Investment Q&A

Q: As part of my fixed income investments, I am looking at BMO's Floating Rate High Yield etf ZFH. I am trying to beat the one or two-year GIC rates but still retain a high degree of security in my investment. The etf ZFH is new and has very low volume. What would you suggest as a comparable etf? Or should I stay with the GIC approach in a 1-5 year laddered setup?

Many Thanks

Q: I am considering replacing MDA by CDV. I think CDV could have a better upside potential. Your thoughts please.
And thank you again for your excellent service and wise recommendations. Cheers.

Q: Hi Peter,

The following is from a Tuckamore (TX)news release:

Tuckamore’s senior management, along with the support of certain funds managed by Birch Hill Equity Partners have agreed to indirectly acquire, by way of a plan of arrangement under the Business Corporations Act (Ontario), all of the issued and outstanding common shares of the Company

As part of the Arrangement, it is contemplated that the obligations of the Company under its 8.0% secured debentures (the “Debentures”) will be assumed by the Purchaser and it is a condition to the Arrangement that the Debentures (as assumed) be approved for listing on the TSX, subject to the satisfaction of the customary listing conditions of the TSX. If the Arrangement is completed, the Shares will be delisted from the TSX.
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I have a small holding of the debentures ( TX.DB.B 8 % and maturity 23/03/2016) which I would prefer to keep until maturity, depending on your view of the ability and quality of Tuckamore and Birch Hill management. Debs were trading around 97.50 today, up about 15% from my cost.

Many thanks and great work.

Q: Views on Westport Innovations please.

Q: Any update on your opinion of wi-LAN

Q: Good morning,

I have been waiting for others to ask to prevent redundant questions, but no one has of yet. Could you comment on MDA's quarter results, might as well ask about PKI's results, and the recent release from Amaya sending the stock back to where I am sure all subscribers prefer it.

Thanks,

Eric

Q: Hi Team, What are your thoughts on Chesswood (CHW) results and how do you see the market reacting...Keep up the great work, best investment I've ever made! You give me the confidence I needed in companies (going forward with my investments. Great job!

Q: re: the Canadian Dollar & Gap Inc

another US equity... I am beginning to focus more on US Markets with signs the US economy is starting to move which should lower the Canadian dollar. Am I right or wrong in this assessment?

Also, GAP (what is 5i symbol plz) which has a good Div, not great, is not far off it's a 52 week low. Do you have any comments on this equity in the coming 6 months - yr.

Thanks for all you do, appreciate your time

Gord

Q: I read Ryan's article on what to put in a TFSA with interest and am wondering what you folks would think of putting index linked GIC's in? There would appear to be a "match" since there is no capital loss and TFSA's don't allow write offs of losses. Plus, TFSA would be a decent place for interest income since there is no tax preference given away, as there would be for dividend income. Now I realize that some of the index linked products in the market are pretty poor in terms of return but one offered by Scotia linked to a basket of TSX stocks looked decent.

Q: RE-T Red Rock Energy

Read your April 25 comments. I am up 47% on a small position over a 2 month period and am wondering what your thoughts are for the next 6 months - a year. I'm in no hurry to sell.

Thanks for all you do, it is very much appreciated

Gord

Q: (FRAN) Can you please tell me what the 5i symbol for Francesca' Holdings Corp is please? And if we haven't covered it because of it's US placement, do you have any comments?

Thanks for all you do

Gord

Q: COH - Coach

Read your Jan 20 comment ($52.56) "At 15 times' earnings we would view Coach as just 'ok' right now."

Market Call recently had a guest place COH as a Top Pick. In the past week it has seen a 14% drop.

Can you please comment on any speculation as to the reason for this big fall and what you see moving forward in the next 6 months - a yr?

Thanks for all you do

Gord

Q: I currently own Suncor,CNQ, Cenovus, I purchased these a few years ago, and watched them go down, SU is up $5.00 CNQ break even, CVE down $5.00. Should I sell these now, and what would be a replacement?

Q: Greetings 5i Team. I am currently trying to add more CORE holdings to my portfolio. (Companies that I will hold indefinitely and add to on market pullbacks). After looking at your 'income portfolio" I would consider the following to be core holdings: Bank of Nova Scotia, BCE, Loblaws, Sun Life, and Telus. My plan is to add all of them to my portfolio. My questions are:
1. Am I correct in assuming the above mentioned companies are core holdings?
2.Do you consider others in your 'income portfolio to be core?
3. Which of these companies would be the best buys at current valuations?

Q: Hello 5i.
you don't seem overly positive on MFI. I have a good profit from it and have been waiting for an opportunity to sell. I thought they might be a buy out candidate and having been waiting for something along those lines. Do you think there is much possibility for a buy out?
thanks

Q: Hello Peter,
Need your guidance in deciding between TMA and TFI. I realize they are not in the same league in terms of Market Cap, but I feel more comfortable with the fundamentals in place with TMA. However, I am seeing momentum building with TFI and like their forward plan. Which do you see as having the best forward value and / or the best potential for growth?
Thanks as always for your help!
Rick

Q: Hello Peter & 5i Team, I write about Shawcor SCL. I have a 30% gain in SCL having accumulated these shares since July 2013 and I wonder if I shouldn't exit the position or at least take some profits? It was only in January when the company warned on Q4 coming out with bad news inconsistent with strong pipeline industry performances. Then we received a positive surprise with a strong Q1. I like the 30%+ ROE, cheap 2015 forecast PE of 11.5x, P/CF of 8.1x and expected cash balance of $500 million end of 2015 (TD Waterhouse forecasts). Is the business that volatile and does management not have better visibility to have predicted this surprising turnaround only 3-4 months later? Thanks for your reply.

Q: Hello 5i staff. Could you please give your updated opinion on PRB, Probe mines based on the latest drill results. The stock has been under pressure this past month. Big players seem intent on pushing the share price down. A Scotia analyst put out a rather negative report recently. Thanks as always

Q: Hi team:
great work as usual
I am about 10% up on ATH (no dividend) and PPY (no dividend)
I am considering selling ATH as PPY seems to have a better prospect (as a target of taken over as the LNG heats up more)

I have in my holdings the seniors CNQ, SU, HKE and CNQ (all up 25%)
In the juniors, I got RRX, DEE, and recently added small position in SGY,
In the services, I just added FRC and BDI

If I do sell ATH, would SGY and TOG be a good place to put the
money ? (I believe both pays a dividend)
I am already loaded in pipelines from PPL, TRP and IPL which has gone up 25% plus

thanks for the great work team!

Someone told me that this is an oil and energy bubble due to the Russian-Eukraine conflict, what is the fundamentals that
is leading to this run up in the oil and gas in your opinion ?
it has been very cheap prior to this event,
Michael

Q: What sector weightings would you recommend for a conservative middle age investor, with a balanced focus on capital gains and dividends. Thanks