Investment Q&A

Q: Hi Peter and team,

What is your opinion on Trinity Industries(TRN-N)? Is this a good stock for growth in the next 12 to 24 months?

Thanks in advance!

Michel

Q: My partner and I currently have about 16% of all stocks we own in RRSP, Non Registered and TFSA accounts as Canadian oil and gas (excluding oil service, pipelines, etc.). I have brought this down from 19% based on a previous recommendation from 5i. Within the oil and gas stocks I hold, 45% are in Canadian Natural Resources (CNQ), 24% in Suncor (SU), 12% in Husky (HSE), 10% in Cenovus (CVE), 3% in Vermillion (VET), 2% each in Paramount (POU) and Tourmaline (TOU) and 1% in Enerplus (ERF). I feel I probably have too many oil and gas companies in my portfolio and would like your thoughts in consolidating. Reading your previous posts, I get the sense that all of these are good companies thus there isn’t a compelling reason to sell any. However, it seems from your posts that some of my smaller holdings and perhaps Surge and Whitecap, could be increased at the expense of some of the majors with the reason being higher growth for some of the smaller companies. Can you give me your thoughts on the best thing to do with my oil and gas holdings? You suggested some time ago that the larger companies would hold up better during a market downturn. Based on this logic it seems like a perfect time to reduce holdings in some of the bigger names and buy some of the beaten down smaller companies.

Q: Hello 5i,
I’m in effect building my own mutual fund and have been studying portfolio asset allocation recently. My portfolio is evolving over time and looks like it will contain approximately 80 to 90 stocks upon completion, which is 10 years away. The covariance between the different asset classes and beta of the individual stocks is currently where I want it to be. My concern is the original set up of 50% Canadian stocks and 50% world; I also have a break down within ‘world’. I’m happy with the way the overall portfolio is taking the current pull back and would like to make it even better.
The question is:
To reach the optimum setting at the higher level (world), what should I be allocating percentage wise?
Your help is appreciated,

Q: Hello 5i Team;
Oil sector is beaten down. Please select 2 stocks among the following you like. I can wait for 1 year.
RIG, BTE, CNQ, CPG, ERF

Thanks a lot.

Q: Please comment on the dramatic negative impact on TAO share price since announcing the abandonment of the deep well project. Tag continues to increase daily BOE production and share price plunges. Your thoughts please

Q: 1) TRP vs ENB
2) Will reversal of the eastern pipeline have a major effect on TRP
Thanks

PB

Q: Hi Peter and team

Could you give me your opinion on Gear Energy. Paul Harris mentioned favorably on BNN and it has an outperform rating from RBC who recently removed their speculative risk qualifier.

Thanks

Ross

Q: Hi, I'm looking to buy shares of DHX , which symbol do I buy DHX .A or DHX .B and what is the difference , also didn't this company payout a dividend...........Thanks.

Q: I was going to add a transport to my portfolio and I am considering WJA, CNR and TMA. With the falling price of oil, more money in consumers pockets, I'm leaning towards WJA. Could I have your insight into all 3 and which one you prefer and the reasons why.

Q: A portion of my overall portfolio is perpetual preferred shares (down 4.5%) and I am considering selling and replacing with rate-reset preferred shares. I would appreciate your comments on the two types of preferreds and your recommendation for 4 or 5 rate-resets. In addition to the BCE.PR, I currently hold BAM, GWO, MFC, and SLF preferreds.

Q: What is your outlook for Ithaca the stock has been slammed hard in this downturn.

Q: Hello,

Interesting times, and I'm already seeing opportunity, though am waiting.

I've recently read some bullish articles on SA with respect to Richmont Mines. The most recent article mentioned RIC upping their YTD production by 68% (http://seekingalpha.com/article/2552425-update-richmont-mines-reports-year-to-date-gold-production-up-68-percent).

I see many positives with this company (please correct if wrong):
- 32 million Cash
- low debt
- $800 / oz cash costs
- mines in Canada

Since 2012 I see 5i has a varied opinion on this stock, including it being a good takeover candidate. Could you update on your opinion of this gold stock?

Thanks,

Cam.

Q: hello 5i team

read an interesting article mentioning the Graham number for TD based on earnings and book value at $47.47 which means at current prices, the stock is over valued by approx 13%.

Can you comment of this and the Graham Number principles and it's accuracy?

Thanks for all you do

Gord

Q: I wish to purchase a dividend paying company, where there is some chance for growth and am thinking about one of the rails, (although perhaps a U.S. rail company but don't know any) or a pipeline company. Am I correct in thinking that the rails have a pricing power authority that trumps pipelines, pipelines being more closely tied to commodity price. Thank You

Q: Hi - can you help me understand a few things about this type of correction?
1. Who would be doing the majority of the buying on these incredibly volatile days? Is it primarily institutions that are moving these markets?
2. What is the impact of ETF and mutual fund rebalancing on market movement? Presumably every index-based fund has to buy and sell the same securities at the same time to keep mirroring their index. Would this not magnify normal market movements?
3. Is there any advice specific to retail investors that can help to minimize the impact of this volatility?

Q: May I have your opinion on this fund. I realize the fees are higher that you like. It pays a good dividend, has a book value of $ 6.24 It has always paid its distribution even during the 2008 - 09 market decline.
If there is a better stock with a similar dividend in the oil sector please advise.

Q: Just wondering what you thought of the CIBC report on Oct.8? It was a sizeable lowering of their target price. Specifically, I was wondering what you thought of the idea of AVO's sales growth slowing and how that might effect the growth multiple?

Q: Hi Peter any thought on the upcoming Seven Generation IPO?

Q: I have sold a few losers in the last month and now have ample cash. Given the recent drops, is there a time limit before I can buy back a stock at a lower price. Any tax problems?

Q: Good morning....At what per barrel would the oil stocks "most likely" be required to look at cutting dividends....ie. CPG, SYG,WCP etc...what can they be sustained at?

Thanks