Investment Q&A

Q: a comment

You can post this in the forum if you like Peter and team...

First off, enjoyed your session on Market Call. Very well done.

More importantly, what I really took from it was the consistent 5i message which has now repeatedly (we must drive you nuts) mentioned the philosophy of not using any kind of "target pricing" expectation/strategy. Ironic for me personally, considering just yesterday I asked where you thought Amaya might end up. I will be doing my very best moving forward to not ask about target prices although I admit, it will be tough.

I appreciate more than you will know the lessons you consistently emphasize - faith in metrics, long term investing, and not trying to invest/divest based on target pricing and/or timing the market. All things every once in a while I am guilty of not observing.

Have patience with me 5i team. I will try and do better.

Thanks for all you do

Gord

Q: CJ-t Cardinal Energy
I bought CJ in April and it has moved up steadily.
Now there is news of an acquisition, equity financing, and
dividend increase.

I'm considering buying more. Your advice, please.

Q: Peter,
I know it is repetitive on my side and repetitive on your side..
but, tell me even this type of information is not even make you blink?
''Corporations are now the single largest buying source for U.S. stocks – authorizing buybacks of their own stocks to the tune of $754.8 billion in 2013 alone.

And it’s a long-term trend. According to Birinyi Associates, for calendar years 2006 through 2013, corporations authorized $4.14 trillion in buybacks of their own publicly traded stock in the U.S. — raising the question, just what kind of a bull market is this?

JPMorgan Chase, the largest U.S. bank by assets, has turned share buybacks into an art form, buying back a whopping $17,945,000,000 of shares from 2010 through 2013. In just the calendar year of 2011, JPMorgan spent a stunning $8,827,000,000 on stock buybacks''.

There is debt attached to that, it is not gone! 4 trillions buyback!!
To me this is madness in proportion of the 2000 and 2009 madness.. So ''they'' think they can get away with it this time.. Of course attached to that is the explosion of derivative (http://www.advisorperspectives.com/dshort/updates/NYSE-Margin-Debt-and-the-SPX.php?utm_source=Triggermail&utm_medium=email&utm_term=Markets%20Chart%20Of%20The%20Day&utm_campaign=Moneygame_COTD_072914) leverage but everybody is on the same side of the trades as usual. Give me a serious black swan and you still do not worry?

Thank you for having again the patience to explain the reasons why you are so little worried.
CDJ

Q: BDI - should we be concerned with the press release and decline?

Q: Hi Team, does CGX look "interesting" at these levels. I took a small position already, time to add? Thanks.

Q: Can You call Zargon's (ZAR) latest report?The share price dropped following the news. I would appreciate your comments. Thanks for all your help.

Q: I read this morning that CGI was able to generate 1.1 billion of cash flow, surprising analysts positively. They reduced their debt by 500 million. Earnings per share met expectations. Valuation is at 16.5x trailing earnings. Now that the debt and cash flow concerns are gone, it seems to be the perfect time to buy. What do you think about earnings?

Q: Hi Peter and Team, regarding Mandalay, MND, any further thoughts or updates since your last response in March on MND? Thanks!

Q: Hi Peter and 5i Team,

I'm curious about TRP rising like it has the last few days. I can't find any news; maybe you can comment.
Thanks for everything.

Q: WIN Wi-lan of course! Numbers are in. Market likes. Whaddya think? Skip Q if already asked.

TIA

Q: What do you make of the insider buying regarding JE.T?

Q: hnl, With the release of 2nd quarter 2014 results (released yesterday) below analyst expectations, what would you suggest, keep the stocks or sell it off now and wait for a turnaround in two quarters.

Q: Could I have your thoughts on AAA.would you say its a buy now and a potential take over candidate?
The Israelian company has a big stake.
Thanks

Q: Hi Peter and Team,

What are your thoughts on Axis Capital Holdings, AXS.US

Q: Brookfield asset management has a lot of subdivision.Is it better to own BAM for growth or different subdivision ( power,real-estate and etc.)?Thank you,ebrahim

Q: Hello Peter,
Thanks for your prompt replies and expert advice. I was listening to BNN last night, and interesting points were made. I have two questions:When companies buy back stock, the EPS goes up which is good for the stock; however, does it not reduce the book value. I was looking at CNR and the stock is trading over 4 times book. If this is the case, how is it that CNR keeps ticking higher (is it because it has a high barrier to entry and investors feel there is safety in the stock). Second question that came up is that the bank stocks have not hit a top. What metric would suggest a top in the banks? Is it if the PE goes over 15? Thanks again

Q: Hi folks,can please ask opinion on Q results for Norbord nbd/t,seems a beat of eps .20 vs estimate of .10. Would u rate buy/hold and do u feel the 10+% dividend is safe,have 1/2 position @ 23.10,thanks as always,jb

Q: I own PWT PennWest petroleum bought it for a turnaround and management Rick George.
News this morning not good ie accounting irregularities. Those words always make me cringe.
The only comfort is that the company itself has found these irregularities and not outside accountants.
But they say their debt covenants are at risk. Sell right one at the open or don't panic and wait for the review. Where there is one cockroach there are usually more but I am inclined to give PWT some slack. What do you think with all your experience? Thanks.

Q: Hi Peter and Team, regarding Macro Enterprises, MCR, do you see an up-tick in share volume over recent week(s)? Good or not so good? Any rumours? Thanks!

Q: Is this a bad time of the year for auto stocks? ACQ continues to move downward, as does LNR while MG is basically drifting.