Investment Q&A

Q: Everyone talks about the headwind of demographics on growth. With the baby-boomers retiring, the workforce is shrinking and that compromises growth, resulting in lower expected returns from investing in the markets. Are you aware of any research that discusses when the growth in the workforce from the next generation will balance out the decline from the baby-boomer generation? Also, how much of a factor is immigration?

Great service, Thanks,

Q: Hello Peter,
Do you have an opinion on Cameco’s recent quarterly results? The outlook did not sound positive and I think the stock price is headed nowhere for at least one quarter. If you concur, then at least in the short term (3-6 months ) I want to consider selling CCO and parking the money in Intertain. Now, I have a full position in IT and recently went overweight AYA @18. IT has also been beaten down and my theory is that the downside is limited but the snapback in IT is potentially high based on what valuation AYA receives from investors/market; plus the probability of decent earnings which the management seems confident. AYA upside is probably capped but IT could be pulled along and be the beneficiary. I am looking for a quick home run (30-50%) in the short term to cheer me up as the long term investments take a battering. The intention is not to be overweight in IT for the long haul. I would like your opinion- should I sell Cameco or not, and if I do, should I park it in IT or keep it as cash while waiting for the market to settle down? Or would you suggest something else? This is in the RRSP so no tax implications.

Q: Hi Peter. I know you have been negative on BGM in the past. Have your views changed since Friday’s closing of Osisko’s financing. I put much emphasis on management in the PM sector. Since Osisko is now heavily entrenched in BGM’s management structure and both Osisko and Eric Sprott own a large portion of the shares o/s, I’m thinking of establishing a speculative position in BGM. What are your thoughts on this. Thanks, Ralph.

Q: I am thinking of taking a small position in Sunlife Financial, what are your thoughts given the following information ? I already have positions in Manulife, Great West, Power Corp. I realize that Power owns Great West but both are good companies. I love Canadian dividend paying companies and would probably never sell once acquired.

Q: Good Morning. I believe that some time ago, PHM was going to conduct a share buy back. Do you guys have any idea how that went. They should be able to retire a lot of them pretty cheaply these days.
Thank You

Q: My question concerns how significant a role Reits should play in an income producing portfolio. You mentioned in an answer to a members earlier question on Jan 27th that Reits and high yield stocks can still have a high degree of correlation. I look at dividend growers more so than high yields.

Also Please rank for long term holds your weighting preference in an income portolio for financials, telcos, utilities and reits. ( also any that I have missed.)

Many thanks

Paul

Q: I own some Couche-Tarde and 5i has said that it is one of its favourite stocks in the consumer sector. With annual cash flow of a little less than US$1 billion and a market cap of US$24 billion, it is trading at 24 times cash flow. This seems very high and appears to be discounting substantial cash flow growth. They have been able to grow significantly in the past. How convinced are you that Couche-tarde can grow cash flow in the future to justify its multipl? Will 5i be writing a report on ATD.b in the future?

Thanks, Gtreat service.

Q: hi
I hold Peyto in a number of non taxable account to back 15 years its been great. In January 2016 I made RRSP contributions in 3 accounts, mine, wife and daughter, I bought pey the stock has gone from 23 to $31 plus I get the Jan divi. I have sold 1/2 smiling at my luck. The question is why the big move up and why gas is still low $2.00 ?

Q: See Exco sold off substantially here on Friday, I guess market didn't like the flat sales once currency was backed out this quarter. Good opportunity to pick up some shares here? Appreciate your insight.

Q: Hi Peter and team,
I recently owned some of St. Andrew's Goldfields taken over by KGI. Nice recent run up for KGI. Based on fundamentals, do you think KGI has much more upside over the next year or even longer term, even if gold stays approx. same level? Currently have very little gold. Should I consider rolling my gains on a small position into a different gold stock? Thank you. Tulio.

Q: On Feb. 3 XTC released what appear to be quite acceptable results, but the stock has since been punished-- today down over 9%. Is there something else out there other than the rising CDN dollar?
Harold.

Q: I currently own Concordia in my TFSA in USD. I'm down 30%. I was thinking about selling and buying Starbucks and then buying Concordia in Cdn dollars with 2016's contributions. I need some Restaurant exposure. Do I have to wait to buy Concordia in the Canadian dollar account? Can I get your thoughts on this strategy?

Q: A recent SeekingAlpha article argued that CLCT will be forced to cut its dividend by about 70% due to poor cash flow. What's your take?
Thanks!

Q: So in mid 2013 I bought 500 shares of this at $18.50 a share. Wanting to protect my gains, I got stopped out of half my position in Jan at $38.50. Of coarse its now over $44 and is a media darling with a Globe investor 5 star rating, a favorite of Gordon Pape's newsletter and yours. I think it is ahead of its self and I want to know if you think its still good value and if further profit taking is prudent or if I should average up here. It's only a 1.25% holding for me now. I am wondering why the PE is showing a whopping 262? Thanks

Q: What is a derivative in the financial world? I have heard that derivative values issued worldwide are enormous, in gold well over 100 times the value of all physical gold existing. Are we facing a bank problem with these entities that will repeat the subprime mess again?
Mark Stewart

Q: Have sold into this ?relief rally ---sitting with $ 100,000 cdn . If the cdn $ is going to go back down to 64-65 range --Would conversion of CDN cash to US cash --at least 1/2 of my position---waitfor the correction to 65 range --then convert back to CDN $
--as long term I feel CDN market will out perform Us --later this year ---? comment

Thanks ---Don

Q: should i sell these at a low or just wait it out . i was a member of a newsletter and have come to the realization that i have been sold on some stocks by a good pumper and know he may have sold these and is pumping some different stocks i have lost a lot of money .what would you recommend for along term hold that has potential to get a bit back. thank you!

Q: In my overall portfolio covering all sectors, I had 4 equally weighted stocks in the industrial sector (BIN, CP, WSP and STN), but recently sold BIN. I'm considering selling CP as well and adding one or two other industrials to go with WSP and STN for a longer term hold. What do you think of this approach, and are there a couple of stocks in this sector you would recommend, in order of preference? Thanks

Q: Your general thoughts on the company (growth prospects, balance sheet, etc.)

Thanks!

Q: Hi Peter!

What broad market and sector specific ETF's that are currency hedged would you recommend for the US market for a 2 year hold?

Ian