Investment Q&A

Q: XTC declined less today than Magna, Linamar, and even Martinrea. Would this be an appropriate way to invest in the auto sector?

Don

Q: I recently asked about rmp and you seemed to like it as well as mentioning rock and raging river. I would like to know how you rate dtx in this mix. Thx for your time

Q: Hi Peter and 5i staff.
I've been browsing the website for awhile now and really like the service you provide, it's great for a novice investor like me. I've made most of the newbie mistakes in the past and as a result went completely conservative to GICs for a few years. Your service has given me the will to get back into buying Stocks and EFTs.

My first question is an easy one, but I think it's important for me to be clear on this:

Several times I've seen where you mention a company is good for growth, are you usually referring to a share price increase, or can this also mean dividend growth?

Thanks for any help on clearing this up,

Paul

Q: Greetings
Petrofrontier has recently abandoned it's exploration for oil on it's land claims in Australia. The company has $10 million in cash, no debt and 80 million shares outstanding. So it has cash on hand of 12.5c per share and the stock trades near 4c per share. Considering the current low price of oil and that potential farm in partners are reducing spending in general how likely is it this company might just shut down and return that cash to shareholders? Or does that put the current management team out of a job and I am merely dreaming out loud here?
Thanks
Tim

Q: Could you advise what relationship there is between Brookfield and this company? I heard today on BNN that Brookfield is covering the high dividend yield of this company by purchasing stock in the company. If this is true, does this mean that the dividend is safe at these levels?

Q: FRU cut its dividend after market closed today. Do you feel that the market already anticipated the cut or do you think the stock will go down further tomorrow?

Thanks in advance.

Wayne

Q: I agree that the U.S. market is a good place to be and you have had a number of inquiries on which stocks to buy. But what am I missing? The exchange rate is at $ 1.19. To me, this means any stock purchased would have to increase by 19% just to break even. Can u help me with the logic of buying US at this time.

Q: Magna guided forward (2015) for lower revenue and lower sales. While we still have a bit of profit (TFSA,cash account), after the 7.7% price decline this morning, is it time to bail out in this co. or is it just a short term blip. It depends I guess on the economic outlook (Europe, China etc.).

Thank you for your invaluable help today,yesterday and always.

RoseA

Q: Could you please offer your opinion on whether the Canadian Federal government would allow or interfere in a foreign company buying Blackberry. The latest news indicates South Korean Samsung is interested in BB. What do your sources say about this possible buy-out?

Thank You

Q: Your thoughts on Magna and auto sector in general.

Thank You

Q: Just wanted to add my voice to all those who thank you for this extraordinary service.

Q: Hello, Peter
Today qst(questor technology) dropped 12%,any news, if no bad news, do you think it is a good time to buy if i want to hold for few years?
Thank you so much for your help!
Yingzi

Q: I get the impression that, even while the price of oil-versus-natural-gas producers have declined in parallel because of overproduction, their underlying market dynamics are distinct and de-coupled. Oil prices have collapsed because (a) oil is something you can (mostly) move around, so prices are set globally; and (b) some OPEC producers realized that, by selling even more oil, they might take market share from higher-cost North American producers.

Gas prices, on the other hand, have collapsed because (a) gas is harder to move around, so prices are set more locally; and (b) too much gas is being produced specifically for the North America market. This matters (or should) because, for example, even were Saudi Arabia finally to cut back on oil production, this should not, in theory, provide any boost for natural gas producers.

But, in any case, the price of natural gas itself isn't that different, now, than in 2011 or 2012 - so what is the economic rationality for penalizing domestic natural gas producers for market dynamics that should be limited to oil? More specifically, why should the market capitalizations of ARC, Tourmaline, Pine Cliff, and so on, track the price of oil when they (mostly) don't compete in that market?

Q: can you tell me what percentages of business of total revenues is done province by province thanks

Q: I know 5i is keeping faith with Mart, but with oil priced so cheaply AND turmoil in Nigeria, what's really so compelling about it as compared to, say, beaten-down domestic producers - even, say, PWT - which have the potential to recover with the price of oil? Put another way, what about Mart makes it so ten-bagger-ish - net cost, recycle ratio, proximity to Europe, etc.?

Q: Can you provide and update on eqb - they have increased the dividend and their book value grew by 17% last year and their PE is trading at 8.8.

Q: What did you think of their latest earnings report released yesterday after market close?

Thanks
Peter

Q: Wonder if you could update your views on HWD. Stock has held up remarkably well during the recent market sell-off. Is this due to its small cap size, low trading volume and lack of significant analyst coverage? Look forward to your analysis.

Q: Hi Peter and Team,

I own Tourmaline (TOU) and Stantec (STN). The former pays no dividend and the latter a small but growing one. Both are weak lately and I was thinking it might make sense to switch them both to good quality dividend payers while waiting a recovery. My thoughts were to trade TOU for Peyto (PEY) and Stantec for WSP Global (WSP). Both pay over 4%. Do you think the dividends in PEY and WSP are "safe" and is this a good idea. I am getting closer to retirement and would like to gradually shift my portfolio towards income-paying companies.

Thank you.

Michael

Q: How can we find the production cost of the company? Who are the best low cost producers? Thx