Investment Q&A

Q: Hi Peter and Team,

This is somewhat of an abstract question but is important for my analysis nonetheless. Can you name a couple Canadian companies that you think would have a strong competitive advantage if they were to expand into the US or a similar country (i.e. Australia)?

Stantec (multinational consultant status advantage for companies in Australia, yet similar legal system) and Cineplex ('purchasing power?') come to mind, but I end up banging my head on the desk when trying to come up with others. Does anything stand out to you guys?

Q: Hi Peter and gang.

Question: Shawcor (SCL). I already have a 16% position in pipelines (Altagas, Inter Pipeline and Pembina). However, Shawcor (SCL) is looking extremely attractive, in my opinion, with 2015 consensus earnings, according to CIBC, of $4.35 and substantial growth continuing in the years after.

In your opinion, do you think I can hold my 16% position in my pipelines and add a 2.5% position in SCL? My reasoning is, I can buy SCL as well as hold my existing pipelines because SCL has a forward p/e of under 13 and strong earnings per share growth to support its share price. When interest rates rise, my IPL, PPL, and ALA, may experience a decline because of their very high p/e and slower growth rate but SCL could act quite differently because of its attractive valuation and growth profile.

My other option is to trigger large capital gains and sell a portion of my existing pipelines to buy SCL.

I'd appreciate hearing your thoughts. Thanks, as always.

Q: HI Peter,
Can you shed light as to why companies like POU are going up and companies such as TOU, SGY, SPE and CPG are going down? Thanks very much

Q: With Air Canada (AC.B) too going to join the baggage fees trend which might raise their revenues by $50 and $75 million dollars in new revenue according to globalnews.ca reports and also their fleet changing to 787 models which is believe to save 25% of their present fuel cost, what is your take for this stock ?

Q: re: ET Evertz Tech

Have read recent comments. I appears to me this is a solid company with good prospects moving forward and that you have confidence in having ET in the Income Portfolio.

I am sitting on cash waiting for an opportunity to reinvest "somewhere." I have been watching ET and have noticed it's recent slide. Would you recommend taking a position at this time or should I continue to wait and watch? Is there any other companies you feel I should be looking at that have recently come back/corrected? (hate using that word)

Thanks for all you do

Gord

Q: re: FRC

Last comment was Aug 1. Revenues were up considerably and they had just purchased a fluid logistics company. Your advice was it looked good to hold which I will do until you suggest otherwise.

In the meantime, can you please comment moving forward - FRC is down 8.5% since Aug 1.

Thanks for all you do

Gord

Q: In your answer to the question of Larry M on Sep 19 (below) you should include natural gas liquids (NGL) along with crude oil in the definition of midstream. Keyera is big on NGL whereas Gibson is big in crude oil.

September 19, 2014 (asked by Larry M)

Question: The following is a statement taken from an article written by Claudia Cattaneo in the Financial Post on Sept. 18, 2014. "Orange Capital LLC, a New York-based fund, has built a position in Calgary-based Bellatrix Exploration Ltd. It wants the midsized producer to explore strategic alternatives including a sale, look at the size and composition of its board, and a possible IPO or sale of the company’s midstream assets". What is meant by 'midstream assets'?
5i Research Answer:

Oil companies can be divided between upstream, downstream and midstream. Midstream assets involve the storage, transportation and marketing/selling of refined oil.
- See more at: https://www.5iresearch.ca/questions#sthash.duzGmqNU.dpuf

Q: I currently hold Badger and AutoCanada and continue to watch them decline on a daily basis. I was up quite significantly in both stocks at one time. Should I continue to hold them or take my profits now? Thanks for all that you do!

Q: medical facilities "dr" i know you were worried about their margins stock sure has come down alot any comment tks.

Q: Hi 5I Team,

What do you think of DR? I own shares in this company and wondered what your thoughts were. It seems to be sliding down and down.

Thank you for all your hard work.

Best wishes,
Terri

Q: PKI Parkland Fuels is up 15% today on news of the Pioneer acquisition. Good news but is it too much?
I'm also wondering where the cash portion will come from as I don't see it on their last quarter balance sheet.
Thanks John

Q: We have full holdings in the 5 major Canadian banks. I notice that the pundits, including yourself, seem to favour TD and BNS yet our major gains have been in BMO and CM, both of which pay better dividends as well. Comment?

Q: Peter and Team,
Could you please give me your opinion/assessment of AEU.UN. Many thanks,
Nancy

Q: Hi,
Could you provide an opinion on owning XFR as a conservative holding for the next 3-5 years.
Thank you

Q: Magna is down over 5% today and still falling. Is this Brazil business responsible, and is it that serious?

Q: mg- Should we be concerned about Magna's investigation in Brazil?

Q: I own a fairly large position in BIP.UN. It has pulled back a bit recently and I am thinking of adding to the position. What do you think of it at these levels and how will it fare re: higher interest rates. Many thanks

Q: Lightstream Resources - hold or sell? Thanks

Q: The following is a statement taken from an article written by Claudia Cattaneo in the Financial Post on Sept. 18, 2014. "Orange Capital LLC, a New York-based fund, has built a position in Calgary-based Bellatrix Exploration Ltd. It wants the midsized producer to explore strategic alternatives including a sale, look at the size and composition of its board, and a possible IPO or sale of the company’s midstream assets". What is meant by 'midstream assets'?

Q: Hi Guys any thoughts why BTE in under show much downward pressure
Kind Regards
Stan