Investment Q&A

Q: Hi,
CLR has been sliding for the last few weeks. Is there any reason to be concerned? Don't know if I should sell or hold on to it.
Thanks

Q: I would appreciate your comments with regard to the Decarte (DSG) and RDM (RC) earnings releases issued this morning. Many thanks.

Q: Just a quick question. Since your model portfolio is up substantially would you recommend that at this time that I follow the portfolio and invest $100,000.00 today using the aforesaid model portfolio. Thanks

Mike Walker

Q: Hi,

Can you please comment on CJT's results. Thanks

Q: Vsn veresen's results are out. What is you opinion on Vsn based on the latest?

Q: Peter and 5i team,

With an equity financing, like what has taken place with E recently, how does the average investor buy into the financing? If it's a stock that an investor already likes and is looking to pick up more shares, it sounds like a good opportunity to pick up the stock at a cheaper price (in instances where the financing is done at a lower price than the current market price). I'm just unsure on how to go about participating in these financings. I currently trade with Questrade.

Much appreciated in advance,

Q: Please comment on APL (US) Why has it dropped 25%?

Q: I have heard you use the EOITDA frequently.What does t mean and how useful is it for evaluating any stock?Thank yu and have a good day

Q: What is your opinion on the Knight Therapeutics (GUD) financing at $3.50? The market seemed to act favourably today as it reached $4.50. Mr Goodman retains a significant ownership but do you see this stock trending lower when the financing closes on March 19th and these new shares can be sold for a quick profit?

Thank you

Q: Hi...
What do you think of aecon (are)? Or would you prefer stantec at their current levels as a long term hold?
Thanks

Q: My Question in short:
Can you quantify the change in size of the alternate mortgage lending market due to the recent mortgage regulations changes in Canada? Can you also comment on the quality of said mortgages given that the regulations have essentially raised the bar on the mortgages that the big 5 will write up?

My Question in long form:
I’d appreciate you input on the change in the alternate lending market and any corrections you wish to add to the information I’ve provided.

From my research, there have been three sets of regulations changes to the financial industry in response to the 2008 financial crisis, the Volker rules, Dodd-Frank and Basel I, II, III. From my understanding, the Volker rules limit proprietary trading/derivatives and are thus irrelevant to this subject. The “Dodd-Frank reform” is a sort of blanket US legislation that is being written SEC and rolled out in pieces, some already in effect, until 2018. I believe it will have a direct effect on mortgage quality regulations in the US, but Canadian banks will be able to place there US operations in subsidiaries and thus Canadian operations will be unaffected.

On the other hand, Basel I, II, III and other OSFI policies will have a direct effect on the Canadian mortgage market in a two-fold fashion;
-Bank capital reserves requirements are more stringent from both a quantitative and qualitative measure.
-Rules regarding who qualifies for mortgage insurance have been elevated.

Benjamin Tal recently commented that these new regulations will raises the bar on who qualifies for a big 5 bank mortgage and thus create a new high quality tranche of mortgage business for alternative lenders such as HCG. Would you agree with that hypothesis? I believe the mortgage market is around 1.2 trillion in Canada; do you have an estimate on the size of this tranche of the market? Are there any other alternative lenders similar to HCG that stand to benefit from the change in the market place?


Thanks in advance for answering my question and also for the great research reports you regularly deliver.

Q: Hello - With BAD reporting soon, what are your expectations? Would this company warn ahead of time if the quarter was going to be far off the mark? Thank-you.

Q: In response to Chris (and Greg) per Frac Sand companies, there is a private one called Canadian Silica and a small cap public junior named Stinkine Energy (SKY.v).

Q: Cn you tell me why PRD Energy took such a hit on the markets today ?

Q: Hi - Gear Energy GXE just released an update and indicated a NAV of $4.23 I noted they are trading right at this price - my question is what is a typical price to NAV ratio in this sector and in this case would GXE be considered under valued? Thanks -terrific service you provide.

Q: Hi Peter do yoy have any insight in BYD.UN I have held it for 2 yrs and am happy with the growth to date.. I believe they are growing by expanding. What are your thoughts?

Q: Can you please comment on ESL first quarter financial results ending period Jan.31/14. Thanks.

Q: What are some some examples of light oil and heavy oil companies-there seems to be a feeling of increased light oil on market ?

Q: Good Morning Peter and Team,
I have been taking a look at Macro Enterprises (MCR- TSXV). Upon reading the most recent Ink Insider report I noticed that one of the two founders (Mark Dodge) has recently been selling down his stake in the company. However the other founder (Frank Miles) still owns about 30% of the outstanding shares. Being a value oriented investor (However I am slowly coming around to your philosophy) I believe that MCR looks cheap with compelling long term prospects to boot. The recent insider selling may explain some of the recent weakness in the share price. What is your opinion of this company ??? Thank you for your help. DL

Q: I'd appreciate your views on Pure Industrial AAR.UN. I have held it for a while but it doesn't seem to be reviving.