Investment Q&A

Q: Peter and Team,

I am in the final throws of my decision to buy some Stella Jones stock. I understand from your report that they essentially profit from constructing some of the hard assets for rail roads (amoung other pressure treated wood products for tel-cos, utilities, etc.).

Focussing in on the rail part a bit, does this mean that they should see increased business for replacement ties, etc. as rail is used more and more heavily for shipping oil? It seems like this could act like a bit of a hedge to exposure to oil pipelines.

It seems like a good business (not sexy) and required business. I'd love your thoughts on what makes this thing grow.

Thanks!

Q: RCI.B is down 3% today on a lowering of estimates by Credit Suisse. I'm not interested in growth, only safety of capital and income. The yield is about 4.3%. Is now a time for a 5% position? I don't have T but will buy BCE on a correction resulting in owning 5% each in BCE and T. Would a 2.5% position in each be better? How about 5% in BCE and no RCI? Thanks.

Q: Hello All, do you know of any ETF specifically targeting:

i) European Utilities and/or Telecoms, and
ii) European Real Estate

Thanks for the help,
Graz

Q: You had suggested that VRX (Valeant) was likely to need new cash, which would mean a new stock issuance, dropping stock price. Given the announcement last night about Allergen, how likely is it now that VRX will need to make a large new offering?

Q: If one was to initiate a position in ATHN <Athena> would this be an opportune time or has the picture changed? I see Q1 EPS being reported lighter than consensus, and the stock sitting on the 200 day MA hasn't had the recent bounce the sector has. Thanks, J.

Q: A pushy question, when do you plan on introducing a growth portfolio.

Thanks

PB

Q: Do you think BXE is fully valued at $10.30 or is it wise to continue holding? Thanks.

Q: Hi team:

One of the speakers on market call (BNN) mentioned that ACQ is in the process of being listed in the TSX 60
I recalled that when BAD went through this process, the demand for this stock went up and the stock price would also go up
Is ACQ being listed for the TSX 60 ? How does a company apply to do that ? your comments would be appreciated, thanks!

Q: Hello 5i team,
Valeant and Pershing Square have made a hostile bid for Allergan. Both the buyer's and the seller's prices are up this morning. But isn't it as likely that Valeant/Pershing-Square will need to sweeten their offer - in which case, why is Valeant up? I had thought that, in general, acquirers' near-term valuations went down (in anticipation of the depletion of treasury and/or dilution of equity.)

Q: Hello 5i team,

On April 11, ESL renewed a "normal course issuer bid" which had been in place for some time. Do you know whether any shares were actually purchased by the company during that period?

Thanks.

Q: Good Morning Peter and Team,
I'm looking for your thoughts on SCR.X (The Score). What do you think of the business in general and what the prospects could be over the next year or two?

Q: I have an RDSP for my middle school aged son. I do not plan on taking any money out of it for many years however, I'd like it to grow in value through conservative investments.
Currently, I have $8937 cash; $5696 in WPK, and $2346 in HR.UN. I'm thinking of selling WPK (just because it's done well). Is that ok?
Also, what do you suggest I purchase, and in what amounts. I'd like holdings that don't require any following up on. Thx.

Q: Good Morning Peter -- and all the 5 I team as well!

I have a general question about how "not" to time the market, and how to exercise the better part of wisdom if one is interested in growth over present dividend yield.

For instance, ... if one holds a fairly decent company, but its sector happens to be out of favour at this time, and hence the stock price is flat lining, or even reversing, would it make sense to pull out that money and re-deploy it into other sectors that are favourable and ride another sector wave for a time -- or is it better to stand and hold, through good times and bad.

It seems counter-intuitive to me to watch dollars erode while other sectors revive and feeling helpless not to participate because cash is already tied up. I see the logic of a long term hold, in one sense, if someone has many years to spend in the investment market. But, in a shorter term context, for instance two years or less, is there any proven statistic that says you're better off standing your ground?

In one general example, as I watch profits erode from the Tech sector while the Energy sector takes fire, is there any point in holding on to tech companies that are flat lining?

In general, I think I know what your answer would be in terms of overall investment strategies. And yet, I still wonder, what your strategy would be as a portfolio manager. Would you hold, through thick and thin, or would you re-assess and re-allocate as each sector takes favour especially given a shorter term horizon?

As ever, I appreciate your thoughts and opinions, as they have guided me very well through thick and thin. Even before the days of signing up to this newsletter, which is coming up to my 6-month anniversary with 5I, I garnered great wisdom and opportunities through watching you on BNN -- ACQ being only one of many opportunities that you led me to! I always listen closely to what you say. Thanks.

Q: What is your view regarding Strategic Oil & Gas(SOG)which trades on TSX Venture exchange - Insiders bought after price dropped over 50%.?

Q: Thanks to the 5i team for a great service. I am considering taking a position in Algoma Central (ALC) the seldom discussed, seldom traded Great Lakes shipping company. With no coverage (that I am aware of), could you give me some thoughts on breadth of ownership (for example, are there any major shareholders or do the executive group have a good share of ownership)? I understand you met with them late last year and wonder if you sensed the possibility of future dividend increases? Thanks again and hope you can give me some of your valued insights.

Q: Hello Peter,
Can I have your view on Primero (P); since it`s recent Debenture offering the share price has taken a licking. Is there still an upside to P, and would you endorse BTO as an alternative, or should I hold P,as I`ve felt from the beginning that it`s recent acquisitions provide for better days ahead. I hold it as PART of a 5% sector weighting in a diversified portfolio. Thank you Peter.

Q: Hi Peter: I'm up an average of 20% on two US banks C and BAC. They seem to have flattened out the last while. Should I take the profit and run to something that has better upside potential or stay the course. My time horizon is 2 years max, I have plenty of Canadian banks.

Thanks

Q: Good Afternoon,
I hold DuPont (DD), Nike (NKE) and United Technologies (UTX) among other US holdings. I am thinking of selling DD and adding to the other two in hopes of achieving better future growth. I would appreciate your thoughts.
Thank you.

Q: With reference to CUS ( Yossi's question ) ... the newsletter Seeking Alpha posted a convincing article that suggested Canexus and Gibson would benefit from the Keystone XL setbacks ( due to their reliance on rail ).

Q: I might add to your answer on S (Sherritt) asked earlier today, that I hold Western Areas (WSA on the Australian market and previously traded on the TSX) which is a quite profitable pure nickel producer, which while volatile has done very well of late and also pays a dividend.