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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: Hi guys,

I'm looking at adding a growth stock with a modest yield to my RRSP over the next few months before October. Why would you recommend at today's prices from the following: Constellation Software, CCL Industries, Brookfield Asset Management or Magna. I know the companies and sectors are all a bit diverse, but I have room to add to all of these sectors without being overweight. I'm leaning towards Magna, but I wanted your opinion.

Thanks,
Jason
Read Answer Asked by Jason on July 13, 2015
Q: Good Morning 5i team: I'm hoping you can enlighten me in regard to the way in which rate reset preferreds are priced at the time of reset. Specifically, the calculation of the 5 yr GOC bond rate (assuming that's the benchmark involved, which it is in all of my preferreds). An example may help. The prospectus for ala.pr.e says that at reset (12/18)the rate will be reset to "a rate equal to the sum of the then five-year Government of Canada bond yield plus 3.17%." So, my question is this: Is the GOC 5 yr bond yield a fixed number, or does it float with trading? Thanks for your help.
Read Answer Asked by Donald on July 13, 2015
Q: Whatever happened to Legumex? I seem to recall a few years ago (2012?) that a few analysts were all over this stock as a growth company with unbounded potential. Ever since, there has been hardly a peep or a pea bean out of them. Why is it failing so miserably, given the (presumably) untethered growth in this sector -- i.e, pulses. I never owned it, and was always waiting for something to happen. Is it likely that anything will ever happen with this stock? Thank you.
Read Answer Asked by Sylvia on July 13, 2015
Q: Please comment on my logic ( or lack of ) on this. When and if interest rates ever start the up tick it would be a sound defensive position to have some funds in a preferred share ETF such as CPD that has a significant number of rate reset shares.

Any other preferred Share ETFs you would prefer? I am a middle aged investor building an income portfolio for retirement down the road.

Many thanks

Paul
Read Answer Asked by paul on July 13, 2015
Q: Peter and His Wonder Team
As you have stated... historically you told your colleagues never to let you buy BB because you could never figure this company out. Well I am in your camp...I have never bought BB for the same reason. Analysis and predictions have been all over the map which explains its roller coaster volatility. However as it is heading to a new annual low I am looking at it with interest...I know Chen has done a good job and the company still has assets and potential...I read about a possible Android type phone. Please give me your current assessment... Do you think this is a $15.00-$20.00 stock at best? Or do you think that in the end they will be sold? Or is the future of this company too unpredictable with the risk out weighing any potential gains?
Thanks for your consistent high quality service...
Dr.Ernest Rivait
Read Answer Asked by Ernest on July 13, 2015
Q: I have enjoyed good profits with this stock and good returns. I see there are no questions logged with 5i and would like to know your thoughts on this stock. I expect it to do well moving forward, but based on other sector stocks, am wondering if it's time to move on?
Read Answer Asked by Eric on July 13, 2015
Q: You rate AFN & XTC as B and WSP as B-. Do you prefer one company over the others at the present time? Which company has the bigger capitalization and share float?
WSP has been acquiring smaller engineering companies and I heard on the grapevine that some of the "Principal" level engineers in one of the acquired companies are thinking of leaving. I am in the engineering & construction business myself. Turn-over in this line of work is not unknown however generally "principals" don't leave. (Just small fries like me tend to hit the road).
Thanks
Read Answer Asked by James on July 13, 2015
Q: Hi Peter, TBE seem to have been doing the wright things, under the circumstances, yet it has been decimated. I am down a lot and thinking to add to average down, never done it before. Appreciate your suggestion.
regard, Joe.P
Read Answer Asked by Joseph on July 13, 2015
Q: In regards to William's question on July 10 regarding a portfolio tracker,

An Android smartphone App like Peak Stocks (there are many apps available) (free or a one time fee of ~$2.50 for the paid no advertising version) can provide a handy easy to use tracker. Apple has many also. I have used it for over a year now and have no affiliation with anything mentioned. It also provides live widgets to put on your phone's home screen(s) to really follow a stock(s).

