Investment Q&A

Q: Hi,

Do you ascribe any value to the tax loss carry forwards on company balance sheets? If so, how do you value such tax losses?

Q: I am having difficulty determining and rationalizing payout ratios. Different sites give different ratios. A couple days ago you answered a question on Pembina stating the dividend is safe. GlobeInvestor tells me the eps is 1.07 and the dividend per share is 1.74 giving a payout ratio of 162%. Several other prominent dividend companies also show payout ratios over 100% using the same methodology. Am I missing something or are these dividend payouts at risk?

Thanks so much!

Gary

Q: Hi 5i team,

I was wondering if this would be a good time to move into corporate bonds via ZMU (BMO mid-term US IGCorporate bonds)?

Thanks for your hard work.

Q: Hi - after reorganizing my portfolio I am left with some smallish positions in ERF,BNP and BTE. I would like to consolidate in one name and was thinking ERF or BNP since both are gas weighted (the rest of my producer holdings are oily). Which company offers the best upside and sustainable dividend. Or do you have another name that you would suggest - I don't hold any WCP and was thinking it might be better even though it's more oil weighted. Thanks

Q: I am entering my second year following your research, and still own some companies prior to following your portfolios. Could you please advise whether you suggest I continue holding the following, or substituting these with others from your portfolio.
I still own: BMO, CPG, TOU, TMA and DIR.UN.... Thank you.

Q: First National released its quarterly earnings on April 28th. Analysis?

Q: Hi Team,

I just noticed a headline (http://business.financialpost.com/news/fp-street/fairfax-financial-holdings-ltd-says-insider-trading-probe-of-prem-watsa-tied-to-fibrek-inc) about possible insider trading at FFH. It seems this is not "new" news. Do you have any comments on the implications for holding stock in this company?

Many thanks.

Michael

Q: Can you tell me who is heavily involved in rail braking systems in view of the latest safety requirements? Thanks

Q: To round out recent comments on ATD.B (Alimentation Couche-Tard), here are excerpts from a couple of recent articles:

In a research note, senior analyst Bonnie Herzog said she believes positive trends in the convenience-store sphere will continue as “the industry is embarking on a new era of sophistication and growth.”

As the industry continues to grow, it remains fragmented and larger chains continue to get stronger. Strong fuel margins, despite soft gallon trends, will help to drive future growth across the industry, the report said.

Full article here: http://www.cspnet.com/industry-news-analysis/corporate-news/articles/analyst-bullish-state-convenience

Like all large convenience-store chains—especially those that have grown excessively through acquisition— The Pantry lays claim to some “premium” locations and others “in worse shape than average.” Therein lies the biggest challenge and greatest opportunity for new owner Alimentation Couche-Tard as it begins to integrate The Pantry’s Kangaroo Express c-stores into its business, according to a new report from a convenience-store analyst.

Full article at http://www.cspnet.com/industry-news-analysis/corporate-news/articles/challenges-opportunities-integrating-pantry

Q: They came out with very interesting results in carbon capture in a pilot project for Husky. The CEO was on BNN and explained how it worked and what the next testing steps are.

In general I'd like to ask your opinion on this one. And more specifically, given the excellent and independent test results, what could go wrong in testing it in further testing (e.g. with larger operations, with different operations, etc). I can't help relating this to the trials of drugs, and my frequent surprise when results change from phase 2 to phase 3. Finally, they only have a million in hand, so I suspect they will need to do something to raise funds when the opportunity arises - do you agree?

Q: Hi Peter and team

I have 2000 shares of this company that I have held for several years. On may RBC account I am showing a 15% gain on these entirely because the distributions have been return of capital (ROC). Currently it is yielding 9 % . What are your views on the controversial merger transaction and the future prospects of the REIT.

Q: Hi,
I realize you get asked about sector allocation percentages often but could you give me your thoughts today on what you think they should be. We r moderate/aggressif investors. Would you be holding cash right now?
What would you buy in the US for the industrial sector?
Thank you

Q: Hi Peter,

Since I bought it at start of this years portfolio the stock has been down a little over 10% in a very short time period.

Any developments of note in the past month that would cause this drop?

Thanks

Q: Hi Peter--Have been slowly moving into cash--to see how the summer market is going to play out--want to get more than money market return---don't mind a little risk---a lot has been parked in ZWB---do you have any other suggestions

Q: I just funded my non registered account with some money. I may purchase on margin at a later date. Just curious if you could give me some ideas on some companies that pay a dividend for a long term hold preferably that qualify for the dividend tax credit but it could be interest dividend as well. I was thinking AW.UN, HWO, DRG.UN, PZA and CHP.UN Also if any uou recommend that I didn't mention Thanks.

Jimmy

Q: I am thinking of selling MTSN as I have lost nearly 31% of my invesment on this stock. I am think of replacing it something which would not be as bad as this one. What would you suggest buying to recuperate this loss in the US small cap space which has good growth potential.

Q: I noticed on your Summary for April that HNL was the best performer, up 44%. It had fallen off my radar list after my selling at a loss months ago.
If one were willing to take on some risk right now which of the 3 would you recommend HNL,CHW or BDI - or do you consider all too risky and the 44% jump in HNL akin to a dead cat bounce? And therefor look elsewhere for some "wins".

Thanks for your help.

Q: Good evening Peter,

I thought I read somewhere last year that REITS will become Mandatory for all Canadian Money manager / Mutual funds to hold within their portfolios.

If so, when is this required and should this not have a positive impact on the Reit sector ?

Also, if true what Reits do you think will benefit ?

Thank you Peter...

Q: When I was in high school, I read a book called "PS... Your Cat is Dead." It was about a guy, as best I can remember, while on the road went through a series of incredible bad luck - everything went wrong, he lost all his money, girlfriend, broke some bones, and then when he finally got home, he found out his cat had died. It was a comedy. Reading the IFP press report last night made me think of that book as sentence after sentence relayed bad circumstance, everything was bad. Certainly not a comedy. I have a decent position, what are your thoughts of this ugly earnings report?

Q: Good evening, I am the proud owner of CXI shares, which I hold in equal amounts in the TFSA and RRSP account. The shares held in my RRSP make up about 5% of my RRSP total while the shares held in my TFSA equate to roughly half the value of that account. Would it be wise to keep the shares in my RRSP and sell what is in my TFSA? If I was to sell (in whichever account) what would be a good replacement, or replacements?
Thanks a lot
Seamus