Investment Q&A

Q: What do you thinks of HBM's recent news release:
* HUDBAY MINERALS INC - PRODUCTION OF COPPER FORECAST TO DECREASE BY APPROXIMATELY 15%, PRODUCTION OF ZINC IS FORECAST TO DECREASE BY APPROXIMATELY 13% and PRODUCTION OF PRECIOUS IS FORECAST TO INCREASE BY ABOUT 31% COMPARED TO 2017 PRODUCTION - SEES 2018 TOTAL CAPEX OF $245 MILLION
The market seems to be punishing them and I wondered if this is now dead money or if this is an over reaction. I have held HBM in a cash account for 2 years and have seen it grow 200%. I want to continue with exposure to the Basic Materials sector to ride the global growth theme (I also own a full position in TV) and wondered if I should HOLD or SELL HBM. If sell, what would you recommend replacing it with in the same sector,

Many Thanks
Scott

Q: Hi there, I watched a guest on market call yesterday (Jason Mann) discussing CGX and he was saying the payout ratio was over 100% and expected a dividend cut. Is 5i looking at different numbers and if so what payout ratio do you come up with. If it is over 100% would it not be a candidate for removal from the income portfolio?

On GUD you just answered a question from Brian approving of a move to transfer GUD from a regular acct into his tfsa to shelter future gains, which makes sense, but also to "crystalize losses". I thought the 30 day rule would apply in this case, would it not? I don't believe his loss would be allowed if he did this move. I know if he had a gain , he would have to report and pay cap gains on it. Funny how it only works one way in the govt's favor.

thanks Tom

Q: I have a question about Knight Therapeutics. I hold GUD in a cash account at a loss and thinking of moving part to my TFSA as my 2018 contribution. This would top up my TFSA as well as crystallize a loss. I would like your comments or the appropriateness of this move.
Thank you for your valuable input.
Brian

Q: Hi Peter & Ryan,

I have shares of Russel Metal since 2003. It is a very well run company with a good management and pay a good dividend as you know.

Do you see them being taken out one day?

Thanks,

Do you see
Thanks,

Q: Hi, I own the above companies mainly for income and some growth. Would these be negatively impacted by rising interest rates and if so, would a switch to BNS or SLF be warranted.

Thanks

Q: Dear Team:
I have been retired for 5 years now and have been self investing with a return of 13.58% on average. I have reached 60 years and feel that I should have more fixed income as of right now; I have about 12% of fixed income. My portfolio size is over $1M. I have 2 questions for you:
1) Do you think I need more fixed income?
2) If I was to increase my fixed income, I am thinking of an ETF for either Re-set Preferred Shares or Short Term Corp Bonds or Real Return Bonds. Which do you like?
Thanks for your time
Jim

Q: Your thoughts on picking up shares of Brookfield Property Partners at these current levels (52 week low). I would make it a long term hold. Always appreciate your answers. Thanks

Q: As a place to park short term money what percentage of a portfolio would be consider a maximum or prudent? Although not Money Market what are the main plus/misuses for using it over M.M. or T.Bills?

A general question on your responses: A response to a question I posted on Fairfax India specifically about the fact it appears as CD but converted to US upon purchase was responded to as private. Unless I hit the wrong button by mistake, are there reasons you might decide to respond that way?


Thanks
Mike

Q: I am a retired, conservative, dividend-income investor with a pension, CPP, 30% fixed income (annuities, Fisgard Captial) and 70% equities (14% MFs, 16% ETFs and 40% mostly blue chip stocks). The question relates to the performance of 2 of my remaining MFs, those being Sentry Cdn Income and Sentry Global REIT. I receive a 6% dividend on my ACB for both of these, which I am very pleased with.

SC Income = held it since 2011 and have a total annual return of 9.7%, which I am happy about. However it is not performing well the last few years. Is it simply the portfolio was positioned poorly (in hindsight) at the wrong time? What is your impression of management?

Sentry Global REIT = held it since 2012, did well initially but recently only returning 2%/yr. I sold some last year and now have a half position. Again, your comments on sector performance and quality of management are appreciated.

Thanks...Steve

Q: Peter and Team:

I currently hold AEM as the sole "gold" stock in my portfolio.

I was thinking about switching to FNV.

Could you please comment

Thanks as always.

Phil

Q: I am looking to get my son started on investing, has minimum cash. Could you suggest 5 companies to start with (with price per stock under $15 and some growth potential over 1-3 years)?

Expert opinion on ABR-N, CVS and CIX-T (4 companies he's researched and thinks are a good bet)

Q: Good Afternoon 5i,

Excluding the big banks and MFC, SLF, what are your top 3 picks for Canadian financials?

Thanks!

Q: Please provide an update on Bruker. I purchased this a little while back after it was mentioned as one of your prefered names in the US small cap space. It has not done much in the the last two months but I am happy to hold it if it you still view it favorably.
Thank you
Karim

Q: Dear Peter and Team,
On Jan15 you answered that debt for the pony is more than 6x cash flow.
from their website for Q3 cash flow for 9 mos was 79.5 mil-and is likely
100mil/year. Debt-bank debt93.8m-plus senior notesof 141.4m plus convertible debt of 44.6m adds to 279.8mil. Total net debt with working capital deficit is $336mil. This is all at trough natural gas prices. Production now is over 60kboe/d versus 42,353boe/d during Q3/17.
They do not plan on adding more debt in 2018. What am I missing?
Thanks for your help.
BEN.

Q: Hello,

Can you please provide some comments on RYU? It looks like a direct competitor to Lululemon. I'm wondering if there is enough justification to put a small amount of speculative money into the name.

Thanks,
Danny

Q: what do you think of the current situation, ie management effecting a buyout?

Q: I have held Crew for years in the 6.00 range so I am down substantially. In the past six months or so it has risen to over $5:00 only to do a complete reversal
Back to the $2.70 range. I thought it was going to break out or be bought out . Is it time to move on?
Would you move on if you were still managing money with this company in your portfolio. Always hear about good management who have done it all before
And they sold some Montney assets and it trades a lot but never gets out of the barn.

Q: Hi,

5i talks alot about "momentum" behind stocks. Increasing volume + increasing price = good situation.

Are there one or two indicators you recommend to monitor momentum? I'm thinking of things like the True Strength Index, On Balance Volume, Williams Accumulation/Distribution, etc. I might be way of, but am hoping to use one or two that I can review to assess where an equity might be going.

Thanks,

Cam.

Q: I own Birchcliff and at a loss currently. Debating to average down and make it a 5% holding in a diversified portfolio. I do own tourmaline which is 1% and it is down as well. So far my bet on NG is not working but if i hold on to the survivors things should turn around. Is Birchcliff worth the risk at a 5% holding assuming it can last on current prices of NG.

Q: with avo recent large contracts would you consider it a strong buy
and when do they report fourth quarter. thanks donald.