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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: My timing was terrible on purchasing and holding 200 ACQ shares: I'm down 72%!!! Should I throw in the towel and move on? Unfortunately I don't need any more capital losses as I already have too many!
Read Answer Asked by Brenda on December 11, 2015
Q: Peter,
It is this time of the year, Xmas and the ever favorite Xmas card. This one is for you and your coworkers, via Abnormal returns...


Quote of the Day

"So I genuinely believe that if you can find a financial advisor who's trustworthy in the true sense of that word—someone who is competent and knowledgeable and whose services are fairly priced and who isn't rife with conflicts of interest, you're a very, very lucky investor."
(Jason Zweig)

Read Answer Asked by claude on December 11, 2015
Q: With all that has happened in the global oil patch, has your opinion of TVE changed or is it still a buy or hold? Ted
Read Answer Asked by Ted on December 11, 2015
Q: I currently have 25% of my assets in $US but only 20% is in US stocks. The other 5% is EEM. I would like to increase the US component to 25% but that would give me a 30% $US exposure. While I think that the US dollar will remain strong for the next year, I am wondering if 30% exposure is too high. Should I sell EEM, which hasn't done much but is my only international exposure (other than multinational US companies), move up to a 30% UD dollar weighting or stay the course?

Thank you for your insight.

Paul F.
Read Answer Asked by Paul on December 11, 2015
Q: Hello Peter and 5I team,

What is your current view for BTE. I am down about 70% and would consider adding more. Is this a good entry point?

Or, is there an alternate small or mid-cap name that has also come down in valuation in this sector that you would consider a suitable alternative to BTE?

I look forward to reading your thoughts.
Read Answer Asked by SG on December 11, 2015
Q: Congrats on success of this service. Can tell by increasing question volume & time required to read answers. IMHO questions should be limited to 5 or 6 lines.
Am paying for your answers not the theories of others which can ramble for 1/2 a page. Ramblers should be referred to the new forums page. Thoughts??

Joe
Read Answer Asked by Joseph on December 11, 2015
Q: Hi team:

What do you make of the RRX Viking acquisition and its $190 million budget for 2016? What's this company's prospect going forward? I already have a small position in this name, should I consider increasing my holding?

This is one O&G company that seems to be going against the grain in 2015 as its share price actually increased about 10% this year. Perhaps it is one of the few keepers in a much depressed sector.

Your overall comment on RRX would be much appreciated.
Read Answer Asked by Victor on December 11, 2015
Q: Cal-Maine has been in a steady downdraft over the past number of weeks. Can you provide any insight as to what is causing this? What is your current view on the company and assessment of their recent results. Where do you see this stock going over the next 12-24 months and why? Thanks.
Read Answer Asked by John on December 10, 2015
Q: For sector allocation purposes you mention 10% utilities and 10% energy for a conservative portfolio. Which sector do the pipes,TRP,IPL, and ENB fit into? Thank You Ron
Read Answer Asked by Ronald on December 10, 2015
Q: Is there any reason to continue to hold Twin Butte Energy ? Would it be better to take a tax loss an move on. my energy exposure including TBE is 5.7%. TBE is .4% of my total portfolio. $1.07 is my cost base. Thanks for your thoughts.
Read Answer Asked by Don on December 10, 2015
Q: Posting only small tastes of the new ETF & Mutual Fund letter is too much of a game of "Here kitty kitty," and doesn't seem appropriate for a loyal following that is glad to spend money for what they feel is a good value. Could you post either the full issue or a couple full articles from it? Thank you.
Read Answer Asked by Jerry on December 10, 2015
Q: - There has been a lot of downside with the attempt to buy office Depot and that fallout but are the fundamentals also a mess? What's up?
Read Answer Asked by Barb on December 10, 2015
Q: CBL has turned into a falling knife. Past commentary suggest that the company may go private. Is going private essentially a forced sale at depressed prices? More specifically, would it have the effect of locking-in current shareholders' losses, or is there any way shareholders can benefit from a post-private recovery? Is it fear of this event that is now driving the price down?
Read Answer Asked by John on December 10, 2015
Q: KNow this has been a hot topic lately. But the reason for the fall might be a report just issued by Veritas calling DOL a sell.

Here is what they said:
"Canadian equities
Dollarama Inc. (DOL) - $81.70
Need-to-Know Veritas: Sell (PT $79)
Dollarama reported record GPM of 45.9% compared to historical average of 42%-43%, which led to a 35% increase in EBITDA to $154.8 million. Dollarama’s multiple price point strategy is the key driver of its strong SSSG, with average transaction size increasing at 3%-6% for the last several years while traffic increase was a mediocre 1% on average. Management indicated on the conference call that it will introduce new price points of $3.50 and $4.00 in the second half of F2017 and moved to a new metric: % of sales above $1.25 (instead of above $1.00 previously), which signals that the retailer is close to reaching a saturation point at the lowest price levels and needs higher prices to supplement SSSG. Given the company’s reliance on SSSG and growing expectations for ‘beat and raise’ quarters, a saturation point could create notable downside in the name should the company see slower than expected growth growing forward.

Sheldon
Read Answer Asked by Sheldon on December 10, 2015
Q: To a largely great extent, figuring out price action (market action) is not an intellectual exercise as much as it is an emotional one. That aspect of analysis should not be minimized though 5i dismisses this. 5i can't understand the sharp drop in pipeline stocks. Before their rout, the sector had been trading a 1 or 2 --even 3 standard deviations from 10 year Price/CF average and it became a very crowded trade. This sector is a perfect example of a sector being bid up for no reason other than yield and relative safety. It's been a disaster over the last 12-18 months. They are better priced now but the next shoe to drop is in Telecoms. Comment?
Read Answer Asked by Norman on December 10, 2015