Investment Q&A

Q: How much worse could this media nightmare get?

Reading everything that I can get my hands on, re: Concordia, the consensus is that "everything is fine" in the accounting department, and once the media flak settles down, this is still a good company, overall. We may all be in for quite a ride, but it will survive. That's what everyone is saying.

Nonetheless, does this not beg the question why they did it at all, and why they did it this way? The more I read, the more it makes me think that this is a case of the cobra swallowing the elephant: everything is digestible, but how long will it take; and while things are being digested, will the cobra survive, or starve on its own cleverness?

Q: Hello 5i,
Could you direct me to a bond fund in the u.s. Denominated in u.s. Dollars? Do they have anything similar to our GIC's?
Thanks

Q: HI GUYS
I Hold 851 shares TPH and is no concern .Recently they added
851 rights, could you tell me something about them ,and in your
opinion what to do with them . Thxs Bob

Q: Peter and team could you give me your take on PNE is there any future for this company.

Jim.

Q: Peter and team can you tell me what you think the future holds for TOG. Are the div still the same as it was a year a go.

Jim.

Q: What is your opinion of the quality of the management at Petromanas? I believe they've made some dubious decisions such picking the wrong rig(2000hp instead of 3000hp), and spending money in a futile attempt (so far) to prove reservoir connectivity between 2 of their main prospects (one of which is a 100% wildcat)

Q: Hi 5i Iam looking for the next possible amaya or CSU. I like stocks trading under $10 with big potential futures.It could be any sector. I was thinking GUD based on your intelligence.Thx for all your help.

Blake

Q: Hi peter
I took a half position of Vnr As I have trimmed a overweight position in another stock.
Can I have your comments on this move
Kind regards
Stan

Q: Been following this company since the aggregate property was its main asset. Now it appears to have defined an attractive gold prospect near Stewart, BC. They've been releasing a steady diet of quite spectacular drill results ( their words ) the latest being 24g/t over 15m. I think it was you that recommended it years ago. What do you think now considering its on a former mine sit with infrastructure in place?

Q: Peter and Staff
For a long term small $ hold, would you please rank them 1,2 and 3 with logic........and also if they each are BUY,HOLD or sell.
Thanks for all you do

Q: I am now trying to clean up bond holdings in the portfolio they used to manage. Some like Gasfrac Energy bonds are no longer recoverable, but there are few other bonds/names that concern me. These are TransAlta DDCALL 7.30% 22OCT29, SIRIUS XM 5.625% 23APR21, AUTOCDA SR NT 5.625% 25MAY21, and CORUS ENTERTAINMENT 4.25% 11FEB20. There are also coupons/residuals from Bell Canada with maturity in 51 and 54. After Gasfrac, my main concern here is that these companies may not even exist on maturity dates. Do you see any of these bonds or coupons as high risk? What happens to a bond if the company is bought by another company? Would it be a better idea for me to sell all individual bonds (there are 20+ in my portfolio) and buy a bond ETF instead? Thanks for your help!

Q: Hello team Can I get your thoughts and analysis on nvda. It's been on a sharp rise recently. Do you still see some good growth in the stock over the next yr or so. What would be a good entry point now?

Q: Hi 5i: With PHM shares under $0.60, their market cap is down to about $200M. Isn’t that roughly equivalent to their annualized revenue guidance based on their expected run rate at the end of the current calendar year? My understanding is that, but for their acquisitions-related expenses, their underlying business has been operating profitably for some time. Have I got that wrong? It seems like some very significant upside potential is being compressed within this story. I understand that it is a ‘show me’ story since the management changes and insider shareholdings shuffle. I also understand that there is some shifting of the balance toward organic growth opportunities and possibly less dependence on acquisitions in the plan to maintain the growth profile going forward. I see the big question (and risk) as whether the new management can deliver on its promises, to at least maintain the growth level achieved by the prior management. If they can deliver on the numbers guided to, wouldn’t PHM also be on its way to becoming a very compelling ‘value’ investment? Thanks!

Q: Hi Peter and team,

You mentioned in your answer to Gordon "Bloomberg has a note indicating the debt issue is having a tough selling process, but the financing is there from the backers..." I just want clarification, does this mean if Concordia cannot sell enough of it's debt issue, the "backers" (financial institutions?) WILL FUND the remaining money owing so the acquisition deal can go through?

It is reasonable to assume that if the deal does NOT proceed Concordia's balance sheet would look more favorable in the short term? That they would then have cash on hand to wait for another acquisition or pay down debt? It would seem to me that either scenario (although very volatile in the short term) would be OK for a patient investor in the long run.

You quoted $4.25 USD per share earnings for 2015 before the deal; does Concordia not give an earnings price range (i.e.: $3.75-$4.50 USD) or just a single target number?
I'm also assuming that if the acquisition added say only $0.80 USD per share and you picked up the stock at $35 CAD which looks possible, and it got back to trading at 10 times earning, that you might see a 30%+ return in the next year. Or even a multi-bagger in the next 2 years? Not suggesting or endorsing to load up of course!

I have more questions on Concordia but I will put them in a separate submission. Please and THANK YOU in advance for answering all these questions as accurately and detailed as possible! I think your responses will not only greatly help myself but all your members who have been asking so many questions on this deal. I think I can speak for everyone when I say that I find your services invaluable and irreplaceable!!!

Thanks again, Shane

Q: What are your current thoughts on RUS? I’ve owned it for many years. Largest holding the avg cost is below $15. However, in one account the avg cost is above the current market and I’m thinking of averaging down. They announced that they are redeeming $174.34M of 7.75% debentures (all). What does this do to their overall debt situation? “The redemption of the debentures will be financed through Russel Metals' existing credit facility.”

I assume the market thinks that a dividend reduction is in the works. Currently yielding 7.21%.

This has been a good holding and the management was/is well respected. What am I missing? China syndrome!

Thanks.

Q: Hi Peter, Ryan, & Team
Could you give a current opinion on Lonestar West. The compny seems to be expanding, but could the headwinds sink the ship?

Q: Any thoughts on Garmin after they warned?

Thanks,
Heather

Q: What effect would there be on bond funds such as XHY, XBB and CBO if the US Federal Reserve went to negative interest rates? I hold all in a registered account.

Q: More a question about strategy. It seems my discount broker charges me around 2.5% for the exchange conversion when I buy a US stock, and probably the same for dividend payments and sells. Is there any way I can reduce these charges? Thank you.

Q: I owned Calloway reit and just noticed that it has changed and the name is now Smart Reit. Can you tell me if this REIT is still worth holding and how did the shareholders fare in the exchange.

Regards,
Peggy Boven