Investment Q&A

Q: Hello Peter & Team, I currently hold a full position of XOM in my RRSP. After reading an article in the January issue of Canadian Money Saver (Two Stingy Stocks for 2017 / Norman Rothery), I am wondering if it would be a good decision to sell XOM and buy VLO as a replacement? The metrics for VLO look pretty good. Regards, Gervais

Q: In response to Robert's question about the loss showing in his Investorline account for DIS, Investorline uses the exchange rate on the day you bought the shares for the cost basis, so it does sometimes seem misleading if you try and track your US purchases in US currency.

Here is BMO's explanation from the Investorline platform:
The Unrealized Gain/Loss is the difference between the current market value of the security and its original cost. Where applicable, the original cost will reflect the exchange rate in effect at the time of the purchase while the market value reflects the current exchange rate. This exchange rate is updated periodically throughout the day and this may cause some slight fluctuations in the market value and unrealized gain/loss.

Q: Cdn energy stocks have recently sold off much more than oil largely due to concerns of a potential Trump border tax. What probability would you give this of actually occurring and do you believe the current sell-off already reflects the potential risk? Further, pipelines have declined significantly in recent days as well. Could they also be subjected to or impacted by a border tax and is this likely the reason for the recent decline? Thanks.

Q: Hello Peter, I am looking at these (SUN, SXL SHLX and EPD) limited partnerships, I would appreciate your suggestion as to the best most secure one. Also SUN is in the process of buying ETE and there was a litigation issue, has it been cleared up? Perhaps can suggest a better, safer one. Many thanks, J.A.P. Burlington

Q: Another US question, completely understand if it's just too far from your area, but if you're able to provide some information, I'd really appreciate it.
Legg Mason was covered in this weekend’s roundtable of Barron’s. Stock didn’t move in the 2 days after the article, but made a big move today on news that its biggest shareholder (10% holding) is taking 2 board seats.
As of two days ago, at a lower price, it traded @ .4 to book, had a 10x projected forward PE, keeps reducing its shares outstanding. Expected to earn 2.30 / 3.10 in 2017 / 18. Focus on cost-cutting is producing the better profit, it has been reported.

It also has an arm that focuses on private equity. It was pushed by Brian Rogers, and also owned by Mario Gabelli - also part of the Barron’s roundtable committee.

Usually things can jump on a Barron’s mention, but this one didn’t. I realize it’s an asset manager in an etf world, but is there still value in this - though a huge jump today may have negated some of the upside. Thanks

Q: Please comment on their recent quarterly result.

Thanks!

Q: if you had to pick at current pricing -which of the three -kkr-bam -or Onex -would you feel most attractive?

Q: I realize the US is not your area of focus, but for a sizeable company that services a wide swath of mid-sized US companies, the type that could possibly be seen as benefiting from a made-in-America increase in the GDP rate, would paychex be a good investment in that? It's off a bit in the last few days after having done quite well, taking more pressure than the market today (-2+%) and pays a nice divi of 3%. Is it investable for the long-term?

Q: I know 5i's focus is not the US but wondered if you have an opinion on these two companies. Norm Rothery uses a modified Graham approach to identify potential deep value stocks & had identified only these two for 2017. I would also be interested in your opinion on the Dogs of the Dow & equivalent high yield approach for the Canadian market. Thanks for the great service!

Q: I would like to sell my positions in these (IPL, PPL) to buy mid cap oil stock to try to get a bit more growth as this is al in my TSFA. I am thinking about companies such as TOG.T CJ. PD. and companies that have been hit a little harder then the bigger oil players thanks.

Q: Could you please comment on the latest results for this company as well as an updated opinion on its prospects going forward. Thanks

Q: I am reading more and more that batteries will become an important market to explore. Seems the demand for Cobalt will increase, especially since the majority of the product comes from Africa. Can I get your comments on eCobalt and Fortune Minerals

Q: Can you recommend one or two lumber names that are a good pick right now? thanks

Q: What are your thoughts going forward ? Is there a concern about bricks and mortar retail in light of Amazon's growing share of the market?
Thanks for the great service.
Philip

Q: What is Michael J. Fallquist background?

If it's business is in the USA, why is the head office in Canada and why would it be registered on the TSX?

Thanks.

Q: Can you plz comment on the news out of SIS today.

Thanks,
David

Q: In Crius's distribution, what percentage might be foreign income? Also, would you classified the stock as "consumer" or "energy"?Thanks very much again Henry

Q: Just read about the addition of Crius to the income portfolio. If you had done a report on it; what rating would you propose to give it?
Regards,
david

Q: Hi folks,almost to embaressed to admit still own some Concordia,but company issued n/r:Concordia International Corp. Makes Final Earn Out Payment to Cinven,Today's payment of £72 million, plus interest of approximately £1.5 million, was paid with cash on hand.But a poster stated,"Had to raise 9.5% 1st lien bonds to pay the earn out. Hardly a good sign.". Could I please get your opinion on todays news and future of company going forward, at least Trump yesterday seemed to throw an olive branch at pharma companies that he would work with them and not bury them. Thanks as always, jb

Q: Hi Team 5I - Sooo many dividend ETF's how do you feel about ZDV and/or do you have another CDN ETF that you favour?