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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: Hi Peter & 5i: A question about analysts’ coverage. I have read your previous answers about what to make of an analyst’s rating of an individual stock. Each weekday I receive an email from Analyst Ratings Network. I am not a paying subscriber, though they try to sell me more in-depth information from time to time. What I receive is just a daily update on analysts’ coverage divided into three categories: upgrades, downgrades, and new coverage. Usually it’s a quick delete but once in a while there is something interesting, if not exactly useful. Today there were listings indicating that Goldman Sachs Group Inc are initiating new coverage of a whole raft of precious metals stocks, including Barrick, Agnico, Yamana, Eldorado, Goldcorp, IAMGold, Kinross, Newmont, New Gold, PanAm Silver, Royal Gold, and Silver Wheaton: pretty much the whole sector, at least as far as Canadian companies that have a listing on a US exchange go. The initial ratings included buys, neutrals, and sells. So my question is: what if any significance would you read into a brokerage like Goldmans initiating coverage on an entire group like that within a relatively small and still quite beaten down sector? Thanks, as always!
Read Answer Asked by Lance on September 20, 2013
Q: Peter and Company,
Regarding the halting of trading yesterday... DirectCash DCI-T
You may choose not to post this . ... to ignore my comments.... or simply delete them.
Either way I feel I must vent my frustrations.

I am tired of companies such as ‘Veritis Investment Research’ that have the power to release statements and targets for a stock, but unless you are a “client” of theirs, there is no access to this breaking news or the material evidence to substantiate their claims. The claims and reports that are made by these Investment Researchers can carry so much impact it should be compulsory to make these available to the public and let the share holders decide what to do.

When the panic orders are submitted, after news, and in turn the stop loss orders are set in motion, all this can result in a very unrealistic price for a stock. The same can happen in reverse for a tid-bit of positive news as well, be it true or unfounded.

Question: When The Investment Industry Regulatory Organization of Canada places a ‘halt trading’ on a security is the company that made the ‘claim / report’ that caused the repercussion to halt trading “investigated” ?
It would very be interesting to know if that company or ‘any’ members or staff of that company may have had any ulterior motive, such as shorting a stock in question for their own gains.

I love 5i Research where members can get Totally Unbiased Informative answers to questions. Thank You. Dennis

Disclosure: yes, I do own a small holding of DCI-T
Read Answer Asked by Dennis on September 20, 2013
Q: Are you aware of any reason for CGO stock being down today other than the market being down? Thank you.
Read Answer Asked by Donald on September 20, 2013
Q: Hi Peter & Co. My question is regarding Western Forest Products, as you are already aware, WEF has news today.i got into this stock around $1.20 with the intention of at least a 5 year hold. so how should i view this recent news release ? what would you do if you were a shareholder ? if you recommend to sell what would you buy that is similar in this sector ? thanx norm
Read Answer Asked by NORM on September 20, 2013
Q: Hi Team,

Is there an ETF similar to the US listed VIG that follows the same strategy for Canadian dividend stocks?
Read Answer Asked by Ken on September 20, 2013
Q: How do people find good prospects from thousands of microcap stocks trading at less then 10 cents. I have heard people have made lots of money by picking enterprising juniors. How do go about doing that? An an example how would we know that EIL would be an excellent company 5 years down the road and would have say 50 times their current revenue
Read Answer Asked by Imtiaz on September 20, 2013
Q: I tried to find Veritas on the net and could not find who or what they do.? could you enlighten me on this name. You used it in conjunction with a question about DCI(Direct Cash)
Read Answer Asked by Ernie on September 20, 2013
Q: I am holding xhy which is hedged should I change to the etf in Canadian funds thanks mel
Read Answer Asked by Mel on September 20, 2013
Q: Good morning team, I would be interested to hear your opinion on FAP.
Read Answer Asked by Bruce on September 20, 2013
Q: Peter; I own FEZ for Euorpean coverage. With the German election Sunday should I sell it now and wait for results ? Thanks. Rod
Read Answer Asked by Rodney on September 20, 2013
Q: Re: DND
it dropped quite abit as another drug company is challenging the patent right of one of the 4 drugs
Is this a good entry point? should I wait for a few days for
the dust to settle ? Thanks
Read Answer Asked by Michael on September 20, 2013
Q: Is Direct Cash (DCI) worth looking at as a buy today given the price drop? Is the dividend sustainable? Or is the analyst's sell recommendation a good reason to hold off? Thanks.
Read Answer Asked by Thomas on September 20, 2013
Q: I have been looking at REITs since the sector as a whole has dropped. I have D.UN but it has flat-lined, to borrow your exprssion. I have also looked at Dundee Industrial(DIR),True North
(TH.UN) and Health Lease(HLP.UN) You can tell that I am more interested in div income than growth, as these are all yielding above 8%. What is your opinion of these? Alternatively, should I be looking at an ETF that will cover these reits. I find etf's hard to follow as there are so many and they all sound alike and have similar names.
Gary
Read Answer Asked by Gary on September 20, 2013
Q: Good Morning All!

I was doing some reading on Enterprise (E-T). Can I have your thoughts and analysis on this company? What are the risks? Thanks in advance!

DON
Read Answer Asked by Donald on September 20, 2013
Q: Thank you 5i team for your prompt reply on my question. I truly valued your excellent service. It's like a lighthouse for me.

May I have your advise on COM? Is it still worth buying after it's run up?

Thank you again.
Read Answer Asked by CONNIE on September 20, 2013