Investment Q&A

Q: Given the current volatility in the market there are a lot of analysts heads making bold predictions. Recently I heard one analyst say that "historically double peaks in a period of heightened volatility signals the end of a bull market". You've taught me there is always an opposing view-so is this statement simply that or is there some credence to it. Thanks for all you do.

Glen

Q: Hello Peter,
There have been many short sellers in the last few years in health care and now in Cannabis stocks. At this point, time will tell on Aphria, but for others like Valeant etc the short sellers were correct. I find it interesting that the brokerage firms, and analyst that covered these companies gave high marks and all of a sudden with a short report, they either revised their price targets or put out a release that the stock is under review rather than defend their own analysis. I am starting to question the analysis that is done by Canadian firms and their ratings. How is it that the short sellers are able to find things that the analysts covering these companies have not managed to even come across? Can you please comment as this is getting ridiculous when analysts and BNN Guests talk highly of companies and than we find out the shortfalls in these companies. Where is the accountability on these analysts and brokerage firms that put out good reports? Thanks very much

Q: THIS STOCK PAY VERY HIGH DIVIDEND( 19% )
YOUR COMMENT FOR RRSP.THANKS

Q: With the 10/2 year treasuries spread now at 0.11 for December 4, 2018. Would it be prudent eye up good quality stocks, in preparation of a recession coming?
And is this something you are watching?

Q: We recently received a letter from Manulife with an offer to buy out our Annuity contract with Income Plus. Rob Carrick had an article on the offer in the Sept. 22 issue of the Globe and Mail. I would like to ask your opinion. My original investment was 175,000, purchased in May 2008. Recent market value was about 217,000, for a some what dismal return of less than 2 percent. These types of fixed annuities have some guarantees, but are complex and very hard to understand. The buyout offer is 37,000 and Manulife would add that to our present market value and roll over our contract into a newer segregated annuity product with lesser benefits. It looks like we have 3 options: 1)leave our contract as is with Income Plus 2) accept the bonus and move our market value into their new and watered down annuity version 3) Take the bonus and cash out of Income Plus at market value.
In recent weeks, I have done an internet search on this type of annuity and now see some limitations that were not fully understood when we originally purchased: the very high fees, now about 4%; a lack of inflation protection; a declining insurance coverage as well as a declining principle, which will both go to zero if I live to a ripe old age. The guaranteed income for life, which is 13,400.00 per year for me, no longer looks so appealing, as I wish to leave something in my estate for the family.
The intent of the original purchase was to act as a pension as I am self employed ( rancher) and have not paid much into CPP.
Do you think that a basket of conservative blue chip dividend stocks and reits, might be a better choice, if we take the option to cash out and reinvest? We are not fans of USA companies, but realize that many of them are international in scope.
Thanks, Dave Bober

Q: My wife would like to invest in a Canadian Bank. I know you favor the Bank of Nova Scotia . Question: Is BNS still your favorite at this time. According to my calculations the
Canadian Bank Of Commerce has a slight edge in dividends. Thanks. Ernie

Q: Thoughts on SHOP.TO? Feeling a boost from the cannabis sector however how much more gas is left in the tank? Will companies like BABA overtake SHOP.TO with Chinese/US tensions starting to minimize?

Q: hello 5i:
please ignore if a previous question on BIP is being answered. Can you comment on the quarterly report?

Q: What is your view on this company? Is it worth buying at this time or has it peaked as we are working our way through the holiday shopping season. Many tnx for the great service.

Q: Andrew Peller was a recent top pick by Ryan on BNN. Please compare with Corby in terms of risk, income, and growth. I have read past questions on these two, but would like a comparison as of now, for potential capital appreciation and income, in your usual thorough manner. Would you recommend one or perhaps both?
Thanks, Len

Q: Of these two healthcare companies, which do you prefer? WCG dropped a lot in the recent sell off whereas CNC did not? I do own UNH but I'm looking for another for a long term hold?

Q: You have mentioned your concern about KWh's payout ratio tightening. The only figure I have been able to find is 64% which to me didn't seem to be too bad but perhaps I don't have the right number. Could you please state what you believe the ration is currently and what you think is an acceptable ratio for this company. Also, your expectations over the next year and what you think might trigger any payout reduction.
Many thanks as always.

Q: I have held Goodfellow for about seven years now. Would you suggest it as a tax loss sale? It is a net net stock but the current assets are mostly inventory apparently. Any chance of recovery, I am down about 35%.

Q: Just read David's question about the yield inversion. Over the years I have found these two sites to be very useful when considering the question of impending recession. Both are data driven. Worth a look.
http://scottgrannis.blogspot.com/
https://www.dashofinsight.com/
Mike

Q: I heard a radio item about the growing demand for cobalt which is needed for batteries. It seems there are several cobalt mining ventures in Canada. Do you know of any that would make a respectable investment opportunity?

What do you think of First Cobalt and Cobalt 27 Capital?

Thanks!

Q: i notice square is down almost 5 dollars after a nice rise yesterday. the only news i can find is one reseearch house lowered target from 100 to 95,is that enough for this kind of sell of. also yesterday instinet said it should have huge revenue griwth going forward. dave

Q: Please comment on BEW's recent results.& going forward.Good increase in revenue,& cash is also up.My position is down to 1% after losing 62% on 0.50 p/p.Hold,sell or add. If sell,please give 2 replacement(do not have to be in same sector),Thanks for u usual great services & views

Q: Ryan; Any news for the large volume sell off in HNL? Thanks. Rod

Q: Hi team,
I saw an interesting question last week on the metrics for evaluating stocks in different sectors. You did not mention the tech sector. I am curious on those metrics where there are many companies, trends, growth prospects, competitors, among others. Many companies show no earnings at all as they are investing for earnings down the road. So how do you compare these companies?

With the market unrest the past couple of months, I have looked more closely at your Companies section where there is a wealth of information. Take 3 cloud stocks that regularly show up on your favourites list: BOX, RPD and TEAM. None have earnings today. There are non-earnings metrics shown, such as price to sales and price to cash flow. On a price to sales basis, BOX is 4.5, RPD is 6.3 and TEAM is 22.3. Box is the winner with RPD a reasonably close 2nd. On a price to cash flow basis, BOX is 32, RPD is 620 and TEAM is 60. BOX again is the winner but RPD is a poor 3rd. I know numbers don’t tell the whole story, but I am not sure how to make any reasonable evaluations based on the metrics.

Thanks for the insight.
Dave

Q: Hi 5i,

I read on Bloomberg that the 3 and 5 year bond yields have inverted in the states. I know generally it's a good indicator of a recession. How worrying is this sign to you? Would it lead you to making any investment changes?

Thanks!
Dave