Investment Q&A

Q: Hello Peter & 5i team,
I digested Ryan's blog on changes in currency regime and I kept my cool in the first few days of 2016. It is now time to get your opinion on my portfolio; these holdings served me well in 2015 with a 14.1% total return but are they still valid for 2016)
Consumer 22.2% of portfolio (ATD,BYD.CCL,CGX,DOL,LNR,MG; thinking of adding WPK and XTC)
Energy 4.6% (TOU,VET,WCP)
Energy Infra (4.8% (ENB,KEY)
Financials 11.5% (BNS,CXI,EFN,SLF,TD0
Health 6.6% (CRH,CXR,GUD,PHM,RX)
Industrials/Infra 8.6% (BIN,BIP,BOS,CNR; will exit BIN)
Materials 5.8% (CHE,SJ; thinking of adding IFP/WEF)
Tech 23.7% (CSU,DSG,ESL,GIB,MDA,OTC; thinking of adding KXS)
RE,Telco,Util 12.3% (BCE,BEP,CIG,FSV,TCN)
Your guidance is most welcome; I don't mind that you deduct more than one credit.
Happy New Year,
Antoine

Q: Hi, Peter
For the ETF investor, do you see the current market drop as a buying time? Are there Canadian and US ETFs that you would recommend now? VDU? CDZ?
Thanks,
Robert

Q: What would be your recommendations for investment vehicles (with low MER) to hold cash at this time?

Q: I own OCX, TD, and T and thinking of adding to all three as long term. What do you suggest?
John

Q: Hi,
Can you give me your thoughts on the price weakness? Bip.un has been a strong and consistent performer in my portfolio. Is it a good time / price to buy here? Do you expect anticipate good upside over the next 12-18 months / longer or is there reason to be more cautious/sell?

Thank you

Q: If holding so called high interest saving vehicles (like TDB8150) in an investment account are subject to bail in legislation, where could one hold cash to avoid bail ins? Depositors in banks are considered "investors" under current laws and subject to confiscation in bail ins, but would you be exempt if you held cash in an investment account. You earn zero interest if you hold cash in an investment account so it would be hard to say you are an investor with that cash.
Thanks

Q: Further to Arnold's question today, would you be confident in adding to a position in RX now? I have held it for quite a while and also observed the flat price curve; and have been pondering sell or add.
As technicians look at the RX chart, would they be thinking a "breakout" to the upside as more likely than to the downside especially when coupled with the metrics you and Arnold mentioned?

And of course suggest buying more?

Thanks.

Q: Belated Happy New Year 5i and all members.
My wife and I have some cash in our account - where would you bet putting cash to work in this environment? - stay in cash, bonds or bond ETF or in equities and if equities what sectors do you prefer and some possible names.
Thank you kindly.

Q: Could you suggest a couple of companies that have strong financials and their dividend could survive if oil remains low for some time? Also with some potential for gains when oil recovers. Thinking of PSK or WCP.

Q: BIP.UN has give up all of the gains last year and is now trading at a 52 week low with a yield of over 6%. This looks like a great buying opportunity - do you agree? Thanks

Q: Hello,
I am down 74% on Surge Energy and still hanging on. I understand their debt to capital ratio is 12% which seems low so I am expecting that they should be able to survive this crisis. The insiders are buying heavily. I am thinking of buying more at the current very low price now as I really only have a half position in it. Would you agree with this thinking and strategy? I dont need the money for a few years. Or should I top up my position in Whitecap which does not have the same low debt and heavily insider buying? Thanks for your help!

Q: Why is CXI been steadily going down? Have you been in touch with any of the principals
Thanks

Q: I purchased this company before joining 5i Research. It is turning out to be fraught with lots of problems, the most current being that they have received a letter from NYSE regulation stating that they are not in compliance due to the company's failure to timely file its 3Q report. If they don't respond by Feb. 5th the co. could be de-listed from the NYSE. So what to do with this stock at this stage? Hold or cut my losses?

Q: I'm looking to add a low(er) volatility utility name like FTS or CU. Which do you prefer? Or is this a 6 of one, half dozen of the other type question and they are both OK to buy?

Q: Peter,
I read with interest today on Reddit about your investment education and experiences prior to starting 5i. I was struck by one comment, "There is guilt there but I am trying to make amends". It seems to me that the investment world is multi-faceted in its "guilt" and I would ask the following questions. Where are the investment regulators in this industry? And what are their rules on "conflict of interest" when it comes to investing? What about the individual investor's greed that drives them to ignore risk in an investment? Don't get me wrong - I am very happy that you started 5i - but I wouldn't beat yourself up about things beyond your control in the investment world.

Q: Hopefully, this question provides a simple answer. I have approx $100k in liquidity that I'd like to 'park' in whatever equity or REIT you feel is risk averse and would provide some dividend or interest income - bonds aside. I can leave the funds there for 2 to 4 years. At 66 years of age, I cannot afford to lose principal. I am not concerned with currency fluctuation.

Q: Hello Peter and 5i team,
These are the current holdings in our grandson's RESP [ a toddler ]. Please advise if the selections are still effective and any changes. What additions would you recommend for new money?
AVO, AYA, CPH, CXI, DHX.B, DSG, XTC.

3 ARE DOWN SUBSTANTIALLY [ AVO,CPH, AND CXI ]. Should we sell any of these holdings. XTC is up nicely. Do you still like this sector?

Thank you for your advise .

Q: Hi Peter, is there any news about Suncor and COS merger? I think the deadline was January 8th. Thanks, Gervais

Q: I have a small position in CXI. It's at a new 52 week low and I'm down 30%. Is it time to bail or time to buy some more. I don't need the cash anytime soon.

Q: Hi 5i: A few months ago in response to a questioner who asked why AGT was going down, you noted that it had rather a lot of debt. Could you provide a few more details on its debt situation now? Also, has it met analysts expectations recently? Many thanks.