Investment Q&A

Q: While on the topic of the role that analysts play, while I do not make a purchase based on the usual analyst's comments (that is where 5i comes in!) I do find it useful to know what they think as it prepares me for stock movements and does sometimes provide food for thought.

I am often confused, however, by how they phrase their recommendations. For example, the following was taken from today's Globe: "Raymond James downgraded Chevron to "outperform" from "strong buy" with a price target of $140 (U.S.)" Given the current price of Chevron ($117 US) and its 3.7% dividend, that represents close to a 25% gain they are expecting! Does this mean they expect most oil companies to grown more than 25% this year, since this would not represent out-performance? What should we take from this type of comment - anything?

Your opinion is greatly valued.

Thanks.

Paul F.

Q: Hi. I sold a full position in new gold at $6.80. I would like to reinvest in presious metals.
What is your oppinion on the risk reward of new gold and centeral fund of Canada at these levels? Or do you think there is a better choice?
Ken

Q: In the event that the Trans Canada Pipeline gets approved, which company names do you believe would best appreciate? Trp?

Q: I welcome thoughts on PPL after this pullback from $52.Is PPL indirectly pulling back with the rest of the energy space? How tied to commodity price is PPL?

Q: would appreciate a comment on the co. and last quarters less-than-stellar earnings. Thanks

Q: Okay, of the two American Express and Discovery- your preference and why and is there a third I have not considered- that perhaps I should. looking at a 5 yr hold all things being equal.

Q: I see CHW dropped another 4.5% today to a 52-week low. Is there any apparent reason for this decline? Is there an imminent risk that it will not be able to maintain its 6.5% dividend?

Your thoughts would be appreciated

Jim

Q: As you know there have been concerns regarding Baytex debt level in the face of falling oil prices and the falloff in stock price is blamed on the risk of a cut in the dividend. Information on the company website shows that their heavy oil is 51% hedged at $96.45 for Q4 2014 and 45% hedged at $96.45 for Q1 2015. They do have $1.38 billion in long term debt but almost none matures until 2021, and they have a very low payout ratio. It seems to me that the concerns are overblown, what is your opinion?
Many thanks.

Q: I've been looking at AHF as a buy with the recent stock weakness and the dividend now at 6%.
One thing I noticed in the stock quote summary was the large discrepency between the share float vs outstanding shares - 55M vs 89.9M.
Is this due to insider ownership?
I also noticed they have some convertible debt.
Are any of these factors something to be concerned about?

Q: I currently hold 10% of my portfolio in four energy companies.... CPG, FRU, SGY, and WCP. This morning the Globe is running an article that states oil could drop to $60 a barrel if the Saudi's don't cut their production. How will these four companies fare at $60 oil? I bought all four near the bottom and am up on all of them, with FRU being up over 10%. Thanks for your input.

Q: Hi - your comments on the acquisition in Korea today. It looks like an accretive buy, and could provide some nice synergies. thoughts on the issuance of more shares to help finance?

Q: Hello Peter, Ryan, and Team,
Fam Reit is undergoing a transformation under new managers. It is to become solely an office reit(suburban focus).Fam is to acquire a seven building package from Slate with a 91% occupancy. With these major changes, it will not be the REIT I purchased. With many uncertainties, could I have your assessment of whether it is a hold or sell at this time?

Q: Good day 5i
I am planning to adjust my energy E&P holdings which include TOU CVE ECA BNP. I believe this sector is undervalued and would like to strengthen my holdings. BNP is in a loss px but I can use that to offset some CG rqd to adjust weights of some long time winners.

I plan to sell BNP due to its poor performance. M-star anylysts are critical of its mgt of resource assets.

Could you rank my holdings along with a few others, that I know you like, to enable me to take advantage of sector undervaluation to restructure.

As always, your advice is appreciated

ernie

Q: Hi..I could you tell me anything about MCW Energy Group MCW.V ?
Thanks

Q: Peter; Im sure you and staff try and read all the biz papers but just in case you missed todays G&M , Pge. B10 by Mr.Rothey, he comments on Momemtum investing. Thanks. Rod

Q: Hi, could you please tell me what you think about XEI as quick place to add funds during a market sell off? It's for my income portfolio (40% fixed income, 60% equities)
I like the 4+ % yield and the holdings. I believe iShares lowered the MER on it as well.
My equity portion is made up of the following:
XEI Index 2%
Consumer 3% CTC.A , L
Banks 19% BMO , BNS , NA , RY , TD , TMC , MTG
Insurance 11% MFC , POW , SLF
Utilities 8% EMA , FTS , TRP
Telecom 13% BCE , MBT , RCI.B , T
Prec Metals 6% AEM , TCK.B , SLW
Energy 14% CNQ , CVE , CPG , FRU , SU , ERF
REIT 13% CAR.UN , CHP.UN , HR.UN , REI.UN , TCN
Tech/Industrial 10% ET , MG , MDA , RUS , WSP, MRE

Thanks as always

Q: Could you elaborate a bit on the recent news from AHF confirming a term extension for their managed North American Financials Securities Trust. The news seems to have been well received so I presume the uncertainty regarding this event was the cause of recent price pressure. I am not sure I understand the issue - what was going to happen without the extension and is 5 years a meaningful term?

Q: Hello Peter and team,

I took some profits along the way in 2014 in a non-registered account and now I am wondering which of my losing stocks I should sell to offset the capital gains. The “losers” to choose from are:

RUS, <1% of portfolio, down 15%, capital loss would be 10% of total capital gain
XSR, <1% of portfolio, down 35%, capital loss would be 23% of total capital gain
AVO, 2.1% of portfolio, down 14%, capital loss would be 20% of total capital gain
TOU, 2.5% of portfolio, down 18%, capital loss would be 33% of total capital gain
D.UN, 4.1% of portfolio, down 11%, capital loss would be 27% of total capital gain
CPG, 5.4% of portfolio, down 5%, capital loss would be 16.6% of total capital gain

When I say the “capital loss would be 10% of total capital gain”, I mean that if I sold all the shares the capital loss generated would offset 10% of the total capital gain I have to declare in 2014.

If I sold RUS and XSR that only contributes a third to the capital loss I need to create. I am willing to wait it out for AVO. I like the dividend on CPG and D.UN. I don’t really want to sell TOU at this time, but I may not have a choice if I want to offset all the capital gains.

What should I sell? Should I suck it up and just pay some or all of the income tax when I file my tax return in April (I would be in the top tax bracket)?

Paul J.

Q: Hi Peter and Team,

What do you think of Cynapsus Therapeutics whose research on a new drug delivery system for Parkinson desease is partially funded by the Michael J. Fox Foundation.

Many thanks!

Michel

Q: Could i get your opinion of the value in analysts going out on a tour of a mine, oilfield, or even touring a manufacturing plant. I can see the value if it is someone like Brent Cook going out to a mine but the majority of the analysts have no background to realize what is going on out in the working world. As a working person I have been on 2 sites where tours of analysts took place and it is similar to when senior management comes out (clean the place up, and make sure everyone looks busy, and they are so careful to go to certain areas and not others).
Thanks