Investment Q&A

Q: Charge as many credits as you see fit...at least 4...got lots. Annually, I follow the O'Shaughnessy system and go through the tedious process of ranking over 90 stocks into deciles. I am screening for stocks that are good value, less volatile and have a good + growing dividend. For value, I use P/E, P/B, P/CF, P/S. For volatility, I use Beta. For dividends, this year I have added 5 year growth % into the process. The resultant summary number is the cumulative of the 7 metrics, with roughly 60% value, 15% volatility and 25% dividend weighting. I then marry this up with a technical screening, using charts with a 200 mda, looking for a rising vs rangebound vs declining chart.

Question 1 = your thoughts on my screening system? I thought of adding in other metrics, but I wanted to keep it relatively simple. Factors such as payout % and ROE can always be a looked at in the next phase. Should I drop any of the metrics if they are redundant?

Most of the stocks screened as expected. However, 3 stocks didn't screen well at all and I am trying to figure out why. It may be that my population of stocks is skewed to value stocks, so if any of the other 3 stocks had growth or REIT characteristics, then they might be seen as outliers.

Question 2 = CSH's fundamentals screened horribly = 10th decile. Could it be that REITs may screen out differently, due to their very nature?

Question 3 =Both PBH and WSP screened poorly = 8th decile. Could it be their fundamental metrics exhibit more growth characteristics?

Question 4 = Reading past 5iR questions on these 3 stocks leads me to believe you are still strongly in favor of all 3. Please confirm.

Thanks...Steve

Q: What are your thoughts about EXE, buy, hold, or sell? How does the balance sheet look?
Thanks, Bob

Q: I currently don't have any REITs in my income portfolio but am now considering adding a couple. I was considering the above 4 but really want to add only 2 names. Which would you consider or would you suggest something else? Looking for reasonable income with an eye on preserving capital during rising interest rates.

Q: Hi Peter and Ryan: Thanks so much for your calming responses to the current volatility in the markets. This is my third time through a downturn since retiring in 2000. It isn't much fun, but intellectually I know that the market doesn't go constantly down as well as it doesn't go constantly up. Your well thought out reasons helps to remind me of this.
My first question is: in what sector do you place Csh.un.? It works best for me in Income Trusts, as that is why I have it. The TSX places it in Real Estate.
My second question is; is this a good time to purchase an ETF such as VEE and or FEZ? I am overweight in Canada and the U.S. and underweight in Emerging markets and Europe.
Thanks so much. Your advice is wonderful for a small investor such as myself.
Cathy

Q: Following up on a recent question regarding allocating the appropriate amount of monies to each stock, the amount depending on the size, safety, etc of that security. Would you agree with the current split (full, partial, small):

Full = AD (should be partial), AQN, BCE, BNS, FTS, RY, TRP.
Partial = CGX (could be full?), CSH, NFI, PGH (could be full?), TCL, WSP (could be full?).
Small = WCP.

Thanks...Steve

Q: I track my asset allocation in detail...retired, lots of time and interest to do so. I break out ETFs and my few mutual funds by sector. A few of my stocks are split into a pair of sectors. As an example, TRP is sometimes referred to as a Utility, but seems to track the Energy sector...so I split it 50-50. Ditto for CSH...I split it 50-50 between REITs and Healthcare.

Both NFI and TCL are listed on the Company Profile as being in the Consumer sector, but I have seen them both in the Industrial sector as well. Using my TRP and CSH examples above (to be consistent in my tracking methodology), where should NFI and TCL be allocated...solely to one sector or 50-50?

Thanks,
Steve

Q: I am about to sell ARX for a tax loss. Which is a better buy at the moment for the longer term hold?

Q: Can I please get you thoughts on the recent earnings from EXE and CSH?
Also what is the street expecting from SIA next week?
Thanks

Q: what is your favorite dividend stocks that you would love to buy at a tax loss opportunity. thanks I realize the assumptions I am making but would like your thoughts.

Q: Have WEF and CSH stabilized now? I'm looking to add to a diverse income portfolio.

Q: Good morning
Based on current climate and uncertainty, I started to liquidate some holding or at least profits over the last few weeks....about 30% cash...however, I would like to place some cash in income producing stocks (REIT/XHY) or other such stable stocks...I fully understand we are in volatile market..but was wondering which you would recommend 5 or 6 names for income with what we would be considered less volatile in this environment..+4%..yields...when things settle will deploy back into my core holdings...thanks

Q: I have a 1/2 position in CSH.UN. I was considering adding to it, but maybe I should buy SIA instead. Which one do you prefer today and why?

Paul

Q: I hold CSH.UN, the stock seems to be in a downward spiral of late, $14.59 today.
Chartwell was at $15.60 the third week of August.
My ACB is $15.08, hold it in my RRIF for income and conservative growth.
Any news on the stock ? What is your opinion ?
Thanks

Q: Hi
What is your preference for growth and dividend. growth.
Thank you

Q: Value wise, what would you consider the top three Canadian Reits to be?

Q: What REIT to you recommend for a stable income stream with some potential for modest capital appreciation? Thank you Jack.

Q: Instead of purchasing a piece of real estate, am thinking of REITs . Could you recommend a few for a 5+ years hold, both Canadian & US. Thank you. Fooklin

Q: Given the possibility of increased interest rates - wouldyou hold or sell this stock?

Q: 9:50 AM 8/1/2018
The only REITs/Healthcare I own are SIA [3.3% position] and CSH.UN [3.8%]. I am considering buying one or more other REITS for the long term for the income. Could you please advise what REITs in any sector you would suggest that are sufficiently robust to prosper through the next inevitable market correction/crash, have low enough debt not to be of great concern, have a history of growth and rising dividends, and hopefully pay dividends in the 5% range.
Thank you.............. Paul K

Q: I have the above securities as well as RBC Cdn Equity Inc-D shares, Sentry Cdn Income, Sentry Global REIT. I am a retired conservative dividend income investor with a company pension, CPP, annuities and Fisgard Capital for fixed income.

I currently own ECI and will sell and look for a Consumer stock to replace it (not interested in BIP...I have a full slate of Utilities). I filtered several candidates using fundamental metrics (P/E, beta, P/BV, P/CF, P/S) and technical metrics (200 dma, etc), as well as yield and price targets (for what they are worth).

I will keep my CGX and PBH. I'm looking for a long term hold (conservative, liquid stock with a good and growing dividend). My short list of candidates include CLIQ, CTC.a, PLC, TCL.A. I already flushed ADW.A, KBL, RSI and since I already have 1 food stock, I flushed L and NWC.

Please provide your insights into the appropriateness of these Consumer stocks (CLIQ, CTC.A, PLC, TCL.A) for my portfolio, given my circumstances and existing stock positions.

Are there other securities I should consider, even those that I have flushed?

Thanks for your help...Steve