Investment Q&A

Q: Good Morning Peter and Team,
For the global / international equity portion of my portfolio I have looked at ETF's and mutual funds rather than individual stocks. In my view the best global / international equity manager that I have found, so far, in terms of performance, low fees, people, and process is Mawer Investment Management located in Calgary. They appear to run equity portfolios much like you (albeit less concentrated). In other words they only own the really good or great companies and completely ignore the many "cigar butts" and "value traps". Would you agree that their style has some similarities to your own and what is your opinion of their firm and are they a good choice for global / international equity exposure ??? Thank you very much for leaving Bay Street and helping the retail investor. DL

Q: Would you buy cpx.pr.a for income and some growth?

Q: 5i team. I recently purchased TCN for $8, then read that they have increased the # of shares from 42 -- 109 mm. over the one year period. I concur like you that this is great dilution. Is this a good invest. or take my loss and move on. Also, I have a theory that gold & silver sector goes done when the rest of the market does well and usually goes up when investors feel that they cannot make money on the many other stocks in Canada and US. Is there a better stock than TCN? thanks, REne

Q: I am nervous about gold and so hold none, yet many, including you, suggest the need for some. Am I being foolish?

Q: ITP (TSX): industrial tapes & pkg HQ in MTL-ROE 50%, PE 10 and BETA of 2.2 -was thinking of a purchase to hold in RRSP during this business cycle. Your comments please.

Q: If I need to choose, for divi and growth, between CGX.TO or DH.TO, which one it would be ?
I will keep it for 2 yrs.

Q: Hi 5i,

What did you think of the Spartan deal announced today?

Q: I notice that you are getting a lot of questions regarding fixed income in a portfolio. Yesterday, for instance, someone asked about using utilities and other dividend paying stocks as a substitute for fixed income. I think the sense of the question was not really that dividend paying stocks are actually a substitute for bonds, but that under the current environment, it might be a viable option. Today, Ron asked about fixed income as and you responded that the Money Saver portfolio has a 20 per cent allocation to fixed income. I have sometimes seen 30 percent mentionned here as a reasonable amount.

I am not sure quite where to go with this, but I know that I am a little bit like a deer in the headlights regarding fixed income at this time, and I believe others are, as well. I don<t understand that asset very well. But, it seems counter intuitive to buy something that everyone says seems to have a high likehood of losing you money in the current or near future economic environment.

And even the amounts mentionned seem not to do what you would like them to do. What I mean is this: Fixed income, it seems to me, is meant to make the ride easier. You don<t go too far down, when you go down. And if there is a long term market crash, you protect some of your money. But, I am not sure how happy I would be if, say, our of a portfolio of one million, I managed to protect 200,000, or 20 percent; or even 300,000 at 30 percent. But, when you start getting to 40 or 50 percent, you wonder whether, again under the current environment, you are not being a little foolish in alloting this much to fixed income.

As I say, I am not sure where to go with all of this. But, it is a concern that I am coming to believe many here, as well as myself share. Possibly an article focused on this subject ands with explanations on the pros and cons of the various vehicles available might be an idea. I know that much depends upon the individual's situation and risk profile but the current economic situation is making it a little more problematic, I think.

I know that your work here is principally Canadian stocks but I thought I would express this anyway. So, please publish and answewr or not at your discretion.
thanks once again

Q: would u buy zjg at 7.15 in tax free saving account

Q: I have question about preferred shares. I noticed anew issue Brookfield Asset Management Inc. 4.50% Rate Reset Preference Shares, Series 4o. They cost $25. I understand one would get the interest rate for 5 years. But is the principal safe??? Can the principal increase decrease, and under what circumstances??? If ordinary shares go up or down do these shares follow suit. I don't understand these so your help in educating me about this type of product is appreciated.

Thank you

Q: In my RRIF I am holding the First Asset Convertible Debenture Fund (DCD.UN) which trades at a discount to NAV and yields about 7.4%. It seems to be structured on derivatives - a forward agreement with a bank - a setup that is different from that of CVD, though the past performance looks similar. CVD trades at a premium to NAV and has a lower yield but I wonder if it is safer overall and in your opinion would you recommend a switch? Thanks, J.

Q: As a new member I have a question to ask. What are your thoughts on using technical analysis and seasonal analysis in your investment decisions. This concept has come very popular with Don Vialoux and Brooke Thackray. They feel it is superior to buy and hold. I know your service mostly does it from a fundamental perspective but would like your opinion on this subject.

Q: Hello Peter
Currently my portfolio has 9 stocks :CSU,BAD, ACQ, RRX, HWO, STN, ESL, SJ, BDI of total value $118,500. I have extra cash $48,000 to invest into my portfolio. Please help me with suggestion of 4 to 5 stocks with good growth & value like MG or DHX.

Thanks Andrew.

Q: Please rank the following Telco's in order of preference.

Rogers, Telus, Shaw Tv, Shawcorp, Quebecor, BCE.

If any other interesting ones please indicate as well.

Many thanks !

Q: Hi Peter.

BSM Technologies (GPS) has drifted down about 15% since the AGM on May 15th (and decent Q1 results) and the announcement of the two new acquisitions. Any thoughts on this?

Thanks,

Scott

Q: What are your thoughts on Gear Energy LTD? Would this be a good time to get in?
TOM

Q: Hi there Peter and co.

I have been watching autocan (ACQ.TO) for a while now, with its rapid ascension how do you see the valuation of the stock . Do you still see room to grow?

Keep up the great work!

Thanks

Q: What is the latest projection for AvigilonCorp now that the director has stepped down? Should we hold?

Q: Hi Peter and Team, regarding Pinecrest, PRY, any thoughts on their results and update? At what share price do you see true value considering their tax pools, as you previously discussed. At least they are smart enough to want to pay down debt first, as much as possible. Any insight and help on this one would be greatly appreciated! Thanks!

Q: Hello: I am interested in your opinion of IHY for Interational exposure or would you suggest another avenue. Thank you as always.