Investment Q&A

Q: Hi Peter and team,

Could you please suggest several investments for a portion of a portfolio, in a non-registered account, where capital preservation and income (as frequently as yearly or more) are a priority?

It would be important to avoid the risk of losing capitol over a 5 year time frame. A distribution/interest/dividend/etc payment is also important for this investment.

With GIC rates being so low, I'm struggling with what to do.

Could you please recommend a few ideas which would yield more than a GIC while also minimizing risk and taking into account the tax implications of it being in a non-registered account.

Thank you very much for all of your helpful answers.

Q: Hello Peter:

I am looking for your unbiased opinion on Ithaca Energy. I currently have it as a holding in my portfolio along with other energy stocks and it has been really beaten down this year. I have made money trading it in the past when I have sold it at $2.55 and again at $2.90. However in June and July I ended up obtaining my full position again with a current average cost of $2.50. With the current oil environment and the meeting of OPEC on Thursday would you think it would be wise to lower my average cost by buying more after this meeting in light of the potential positive catalysts of Stella doubling current production in the 3Q of 2015 and their current break even price is $20.00 per barrel for current production and hedging. I am expecting the price of oil to drop further after the OPEC meeting however I am thinking Ithaca will withstand the lower price and still remain profitable. They have had some setbacks over the last few years of either not meeting production targets or dates and have been hit hard because of it. Some of these setbacks are due to 3rd parties like TAQA and Petrofac but the management gets the blame on bullboards I also read for research.

At the current price of $1.40 it is extremely cheap. Other analysts have the stock still at $2.80 - $3.20 target. Their net backs are still high and will be higher when Stella comes on line, however I do not want to throw good money after bad.

Thanks in advance for your opinion.

Q: Hello Peter

I am wondering what your opinion on Iona Energy is since the last time I asked a question on this company. The management has changed and they have since signed a deal with CNRL for the Orlando field. This will be brought on in late 2016. Their current producing asset Huntington is planned to be re-started in early Dec after a 6 week shutdown due to gas pipeline maintenance (BP CATS pipeline). They currently are trading at less than $50M market cap which is less than 1 times cash flow. The new management has bought in at $0.40 a share and the current price is at $0.14. There is discussion that they can get a $500M RBL at a low rate if they buy another producing asset. They would be able to get rid of the $300M bond with that and it would be at a lower rate. Their are a lot of potential catalysts in the pipeline so is this a buy in your opinion?

Thanks in advance

P.S. Would IAE be a better NS oil investment over Iona?

Q: Just wondering if I should continue holding Surge Energy and if the dividend is safe? It seems to be under a lot of pressure with falling oil prices. Also Crescent Point seems to fall into the same position. Thank you for your great help, Herb

Q: Did you read in the Nov. 18 Financial Post that the S&P Dow Jones Indices and MSCI Inc. announced plans to promote real estate from its current designation under the financials sector, to a sector of its own, thus bringing the total number of sectors to eleven. This is to be implemented in 2016. In this scenario, how might you revise your sector weightings? And would you recommend already gradually incorporating these changes into one's portfolio?
Thanks!

Q:


Hi Peter et al:
I owned 1000 vod at a cost of $25,459.95. for every 11 vod I received 6 new vod. I also received 263 verizon shares, and a cash payment of $4928.01. I know you are not in the tax advisory business, but perhaps wsome member comments are possible. BMO INVESTORLINE tells me they will issue a T5 showing the full cash payment as foreign income. They also mentioned an election under section 86.1 of the act to defer
some or all of the amount. When I checked section 86.1 deals with spinoffs. Comments Please.

Thanks,
BEN

Q: I have parked US$ in a money market fund that pays 0.2 % pa. (RBF2014 in my case). That is a negative real return and money rusts away while you wait wait for the US market to cool its overheated jets. For parking C$ I use iShares CBO. Are you able to suggest any US$ short term* non-hedged US$ bond ETF? (* meaning 1 to 5 year). Funds would be required as and when reasonable prices are found or if US markets pull back. The holding period could thus range from several weeks to months.
Thank you. Best, Adam

Q: I have noticed that when you suggest to members that tax loss selling might be a desired activity to lower taxes, you have used a 23% saving. Am I correct that this is because the Ontario maximum Tax on Capital Gains is 46% X 1/2? I live in Alberta, and I believe our similar rate is 39% X 1/2. Just clarifying.
Thanks for all you do for the members.

Q: Hi Peter & Team,

Which of these 2 ETFs would you prefer? ZUE or ZSP.

Thanks for your great advice.

Regards,

Henry

Q: Could I have your thoughts on Tribute Pharmaceuticals and do you know anything about their management team and how much stock do they own. Thank you

Q: Could you please provide your opinion on MCW? I realize it's fairly speculative (market cap about $50M), but they seem to be close to offering a clean tech solution for the oil sands. Do you see them as a good investment?

Q: Much thanks to the post by 'Peter' re: Shorting America
By Walter Cruttenden.https://www.sec.gov/comments/4-627/4627-95.pdf
Short selling with it's manipulating ways has always been a sore topic with me .
I would advise every investor to confirm with their investing broker that they 'do not' want any shorting of equities held in your name without your permission.
Thank you D McV

Q: In your portfolio review, will you only review Canadian Stocks or can we submit with U.S. stocks also?

Q: Hi Peter, last time a question was asked about CIX you answered that it was solid, and that you liked it a lot. Do you still have the same positive opinion on the stock today, six months later? Thanks, Gervais

Q: GH seems to sliding. Any news? and can you comment on the last quarter? Thank You Ron

Q: Hello.
We have a total of about 3.6M spread in different brokerages, with a lot of deadwood. Too many positions, some of which I would like to clear and make way for refocus, I 'd like to initiate a position in MDA. would 3-5% be a good range, with goal to bring my total holdings to around 30. Would you buy it all at once.

Q: Would you please comment on their Nov. 25 earnings release? Buy, sell, or hold? Thank you.

Q: Hudbay price is approaching 200-day M.A. - They have a big mine in Peru nearly ready for production - your thoughts, please.

Q: Hi guys,

I have a decent gain on BEP.UN of approximately 15%. It is touching 52 week highs and I'm trying to raise a bit of cash given that the market has done very well since the correction. With interest rates rising in 2015 (possibly) and the realization that interest rate sensitive stocks would get hurt before rates actually rise, do you think its a good idea to sell BEP.UN and move up the ranks to Brookfield Asset Management on a pullback?

Thanks for your advice,
Jason

Q: Peter I am in your line up for a portfolio review. On my allocation diversification I look at my assets in total which means in some accounts I am skewed heavy to one sector but on a whole I am reasonably well diversified.How do you view this?
Regards Stan