Investment Q&A

Q: With regards to your earlier response to a question on ENF closing the asset transfer deal, yesterday they announced shareholder approval and expect closing of the transaction to occur on in 10 days. At this point, is there really much risk of the deal not closing?

http://www.marketwatch.com/story/enbridge-income-fund-holdings-inc-shareholders-approve-acquisition-of-canadian-liquids-pipelines-business-and-renewable-energy-assets-from-enbridge-inc-2015-08-20-181732718

Q: Peter, it is my understanding that the Enbridge deal passed Aug 20 and is to close Sept 1. Do you think that may not happen? There web site says it will. I phoned them and they said it will? Ken

Q: What is your view of Agrium as a long term hold.

Q: I know you mainly look at Canadian companies...but could you have a look at this one. LL just released what I would view as critical results. The laminate flooring in question which has caused much of it's decrease in share price was just announced "Well within the normal range." That being said could you have a look at the balance sheet and what your thoughts of revenue could be with this behind them going forward. Also if you might know the cash on the balance sheet and any issue from this perspective going forward. Thank you for your great work. Jason N

Q: ENF keeps going down, is it just market related? Is it good long term buy at this level and in this market or should I wait.

Thanks,
Milan

Q: Back when you were running your hedge fund and you faced a market like we are currently experiencing can you tell us how you managed/modified your portfolio - did you sell low quality losers that were down a lot to buy high quality winners that were down less? did you lower the risk in your portfolio by buying lower beta dividend stocks or did you double down on your best small cap/high beta stocks that were down a lot? Did you buy in stages on the way down or did you wait for a catalyst that told you the market may have bottomed? Since I have 30% in cash just wondering how I should navigate this market. Thanks

Q: With the carnage that has been happening in the markets for the past few weeks, and the severe drops in the markets, I assume you would agree we are in correction mode. Looking into your crystal ball, just how much further do you expect markets to drop, and other than oil, what sectors are going to be effected.
As usual, thank for you insight!

Q: Peter what the cheapest / easiest way to convert Canadian $ to US dollars. I also need to keep the funds liquid. I recently sold my house and do not need the funds at present. Do you see further downside to the Canadian $.

Q: I have some stocks I only own half positions in as I was waiting for a market pullback to take them to full positions. Well the market pull back is here, but of course we don't know how much further the market will fall. How do you suggest I approach buying more. Should I buy it all now, half now, more later or wait until it seems things have bottomed?

One of the stocks I want to add to is CXI. Do you think the current price of 32 dollars is good value?

Q: Hi Peter and 5i Team,

I currently own a good amount of GUD, mainly due to management, large cash reserves and zero debt. It has performed excellent the past few days. I've seen stocks I have been watching such as WSP, SJ, AYA and IT sell-off sharply over this time. Do you think a partial switch out of GUD into any of these would make sense?

Thanks

Q: Looking at the current pullback as a future opportunity, what 10 companies in your coverage universe would you recommend as a purchase once the bloodletting stops. Do not worry about weighting or sector and whether or not they are an income or growth story.

Q: What dividend stock names would you be adding to in this selloff if you had money to deploy?

Q: I haven't owned energy for a while and am waiting to buy 2-4 of these: HSE,WCP,PKI,IPL,ARX,GH. Please rank them in priority. Assume I'll buy them today.

Would you replace any of the energy stocks with SU or CNQ? Thanks

Q: You suggest a 5% weighting in energy at this time. If I were to reduce my energy holdings to 5 %, it would involve taking a significant loss (and buying high, selling low). I'm ok with just holding on unless you think that's a bad idea. What are your thoughts on this? Many thanks for your steadying hand.

Q: With CPG's recent free fall far exceeding the recent decline in oil, do you expect the company's entire senior management to be booted out? Thanks as usual.

Q: Where do we hide in this market?

Q: In a reply recently, you mentioned that there is no sign of a capitulation yet. Will you have a posting when you think capitulation has, or is, happening. Thanks

Q: In response to a recent inquiry you indicated Casey Hoyt, one of two new principals at PHM, owns 1.5% of the shares. Canadian Insider shows both he and Michael Moore own 19 million shares each and Max Hoyt owns 4.7 million. Collectively, that totals just under fifteen percent. In addition, according to Bruce Campbell during his Wednesday BNN appearance, they paid $1.46 per share. If these numbers are correct, that certainly provides a huge incentive for the new guys.
Has PHM commenced their share buyback and would their listing application for the TSX be in jeopardy due to price erosion?
Thanks.

Q: I have pretty much gone from thinking I "understood" the investment risks of preferred shares to now a singular emotional thought of "I hate these pieces of $*@#. I am currently looking at a 25% capital loss on the CPD ETF with no end to the bleeding in sight. The yield can't ever come close to compensating for such a large capital loss. I had the apparently misguided belief that a preferred share ETF like CPD would have less volitility and not put my capital at as much risk as an equity. It would seem preferreds combine the worst elements of equities and bonds. My question is where did I go wrong and do you think I would be better off booking the loss and moving on to something where I won't spend so much emotional capital being ticked off. Thanks

Q: I own some CRH and would like your opinion on its current state.
It seems to be dropping a bit more than most. Any fundamental news or are investors just spooked for now? Would you consider it a good hold?