Investment Q&A

Q: What does Magna's 'Automatic Share Purchase Plan' mean to the ordinary investor?

http://www.theglobeandmail.com/globe-investor/news-sources/?date=+20130628&archive=cnw&slug=C4361#dashboard/follows/

It seems like they are trying to mitigate any downside risk by creating a support level for their share price (ie. buy it back if they value gets too cheap), is that the gist of it?

I have been debating Magna vs. Martinrea for a couple of months now. Magna seems safer but due for a small correction, Martinrea seems to have more upside potential, what would you buy today and what would you estimate for a holding period? My profile = not afraid of riskier plays if the appreciation potential justifies the additional risk, I can hold a stock for 12 months to 12 years, thanks team!

Q: HLP.UN HLP came out with the pricing for their financing at $10.45. Good time to buy below that price?

Q: Heavy oil There has been a lot of talk about Albertan heavy oil differentials playing catch up to WTI and WTI to Brent yet the companies themselves haven't really moved. That is except for MEG! What do you people think and where should one go? BTE looks safe and tempting...

Q: Why is Crescent Point (CPG) in such disfavour at the present time?

Q: Magna: I know you are not a trader, but as oil increases (and understanding the recent run up in Magna's price) would you take some profit and see if there was a pullback and re enter?

Q: Hi Peter,thanks for this service...great!
Would like to add either PG Proctor & Gable or CLX Clorox, which of the 2 can provide growth with yield and is not to expensive at the moment. Thank-you!

Q: Hi Team, I owe both XRE and HR.UN and both prices dropped recently. I want to reduce my real estate holdings. Which one should I sell? Is this a good time to sell or wait?

Many thanks

Q: Hi since the last time Rainy River (RR) was asked, I would like your opinion of how I should choose in being bought out. I bought it @ $10.78 and is being bought out @ $3.83 cash (~65% loss) or to receive 0.5 of a common share of New Gold. I actually do have New Gold and bought it @ $3.21 a long time ago = a huge gain. What would you do in this case scenario? Can the cash offer in this case be claimed as a tax loss? Or should I take option 2 and add more shares to NGD? I believe NGD is a great company still b/c it was like a merger of 3 great companies back in the old days and was talked about when I started listening to BNN! I don't think these types of questions have ever been asked and welcome your knowledge. Thanks.

Q: Hi Peter, the news reported today that WEF is introducing a dividend. You always view that as a positive. Would you recommend purchasing it? I am thinking of taking a small position in my TFSA. I recognize the sector can be quite volatile. Thanks to you and your team for providing an invaluable, independent service. Bill.

Q: Hi Peter, Pacific Rubiales (PRE) has been showing weakness despite a rising oil price and a 50% increase in its quarterly dividend. Would you care to share your thoughts? Thank you

Q: Hi Peter, I just wanted to say thank-you for the service you are providing. For the first time in my life I feel confident in the investment decisions I am making thanks to the guidance of you and your team (your model portfolio was a brilliant idea). I hope you are enjoying this career choice as much as I am enjoying following the markets again. Please keep up the great work.

Q: Hi 5i team,

I was thinking about entering into positions in CGX and IPL.U. I am looking for income with some growth upside. Would you still recommend CGX with its recent increase given the recent acquisition from Empire or would you wait for a pullback? I was looking at IPL.U as well given its recent pullback. I already own STN and KBL.

If you wouldn't recommend CGX or IPL.U is there another name that you would recommend?

Thanks in advance as always.

Q: I hold BCE, T and RCI.B and am well ahead on each. Is it time to sell at least one? If so, which? I originally bought them for the dividends.

Q: No one seems to know why Norbord (NBD) has dropped so much over the past couple of weeks. The company makes building products and is a good play on the continuing recovery in the U.S. housing market. Do you think it might have to do with pending interest rate hikes, increased costs for mortgages, and thus an ultimate slowdown in the U.S. housing market which will impact the company's bottom line? If this explanation holds water, is the stock worth keeping or should I exit at this point? It has had a great run. Many thanks!

Q: Peter: Our portfolio is 15% in oil, 17% pipelines, 21% banks,
11% electrics, but only 5% industry (MG, BIP.UN,PKI) and 2% commodities (AGU). I've been looking at RUS, FTT or RUS to add to industry. Your thoughts? And any suggestions on a commodity? No US stocks please as we are dual citizens and get hit too much on taxes.

Q: Peter,
I am interested in Newalta (NAL), a oilfields waste mgmt company operating in Alberta. It has a good record of rising revenue and earnings and should prosper from the current concern about cleaing up our oilfields.

Q: Pater, Any opinion on Maple Leaf Foods (MFI)?

Q: Hi Peter, and hard working team
My portfolio is getting too weighted (13%) in Boyd Income Fund (BYD.UN), but am reluctant to sell, due to the growth, and lack of a better investment idea. I have been thinking about AVO (currently 2.5% in my portfolio), and ENT (0%). What do you think? Maybe there is a better one out there?

Q: Hi Peter & Co.
My portfolio lacks anything in the 'Healthcare' Sector..Facilities or otherwise. I have been watching DR-T (Medical Facilities Corp), CLC-T (CML HealthCare Inc)and ACC-T (Amica Mature Lifestyles Inc)and LW-T (Leisureworld Senior Care Corp).
Could you please give me a brief suggestion which might be the best to hold (1st,2nd,3rd choice) of the above for long term income ?
As always...I look forward to your informative reply. Thank you
Dennis

Q: AAPL is 2.5% of my diverse portfolio, I am down 31% with Apple . I also own IWO, IBB, TAL,YUM, XLP, SPY and EFA in US$. All of my US is doing really well. My Canadian $ portfolio is diverse with 1/2 being your A/B+rated and the 5i portfolio, which I'm working towards.15+ years before I need income flow. Do you recommend selling 1/2 or all of my apple and buying Magna, increase my $US holdings or anything else?