Investment Q&A

Q: Peter and Co., may I please have your response to the following quote from HWO's website? The drop in the stock appears to imply that there are significant problems. Only a few days notice was given before the departure.
"High Arctic also announces that Darren Greer is resigning from the position of President, International Operations in order to pursue another senior executive opportunity in an Australian exploration and production company effective August 19, 2016."

Q: Regarding my question earlier about 2 REIT's to diversify existing position in AX.un, I probably should have pointed out preference for market cap and mimimum current yield. I like (and anticipated) your recommendation of Chartwell however IIP.un sacrifices too much current yield and market cap security to make up for potential growth for me. Would CAR.un fit nicely given my desire for a larger market cap? Is H&R too much like AX.un? thx!

Q: Why the big increase on High Liner Foods today Aug.16 of over .12 percent, and on Stella-Jones is the decrease done or what is a good entry point to buy, thus is HLF overdone on the up side and is SJ overdone on the down size, thank you in advance.

Q: It seems that in my question asking you to rank DH, Disney and Cal-Maine, CALM was somehow dropped from what you received. In any event, if you could kindly address CALM in your response. Thank you!

Q: Is today's drop of concern or is it normal course of a correction? And what's your opinion of the company?

Q: I would like to commend Peter, and poster Robert and his post.

Right ON!!!

98% of people need a diversified portfolio and no one gets every investment to work out. No one.

Even though I am one who prefers a more concentrated portfolio with more effort and patience put towards my selections I never get everyone to work out as I had hoped and predicted. However, patience even mends the bad ones over time to some degree if they have good management.

During my continuing education in this investing in businesses thing (25 years) I have learned that even the big guys/girls that manage $1/2 billion and more routinely have an investment go the way of the DoDo bird or at least they end up selling after 2 years for a smallish loss (lottery win size for most people).

We all have to take ownership when we plunk our money down. 5i gives their opinion which is what we pay for. We may not agree always but ultimately it is our choice. 5i cannot get into more detailed explanations and analysis because many members do not want that nor would they understand it. This is just they way it is.

And I agree the markets are at all time highs which is scary. My finger is on the Shorting button, LOL. And am waiting for good companies to go on sale to buy.

The Shiller PE on the U.S. market, an often watched indicator, is at 27.0 today which is considered explosive, unsafe and dangerous area. Anything above 23 is unsafe territory historically. 15 is normal.

So be careful out there. Diversify and have some cash (amo, ammunition) sitting on the sidelines for good buy opportunities as they present themselves. PATIENCE is always rewarded.

Incoming dividends is lower our cost base, ACB, on many of our stocks (at least for me) so my at risk $ is getting lower as time passes.

Heck, even the road from Toronto to Calgary is not a straight ride. It goes up and down, and left and right but it gets one to the destination with some patience. And think of all the things one gets to see and learn along the way.

Have a great day.

Q: I sold my shares in AVO today and intend to replace them within my TFSA with either Shopify or any other that you may recommend. The ones that I do not have from the growth portfolio are GUD PEO QHR RRX and SH.
Is there a defined price for the recent share offering that would define the trading price range?
If your recommendation would be to go with SH over the others mentioned above, do you suggest I wait for now till the price settles - say around the anticipated offer price? Do you have an opinion on what that might be? The price was quite volatile today.

Q: New President and CFO formerly from Palladin who worked with Goodman and was instrumental in selling Palladin to endo has been hired at Knight. Once acquisitions are announced as she will surely make acquisitions this should kickstart the stock. Am I right in that Knight is sitting on a lot of cash?

Q: Hello 5i team,

Not sure why my question does not reach you as I've tried twice in the past 2 weeks.......hope it gets through to you in this 3rd attempt.

I am 61 years old and about 16% of my overall portfolio is in bonds. The rest is in income stocks and growth stocks similar to 5i portfolio. The yield return of fixed income instruments is so low currently and I am rather comfortable owning income stocks. Now, I have $60,000 in cash in RRSP and I have the following options. Please comment on each option and your preference and recommendations.
1. To buy several corporate bonds with maturity of 3 to 5 years and to hold till maturity.
2. To buy more income stocks like AW.UN or EIF.un
3. To buy ETF of inflation bonds
4. To buy ETF of high yield bonds
5. To buy ETF of US corporate bonds

Please advise preferred ETF for option 3, 4 and 5.
Many thanks.

Q: Hi, My question is about Canadian solar/wind energy companies. I saw some information on a small company, symbol EHT which got me interested.
i would appreciate your thoughts on the sector and any companies to consider.
Thank you, Bob

Q: Hi, I am a value investor and note that Auto parts makers are trading at historically low multiples even though earnings growth appears intact. Can I have your favorite of MG, LNR and MRE with respect to the best 18 month to 3 year return.

Q: The CEO has made clear that his number one objective is to grow revenue and to do so profitably. Short-intermediate term share price be damned. He is prepared to compromise earnings, increase debt and reduce margins to achieve this objective. At some point I presume he expects to drop revenue to the bottom line and show strong earnings. My question for you: is this a sound corporate development strategy and do you feel this approach will prove successful?

Q: can you look at the investment receipt for Algonquin Power. is it worthwhile at this value?

Q: TNT.UN announced today they are raising additional funds and issuing more shares Is this a concern as they just did another raise several months ago

I would be purchasing the stock for income only The payout ratio is 97%

Would you rate this stock a buy sell or hold

Thank you

Paul

Q: Hello Peter & Team, in my portfolio I have positions in all sectors of the economy except for materials. Other than gold stocks, could you suggest 2 or 3 names, in the materials sector, that have decent dividend and growth potential ? Thank you, Gervais

Q: Hello Peter:

Ithaca released their 2Q results on Monday and it appears that the FPF1 is on station and is in the process of getting its 14 anchors hooked up. What is your viewpoint of the results? Do you think that this stock is nearing the derisking point? I know that there is still a risk with dynamic commissioning of any platform but once oil starts to be produced in Nov the daily production should double to 20-25k a day. With the production starts where do you think this stock could rise to in a $50/bbl environment with an operating cost of $20/bbl?

Thanks,

Brendan

Q: May I please have your current views re Sapiens Int'l. Thank you.

Q: I am liking what I see with recent results and news on FLY and am looking at taking a small position of 1% possibly 2%.
Would appreciate your review in light of latest news and financials.
Thanks
John

Q: bce , aw.un, with stocks like these , they seam to stay the course when people get scared they even tend to go up. do you see any stocks like these with that potential ,thank you.

Q: Hi Peter, this company (Red Eagle Mining - RD) is way too small for my taste but has had a good run up. Does it look promising?