Investment Q&A

Q: Valeant was a company showing everyone that is was not a well run company with no R&D, and a CEO focused only on expansion and looking good to the stock market. And funny accounting.

But the market, Wall Street, Bay Street and most investors willing overlooked it!! Including 5iResearch.

Podcast: As identified from minutes 0:35:10 to 0:45:10

http://www.podbean.com/media/share/dir-4scbv-17fda94

Q: when buying stocks you recommend depending on the stock up to a 5% weight based on total portfolio. My question is that since you are limited to how much you can put into a TFSA that a 3-5% of the total may be up to 30- 40% of the TFSA account,you could do very well or lose quite a bit in your TFSA depending on how the stock does.So should there a percentage difference when investing inside the TFSA especially if investing in some growth names that you have provided.

Q: HSE, PXX and CNQ together make up a small percentage of my portfolio. I will hold CNQ but wonder whether you would consider it worthwhile to move from HSE and/or PXX to other energy Co's (TOU?) with better potential? Thanks Jim

Q: Hello, Does MG benefit significantly from the low Canadian dollar in sales of its products to its foreign customers? MG reports on May 5th - any buzz on their earnings? Thanks so much!

Q: Which of the three would be better to own in terms of safety, as well as income and some growth? If it were one of the US telcoms I would hold it in my RRSP.

Q: Is SPB considered a Industrial stock or does it fall under Utilities?

Thanks
Dolores

Q: Overall I am very happy with the diversity in my portfolio, except for one sector, resources, which I have avoided like the plague for the last six years for obvious reasons. But the tables are turning. Could I ask you for 5 resource stocks for consideration, with dividends if possible.

Thanks!

Q: I didn't know where to post my comment as the forum sections seems very inactive.

What this post is about is the article you sent us entitled: 'The Portfolio Management Assumptions that Harm Clients'.

Very excellent article IMHO. I am not a portfolio rebalancer and never have been. In his article he writes and I quote:

"We may rebalance periodically – quarterly for example – or we may set percentage boundaries around each asset class and rebalance when they are exceeded. Either way, the underlying assumption is that our target allocation is better than the allocation the markets have given us.

Research on the value of rebalancing suggests that it has little ability to increase returns or decrease risk. Whatever utility exists depends on factors such as time period, the direction of the market and the relative future expected returns of the asset classes being rebalanced. Yet few, if any, of us take these factors into account in developing our rebalancing strategies. Instead, we employ simple, mechanical rebalancing strategies that add little or no value and may even detract from long-term performance.

The only thing we can be sure about is that our rebalancing strategies result in transaction and tax costs."

5i constantly encourages/recommends that we rebalance our holdings especially when one becomes more weighted than say approx. 5%.

I feel the writer has a very interesting POV and would like to ask you to let us know how you feel about his POV on rebalancing.

Q: Fairfax is off 5 per cent on earnings. What do you think?

Q: could I get your views on this company. thanks

Q: Can you please briefly compare the 3 tagged companies in terms of how cheap they are on a valuation basis, their international exposure, and their expected growth rates?

If you had to pick 1 or 2 of them to put money in now what would you choose?

Thank you.

Q: Besides DSG can you give us some other names that might have takeover potential? Thanx Robbie

Q: I've read your last two "short term " trade thoughts on CUS, indicating that the easy money has been made.
I too thank you for this trade and have done well with it. I still hold both stocks, having put in 2/3 in CUS and the other1/3 in SPB. My question is the market seems to be still discounting the takeover for if it was to happen at today's closing price CUS could be worth $1.65. If you still like SPB why should I sell CUS? It would seem to me that they tend to follow each other.
Many Thanks for your excellent research.

Q: Love the new format ... can you tell me if you think the negative news on Fracking (waste water) will have a positive effect on the price of oil and will these oil companies stock prices just hover with the price of oil? Thanks for all you do and especially AEM.

Q: Since we have "bail-in" legislation in Canada and since, as people whom deposit savings in banks, we are considered "investors" in those banks and subject to "bail-ins", how would cash simply left in brokerage accounts be treated in "bail-ins"? As we receive zero interest on cash in brokerage accounts, we could not be considered "investors". Seems a safer place to hold cash than a bank account. Thanks.

Q: Hi, I am down about 20% on IMG. What do you think about selling it and do you have any gold stocks you would recommend to replace it?

Q: I currently own shares in XTC and I am considering adding more. I am hoping you can give me the opposing argument. RBC shows 2017 est earnings of $1.59 which means forward p/e 8.7. There is zero debt, and earnings growth of 28% 2015-2017 (0.96-1.59). Why would I consider selling rather than buying?
As usual, many thanks for your considered response.
Mike

Q: I noticed that TD had an outsize upside target of $20 on AC. That was bound to get one's attention. What did you think of the recent results and the stock in general?

Q: I know you have been quite positive on Raging River, I just wondering about your take on the insider selling of shares over the past year. Thanks Keith

Q: Your comments please on Neulionv NLN.
Thanks.