Investment Q&A

Q: Hi Peter and team
My question is on Bankers Petroleum BNK. My half position is now almost a full position due to the run up in price. I'm tempted to sell or at least take partial profits but my broker (TDW)has a 12 mo. target of $8.50. Or instead, should I be adding to it at this level as it seems to be finally gaining some traction with investors. What is your analysis of this co. over the next 2-3 years?
Thanks, Gerry

Q: Greetings: I have read countless articles and books on asset allocation, most of which have a different twist on AA. What is your expert opinion on AA? What % equity,fixed income, and cash and also what do you consider fixed income? Some consider REITs and prefs fixed and some consider only bonds,GICs fixed. Considering the current environment which way would you "tilt" the portfolio and by how much? Thanks Ron

Q: Hi.What is our opinion about FXM-T (first asset management Canada value fund)Thank you and have a good day.ebrahim

Q: Good Morning,
I own otc, meg & bto to name a few. My question those aforementioned names have considerable selling volume, according to td website. Normally I get a little concerned when I see a signficant amount of selling. How much credence do you give this action. Thanks as always for your help.

Q: Hello 5I,
I would like your thoughts on Taseko Mine (TKO). TD has recently published a report, on world copper supply. They feel that there may be a price movement higher (based on falling inventories) and have named TKO as a way to leverage that movement.

Obviously speculative; would like your opinion.

Cheers,
Bob Ahearn

Q: It seems to me that base metals miners (Teck, Hudbay & First Quantum Minerals) have been showing positive momentum for the past 2 weeks and the price of copper has been showing some strength. Do you agree? Do you feel China is recovering? It has now been about 4 years since property values first began to decline in China (according to my sources and I have been to China and spoken to some Chinese bankers and pension fund managers). That seems a little long for a decline in such a dynamic economy as China.

Q: Need to buy pipeline stock in rsp, i know you like size of enb but ipl has not been mentioned lately would appreciate your option on buying right now
thanks

Q: ECA Would ECA be a good way to benefit from the PrairieSky spin-off as ECA will still own 60%? As I was writing this Q this point was raised on BNN. Your opinion please. Thank you.

Q: Hello Peter
I recently sold a large Ontario bond that was yielding 4.4% and need to replace it with very secure dividend yielding equities in the 4% yield range. I have already bought some Fortis FTS and a small amount of Bonterra BNE. Now I am thinking of adding a bank and I see Commerce CM and National Bank NA are the cheapest banks and both have P/Es just over 10. The yields are both 3.97% and 3.98% respectively. I see Laurentian LB yields 4.3% but at a P\E of 11.6 and is presumably less secure.
When is CM likely to raise it's dividend?
I am inclined to choose CM and I would appreciate your advice and comments on which bank to choose and why.
Paul

Q: Hi Peter and team. I need to sell my sons 4 stocks by July 10th for him to purchase his first home. His stocks are Stantec, Home Capital, Cinelex and Amaya Gaming. What would you sell first ? should I wait for the momentum to change on AYA before I sell to get the best $ for him. I thought about adding to AYA today but I decided that might be a little risky. Your comments please and thank you.

Q: I'm looking to build a position in some high growth potential biotech names. The candidates are GUD, MSL and PLI. What would you suggest? Even positions in all three? or concentrate on one or two of them, and if so, which ones? ....thanks, Brad

Q: Please compare the risk of CVD vs CBO. I note that CVD has a lower duration so I assume it would hold its value better should interest rates increase. Please comment on the duration and other risk factors. Thank you.

Q: I'am about to set up a income portfolio to match the one you have ,is there any changes you would make to it ?

Q: Hi Peter

What is your take on arc at this time arx

Thanks Guys great job
Mike B

Q: Hi, I want to invest 5% of my portfolio in the precious metals sector. My current exposure is MND and HEP. To complement these, I am thinking of addind MMP.UN for diversification and income within the sector. I realize that it is invested in junior companies, therefore risky, but do you think this segment of the market has hope, and what do you think of this particular product? Thanks for your excellent service.

Q: Hello Peter, I wish to better understand why P/B ratio is important. What is the ideal P/B ratio for a big cap company? The P/B ratio of Royal Bank on TMX Money is 2.36, and the same ratio for National Bank is 1.96, which one has the best P/B ratio? Thanks, Gervais
http://web.tmxmoney.com/quote.php?qm_symbol=RY:TSX

Q: Amaya AYA is really shooting up and this price level may be unsustainable so what would you think of the strategy of selling AYA and using the proceeds to buy POU Paramount Resources since it is due to multiple its cash flow in the next year?

Q: Hi Peter, can you please provide an update and your views on Strad Energy Services (SYD) ? Earlier this month, they reported their quarterly results and increased their dividend.

Thank you and keep up the great work !! I highly recommend your service to any one who will listen !!

Dave

Q: As the new management at Rogers Cable continues to sort things out do you have an opinion on the plan for their large position in CGO and CCA?

Regards
Bob

Q: Hi 5i: This comment/question relates to the many questions asked recently about CBO, with particular reference to Rob Carrick's comments. In March, Manfred asked about the disparity between CBO's indicated yield of about 4% and the best corporate bond yield that he could find (2.5%). On May 20 Alayne asked about Carrick's article that claims that the indicated yields badly overestimate the actual yields. Carrick refers to the "yield to maturity", and in your response you said that the point "about the GIC ladder" is valid (namely that an investor is as well off or better with a GIC ladder in place of CBO). These comments still puzzle me. For the last 8 months (for example), the CBO price has been $19.8 +/- $0.1, and the indicated yield has remained above 4%. Thus over this period, at least, Carrick's point about GIC ladders has been false. The dividend is paid monthly and I have received it - no question. The emphasis on yield to maturity seems to me misplaced, at least to a degree. The response you got from the CBO people (in response to John's question) stated that they sell all bonds once they get within a year of maturity. Thus for short term bonds the YTM is not the relevant comparison; you would need to know the "yield to maturity minus one year". The difference between this and YTM could be considerable for a two year bond, for example. I'd appreciate your comments - this whole issue has puzzled me for a while.