Investment Q&A

Q: Hello,
Could I please get your opinion on Transforce vs Trimac. When Contrans was sold I purchased a small part position in each TFI and TMA. Both are down approx 30% and each represent about 1- 1.5% of my portfolio. I am debating on selling one of them for a loss and adding to the other. Which one if any would keep and why? Or should I average down on both or one of them? I can hold long term if needed.
Thanks for your help,
Kerri

Q: Peter & Team, I have held both stocks for a long time and done very well, but they are down sharply in January. The US rails (CSX & UNP recently reported) are doing really badly with freight volumes in decline like recession levels (as was the case last quarter). But CN, counter trend, put in a great result last quarter and First Call earnings outlooks suggest CNR will way outperform the major US rails again. Do you think this will continue and why has CNR been beating the US rails? As for SJ, I assume it is off sharply because of the decline in US rail business. CNR and SJ are both cyclical and in this economic environment, should they be held or sold?

Q: I am interested in ARE, STN, WSP and SNC as potential beneficiaries of federal infrastructure spending but am wondering how much of these company's current business is associated with the energy industry. Do you have an estimate of this for each of these 4 companies.
Thank You

Q: Good morning. With provincial and federal health ministers strategizing to lower pharmaceutical costs for Canadians, what do you think will be the impact on Jean-Coutu? Is it likely or even certain that a Pan-Canadian bulk-buying program for drugs will open Jean-Coutu's sales to more provinces and increase the volume of generic drugs Jean-Coutu sells? Thanks for your excellent advice.

Here is a quote from the CBC article posted Jan 21:

The group will build on the work of the provinces' bulk-buying program, the Pan-Canadian Pharmaceutical Alliance, which saves money by negotiating large contracts with pharmaceutical companies.

"Even with that work, prescription drugs are still too expensive in this country," said B.C. Health Minister Terry Lake.

Q: Please give an update, I have held this for six years, is it ever going to do any thing? Thank you

Q: I am a long time holder of both Goldcorp and Yamana, both of which have been decimated and are now much smaller positions within my portfolio. Today you removed G from the model portfolio and replaced it with AEM. If I wanted to purchase AEM to replace some (or all) of my current gold holdings, would you recommend that I sell Goldcorp, Yamana, or both to pick up an equal weighting of AEM?

Q: What is your opinion of this fund. I have held it for a number of years. But now with the market malaise am wondering if I should add to it; or sell it in order to put the funds to better use - in a well diversified (mostly 5i oriented 3 dimensional portfolio - BE, Income, and Growth). NCE appears to be up almost 1.8% YTD which seems like a "grand slam" compared to mostly everything else.

As usual, thanks in advance for your guidance on this one.

Q: I am looking for a trading opportunity in this.
FTN just sold 2.5 million shares of FTN at 9.90 at the end of November. The most recent NAV on Quadravest website for FTN is 16.71 at Dec. 31.
These are dual class structures and if the preferreds are worth $10 that leaves approximately $6.71 for the nav of FTN.
Whoever pays $9.90 for this in Nov. got ripped off.
FTN was at $5 in the last week of trading. If I bid at $5 my cost should have a good margin of error below the current NAV.
I had success with RBN.un previously playing this game with stink bids well below NAV.
Thx for expert opinions.
Blake

Q: Hi Guys:

what is your current opinion on Klondex

Q: Hello,

I have sold my Bin shares and I would like to add to one of my current industrial holding. At the present time which one would you have a preference towards. My holdings include Stn, Wsp, Bad and Mda.

Thank you

Q: Hello 5i, could I please have your opinion on RDS's update yesterday and do you think the dividend is fairly safe for income? Thank you

Q: Please provide your view on MNW's announcement on voluntary $25m pay down on its credit line from its strong cash [position,& its upward revised guidance.It really got hitn recently(even down today despite strong market recovery.Appreciate your usual great advice & services.Have a small holdings @ $12.66,so should I average down hare a bit; Further to my Q earlier tonight,Canadian Insider shows that on Jan 19,Richard McBee has a -500,000(in red) expiration of options @ US$5.16.Please advise meaning.Thanks for your usual great services & views.

Q: Hi Team,
Thanks for all your patience and hard work dealing with us retail investors during these challenging market times. Your transparency, calm and reason are most impressive.

I am thinking much longer term (beyond this current market choppiness) and was wondering if you can point me to an ETF(s) that is focussed on disruptive technologies. I found ARKK which is what I had in mind (different disruptive technologies in different sectors) but it is tiny at reportedly $6.82M market cap and virtually not trading volume.

Do you know of anything similar that is bigger and more liquid (presumably in the US)?

Many thanks for any suggestions.
Michael

Q: Hello, I am trying to find a safe U.S. utility with low coal exposure and a decent dividend; coal seems prevalent though, could you help please? Thank you as always

Q: I'm looking for dividend plays with "some" torque to oil price but with a definite downside floor. To date I've picked up IPL and VET. I'm looking at Secure now as well. What do you think about Secure here. How safe is the dividend? What is the payout ratio? How safe to you feel their business is? I know the environmental part of the business should remain intact but what are the contracts like, are they in danger of having the pricing renegotiated? Could they actually lose business?

Q: Any idea why Peyto has performed so much better than other oil companies? Down 15% over the last year which is isn't too bad compared to others. I know Peyto is primarily a gas producer.
1) Have natural gas prices been more stable than oil over the last year?
2) Has the production of natural gas been more stable? (Less dramatic increase from the shale plays and also harder for the house of Saud to flood the market from their own reserves)?
3) Is the demand for gas more constant than oil? I assume domestic house consumption, power plants and industrial users are the biggest users with long term purchase orders.
I am thinking of buying more PEY to increase my weighting to about 3.5%. The only other pure energy company I own is VET with a 2% weighting. (I also own some CMG which is a bit of a mixed bag).
I like the dividend percentage. What is the current pay-out ratio of PEY?
Deduct as many question credits as you wish - and thank you.

Q: Hi Peter & Team: referring to questions from other members, if I donate CSE shares would it be complicated? Or the receiving charity can tender the shares when the time comes to do it (by the way I use Link Charity and they charge me less as I am a CMS subscriber) ?

Q: Hello 5i:
another comment on Paul's question re: filling up the truck; now $58, used to be $80, and why is there not more of a saving. First, that is a 27.5% decrease. Stated another way: its like being paid 27.5% more. Who would not take that?
Additionally, that is $22 on one fill. How many times do you fill the truck per week, per month, per year. The savings really begin to accumulate (or more money to spend). I lived in samll town BC for quite some time, and remember paying $1.42/litre. Try that one on for size and watch the paycheque disappear.
just my opinion, publish if you feel like it
Paul L

Q: Hi,
What do you think about the above us stock?
Good to buy ?
Thanks

Q: What is your view on this company?
Larry