Investment Q&A

Q: Hello Peter et al.

I am enquiring about your current viewpoint on Ithaca Energy (IAE)? Their year end results came out on Mar. 31st and they were within expectations. There was no surprises. I have traded this stock a couple of times now as it has approached the $3.00 mark and has always pulled back. I know that Stella is comming online at the end of 2014 most likely Q1/2015 based on their past experience and this past winter in the North Sea. They do have some debt currently however when Stella comes online the yearly cashflow will be around $2.00 per share. This stock is very cheap based on this metric. What do you see as the next catalyst to cause this stock to run. I am looking for a $4.00 target by the end of 2015. Am I dreaming or is this realistic for this stock if Stella comes in at 30000 boepd or better? Your viewpoint on this stock would be appreciated.

Thanks in advance

Brendan

Q: Hi Peter and team. I am thinking about buying Difference Capital. The share price has fallen quite low here. Do you have an opinion on them now that they have released 2013 financials? My feeling is that they are just setting up investments and taking losses to position themselves for the long term. I would look to hold 3-4 years. They have just added the former CEO of Descartes to their board and they seem to have a team of tech heavyweights on their team. Is there any problem that you foresee or warnings against this type of investment? Thanks!

Q: Hi all, I was wondering if you feel the 8%+ yield on TBE is really sustainable? At $2+ the stock looks inexpensive...Huge drop of nearly 25% in July...What's your take on this?

Thanks
Stu

Q: Peter; Is CIF big enough to take a 5% position or are there better ETF'S ? Thanks, Rod

Q: Would you endorse selling Legacy Oil & Gas to buy Surge Energy?

Thanks
Wade

Q: Sorry if this Q has been asked/answered before.
Can u tell me how you decided to remove the 6 stocks and add the 6 in the growth portfolio.
Tks.

Q: Hi.You keep talking about interest will be going up soon.Recently one of the bank decrease the interest for future mortgage and one does not get impression from all sources that interest will be down at least for next 3 years.I appreciate your response and the logic behind it.Thank you an have a good day.ebrahim

Q: Would loading up a TFSA with equally with 3 Cdn banks be a reasonable start for a 29 year old beginning investor? In the stupid question category: what does P & L stand for in the model portfolios? My racked brain has come up with only incomprehensible answers. Thank you.

Q: OTC
Open text seems to have lost its Mojo lately......what are your thoughts on the prospects for the company and the stock?

Thanks, Clay

Q: Could you please expand on the selection of CVD,CPD,ZRE and XHY for the model income portfolio. My concern is that theses ETFs likely have considerable exposure to rising interest rates and in the current environment may not have much appreciation/return potential. I have been holding CBO for the past year and while I have not done the actual calculations I suspect that any 'dividends/payout' may have been offset by the decrease in the price of the units. I realize that in an income portfolio one needs fixed income or similar holdings but were specific debentures, bonds etc. with a defined maturity date a consideration? I would like to ensure you that I am not questioning your choice of these ETFs, but would like to have a better understanding before I add them to the fixed income side of my own investment portfolio. Thanks for you help.

Q: Would be very interested in the 5i Team's view of the YRI/OSK deal announced this morning. Many thanks, Nancy

Q: In your income portfolio you have XHY, CPD, ZRE and individual companies. I could get almost the same with XTR and get a higher
yield.
Will I be ahead with XTR?

Q: Hi Team,

Considering your stock and ETF and Unit selections for your most anticipated Income Portfolio,
Starting with the $100,000, which selections out of the group would you purchase in a Registered account, and what would you choose in a non registered acct?

Thanks

Stephen

Q: Hi Peter and Team,

I have IPL in my RSP and PPL in my wife's RSP would you recommend switching both for ENB as per the new portflio?

Thanks, Irshad.

Q: Peter, I am interested in Valener in the income portfolio. Could you please tell me more about the company. Growth, safety of dividend, Good management? Thanks Ken

Q: Valener is in the income portfolio. There is no report on it and nothing recent in Q&A. Its trading below book and looks to be a buy.Would you just expand a little on your thinking...Thanks.

Q: Peter and team:

What is your opinion on Penn West Petroleum? We are holding it and are under water. Should we keep on holding or sell and move on?

SS

Q: Hi Peter & 5i: It will be very interesting to see how things go with the Income Portfolio and particularly to see what changes, if any, may be made as time passes. To that end, I am wondering if you have in mind clear principles for managing the portfolio first with respect to the relative position sizes but also with the weightings between the fixed income side (bond ETFs), the common equity holdings, and the hybrids (pref shares & REITS). The original Model Portfolio had the virtue of keeping things very simple in terms of 20 positions at 5% each, with the suggestion that periodic rebalancing should trim positions that got much over 6% and look to re-allocate to positions that had become relatively smaller. The new Income Portfolio has position sizes ranging from 7% (ETFs) to 3% (Telus). Obviously the ETFs are diversified holdings in at least some dimension, so I’m not suggesting that 7% is too much. But what winds up being your flags for rebalancing? Also, with both T and BCE in the portfolio, to what extent does sector balancing come into the mix? Thanks, as always!

Q: I own AVO - successfully! Was looking to increase & decided to update my research. RBC research issued 2 reports on 3/5 & 3/10/14 - mostly upbeat & positive. However on April 1 (yesterday), they prepared a Foundation Report & then suddenly deleted all info. as restricted as at 2000hrs. This withholding of ALL info usually indicates a financial change - ie: new issue, sale, refinancing, etc. What's your take. Thanks

Q: CSW.A has been in a down trend since last summer. Do you plan to cover the company within the next six months? Would you sell it to buy NFI or AG within a diversfied portfolio? The aim is stability and increasing divs. Thanks Ron