Investment Q&A

Q: There seems to be significant concern/fear/terror regarding the rather sudden and substantial drop in share prices of so many of these stocks (VRX,CRX,CSU, ESL, PHM etc); and the possibility of a change of "sentiment" and sector rotation out of these areas. If I read your replies accurately it sounds like you are saying "we don't know" - which of course makes sense. I am wondering though if there is a way to get some sort of sense of whether or not we are at a tipping point in these sectors.

With that in mind, my thesis is that evidence or indicators of sentiment and sector rotation could take the form of large trading volumes, particularly the big hedge funds taking profits and unloading these stocks.

Us lemmings tend to play follow the leader - often too late, i.e. after waiting and subsequently incurring even larger losses - and sell our shares out of desperation or despair!

If there is any logic to the thesis of hedge fund or other large fund trading activity?

If there is, do you have a way to monitor unusually large trading volumes in these sectors?

So, bottom line: if there is evidence of sentiment change or rotation out .... I want out too and now in order to avoid further losses.

Thanks for your help and guidance with this perplexing issue; and decision making.

Q: Could you please comment on People's recent financial results. Thank you

Q: Hi Peter and Team,

I own G, FNV and SLW representing in total about 6% of my stock portfolio. I am thinking of adding to my precious metals holdings (I like them as portfolio insurance and don't mind the dividends).

Do you think adding another 2% of my portfolio to these three holdings allows for sufficient diversification or would you suggest opening a new position in another company (and which would you currently suggest)?

Thank you. Michael

Q: Hi Team, I want to pay down some debt so I am looking to sell some shares to rise the cash. I know many things come into play but of the following stocks which ones would you recommend trimming. BAD, CNQ, CSW.A, DC.A, DRM, GH, IPL, PKI, SU. Are there any you would remove right away? Let me know your thoughts.
As always your advice is greatly appreciated.

Q: Hi I am a new member
I have look at all your Model portfolio and need to make a decision on how to invest 50k that is sitting in bank saving account not doing much
I am 54 years old plan to retire in 6 years
I think the Income portfolio is well suited for me
I am not sure if 50K is enough money to invest in all 20 equities
Should I pick 10 out of 20 to make my trading fee more reasonable (I have a self manage RRSP trading account)
if yes what would be your first 10 pick in the income portfolio

Q: Hi Peter and team. As always I value your opinion. Presently I have the following health/bio stocks. GILD (US),XLV (US), GUD,PHM,CPH,CXR = 8% of my portfolio. I have just added CPH + CXR.Unfortunately both of them seem to be correcting as of late.
Questions:
(a) would you swap/change any of the present holdings or %
(b) Is the sector overbought and correcting or?

Q: Hi Peter and 5iResearch Team,
Can you please advise on the outlook for Apple. I am up 25%, with Apple comprising 4% of my portfolio. Can you comment on the valuations for technology and the Nasdaq? With valuations at record levels, are these reasonable given profits, economic outlook. Thank you. Linda

Q: Do you see much growth potential for GS in the near future or is it just a income stock. It is well off it's highs for some time now and just don't know if it's worth continuting to hold or use the money elsewhere for better potential for growth.
Thank you.

Q: I see today that Credential Direct has listed Knight Therapeutics(GUD) as bearish in todays alerts. todays's closing was 7.75. and Credential alert is 5.10 - 5.60. Would you recommend selling at this point or holding. Thanks. Ernie

Q: Just a follow up comment and question to my recent question on writing calls on Apple. Sorry, but I think I had the wrong ticker (I see that it's recorded as APPL rather than AAPL; I only realized this when I was trying to refer another 5i member to the answer and couldn't find it by searching the ticker). As a related question, your answer made me wonder if there are some obvious Canadian candidates for doing covered calls (I.e., high volatility, cash-rich, with a dividend)? Methanex? Magna? Thx!

Q: Your answer on tax loss selling was straight forward. but I would like a bit more clarification on average cost / ACB, as I think there may be two averages costs. The first being the "Bucket Method" What is the average cost of your holding in the bucket at time of sale. This method seems to follow all of the CRA's publications on Capital Gains. The second method could be your average cost of your holding for the year. I think whatever method you choose you have to be consistent in application forever. I would appreciate comments on both of these average costs, or is the second average cost just incorrect. Further on taxes is the question pertaining to selling options that carry over December 31. Do you have a Capital Gain when you sell the option / receive the cash or is the Capital Gains deferred until the option expires. As you can buy back the option any time until expiration date and therefore the contract is not closed. I am sure many readers can express comments on the above.

Q: Could I please have your current view on Milestone Apartment Reit as a TFSA holding? Is there another apartment Reit that you would prefer?
Thanks
David

Q: What oil companies would you recommend currently with a long term hold outlook? I currently have holdings in BTE and CPG.

Q: Good day to all. Not sure why agt dropped 5% today, any concerns you see, or buying opportunity?

Q: Hi Team,What are your thoughts on building a position in Emp.A in view of recent Sobey's news?

Q: Hi, would you consider investing in healthcare REITs at this time? In your opinion which would be the best one to invest in right now?

Thank you,

Q: Worry about "sell in May & return in Nov".Please provide 6 stocks, which normally do well in the above period,from your 3 portfolios plus 3 if any from outside your portfolios.Thanks a lot for your normal great services & views

Q: My accountant is strongly in favour of keeping our U.S. holdings under $100,000 to avoid having to file with the U.S. government. Could you comment on this. We also do try to invest in Canadian companies doing business in U.S. Alan W.

Q: This stock has gone up

$14 in last 2 months

ANY THOUGHTS PLEASE

Q: Could you please share your analysis on Killam Properties for both secure income and some capital growth. It is currently rated as "outperform" by the Royal Bank with a $12.00 one-year target. Thanks!