings are BIP.UN, PPL, VSN, VNR, BEP.UN & CPX. Which would you recommend trimming, if at all.
You're general comments on our current allocation would also be welcome.
Thanks as always!

Q: With Vermillion dropping to I believe a 5 year and the dividend remaining the same, do you see it as a buy at this time.
Thanks
Jim

Q: with the big drop in share price is home capital a screamimg buy or a value trap
the announcement they made about cutting off brokers was it prudent business decision or an indication of more problems

Q: Here's what I just don't get. ZPR holds rate-reset preferreds. I DO understand why a lowering of the bank rate will cause reduction in ZPR's price, as the return on future 'resets' in the portfolio will be reduced. What I DON'T get is how, to date, a total of a mere 1/2 of 1% reduction in the bank rate could explain a reduction of more than 20% in ZPR. Even if an investor would therefore receive 1/2% percent less for five years on the reset shares, that equals roughly a total of 2.5% lost yield over five years. The drop of 20% seems wildly disproportionate to the actual bank rate reductions. Can you explain what I'm missing? And one more question: given that the Bank of Canada will presumably not go below zero, do you not think that this ETF, yielding now 5.1%, has a lot more potential to the upside than to the downside, at least in the longer term? That's the kind of investment I like. Thanks, James.

Q: Any further insight into the violent selloff? It's beginning to look very tempting to me if I was certain the business was sound. ...although by the looks of the massive selling I'm starting to think otherwise? Any explanation would be much appreciated! Thank you, Dwight

Q: How do you see the Bac performing with rates going higher? What do you prefer regional banks or the larger banks like Bac or Wells Fargo banks? Or simply buy an etf and if so which one?

Q: Shred-It International Inc. is going to IPO soon. Looking at their prospectus, what do you think of their offering?

Q: Denison Mines has been going down steadily. Is there a company specific issue for the fall?, or is it due to sector/market problems?
Thanks

Q: Hello Peter & Co,
My RRIF portfolio in entirely denominated in Cdn$. In order to invest in US stocks, the wise thing would have been to convert a portion of the portfolio to US$ when both currencies were at par; but I did not.
To convert now would cost me some 30% in exchange rate; I would not mind that if our loonie would remain at current levels. But that would be an irresponsible assumption because, even though there could be some additional downside in the short term, our currency would eventually move up (say by 10-15%).
So, the return from the US investments would have to be reduced accordingly.
But I am generating for the past 6 years a 17% compound return per annum from my Canadian holdings (when 7% pa would have been sufficient to meet my "wants"). The math here does not seem compelling to me with a hurdle of 17+(10 to 15)%.
So, unless I'm missing something, is this all worth the hassle?
Thanks,
Antoine

Q: 1.Inquiries re FIE appeared in the past; would this type of investment be impacted by the interest rate change? I am considering FIE for a TFSA
2. HXU - would appreciate your assessment of this investment type for short term
Thanks!

Q: How do you see this company performing ovrr the next yr and would you be comfortable to continue to hold. I purchased approx $38 in an attempt to diversify and be active with the potential pipeline builds in North America.

Q: Hi Peter, So I have just invested 10% of my portfolio to this fund. I am in this for long term hold(8 to 10 years). My reasoning behind Mr. Watsa's skills and India as a great growth story for long term. Also I am thinking of buying FFH as FFH earn performance fees from FIN. Can you please give me your valued opinion on FIN and FFH for a 10 years hold? I am in search for a 10-12% CAGR growth here(I already have your growth portfolio).

Also I know you guys don't recommend US small cap stocks, in that case can you please recommend a similar portfolio manager(with same mindset as you and whom you admire) in US with a similar service like 5iresearch? I tried Motley's Fool growth portfolio but don't think anyone there has same caliber experience or educational background like you.

Many thanks again and great service!!

Q: Good Afternoon

Any reason for the recent weakness in Input? You mentioned the quarter looked strong but the share price has dropped from $3. Any change in your previous views going forward?
Thank You

Q: Good Morning 5i team: I'm wondering if you can offer any info regarding the merits (or demerits) of holding US limited partnerships in a non-registered Cdn. account. Specifically, I am interested in BIP that trades on the NYSE. I'm wondering if these are disadvantaged in some way for Cdn. investors because of the tax implications. I know that I can buy BIP.UN (which I understand to be the same company) on the cdn. exchange but have some US cash that I would like to put to work if this isn't a bad idea. As well, your thoughts on this company would also be appreciated. Many thanks.

Q: Amaya seems to be at its range ceiling. I'm thinking of selling for a 17% profit and buying Csu. Thoughts?

Q: Good Morning, Can you please provide your advice regarding Verizon, VZ based on their recent acquisitions and company relative strength in this sector. Do you like this company and recommend it as a LT hold. Thank you. Linda

Q: I understand that Fission investors think that Denison's offer (1.26 DML shares 1 for FCU share) is mingy, but why are both companies' share prices declining? That is, shouldn't Denison be perceived as the smart operator, getting superior assets for cheap? (I'm guessing that Fission's poor price reflects market pessimism as concerns competing offers.)

Q: Please share your considerations and expectations for this company, thanks.

Q: Hello,

I have a question that pops form time to time and I feel bad for asking it again, but in the last few months I was always on the wrong side of a trade.
From the growth portfolio (GP)(I was not able to get in when it was announced) and by the time I got to it things have gone up. I ended buying WIN and GUD (and down on both as we speak).
As you see it now (both markets and companies) which ones from the GP you would recommend or any other company for that matter.

Thanks
M

Q: Hi guys,
I am looking at buying names from your growth portfolio. I prefer more stable revenue/earnings/guidance as opposed to "surprises". Have any recommendations?
Also, a quick thought on dollarama or gildan, I was looking to buy either for some time on a pull back, but I might just buy some now for exposure.
Thank you