Investment Q&A

Q: I would appreciate your opinion as to the safety of PM's dividend.
Thanks!

Q: Hi team:
BOS took another dive for the last few days, it is still a hold for 3-5 years ? appreciate your opinion

Q: I'm an owner in AW.UN, MTY and PZA for income. I have a tax refund and would like to reinvest a few thousand. Each of these are below 5% weighting so I can freely contribute to any one of these.

Which one would you choose?

Q: I was hoping you can tell me what the expected #'s are for TNC when they release their qtr tomorrow? Should we expect the closure of the acquisition to be announced in tandem? The latter seems to have dragged out - any indication of issues?

Thanks as always,
J.

Q: http://www.stockhouse.com/companies/bullboard/t.aya/amaya-gaming-group-inc?postid=24707030

Mr. Hodson, seemingly the CEO is stepping down. You are probably already aware of this development.

Q: If you read the advice from the likes of Benjamin Graham and Warren Buffet you're buying a piece of a company, not a stock, and should feel confident in that company. I read your report on WSP Global, but nowhere in it is the basic question: Is this company any good at what it does? A report in the Ottawa Citizen today seems to show a startling lack of competence at WSP Global. http://ottawacitizen.com/news/local-news/reevely-failed-hazeldean-bridges-design-flawed-from-the-start-newly-released-report-says

Q: Hi Peter and Team,

In today's answer to Norman, you listed your favourite REITs: HR.UN, CSH.UN, CAR.UN, REF.UN, CRR.UN and INN.UN.

I'm curious why InterRent (IIP.UN) wasn't in the list. Is it perhaps because of the lower yield and its smaller size? It does appear to have good growth, though.

Thanks as always for the valuable advice.

Q: The charges are against Baazov & 5 others.Stock prices were up sharply prior to announcement of acquisition----How come?? Do you think that Baazov or Baazov & potential partners will make a bid of $21 now that its price is $15.45???.If found guilty,big fine &/or prison term..There is another suit too.Many problems.Many fund manager & investors are avoiding the stock.This is my humble opinion.

Q: A two part question. Nice reaction to earnings. Do you agree, and what if anything stands out to you? Secondly (Ok maybe thirdly), in reading the transcript of the conference call, the CEO Jonathan Ross Goodman alternates between taking a very serious tone and being something of a jokester. Is this his play book from the Paladin days? And is he really that confident in his role? Thank-you, as always.

Q: Will you be keeping HCG in your Balanced Equity Portfolio or removing it because of the buy back offer?

Q: What are your favourite Canadian reits for a 5 year investment ? Thanks.

Q: I just saw an article probably announced by the Feds in the latest budget that there will be new legislation on "Bail-In" for banks. I don't know too much about the details, but from my understanding the current framework is that the gov't will step in if the economy is bad enough to help support the banks from collapsing or failing.

The latest change will make it that the creditors of the banks will be on the hook and will have an option to swap their bonds to equity?
Is that correct and what is your take on how this will affect the risk of Canadian Banks?

Q: I bought the Canaccord preferreds about a year ago. As usually happens, the price of the preferreds went down with the normal stock, to the extent that the yield is now around 15%. Is this yield safe? Can I add to my holdings while I wait for CF to recover?

Q: I am a retired, conservative, dividend-income investor with a pension, CPP and diversified portfolio of mostly dividend payers (AD, AQN, ALA, BCE, BNS, CPG, CGX, PBH, RY, WSP, WEF, WCP, ZLB, XIT, Sentry Cdn Income Fund, Sentry REIT, RBC Cdn Income Fund, Annuities, Fisgard Capital).

I have held PBH for quite a while and need to trim it (for the 8th time), yet again. I am looking to build a position in another consumer stock (already hold CGX, PBH and those within ZLB and the above funds).

I think ECI would make a good fit, but I am concerned about the high P/E at 27.8 and high P/BV at 3.51. Also, this recent purchase is USA-based.

I am looking for a reliable dividend payer, with some dividend growth and capital gains growth as well. Your comments are appreciated. Thanks...Steve

Q: This seems like a great business - management seems has done a great job of improving customer retention rates and growing the business but they are about to close on a large and transformative acquisition. They trade at about 9x EV/EBITDA and they appear to be paying about 15x for the acquisition but claim it to be accretive. I've gone through their numbers and have trouble seeing how it gets to be accretive. Your latest report is from August 2015 - have you been looking at this acquisition and do you plan to do a report in the near future?

Q: BEP.UN has very thinly traded options,(like most other CDN options). Is it worth the effort to try and add portfolio value by selling calls against my position, or selling puts if I want to increase my position? Thanks for your response....Jim

Q: looking more carefully the insider trading was 1.5 million dollars, like isn't that a real small amount.
secondly i have been in the markets for 40 years and when amaya took over rational there was so much action in the stock befor the transaction it was unbelievable, obviously i have no proof but i was convinced at the time there was insider trading.
it seems to me this was baazov but evidence and proving it is a whole other scenario. please comment dave

Q: Hi Peter, Ryan and Team - Although we can't ignore all the controversy surrounding Amaya since it has a major effect on the stock, based on just the fundamentals, balance sheet, earnings and potential earnings would this be a good company to buy now. Also what is the debt level - is it a concern - and could you provide the level of insider ownership as well. I have found your your advice to be invaluable ever since joining 5i Research - what a great service! Thank you.

Q: Hi,

I understand from your, rating and description of UW.UN, that you consider it to be a good investment for income investors due to its high and sustainable yield, and as well as the possibility of small distribution increases in the future.

Can you please clarify your position on AW.UN for long-term investors who are looking for a combination of both capital gains and distributions (In a registered account, so ta is not a consideration).

What is your estimate of the increase in share price of AW.UN over a few years? Is it something along the lines of 4% to 5% yearly?

Thanks,
IF

Q: It seems to me the charges against Amaya's Baazov are more akin to tipping and stock manipulation than insider trading, probably even more difficult to prove. However there's a cease trading order on these insiders so wouldn't that affect Baazov's ability to continue with his $21 bid, even if he wanted to? Also how many months might this case drag on before people get their day in court and isn't it likely the stock will mostly mark time till things are resolved?

I wouldn't be in this stock except for 5i but my average cost is <$8 having been in since 2013 and I have taken profits 4 times up to $35 so even though I didn't act on the Feb.29 blog post (actually sold some more @$19) I did act on the CUS reco and am currently +5%, so thanks for that. It's my opinion that we are all personally responsible for our own actions, not someone else! J.