Investment Q&A

Q: I want to feel comfortable with my holdings when interest rates eventually begin to rise. Could you simply categorize the following industries into one of three categories. 1) Greatly affected negatively. 2) Affected moderately negatively 3) Not much effect 4) Will affect positively.

Financial - Banks, Insurance, Investment co's

Utilities - Gas/electrical , Pipelines, telcos

Manufacturing ( includes technology )

Consumer - Durables & discretion

Resources - Gold + Materials + Oil & gas.

Pref shares

Any general comments also welcome.

Many thanks

Paul C

Q: I own Genworth Financial (GNW.US) in TFSA account, and it reported very poor earning last quarter and its cash reserve has been down unexpected significantly. Genworth is scheduled to report in February, and I am afraid it will be another disappointing quarter. Since I can't claim it as capital loss, do you think I should cut my loss to move on other companies or wait for its turn around? I like Starbucks and Michael Kors quite a lot; however, Starbucks valuation is very high, and Michael Kors has just been downgraded by Credit Suisse today.Does it make sense for me to switch from Genworth to Starbucks or Michael Kors at this time? Thanks for your great tips always!

Q: Congr for great results--29.3%(after 34.1% in 2013),which beat 10.4% for TSX Note you reduced weighting in AYA & used proceeds to add to WCP,BDI & FN.Why not BNS,which together with CM & NA were 3 of the most battered big 6 can.banks the last month.Repotedly,some funds in US was selling can banks today & lately.Thanks for your usual great advices & services.Peter,welcome back from your vacation.

Q: Bill Gross and his successor at Pimco are talking deflation and that many asset classes will suffer. It sounds scary. What are your thoughts? Thank you.

Q: How can I find out how long are those accormodation contracts? Can customers terminate the contracts in 2015? Thx

Q: Would you add to HCG at today's prices? It appears to be dragged down along with other financials like the banks right now.

With regard to HCG, I am also trying to connect the dots on a couple of the guidelines that you have provided over the last couple of years, namely buy on upside strength and (generally) do not add to a losing position. Again, generally sell a stock when it drops 8-10%. I apologize if I am takinng anything out of context, but I am trying to make sense out this market. Case in point I have owned HCG for a couple of years, saw it drop and then recently start to reverse. So I added to my position on Monday and saw it drop 5% today! Ouch.

Hold and wait for a better time to buy or buy more now? (I am sure selling would not be a wise option for a quality company like HCG)

Thanks for helping me sort this out.

Q: Hello 5i,
Do you have any idea what's happening with Trinity? The last couple of days have been disastrous. The stock dropped 8% on no news...? What are your thoughts on this stock considering 2-3 years horizon? Buy, sell, or hold?
Thanks.

Q: Happy new year! I was hopping to get your opinion on BXE as oil prices continue to be going lower. Whether it would be a buy, sell or hold? If the sector recovers, will this name be possibly still around? Thanks.Lin

Q: REITS on both sides of the border have been performing well lately.Can you offer an explanation for this performance and would it be advantageous to allocate funds to this sector at this time. Thanks. Joe

Q: I like the theme of seniors' care for the long term. I have a small position (<3%) of CSH.UN in my TFSA and it has done well over the last couple of years. Would you add to this or sell it and replace it with a different name in the same space. (I also have a bit of KMP and some D.Un in non-registered accounts, in case other REIT holdings might influence your comments.)

Thanks for your help - I've been with you since almost the beginning and I love your service!

Q: Hi Guys,

Could I get your opinion on GH at this time. I realize the price of oil has an affect on every stock in the world but has it affected GH more than it should?

You last did a report on GH in Sept 2013. Don't you think every company should be reviewed at least 1 time in the year? If you can't do this then may I suggest you are following too many stocks for the manpower you have and therefore should cut down you stock list. A second alternative would be to stop answering so many repetitive questions from members.

Thanks
John

Q: td has been slapped pretty hard in the last few days, is this an entry point? I am looking to generate long term income. I am very interested in any suggestions you might have for stable income generation....THANKS

Q: I have been watching this company with a view of share purchase because I think that animal feed is a pretty high need product and not a lot of competition. I worry that the stock trades very little, i.e. quite illiquid. Is illiquity something to be very concerned about, and if so why?. What is 5i's view of the company especially in difficult times which seems to be what is ahead of us. Thanks so much

Q: The gold sector is rallying hard for the last couple of days. Can you offer any comment why, and also AR seems to be outperforming the rest of the gold sector, any idea why?

Happy New Year
Darcy

Q: I have one healthcare stock at present (CXR), and would like to add a second. Would you favor one of the following or make a different selection: RX, CRH, PHM ? Thank you.

Q: The market has now pushed SGY to a 20% dividend yield. Have any of the compnay fundamentals changed or is this just the ongoing energy sector crash? Do you have any guesstimate as to how much a dividend cut might be and do you think the stock will rebound a bit after the cut, independent of the status of oil price?
Thanks again! John

Q: When can i buy a company back that i sold for a loss. I sold it on the 17 of dec and the settlement day was dec 22. thanks

Q: Morning or should I say mourning ... although I am expecting a large dividend cut can you tell me if Surges stock price could actually go under $2 and if the company is strong enough to withstand this pounding?? Is it a takeover candidate? Thanks as always.

Q: I know 5i isn't about the charts or predicting price movements, but the chart of Silver Wheaton SLW from April 2013 to today is shockingly symmetrical. I'm no expert on charts but one would think there's something meaningful in the pattern. The question is, "What happens to the pattern from here?" If the symmetry continues, and looking at a two year chart, the stock is setting up for huge burst to the upside. Any thoughts?

Q: I respect the opinion of David Rosenberg at GS as an astute macro economic observer. He is quoted in the National Post saying "Eurozone financials, meanwhile, are much cheaper after severely lagging in 2014. As a result, the strategist thinks the group has more upside potential than downside risk since some trade at single-digit multiples.

He also pointed out that European stocks as a whole offer a 3.7% dividend yield, compared to below-60-basis-point yields on German 10-year bunds.

“The ECB has no choice but to get more aggressive so the euro remains vulnerable, but that should be positive for large cap exporters,” Mr. Rosenberg said.

It's hard to believe European stocks as a whole offer a 3.7% dividend, so he may be referring to Eurozone financials here. What ETF or other way of investing would you suggest if one wanted to follow his advice to get this kind of yield? Thanks, J.