It allows for creating many portfolios which can be named as you like. Each port can be in the currency you select. Stocks can be added/deleted as one likes for monitoring. Stocks can be added/deleted as buy/sells so that it monitors the $ value of each stock and the complete portfolio, 0 - 15 minutes delayed. No log in is required.

It provides charting from 1 day to 10 years+, and seems to provide the most recent and historical news for every stock in any of the ports. I often read of news on a stock before I read about it here at 5i considering that 5i is not a news outlet and does a great job of providing info and answering questions.

Within the app this is accomplished by simply clicking on the stock in a port which instantly opens a chart with price, volume...then swipe the screen left and the news page is open.

Some suggestions of port types that can be created are: (different)Sectors, Real port stock tracking, Cash Port, RSP port, TFSA, Watch List CDN., Watch List U.S., 5i's Rec's 2015, 5i's Income Rec's, All of My Holdings......

I find an app like this is very handy without the need of being at a computer, as it allows stock and bond tracking from anywhere as most people now-a-days have a smartphone with a data provision. It uses minimal data.

An app like this allows for instant tracking without having to log into a person's brokerage account.


Globe and Mail Investors, Globe Investor, MY WATCHLIST also allows for many ports to be created and provides a reasonable amount of information. It requires setting up a free account and must be logged in to access it from a computer, tablet, smartphone....

Hope this is of some value to someone.

Stan
Read Answer Asked by Stan on July 13, 2015
Q: Good Morning.
On July 6, you indicated to Peter that BOS is Materials or Industrials.
TSX says it is Consumer Cyclicals.
Your final decision? Thank you. sarah
Read Answer Asked by sarah on July 13, 2015
Q: Dear Peter and team: Please update your opinion re Baytex. I have been holding
quite a lot for quite a while. Thanks. I look forward to your BNN appearance
on August 4.
Read Answer Asked by jean on July 13, 2015
Q: Hi Team,
I hold CPD, XPF & ZPR as part of my taxable fixed income portfolio. All of the pref share ETFs have been dropping of late. Is this a case of market sentiment and being oversold due to the anticipated interest rate hike or is there an fundamental problem with these securities? Thanks for your help.
Read Answer Asked by Danny on July 11, 2015
Q: I previously owned the Vanguard etf's and I have switched to Blackrock because of the huge price difference. I know that some of the Vanguard etf's have a lower MER, but they cost so much more money. My question is because of dividend payouts are the Blackrock etf's in fact cheaper?
Read Answer Asked by Neil on July 11, 2015
Q: Considering the move to higher margin business model and their recent desire to create demand through higher margin alloy products to auto and aerospace, would you give your reasoning to either buy or avoid this business at these levels. Many thanks for all your help...it is greatly appreciated.
Read Answer Asked by john on July 11, 2015
Q: I bought Starwood Property trust due to its low PEG ratio high yield and low PE. So far its given me nothing but grief. Would you sell or hang on?
Read Answer Asked by Andrew on July 11, 2015
Q: I currently have 20% of my RSP portfolio in US stock. I would like to increase it to 50%. My question is - at the currency levels today does this make sense? I thinking is - I don't see the CDN $ getting stronger anytime soon & I do see the US $ getting stronger over time. My other reason for wanting US is the companies I can't get here.

Your thoughts are appreciated.

Thank You
Craig
Read Answer Asked by Craig on July 11, 2015
Q: In fairness to the principals of PHM, each sold 1.2M shares @ $1.46 for proceeds of $1,752,000. Both men cashed in 3.9M options for a cost of $1,920,000, so it appears they sold just enough shares to almost finance the purchase of their options, leaving both with 2.7M shares with ZERO cost.
These guys are so smart but they are not dumping shares other than to recoup their cost as they obviously see a long term benefit in holding the millions of shares they still own including the free ones detailed here. Oh, to be in their shoes - I own a chunk of this stock and will never sell it before it gets taken out at north of five dollars.
Any opinion on the stream of negativity on future oil prices due to oversupply, low demand, China, OPEC, etc., etc., would be appreciated. Do you see any strengthening in the price over the next two years?
Thank you.
Read Answer Asked by Steven on July 11, 2015
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