Investment Q&A

Q: I own both of these in my TFSA. I think of them as different because ATD is international with a focus on gas sales while PKI is Canadian and has propane distribution along with its gas. However, given your comments on BNN last night, should I consider them more as similar companies and combine my investments when calculating my portfolio exposure?

Appreciate your insight.

Paul F.

Q: Hi Peter and 5i Team.

I have one account (representing about 20% of my overall portfolio) where I hold only the Balanced Equity Portfolio. KXS is pushing 7% of this account, so I was thinking of trimming it back to about 5%. All other positions in the account are at about 4% to 5%, except HCG, NFI, and PKI, each at about 2%.

Do you think I should top up one of the half-positions, keep some cash handy for future purchases, or leave well enough alone and keep KXS at 7%? (Note: I also own smaller positions in KXS in a couple of TFSA accounts.)

Thanks,

Scott

Q: My question concerns fuel pricing and specifically, profit margins. Prior to ATD.B's last quarter results, concerns were raised about a potential decline in profit margins from gas sales. However, I thought retail gas price margins were quite stable and that it was the underlying price of oil that caused gas prices to gyrate. In fact, I thought retailers were helped by fluctuating oil prices because they are quick to raise prices when oil goes up (thus selling lower priced inventories gas at a higher price) but slow to lower them when oil drops. Is this thesis correct? If I am at least somewhat correct, it would therefore seem that overall sales is not that important a metric for these companies.

How much do gasoline profits contribute to these companies over all profits? Or are in store sales more important?

Appreciate your insight.

Paul F.

Q: I am looking into adjusting the Energy Sector of my portfolio which is at 5% of total equities. I have SU, ECA and CVE. Would you recommend switching any or all of these to PKI and RRX or stay the course?
Thanks for the great service!

Q: Hello Peter,
Yesterday the markets were cautious, today they seem exuberant. The stocks that I want your opinion on, have snapped back from the Friday of the referendum and near their high. Trading is thin that adds to the volatility too.
My portfolio adjustments involve exiting a position in IGM and buying KXS, SH NFI and PKI. Would you buy now or is there a probability of a better opportunity when the market adjusts to the snapback? Is there any of the ones mentioned above where you would be cautious of initiating a new position at today’s prices? And if now is as good a time as any which ones would you start with and which would you wait for a better entry point? I have not been very convincing to myself about replacing IGM with PKI and trusting your professional expertise. Could you tell me why PKI is better? As always, appreciate your viewpoint.
Regards.

Q: Hello Peter
I am wanting to replace some bonds with these 4 stocks. (EIF,PKI, SIA, AD ) Could I have your opinion and any concerns.
Thanks for your great service.
Gary

Q: Considering purchasing for income and some growth. Could you comment on the high p/e of 46 and the potential going forward.

Q: If Loblaw does sell its gas bar holdings, would this be a good purchase for PKI and how likely do you think this might be?

Q: Greetings

I am presently without any exposure to oil and gas companies. To what extent do you think PKI might be a good place to re-enter the sector? Your most recent review was a tepid "B" so I am completely open to other suggestions you might have.

I am a retired conservative investor who has no need to "shoot out the lights" and realize that diversity is a good thing.

Thanks

Q: I own both of these companies. I noticed that PKI is now Canada's 2nd largest distributor of propane. I assume SPB would be No. 1. I have been increasing my holdings of SPB via CUS. It is making for a sizable positon in propane for me I am surmising. How closely related are SPB and PKI business models? If they are closely related and I was to sell down one (I do like the divvy of both) which would you choose?

Q: Parkland was up over 4% Wednesday on their current results. What are your comments on their results and do you see any upside from here say in 2016? I own it. Thank you.

Q: How likely is it that Parkland will issue new stock to cover the costs associated with the acquisition of gas stations and "On The Run" convenience stores from Imperial Oil? Thanks!

Q: Could you please clarify the recent deal where Imperial Oil has sold its retail ESSO stations to various entitities, including PKI and ATD? In one news article, it seemed to suggest that PKI purchased all of the "On the Run" convenience stores and some of the gas stations. Howefer, in reply to a previous question, you stated that ATD had bought some of the gas stations but it would seem to me that they would want the convenience stores as well, so I am left wondering who purchased what.

Could also comment on how you see the acquistions affecting both ATB and PKI.

Thanks for the insight.

Paul F.

Q: Parkland Fuel reported tonight. Could you give us your opinion of the results including the adjusted dividend.

Q: Parkland has recently been downgraded by TD Securities from a target of $25 down to $23. Is there any reason for concern?

Q: Peter and Team,

In trying to follow the model portfolio moves, I am looking to add PKI. The one wart that I see is that, in your last report, it showed a payout ratio above 100%. Do you still see this and are you concerned about it>?

Q: Is there any specific news or event impacting PKI and causing its weakness today? What current opinion do you have on PKI? Thank you.

Q: PKI seems to be stable in an unstable market overall and for oil in particular. As a long term investor is it a buy or would IMO a little lower from current price be a better buy? Thanks for your valued opinion.

Tom

Q: Hi team, Any reason you know for the sharp drop!
Thank you!

Q: Could you give your opinion of Parkland's 3Q results. They charaterize them as "Strong".