Investment Q&A

Q: MRE: not a question but a comment. CIBC posted the following early on 22nd, which should explain today's drop. "Nat Rea Comes Out Swinging In His Defense To The Counterclaim
 In Nat Rea's reply and defense to the counterclaim issued by the MRE group, additional issues were raised that appear to be of greater materiality than the original statement of claim. Clearly, the Rea claim will weigh on the stock until a resolution, which will take months.
 One of the most impactful statements was that current CEO Nick Orlando and former CEO Fred Jaekel have collectively steered $50M to $100M out of MRE via kickbacks and misappropriations. For context, MRE reported EBIT of ~$450M from 2001 to Q3 2013. 2013 adj. EBIT est. is $158M.  MRE executives were also said to have overstated earnings of one of MRE's international plants in 2012 and early 2013. In early 2013, several million
dollars were said to be booked retroactively to 2012, with the plant
subsequently instructed to book periodic losses in 2013 to offset the profits.
 These new claims are troubling and given the internal detail only MRE can
put them to rest. Our view remains that we like MRE's fundamentals (better
margins and exposure to light weighting). The timing of realizing this value
has been pushed out which will cap its valuation (2014 P/E 8x, peers 11x+)."

Q: Just saw that many financial institutions have just changed Potash to a hold. We own it.. bought 200 shares at $55. Would it be better to sell and buy something else?

Q: If you had to choose between FSV and HCG, which would you buy?
Thanks for your great service!

Q: Mre has dropped over 11 percent plus yesterdays decline.Whats UP????? Thanks Don

Q: Peter and crew, Our holdings include AD/ACQ/BPF/FSZ/CSU/PKI/PPL/STN/WEF/BEP/ESL/HR.UN/IPL/KBL/TRP/CFN/HCG/MG. We are 8-10 years from retirement so don't need income now. However I've read a lot recently that says dividend growers are very important vs. dividend payers if you don't need income (we don't). Do our holdings in your view contain some good candidates for the 'dividend grower' category? Thanks, Bill Y.

Q: SES.t
I note with thanks, your general comments from Nov. 5/13 on this apparently outperforming it's sector company. It appears that Nov.20 they announced a bought deal financing of 6.2 million shares (approx. 15% of the current float) at $15.35 (today trading up to 16.20ish). So, I was a bit confounded that the stock price went up today, normally wouldn't one expect a dilution at a lower price to bring the price down? If the price continues to hold in the face of the BDF, does this speak positive for the company? I'm not not sure on the "ins and outs" of these deals so would much appreciate any education you could provide.
Thanks as always.
One of the Neil's

Q: I read RSI is doing a share buy back. In your opinion is this equal to a dividend increase? Will the share price reflect the concentration?

Q: MRE seems to have fallen off a cliff.Do you have any idea why? Your answers are always very helpful and I thank you.
Garry

Q: Would love to hear your thoughts on Transalta (TA). Attractive yield and potentially signalling a technical breakout. Would this be a good entry point?

Q: Do you have any info. on virtutone networks(vfx) and if you do what do you think of it? thanks as always

Q: hi 5i,
do you think the sheritt intl 8.00 coupon 2018 nov 15 at 97.5 is safe to hold to maturity?
thx chris

Q: Hi Peter, is there any fundamental changes re. AM and MMT recently that cause price up or just speculation?

Q: Hi Peter,

Data Group DGI just cancelled their dividend and the stock dropped in value by 50% on top of being down about 90% since I bought it. Is there any hope for this dog?
Thanks,
Charlie

Q: Hi Peter and team
Is there recent news on LSG?
Thanks

Q: I have 25k to invest in the financial sector, I prefer Canadian banks outside of my registered accounts. Are the Canadian banks fully priced after the recent run. Do you see further upside in the Canadian Banks in the next 12 months and if so which 2 banks have the most to gain going forward. Which 2 banks will increase their dividends in the next 12 months. Instead of investing equally in two Canadian banks would I be better off to invest in ZWB or ZEB which hold all the major banks. Thanks for your highly valued opinion.

Joseph

Q: I have held Teck (TCK.B)since March of this year and it comprises about 2% of my portfolio. (Held within an RSP). I am down 12% on the price and the yield is about 3%. Would you suggest sitting tight or moving on?
Thanks.

Q: Would you please give me your opinion on UNITED CP (CA: UNC)
Thank you.

Q: Industrials has been one of the hottest sectors in both Canada and the U.S. this year. Chartist might say the sector is "overbought". I'm wondering if you would recommend the BMO Equal Weight Industrials ETF (ZIN) at this time?

Q: Hi Peter and 5iResearch Team,
While listening to BNN this morning the host mentioned that China hedges the USD by buying US real estate. Can you recommend a good ETF that invests in US commercial real estate and do you think this is a good time to buy? I currently own Morguard NA Residential REIT. Can you comment regarding commercial US REIT vs. Cdn REIT that invests in US commercial property? Thank you.

Q: Hi Peter and team
I see an article in the Globe and Mail today on Pure technologies PUR-T. I would like to hear your thoughts on this company.
Thank you