Investment Q&A

Q: Hello Peter, are there plans to write a Company Report about Element Financial (EFN)?

Thanks,
Deb

Q: i am starting to look at silver stocks - slw or sso - can i have your thoughts on these two or perhaps you have a better idea ?
always value your opinion
thanks
ed

Q: What do you think of MasterCard (MA) as a global financial play?

Q: In your December 10, 2013 response to Robert on Orbite Aluminae (ORT), are you not a bit harsh on the company ? True, there was a terrible fall of 85% this year, but up to February 2013, the company built its HPA plant in a record time, and was on the verge of success, but had a breakdown with its calcinator, and had to replace this very expensive part of its equipment. This was major, as the company is a start up with no revenue. Yet ORT has now a total financing of 16 million $ to prove its technology in scale, and a further 40 million $ committed, a stronger management and board of directors, binding agreements with Veolia and Glencore, and received an Aluminium Excellence Award 2013 in Geneva on September 20, 2013 from a panel of experts gathered by the Metal Bulletin Group, which referred in glowing terms to its technology for metallurgical-grade alumina independently proven in the SINTEF laboratory (Norway)in June 2011, and to its first commercial samples of high-purity alumina in June 2012. In addition, the Quebec government did recognize recently the value of ORT's technology and has publicly committed itself to help the company financially. Is not this 56 million $ or more financing for a start up with no revenue, the binding agreements with Veolia and Glencore, and this 2013 Geneva Award indicative of a company with much recognized merit and significant potential ?

Q: Hello Peter and the 5I team
Have I missed the party on GIL or is there still growth potential there? What are your thoughts on the company?

Q: Hi Peter, does one know the date that Shoppers (SC) will be fully integrated into Loblaws? Regards, Gervais

Q: I read a comment that your team may be setting up a "portfolio analysis" for your members. I would gladly pay a fee for the team at 5i research to look at my portfolio and make suggestions and improvements on my retirement goals. People are looking for a trusted resource such as this. It is difficult to find a qualified AND trusted group to monitor and help in stock selection. Sign me up!!!!

Q: For tax loss selling I am thinking of selling Trans Ocean (RIG) and buying Ensco PLC (ESV). Do you think this is a sensible switch?

Also in terms of the backdrop to this choice do you think its generally better to favour the UK market as opposed to the US. Bearing in mind the Cyclic Shiller PE is 50% over its long term average for the S&P 500 but under long term average for the FTSE and last week it was reported the UK has the fastest growth in the G8.

Q: Good morning,
Do you see any sign of a recovery for CKE? Should I just take my loss?
Terrific service!

Q: Hello,
Just wondered if you think Chemtrade Logistics- CHE.UN - will have to put out more shares to pay for it's recent acquisition of General Chemical.
Thanks

Q: I had thought you only answered questions on Canadian stocks, but I've seen a number of questions answered about US and even international stocks, so I thought I'd see if you had any opinion on JAZZ, Jazz Pharmaceuticals in the US.

Q: I have reviewed you previous opinions on LUN. In the light of the recent US job stats, 18000 jobs created in construction and the suspected increased need for "finished" copper, has your opinion changed?

Q: Hi Peter & 5i: I have held a number of REITs in an account where maintaining the level of income is a significant purpose. With the potential for rising interest rates in the next few years, I’d like to raise the growth potential in the portfolio and reduce the rate sensitivity. With that in mind, and assuming no overweight positions result, what would you think of moving some money from the REITs into a pairing of Canexus (CUS) and Chemtrade (CHE.UN)? I realize that the level of yield implies risk and that a move like this could be viewed as exchanging one kind of risk for another. But I think that both CUS and CHE.UN are currently making efforts to grow, have more of an industrial orientation, and provide yields that can help maintain the portfolio income. I realize that both are somewhat cyclical businesses but my sense is that cyclical potential is part of the attraction at the current stage of their cycles. Does another company/stock come to mind that might be a better candidate for the kind of shift I am trying to make? The portfolio is already about market weight in lower yielding financials. Thanks for any ideas!

Q: RE DHX: I'm considering re-entering DHX after this gap pullback finds a bottom. Is there anything of concern at DHX fundamentally - is it still a Strong Buy? Is there anything else you would like more for capital appreciation in the new year? The fiscal cliff chatter will evidently be looming again quite soon - lol - Your thoughts going into 2014 are greatly appreciated. Thanks.

Q: Could you update me on Western Zagros WZR, for an exploration play it doesn't seem to be putting out much news. It seems to be around NAV, is it a takeout play and a buy down here.
Thanks

Q: Most gold stocks move up today. What happened to AR? Thanks in advance.

Q: Please could you elaborate on the Canadian Tire/Shoppers transaction mentioned in your answer to my question (10/Dec/13) on switching out of MRU to something else, eg CTC.

Q: CP has moved up nicely since your last comment January 10. The new management team has done a fabulous job increasing EPS, lowering the operating ratio and changing the culture. They are now talking about possibly increasing the dividend or instituting a share buyback program. Would you continue to hold this stock for further gains? Thanks.

Q: Your opinion on Metro (MRU) and possible substitutes would be appreciated. When I purchased MRU about a year ago I had looked at it as a "park & hold" type of investment. However, after reading your answer to someone else's question in May/13 when you indicated that MRU is not that kind of company, I realised my mistake. Now it seems that MRU, along with other companies in the same business, are experiencing a tough time and maybe it is time for me to move on. Do you think a switch to either Dollarama (DOL) or Gildan (GIL) would be advantageous? If so, what would you favour at this time as a replacemant (in the same general sector) for MRU - DOL or GIL or something else - I already own Couche Tard (ATD.B) in the Consumer Staples sector?

Q: Hi Peter and Team
Bought MCR at $7. Now down to $6.65. Do you think it is a buy, sell or hold at this time.

Represents a very small part of my portfolio.

Many thanks.