Investment Q&A

Q: I hold Baytex in my TFSA. If I sell, I cannot claim any capital loss in this account. With COS cutting their dividend, I'm starting to think Baytex will be next, and then go down even more? What do you recommend - sell and replace with a better energy stock with a brighter future and better chance of recovery - or hang in for the long term with Baytex?
Thank you.

Q: Could you comment on Direct Cash. Yield is 8% and it has moved up nicely recently and I am thinking of taking a position.

Thanks for the great service.

Q: Hi 5i, Could I get your comments on the U.S. defense sector in general as well as a couple of suggestions for growth in the area. I've looked at TDG, but I know there are lots of other possibles (NOC, LMT, COL). Thanks for your help.

Q: Dear Team - could you please give us your thoughts on Mart? Two very significant and positive NR's were released and a 3rd should come before Christmas on the closing on OML 18. The stock is still down YTD and things have never looked better for the company. Thanks for you feedback.

Q: I want to buy RCL, but it keeps going up. Is it getting too expensive to buy now?

Q: Hi Peter and Team, this is about the news that COS would be cutting its quarterly dividend by nearly 43 per cent. I have made a quick calculation, and based on the closing price of today of $10.98, the new yield would be of about 7%. Does my calculation make sense? If yes, is it okay to buy COS shares at this price? Thanks, Gervais

Q: Peter, so many questions around energy stocks. Let me ask questions around your daily routines from the time you wake up till you go to bed :). Do you check the futures market when you wake up and before you go to bed, listen to BNN or CNBC during the day, go thru Bloomberg see commodity prices, check out stocktwits, read broker research reports, etc..Just want to find out what you daily routines are with regard to stock markets. Thanks.

Q: hi folks,with cos/t cutting dividend 42% and production where CFPS15E decreased app $2.52 to $1.65,is this stock an avoid or is all bad news factored in and worth starting a position around $11sh,thanks as always,jb

Q: http://www.stockhouse.com/companies/bullboard/t.cos/canadian-oil-sands-limited?postid=23197193

Mr. Hodson, at the risk of annoying you, I am providing this analysis with respect to Canadian Oil Sands (COS), which goes along with yours, and maybe further (as it is backed by actual buying of the stock). Was today's price a 35-65% discount and are reserves to last 90 years ? Do you foresee oil and COS substantially higher within the next year ?

Again, this is a private question, but feel free to let other members view your response if you think this is useful ?

Q: opinion and also mcd, mcdonalds for some us exposure?

thanks

Q: Hello,
With what is happening in the oil sector, can you list a few names that you would buy and hold for 5 year plus. I can take some risk (ok with smaller cap) and i don t need dividend. Also, please fell free to add names in other sectors if you feel they are treated unfairly. My approach would be to buy half now and the rest mid january. Thank you.

Q: On the oil getting whacked theme, have you guys looked a PRE today? Down to $8.20. They are forecasting the following:
A base case average WTI oil price assumption of $70.00/bbl during the year and the 2014 average Brent-WTI benchmark price differential.
Oil price realization is expected to average to approximately the WTI benchmark price assumption.
EBITDA of $1.9 to 2.1 billion and Funds Flow (Cash Flow) of $1.45 to $1.55 billion.

So the company is currently trading at just over 1X EBITDA and 1.5X Cash Flow. They do have debt on the balance sheet but at low rates strategically and are long term. Unless oil stays well below $70 for a very long time valuations like this seem crazy. What am I missing?

Q: Hi again team, Would you pls. comment on their financial results....anything to worry about? It's down almost 3%.

Thank you.

Q: Hi Peter & 5i Research Team,

This might be of interest to other members also. I just happened to log into my TD Waterhouse account at 11.30 pm on Dec 4 and was surprised to see that my stop loss and buy orders for Amaya were "pending cancellation" and no longer active. I immediately telephoned TDW and was initially told that I must have cancelled them myself! When I said I did not, they put me on hold and then came back to inform me that TDW cancelled these orders because Amaya Gaming has changed its name to Amaya Inc. On my request they then reinstated the orders over the telephone. They also said that if I had not called them these cancelled orders would not have automatically been reinstated! Do you know if other brokers do the same? Because if I had not noticed this by chance I could potentially have lost out monetarily when the markets opened tomorrow.

Q: Despite all the negatives about this company and lack of confidence even by the directors (based on their sales of stock), I see the CEO has been continuously purchasing shares from February to the present. He had about 100,000 and now has about 450,000 (direct and indirect). Is he an idiot or should I be following his lead? As always, I very much appreciate your opinion

Q: Hi Guys

I think you might have made an Error on the Income Portfolio regarding the return on Silver Wheaton.The Nov return % should be negative not positive.

Thanks Gord

Q: This one has me puzzled quite a bit.
I am thinking of buying another 2000 shares or so, My weighting would still be less than 3%. Having trouble understanding that Bloomberg reported that QKR could be making a bid for this company at around $1.0 billion. This would value the stock at about $5.00 per share. Good earnings, a fairly high dividend, very low copper cost producer. Do you think the price is falling on this stock because of Lower China growth, thus much lower copper prices(copper prices falling every day), or that the takeover rumor has no merit and it is just that, a rumor. I guess I was putting to much faith into the story. One would have thought that the source was fairly reputable (Bloomberg) Comments please on the rumor

Q: Do you see any appreciable difference between the 1-5 yr corporate bond ladder etfs issued by i-Shares (CBO) and by RBC (RBO)? Of the two, RBO seems to be closer to a truer ladder as CBO has 36% of its bonds with >5yr lifetimes. On the other hand, CBO is far more liquid and its credit quality seems higher (RBO has 22% BBB whereas CBO has 0%). On the plus side, RBO showed less price decline in the past year compared to CBO. I would appreciate your comment.

Q: Hi 5i team,
I have a core position in ZWB for extra yield exposure to the banks which has performed very well this past year. I have more cash to deploy for yield / "lower" risk and was thinking of starting a new position in either ZEB, adding more to my ZWB holdings or ideally, . starting a new covered ETF that tracks US banks if there is one you are aware of. I look forward to and appreciate your thoughts.

Thanks in advance. Your perspectivce is always helpful / insightful.

Q: Can you please speak to CDZ's interest rate sensitivity given it is a cdn. dividend-grower ETF. So, if we do see gradual interest rate increases in 2015/16 and beyond, what are some possible outcomes/scenarios for CDZ in your opinion. Thanks.