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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Can you please comment on the preferred shares, series B, specifically the dividend payment terms and whether a change in control of GMP would trigger a requirement of the company to redeem the shares at par. Lastly, what would constitute a change of control under the indenture and what is your assessment of a potential change in control in the company prior to year end? Thx
Read Answer Asked by Patrick on October 27, 2016
Q: Hi,

I asked a question yesterday about fixed income investments. You recommended a couple of ETFs that I will look into.

My question is the merit of ETFs vs actual bonds. I understand that individual investors can't get the same diversification with bonds as with an ETFs, but ETFs never mature unlike actual bonds and you could end up with a loss. What are your thoughts?

Jason
Read Answer Asked by Jason on October 27, 2016
Q: Good morning Peter and Team,

In our accounts (Margin, RRIF, RRSP, and two TFSAs), we have no health care stocks or ETFs per se, but we do have a 1.8% position in Chartwell. In my sector breakdown, I classified Chartwell as "Real Estate", and notice that in your answers to other 5i members, you refer to Chartwell as a health care stock. Would I be correct in re-classifying CSH.UN as health care? If I wish to further reduce my overweight real estate holdings which contain AP.UN, CIG, CSH.UN, FCR, FSV, and TCN, would there be any that I should "let go" or reduce? What "additional" health care stock or ETF would you recommend at this time, using the cash that the sale/reduction of the above stocks would provide? Please feel free to deduct as many credits as this lengthy question entails, and thanks for the great help your service provides.
Read Answer Asked by Jerry on October 27, 2016
Q: I have to agree with Henry, that it just is not normal trading, i also in over 40 years of stock trading have never seen a stock drop in a well managed business like this, have seen in some bio tech company with no earnings and it's drug not being approved, but this a company that everybody knows what they are doing and has good cash flow, a good dividend and yes has a poor quarter, but it is not a company going out of business. The street knew of there acquisitions, there debt level, the companies they compete against and how they are moving forward. To trade 20x normal, do you have any idea who made this large volume of trades, and what qualifies a stock for a PUKE OUT!!! which i have never heard of for a quality stock? Did the fraud in Bre X every have a 40% drop in one day. I would appreciate a a more detail answer on this trading than a general answer that the market is tired of the stock.
Read Answer Asked by eugene on October 27, 2016
Q: I've been considering CAR.UN. While the drop in recent days might be seen as "good" for me, in lowering my cost, given that my three most recent purchases (DH, KBL and IWO) have all been immediate losers, I thought I'd better ask you first: do you see anything to explain the recent drop with CAR.UN; and do you think this is a good time to start a position? (As CAR's recent performance is not materially different from XRE, perhaps it's more of a concern with REITs generally at this time?
Read Answer Asked by James on October 27, 2016
Q: Hi 5i,
This is not a question, but rather a note to add to the ongoing DH dialogue. A number of weeks or months ago, DH had a release stating that they were working in conjunction with another firm to explore and develop Blockchain technology (if I read and understood correctly). This, to me, is a positive in that it shows that DH can and will innovate and is not going to be "left behind" if they can help it. Blockchain is expected to be a "disruptive" technology if it pans out as anticipated. DH is looking to try and be on the leading edge, not following and playing "catch up" later.
For myself, I will hold on and wait, perhaps add enough to be just slightly overweight, take the dividend, and give the company a chance to further prove themselves. If I am totally wrong in this, my weighting at about 1.50% (pre-drop) won't cause me too much grief in the big scheme of things.
Anyway, for what it is worth, I thought I would offer this up.......
Read Answer Asked by Mike on October 27, 2016
Q: I have shares in Amaya, Intertain and NYX gaming and am quite discouraged with both their performance and their outlook. If I were to hold any of them could you rate them from strongest to weakest with reasons. Do you think any of them are an outright sell at this point. Thanks.
Read Answer Asked by Rob on October 27, 2016
Q: Good morning. I'm wondering if you would consider this a good entry point for KBL? Its RSI at 28 seems like this might be a good time to jump in but I wanted your take on its valuation. Is the forward P/E of 22.8 (according to Globeinvestor) reasonable for this company? After the excitement of DH this week, I'm thinking a "boring" stock like KBL might be a nice addition to my holdings. Thanks!
Read Answer Asked by Steven on October 27, 2016
Q: I have already read all the Q&A and understand your opinion. As an investor I am trying to learn from this mess. With that in mind and looking for past experience guidance to making a decision on my holdings, I am looking for a similar "case study" stock.

A stock that is highly respected, good track record over time, solid management, etc, but in more of a "sunset" business than a sunrise business - but trying hard to change.

The one that quickly comes to mind is Yellow Pages, and we know that did not turn out well for investors - unless they bought the depreciated and restructured company and have seen a nice profit since then.

Any parallels here or other foreseeable surprises ahead?

Your thoughts, please.

Thanks.

Read Answer Asked by Donald on October 27, 2016
Q: Please comment on quarter and outlook. It appears they are serious about reverting to profits and growth. Is there bona fide progress, or just a case of 'managing expectations' as new management transitions in?
Read Answer Asked by gordon on October 27, 2016
Q: Hi there

I have owned a part position in Northwest Company and was thinking of adding to it on the recent pullback to bring it up to a full position. I like it's steady income characteristics. Do you think it's recent decreased same stores sales issues are a temporary blip, or more of a long term trend going forward? If you were going to invest a full position into a food/merchant seller would it be your first choice or would it be something else?

Much thanks

Stuart
Read Answer Asked by Stuart on October 27, 2016
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