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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I am happy with my dealings with you. I was about to give up on my online account and do strictly mutual funds. Since reading the questions and answers from you, I am more aware of how the market works.
I bought BAD (Badger) at 41 more at 35 (maybe I should not have doubled down) and I see this company struggling to stay above $35.00. Another company you are very familiar with POINTS, is dropping steady and the chart looks pretty sad -- my cost is 27.1 - what would you do if you held these two positions?

Thanks,
Dennis
Read Answer Asked by Dennis on July 02, 2014
Q: WFI has recently been sold and I have a 40% return what do you see for this company moving forward under new management, or should I sell and move on I'm looking at maybe swithing over to fsz or perhaps bep
Read Answer Asked by dennis on June 30, 2014
Q: 9:30 AM 6/29/2014

Hello Peter

First I want to thank you for the excellent advice you gave me a couple of weeks ago and I purchased both Surge [SGY] and COS and look forward to holding them for a very long time.

Now I am concerned about the sustainability of North West Company's [NWC] dividend, currently paying 4.85% yield. My yield on my purchase price is 5.47%. I have owned the shares since December 2011 and have an unrealized gain of 10.9%. I have offsetting losses so the gain would not be taxed.

I only own a 2% position but the retail business and especially retail food businesses are having a difficult time with no prospect of improvement that I can see due to cut-throat competition and razor thin margins, and even Sobeys just announced they are going to close 50 or more stores --

From the Medicine Hat News : "Sobeys is closing about 50 underperforming grocery stores across the country as it deals with intense competition and tries to squeeze savings from its operations after the acquisition of Safeway in Canada."

From the Globe & Mail : "Sobeys Inc. is focused on shaving costs to win a tough food fight, with plans to consolidate manufacturing and distribution operations, cut jobs in two regional offices and force suppliers to retroactively reduce their prices."

I do like NWC but now I cannot see much prospect for growth or increased profits, so unless you feel the dividend is quite secure I would sell it and add to an existing position in something that I already own and that is likely more secure, has better prospects for growth, and that is paying about a 5.5% or better dividend, such as SGY, NPI, AW.UN, BNE, BDT, PKI, or BCE.

What would you advise and which stock would you pick?

Thank you.... Paul K
Read Answer Asked by Paul on June 30, 2014
Q: Peter, first I wish you a speedy recovery. I would eventually like to get the stocks I own rated A B ect. Many I already have from you. If you were to rate could you please give me Artis, Arc, Cominar, Chartwell Baytex Surge and Whitecap, Thank you, Ken
Read Answer Asked by Ken on June 26, 2014
Q: Reports
Your new reports include a 5i Report Card which is excellent.
It includes a 5 Yr. EPS Growth rate.
Could you also include a 5 Yr. Dividend Growth Rate which is most important to Dividend investors?
Thanks.
Read Answer Asked by Warren on June 25, 2014
Q: Do you think CKI would be a good buy now? I notice the last question was on March 10/14.I already own a half position in contrans
Read Answer Asked by Charles on June 25, 2014
Q: Hello Peter, First of all, best wishes for your health and get well soon ( i hope that guy's driver license is suspended). question about holdings in my daughter resp, which has another 4 years of contribution time. A fairly conservative and concentrated set up - consisting of CHB, CDZ, ZWB, CNR, MFC, TRP, ENB each at about equal weighting. I keep on adding to these regularly. wish to get your opinion - Shall I continue in these names or you suggest replacement. I am thinking of switching CHB to XHY and ZWB to XFN as these has performed better relatively. Do we need to keep both ENB and TRP. May be sell one of these and buy another of your top pick.Thanks as always for your opinion.
Read Answer Asked by RUPINDER on June 25, 2014
Q: I recently took over non-registered accounts from financial planner. One account is US Margin Account. This holds a few US$ denominated mutual funds. What is the rationale for having such an account? Do you recommend holding US stocks in US$ account, and if yes, what top 3 holdings do you suggest for dividend and a bit of growth?

Thanks and speedy recovery.
Read Answer Asked by Kirk on June 25, 2014
Q: I am considering purchasing one of Evertz (ET) or Avigilon (AVO).
Of the 2 which do you consider as a"best buy" and why?
Read Answer Asked by shirley on June 24, 2014
Q: could you compare medium term prospects for RE -vs- rmp -vs- rxx ?
Read Answer Asked by don on June 24, 2014
Q: Hi

I currently have 2700 in cash in my TFSA, and holding AYA and AVO. What other stocks do you recommend.

Thanks
Read Answer Asked by Alon on June 24, 2014
Q: BAM.A has been sliding somewhat recently. Any thoughts on this and would you consider it a buying opportunity?
Read Answer Asked by angus on June 23, 2014
Q: When will Badger next quarter earning be?
Do you still the Company going forward?
In what order would you place the following stocks:
PPL; IPL; ALA; KEY
Thank you for the great service you provide. Jim
Read Answer Asked by jim on June 23, 2014
Q: ROE: I understand this ratio and the fact that, all things being equal, if you can buy a company with a high ROE to EPS you are getting a good deal? However, what is the best way to calculate the ROE-do you discount non-cash items from the income statement? I hold a few companies with huge ROE and fairly low EPS that appear undervalued-so, maybe I am missing something??
Read Answer Asked by James on June 23, 2014
Q: Peter:I'd appreciate your expert advice on the following questions: 1.What Canadian natural gas stock would you recommend for an investor with a high risk tolerance ? 2.If inflation appeared imminent what are the names of some Canadian stocks you would want to own and what names would you avoid?
Read Answer Asked by Norman on June 23, 2014
Q: Hello Peter and team,
I have some money that I would like to put into micro-/small-cap stocks, with the idea of holding for a couple years. I am considering High Arctic (HWO), Questor (QST) and Petrowest (PRW). This money will be about 3% of my portfolio, which is otherwise well-diversified.
I have two semi-related questions before I make the purchases. Should I be concerned that all three stocks are in the oil & gas industry and therefore may be subject to similar downward risk? Do you still see strong growth prospects for these stocks or are there others you would suggest as a replacement for 1 or more of the above for a more-diversified basket of micro/small-caps with strong growth potential?
Thanks in advance, I appreciate the great work you do.
Read Answer Asked by Rory on June 23, 2014
Q: Hello 5i team.

My question is regarding the quality of a company's management.

1) With a focus on dividend-paying stocks, which 3 companies do you feel have the best management team?

2) With regards to growth stocks that you would currently consider undervalued, are there 3 companies that you would consider having a great management team?

Thanks.

Jim
Read Answer Asked by James on June 23, 2014