Investment Q&A

Q: Hello Folks:
Thanks to you I have done very well with Boyd and Badger. I would like to reduce my holdings in one of these stocks to increase my position in Johnson and Johnson. Which of these names (Boyd or Badger) would you reduce/sell.
Thanks again for your great service
brian

Q: BAD has fallen every week since the end of March, down 17% now, and continuing down. What catalyst would reverse this process and is it likely to happen any time soon?

Q: I also have a BAD question. Could you please comment on the recent organizational changes. It looks like someone internally is upset with the bottom line not reflecting the growth. Maybe the incentives are to big if they affect the financial statements that significantly. Maybe it's time to throw the shareholders a bone with a dividend increase. Mike

Q: BAD - I have two problems. First, the $7.4M charge represents 33% of cash flow. Second, the DU liability is valued at another $21M as a current liability on the B/S. How do I estimate the cash flow impact of the plan as it continues to vest? Rewarding mgmt for stock performance is great and aligns their interests with mine, but when 33% of the operating cash flow disappears I become a little concerned. Plus I cannot get a handle on the future liability this plan represents.

Q: 5i team,

A follow up on the previous question about BAD's earnings. The discussion around the deferred unit costs affecting the results so much seems bizarre to me. Is this something to be concerned about... something "bad"? Considering the past 90 days, it looks like the story is still well in tact going forward, long term. Do you have any concerns for the future given the developments in the earnings today? It seems like the reduction in margins should have been passed on to the customer... again, is this bad? Does this mean they will experience margin errosion?

Q: Hi, Your comments on Badger Daylighting results just released, please. Stock has declined and traded $37-$38 recently.Is it a good time to add ? Thanks

Q: Peter et al,
I am up from 21% to 27% in the energy sector (BTE, CPG,SGY) with the recent increases of Baytex and Cres Point. I am considering selling some CPG to invest in another sector. I have no industrials, pharma or biotech. I have been looking at Badger and Black Diamond. Reading previous answers you seem to favour both. Which would you recommend for growth with a little income? Thanks in advance.
Gary

Q: I have some shares in Badger Daylight (BAD) for the last couple of weeks the stock has been going down from 70 cents to $1.30 per day. I cannot find any reason for this decline can you please investigate and find out why this happening. When companies are doing well they put out lots of info but when they are declining they fail to give you any info why. Thank You. Bob

Q: Badger Daylighting (BAD-T) has been steadily declining since the beginning of April. Can you offer reason(s) and should I sell half position now in order to lock in some gains. My average cost is $31.67 and today stock dropped another $1.20 to $36.69. Or just continue to hold all my shares. Thank you

Q: what is your take on bad price drop

Q: Hi Peter,
I have been waiting to get into BAD. Would you start to add here or do you believe I should wait? Do you still like this stock and do you see much growth in the next 1 to 2 years?
Thanks
Luke

Q: Hi Peter and team. I am looking at adding 2 stocks to my TFSA account. I currently own ESL, STN, ACQ, CSU. looking at adding from list, BAD, HCG, CGX, DH. Out of these 4 stocks, which would be top 2? Looking for growth and dividend increases over long term time frame.
Tks Kevin

Q: Bad, Badger,
(Bad is Good!!) I have had 5 fold profit on this, sold some along the way, regretfully, but it is again about 7.5% of my unregistered portfolio. I am not adverse to risk, and I believe one has to let its winners run.But after such a good run Would it be wise to trim it to 5% for disciplined portfolio management, despite the tax bill. Having cash to redeploy also could be a could idea. It is easier to buy than to sell, and I need the kick to make me do it. Thanks for you input.

Q: Hi Peter, I have 14 dividend paying diverse stocks of about the same weighting and have about 1500.00. Knowing your view of "BAD" I was thinking of adding it but it would be a smaller weighting. My question: in general is it worth adding to the current holdings or adding as small weighting in a new co. Thanks, Nick
Sorry if I sent it twice not sure if timed out did't get confirmation of being sent.

Q: Trading/ Strategy Question: With the sizeable pullbacks today for CSU, AVO, ESL, HNL and BAD, would you see this as an opportunity to increase my position in any of these stocks, all of which are already owned - some at higher prices, others at lower prices. All are owned becuase of long term potential and are expected to be long term holds.

Q: Badger Daylighting is on fire the past week or so... basically since their last earnings report. I'm basically at 6% portfolio weighting and am getting closer and closer to having the diversificaiton and similar picks to the model portfolio. Any thoughts on trimming a little here? I'd actually like to let it run as I believe in the need for BAD's product and can see them being used more and more in Industry and even around my home town here in Calgary which tells me they are growing really well. I also see the long term need for their product as much infrustructure needs to be renewed without destroying it.

Your thoughts would be appreciated! Keep up the good work!

Q: Peter
Some great questions today. Badger has gone from a 2% initial position in my portfolio to a 10.5% position. I thought I had seen you write earlier that you might ride a winner up to 15 % of a portfolio is BAD that kind of a stock. Also I think you also recently mentioned that Badger could now be considered an Industrial does this increase the multiple applied to BAD or is there some other impact(s). Also could you provide the link to your twitter account. I lost it when I traded in my Blackberry. Thank you again for your excellent and timely advice.

Q: In the thrust and parry of market opinions, the Globe today referred to BAD as overbought with an RSI of 71. How would you rebut?

Q: BAD. Hello 5i group. I'm thinking of selling a position in Alaris & Highliner to purchase 1000 shares of Badger. Your input and advice is always appreciated. Thanks in advance. david

Q: Hello Peter....My energy sector positions makes up about 20% of the portfolio. This weighting is about 5 times the weighting of the 5iR model portfolio. With this in mind, I considering right-sizing, decreasing the weighting? And at the same time, this would consolidating the positions rather than having a number of borderline 1% holds that for me, likes spread the risk among a number of similar holdings in the energy sector.

Here are the positions with weightings. Badger 1.1, CanElson 1.2 PHX 2.4, Lundin Petro 2.4, Vermillion 1.4, Baytex, 1.1, Cenovus 2.0, Energplus 1.2, Painted Pony 1.4, Surge 1.0 and Tourmaline 3.4. These are held in a growth/capital appreciation non-registered account....that is now more fairly sector diverse since being a follower of 5iR.

What weighting or allocation % for energy would you suggest for this economic environment? And what stocks should I continue to hold or stocks that should be the core ones? (Could Badger be classified as Industrial?)

Many thanks.....Tom M