Investment Q&A

Q: Hi Peter

One of the first books I read on investing was "One Up on Wall Street" by Peter Lynch. Of course, he advocated doing things such as going to mall and observe which stores were busy.

In that vein, I keep thinking of Costco as every time I go to one of their stores all I see is a steady stream of people going through the registers.

I don't think there is a COST question on the site and I simply just wanted your thoughts on this company. As I read through their Edgar filings, it just seems that this stock is ridiculously expensive. Is this just a great company but a lousy stock?

Thank you

Q: Hi Peter and Team, can you please provide your updated thoughts and opinions on Primero, P. What should I do with the Brigus, BRD, shares owned at this time? Bought at 1.50 a while back! Thanks!

Q: Hi Peter

I am really enjoying my membership.

Any thoughts on TransAlta (TA)? Is the 7.85% dividend sustainable?

Thanks

Q: I currently hold Entrec ENT, and Enterprise E. I would like to only hold one of these companies. Which do you think is the better company to hold for the next 3 years?

Thanks as always
Darcy

Q: Any potential minefields( or gold mines) for investors in yesterday's Federal Budget? It looks benign at first glance.

Q: Hi Peter,
I see that Royal Nickel (RNX) today announced the departure of their CEO, any thoughts? Also what do you have their NAV as? With them approaching receipt of their construction permit by mid year, a potentially tighter nickel market in 2015 with the Indonesia export ban and a financing/partnership announcement could get this stock moving.

Q: Reading through my Enghouse 2013 Annual report. EPS of 0.94 which is up 15% over 2012. This implies a P/E of 33.85/.94 = 36 times. With duplicate growth in 2014 of 15% this implies a P/E of 33.85/.94 X 1.15 = 31 times. QUESTION - Does 31 times not seem a little rich for forward earnings?
Glad you put a limit on questions. Although occasionally insightful your time spent on company analysis is much more valuable. Thank you.

Q: Shud I take a break from ENB. Re-entered on a dip 14 yrs ago - a US site claims I rec'd 22.2% APR ignoring trimming - G&M still rates it "strong buy" but INK/TD says insiders have sold $45+M thru-out last year (CFO $24+M)?

Q: Hello Peter and 5i staff,
My wife and I are retired with sufficient pension income to live on with no debt. Our portfolio ( 5 accounts total ) leans toward dividends and I'm not really sure we need (fixed) income in our portfolio.
Our financial advisor has convinced me to buy several issues of convertible debentures in our RSP accounts which I am not totally comfortable with. The issue that really stands out is Atlantic Power 6% due Dec 2019 currently trading?? at $58. Will we ever see the return of our investment or should we attempt to extricate ourselves from this, take the loss, and move on?
Thanks for any suggestions,
Larry

Q: Hi Peter, Is it true that CNL has 500 Mill cash in their account, I was planning to add one or two solid mid cap names cnl and bto but they both have gone much higher in last ten days. Please advise me which two solid names to be added in my rrsp for 2014. I have $8000 to invest. Thanks

Q: goodday, I would like to make use of my margin account (20000)but there are so many good 5i stocks, I don't know which ones to buy. any suggestions? or should I leave this leverage alone. tkx pat

Q: Hello 5I,
What is your view on Horizon North (HNL)? They have recently made 2 announcements. There is obviously bad feelings over events of the last month but as a longer term hold and a play on oil sands & LNG are they a good company too own?

Cheers,
Bob Ahearn

Q: WHAT ARE YOUR FAVORITE GOLD STOCKS FOR 2014. WHICH ONES DO YOU THINK HAVE THE MOST TORQUE, GOOD MGM & SUFFICIENT FUNDING TO MINE SUCCESSFULLY. OF COURSE I WOULD LIKE AS MANY NAMES AS YOU CARE TO PROVIDE BUT I REALIZE THAT YOU MAY HAVE LIMITS. APPRECIATE WHATEVER NAMES YOU WILL PROVIDE. THANKS. Maureen

Q: I read this news headline yesterday: "New York Fed Awards Primary Dealership to Toronto-Dominion". Is this particularly good news for TD?
Thank you.

Q: Hi 5i,

I was looking to tidy up our portfolios and am stumped about how to proceed with some of them. Any chance you can offer some insight? I am retired and am primarily interested in the safety/income paradigm. Here are my problems:
1. SLW @ 1.82% of portfolios, down $1800 and in TFSA
2. XRB @ 1.75% of portfolios, up $500 and in TFSA
4. WIN @ 0.26 of portfolio, down $200 Non-registered acct.
(awaiting some clarity on this one)
5. YRI @ 0.74% of portfolio, down $38.00, Non-registered acct.
6. JE (300 shares)@1.71% of portfolio, down $850.00, TFSA

Time is not an issue, I can wait before acting where required. I have started to acquire 5i B+ and better names and hold many to which I can add.
Some notes: SLW and YRI are the only materials I hold. There might be some exposure in XTR which comprises about 8.6% of the portfolios, TFSA's. XTR is our highest single weighting; next highest would be IPL @ 6.7% and CGX @ 6.10%.
Any thoughts? Please feel free to make any points that might benefit the membership in general in terms of tweaking a porfolio - or how to avoid screwing one up in the first place.....
Thanks!
Cheers,
Mike

Q: Hello,
Can I get your opinion on element financial as a growth stock with a 6 month to 2 year time horizon?

Q: Hi peter, i just got my membership week ago and asked you very important feed back regarding PSD week ago and did not find answer in the column. I own 3000 shares and down by $3000 in a about 3 to 4 week time but it did came back to $3.90 from very low of $3.70. Please guide me should I keep them, sell them or add more. These shares are in RESP account and have good five years to wait.thanks

Q: I have been a member for a year or so and this is my first question. I know you do not usually cover US stocks but I have US cash to invest and would appreciate your recommendation for a couple of ideas, possibly in the Info Tech sector or any other sector you think will do well in 2014. Thanks so much.

Q: Re the question asked re enterprise, entrec and macro, did not understand your answer. Which is your favorite, which is the most risky or do you like all three. You keep getting asked questions on these 3 so a clear answer would be appreciated. Dave

Q: Just read your comments to someone else regarding Aberdeen Asia [FAP]. I have held this for several years, and continue to hold as they are still kicking out a good dividend. I'm underwater on the share price of course. Would you recommend holding on, or is there a danger that dividend would be cut, further driving down the price of the shares?