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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I have had a position in STB since 2009 (ACB $9.86). To date it has been a very good investment.

Last year I had a good look and to my untrained eye it looks like the Shareholders Equity and Book Value have been steadily deteriorating.

Due to that I reduced my position substantially.

I also noticed that there has been a substantial amount of dilution.

Somebody mentioned that SNCF has been “buying” 95,000 or so shares each month. I believe that they aren’t actually “buying” those shares, they are “reinvested dividends” and a major source of dilution.

The current low fuel prices will help them and the SP has held up nicely. That said I find myself wondering if STB is a bit of a “house of cards” and will ultimately get into serious financial trouble and have to reduce the dividend or worse at some point in the future.
Read Answer Asked by Richard on January 22, 2015
Q: I'm trying to pay more attention to sectors when managing my investments, and I couldn't find much on recommended allocations in your Q's and A's. Should I use the 10 sectors listed on the 5i Summary table, and if so,what allocation would you recommend or the average investor?

Also, referring to that table, I would have thought ENB and IPL behaved more like Utilities than Energy stocks and I'm surprised BAD is listed as Basic Materials. My last question, what category would you recommend for BAM.A? Thanks
Read Answer Asked by Alan on January 22, 2015
Q: Why does business TV always talk about US crude oil inventories, rather than US crude production, which would seem to be more relevant?
Read Answer Asked by wendy on January 22, 2015
Q: Hi- I know that when a new closed end fund is started up that the first buyers end up paying for the administrative costs of the fund. Is the same thing true of a new ETF? Horizons has put out an Insider etf which I find interesting, but I want to buy it when it reflects the actual fund's value.
Thanks

Read Answer Asked by Pat on January 22, 2015
Q: the BNS.PR.C has fallen sharply in the past couple days, is this due to the BOC cut? i was told to also expect share price declines in other rate reset pref's when the US starts to raise their rates...do pref's only move one way? thanks as always...
Read Answer Asked by Curtis on January 22, 2015
Q: Do you feel that Intertain Group (IT) is poised to make a fairly strong move upward in the near term? It seems to be making higher highs and lower lows and recently had a target set at $18 by one analyst. Over $14 is it something that may have some room to run? General reading seems to indicate lots of potential. Thank you!
Read Answer Asked by Tim on January 22, 2015
Q: I have a small holding in CQE(down65%)& kel(down 50%).Both reported production update today & yesterday respectively,& both dropped Thinking of switching to WCP.Appreiate your normal expert opinion & services.
Read Answer Asked by Peter on January 22, 2015
Q: Can you tell me if, as a rule,Canadian Mutual funds which invest in US securities have a hedging mechanism in terms of currency. If so is this information disclosed?
Read Answer Asked by roland on January 22, 2015
Q: I currently hold trp. Would you see any merit in a switch to either Pembina pipe (ppl) or Keyera (key)?? I have more interest in growth than dividends. Thanks.
Read Answer Asked by jim on January 22, 2015
Q: Hi Peter and Co,

Market didn't seem to like RBC's decision to buy City National today, as it's down roughly 2% while the other banks are up. I haven't read any negative press on this deal from the analysts, so was wondering what your take on this was.

thx.
Read Answer Asked by Steve on January 22, 2015
Q: Hi 5i team,

Could I get your updated view on TPL in light of the lower oil prices?
Read Answer Asked by Angelo on January 22, 2015
Q: Hi 5i team!

With $47 oil would you know what SGY's approx. net back is? I know it was disclosed in the recent quarterly release at much higher oil prices, but the royalty rate also fluctuates. I am looking to go overweight in my portfolio with SGY and am willing to be patient with low oil prices for 2 to 3 years, but I am wondering SGY's "going concern" (risk of bankruptcy) with prolonged low oil prices. From my perspective if SGY is still making money at $30 oil when their hedges roll off then the long term investment should pay off?

Thanks for the advice and looking forward to the 5i Conference!
Angelo
Read Answer Asked by Angelo on January 22, 2015
Q: Would MCEP be a good stock to purchase.Eddie
Read Answer Asked by Eddie on January 22, 2015
Q: What do you think of this fund as it is showing good return
Read Answer Asked by Ron on January 22, 2015
Q: Further to Claudette's question on DRT; Mr. Nutall said the the company had a 25% organic growth. How is that possible when its PEG ratio is less than one? Is there some other metric that provides an answer? We often hear on BNN that organic growth is very positive for stock price appreciation.
Read Answer Asked by Lionel on January 22, 2015
Q: Currently holding MAL, and somewhat disappointed in recent results,not sure why their price has fallen, and am considering either switching from MAl to CAE, or adding CAE to have broader coverage in this industrial space. Appreciate you input with thanks. JIm
Read Answer Asked by James on January 22, 2015
Q: Most recent question and response on this company was July 2014. I wonder if your opinion is much the same as at that time, or do you see an improvement; or perhaps a falling off since then or in the cards for a bit later. Importantly, do you see the dividend which is north of 10% as safe. Thank you very much for all you do
Read Answer Asked by Phyllis on January 22, 2015
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