Investment Q&A

Q: Hi Peter and Crew,

This is mostly a comment.

I am into my second year of membership and am very pleased with the service. My total question count is under 10 as I tend to 1) ask questions that are quite important to me at the time, and I want to word them as well as I can and 2) I don't want to contribute to overwhelming the Q/A process as I find it so valuable. I also read all the other Q/A's as the answers provide a great wealth of information. I also use the rating reports and model portfolio in my decision making process. All good.

I continue to recommend your service to others.

I actually wrote this note to compliment you on "the depth and quality" of the answers provided. The questions are always answered with a generous amount of background information to provide the foundation reasoning for why the answer is the answer. Most appreciated.

Q. Peter, what is behind the electronic door when I push the "submit button". How big is the team ?

Keep up the great work.

Q: What do you think of the new Tricon(TCN) IPO. I am tempted to put an order to buy in light of the dip in price?

Thanks

Q: What are your thoughts on Argex Titanium Inc.? (RGX-V)
Thank you

Q: What is your 12 month target price on Teck Resources? Any opinion on stock would be appreciated.

Q: The panic over increasing rates, as you say in your newsletter, has subsided. During it, I moved some assets into American insurance companies as a counterbalance. Do you think the panic might happen again at renewed signs of tapering, and if so what other types of equities might serve as a good counterbalance, benefiting from rate increases? Contrarily, if it doesn't look like rates are rising any time soon, do you think insurance companies will fall back again? Ie, should I be careful of putting too much into them?

Q: what is your opionion on radcom and are there any companies in the
same line of business in canada. RDCM

Thanks
Paul

Q: SCI:US
As a fairly new member I would first of all like to thank 5i for the terrific service.

I am looking for your thoughts on SCI:US.

Thank You

Q: Your thoughts on Second Cup (SCU) would be appreciated. This looks like a logical pickup for somebody like MTY Food Group to me. Good dividend while you wait and trading below book. TANKYOU

Q: Hry guys just wondering if you have taken a look at nci ntg clarity networks at all.. they seem to be getting contracts more regularily and the the last couple quarters and the fanancials are looking decent considering it is trading around 35 cents. do you think it will finish the year strong if the contracts come to fruition

Q: CU-T May I please have your thoughts on Canadian Utilities as a Long Term investment .
Also , is it Financially Advantageous Tax Wise to hold Dividend Stocks in your TFSA & withdraw the Dividends TAX FREE when needed as opposed to using a Regular Non Registered Cash Account to make use of the Dividend Gross Up & pay taxes on this type of Equities ? Many TXS Peter .

Q: When I last wrote to you in June we were overweight in Financials, were considering selling but didn't because it felt too much like selling into a panic. Our 2 smallest positions then (and now) are RBC & BMO - both in my opinion now showing positive momentum. Do you believe this is genuine positive momentum or just "irrational exhuberance" courtesy of the central bankers affirming interest rates won't be going up any time soon? A reviving economy should be good news for the banks as there should be more loan demand. My take on positive momentum is to hang-in-there. If we did sell we would likely buy JNJ, Artis or a IShares Hong Kong index EWH (NYSE). Parkland is of interest too.

For me diversification is more tricky than stock picking. We have 28 separate positions which I am trying to bring down to 25.

If you want to improve your web site I would suggest adding spell check!

Thanks in advance for your counsel.

Q: The subscription receipts for Empire, EMP.A, are still not fully distributed. Do you think this indicates shares are fully valued, that there's not much more upside for a few years, or is the Safeway deal a game changer that could propel Empire to triple digits? I am +43% on a long position in <1 year. Thanks, J.

Q: I am overweight TD-T because of the increase in share price but not overweight financials. What do you think of selling some TD and buying FCR-T or would you suggest a different financial stock instead?

Q: Thanks for the response, one quick follow up question on Timmys and portfolio balancing in general.

On Timmy’s, I noticed that you have the Sector / Industrial classification as ‘Services / Leisure’ whereas I would have labeled it as ‘Consumer Goods / Food & Beverage’? I’m curious for your rationale?

On portfolio balancing in general, I have typically used a 11 sector system to gauge just how balance my portfolio is, specifically:

Utilities
Consumer Staples
Capital Goods / Industrials
Energy
Financials
Health Care
Consumer Cyclical
Transportation
Information Technology
Materials
Telecommunication Services

I noticed in your portfolio, that you use a 9 sector system, specifically:

Materials
Services
Technology
Industrial Goods
Industrials
Financial Services
Utilities
Consumer Goods
Healthcare

Is there any reason you guys run with a 9 sector system vs. the more common 11? What would you recommend for us amateur retail investors to use as we try to ensure balance within our own respective portfolio? Do you recommend we take this a step further and look at also balancing Industries, and if so, what would be the recommended industry classifications to use? Thanks!

Q: I would like your opinion on Impact Silver (IPT)
Thanks

Q: Buy, sell or hold Keyera? Thanks

Q: Could you please give an updated opinion on First National Financial Corporation (FN). It is Canada's largest non-bank mortgage broker and currently trades in the middle of its range at $17.20 with an 8.14% dividend, paid on a monthly basis. Is it just an income play, or can I expect additional capital gains? Is the current dividend safe? Many thanks!

Q: What are your thoughts for Amaya as Bally buys SHFL?

Q: Hi Peter and Team,

Quick thoughts on a company called Aware Inc., AWRE. They have around $3.21 in cash/share.

Q: Good afternoon,

Looking to see if you might have any insights on today's decline in the WPT industrial reit. I understand their earnings are out next month but I did not see any pre announcements. The price seems to have been driven down by some concentrated selling from Raymond James and Scotia over the last several days. Any insights are most appreciatred.

regards,
Brad