Investment Q&A

Q: Dear Peter and Staff,
My husband and I have recently received an inheritance of $200,000. We are concerned about the future purchasing power of our pensions and riff income due to the effects of inflation. Please recommend a portfolio strategy (including stocks) that should give us an ever increasing stream of income at a rate that is greater than that of inflation. Many thanks, I look forward to your answer.

Q: Peter I own Tog it has been consolidated 5 for 1 Is this a good move for the stock .
Would you give me your views on this move and the stock .
Thanks Jim.

Q: The US portion of my portfolio consists of CSCO, MCD, UTX, BHP and AAPL (a little bit heavy on the Tech side because of no exposure on the Canadian technology front). I took some profits and trimmed my exposure to CSCO and MCD after nice run-ups and am looking to use the proceeds to further diversify. I'm thinking perhaps a US financial (and really a play on Consumer Discretionary spending) like AXP or a Medical Supplies company like BDX. Or does something else jump out at you as being a nice complement to what I own? Thanks.

Q: Peter & Team, I bought SUM early in the summer and took a 25% gain off the table. I liked the recent quarter and concur with your positive comments. The stock is now back at the level I originally bought and am thinking of buying back in. The joint CEO's have announced they will sell about 15% of their shares through an ASDP to understandably diversify their portfolios. They will sell 900,000 shares, or about 2% of issued shares. Is this a buying opportunity or is the stock too highly valued at 63X earnings? I like the story and expansion plans.

Q: I am wondering why BCE.PR.A & BCE.PR.C preferred shares are experiencing such a price decline. According to BCE's web site,
their annual dividend is 3.45% & 3.55%, guaranteed to Sept 2017 & March 2018 respectively. On those dates the shares then may be converted to floating rate preferred shares. Do you have any explanation as to why the share prices have been in a steep decline since April of this year. Thanks ... Cal

Q: Hi Team ; a question on short selling / long conv debs: How does the seller make money- they are responsible for the dividend on the shares and if the shares go up they get squeezed - if shares go down, they could lose on the deb? thanks

Q: Hi team, May I get your comments on Harry Browne's Permanent Portfolio that divides assets into 25% Gold Bullion (CGL), 25% Cash/Government Short Bonds (ZFS) , 25% Stocks (XIC/VTI/XEF/XEC) and 25% Long Government Bonds (ZFL)? This mix of assets is supposed to protect the investor through the different phases of the economy ie inflation/deflation/recession etc. Does this seem like a reasonable portfolio mix for someone that will retire in 15 years? 25% in gold bullion and 25% in Long Term Bonds seems like this would be a very risky mix going forward.

Q: Can you give me your thoughts on AMW and the buyout by Fission. Would you buy either of these at the current price for a small speculative position? I understand they are tough to but a value on now but the market seems to love the story as AMW is up almost every day.

Q: REIT's are unpopular now, so maybe worth a look.
I think of apartment REIT's as less volatile and wonder why True North Apartment REIT (TN.UN) is paying almost 9%. Even if the condo market heads south, their apartments rent for much lower than condo rentals, so not much competition. They are nearly full, as there is a shortage of low rental housing, and have access to CHMC loans at low interest. The CEO has been buying at higher prices. What's not to like?
John

Q: What is your current assessment of the investment merits of PUR? The stock has been rangebound between $4.00 and $5.00 for most of the year. There is a rule of thumb in technical analysis that notes ... the longer the consolidation, the higher the run ... do you believe PUR has this potential? Thanks for your insights.

Q: Empire EMP.A has dropped on weaker results. Is this a buying opportunity or is there a better entry point.

Regards

Gary

Q: Hi Peter,
I am growing concerned about CPG as others seem to be as well. I'm looking for another yield play to replace CPG and doesn't have to be in the oil & gas sector. Perhaps Liquor Stores is a good option for income?
Thank-you.

Q: I have heard on BNN various commentators say that if interest rates rise, it is better to be in insurance companies than banks. I would appreciate your thoughts on this. thanks.

Q: Good morning all.
I just heard of this quite new(mid 2011)fund TLF.UN and am wondering what sort of option this fund would be for following the tech sector in the US via the TSX. A Brompton Fund at (http://www.bromptongroup.com/funds/fund/tlf/overview) it pays a nice distribution and has a mgmt fee of 0.75 but I expect the MER is higher. It looks like it is holding 16 positions and is fairly active writing covered calls to boost returns. Does 5i have any knowledge of, insights on or opinions about this fund and would something like QQQX or other be a better vehicle for following the US tech sector? TLF is small and probably not that liquid.
Thank you again for your wonderful service and support!

Q: I am interested in your thoughts on OTC, it rarely seems to get mentioned but seems to be doing well, and recently instituted a dividend. Is it one you follow?
Peter

Q: Hi Peter & Team
Would like your opinion on Sysco please,and if you would consider it a good long term hold
thanks

Q: Hi Peter & the 5i Team,

You've said in the past that CPG isn't your favourite company in the O/G sector and I certainly agree with that assessment. Based on my results, even with the generous DRIP program and its 5% discount, and after holding CPG for several years, I'm still slightly underwater. It appears that CPG is incapable of breaking through the $40 mark. (Although it pays a hefty dividend of over 7%, its price has flat-lined).

Many analysts rate CPG as "sector outperform" or "strong buy", etc. etc., but my results certainly prove otherwise. I have (fortunately) only half a position in CPG, and bought it at that time due to its inclusion as a so-called "dividend aristocrat", and not knowing about 5i. (!) So at the present, I'm frustrated knowing I'm not reaping the benefits of an alternative O/G stock like VET.

My question is this: What "non-emotional" criteria should an investor use to determine if and when a stock should be sold?

Thanks in advance.

Q: I am looking for an update on ABM. My understanding is that they have a large valuable frac sand deposit in a strategic location. Rumor is that the project will be approved without an environmental study. What is your take on the this stock

DON

Q: Opinion on Fortis FTS
Is this a good long term investment.
IS current price a buying opportunity or do you see further weakness in price.

Q: Hi,
I'm thinking of nibbling at SPM and AR at these levels. What do you think?

Thanks