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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Re: CLQ
This stock has been dropping rapidly (from around .90 to .70) over the last couple of weeks. Today they announced a $20M bought deal financing at .74. It would seem reasonable to assume word of the financing got out to some before the announcement. Anyway, I wonder if I could get your views on these kinds of financings and the short term effect they tend to have on a stock price. I would assume the stock price is now basically "capped" at the financing price and will be essentially dead money until the financing works its way through. Is that usually what happens? Also, the investment bankers who financed the deal will at some point want to sell into the market for their profit. Is there any rough guidline as to how much financiers are generally looking to make on these kind of deals (ie. if they are usually happy with, say, 5%, there may not be much point staying in the stock and waiting as they may be flooding the market with their new shares at something less than .80 again putting a cap on the upside at that time. Thanks, as always for your opinion.
Read Answer Asked by Neil on March 04, 2013
Q: Hi 5i team: What is your outlook on Ithaca energy( IAE )? This company has entered into an agreement to purchase Valiant Energy, which would increase it's production and cash flow substantially. Seems like this would be a good entry point at this level.
Thank you
Read Answer Asked by Jean on March 04, 2013
Q: Hello, I just want to provide some further excellent information regarding ATP from Seeking Alpha web site here: http://seekingalpha.com/article/1243561-atlantic-power-a-tale-of-misinformation

Happy investing!
Read Answer Asked by Christopher on March 04, 2013
Q: Hi Peter and team: AET.UN - T - ARGENT ENERGY TRUST; most oil stocks are down with oil and the above name is up could you comment on this name.and would it be a buy here ???
Thanks
Yossi
Read Answer Asked by JOSEPH on March 04, 2013
Q: Hi Peter, My question is on Renegade Petroleum.It says it is changing to a high div. paying from a growth co. They have paid there second staight monthy div. which I know you like. My family is in the oil and gas business and they say the eastern bakken is much better than the west. Renegade is in the eastern portion.It appears the market is not crazy over the company however I can remember well when we were buying Pembina, Ipl Keyera when the market did not like them either. We have owned them for years bought with 10% plus yields at that time. I have a bit in Renengade now but look forward to your opinion before I move on some more. Have a bit of ATP money left to spend. Ken
Read Answer Asked by Ken on March 04, 2013
Q: Peter; Would you add to MDF on the dip? Thanks.
Rod
Read Answer Asked by Rodney on March 04, 2013
Q: On March 2 Barry asked your team about shorting BB and you said that BB shares can be borrowed from your broker. My question is do the actual owners of the shorted shares know that the broker is lending their shares out and that the broker is getting a fee for this, rent if you will and furthermore, the broker is not sharing this fee with the actual owners of the shares. Peter maybe as a service to your many subscribers you could do a blog on short selling. I recently read about what Jim Cramer said about what he did when shorting... shorting a stock then trash talking it via dupes in the media all to get stock to go lower. I also read that the TSE was one of the worst exchanges for doing this with little in the way of enforcement.
Read Answer Asked by Derek on March 04, 2013
Q: I have been searching for a food company to invest in and came across Clearwater Seafoods ( clr) based in Nova Scotia. It has gone through some tough but appears to be recovering nicely
What are your thoughts on this one?
Thank you so much for this wonderful service.
Read Answer Asked by shirley on March 04, 2013
Q: WHITECAP RESOURCES INC WCP:CDN ,RENEGADE PETROLEUM LTD RPL:CDN,CRESCENT POINT ENERGY CORP CPG:CDN --I own the above, What would the price range of oil have to be for them to be profitable and sustain their dividend; do you think that can be achieved.
do you think Canada will be able to properly deal with the land locked resources and how long might it take?.
TO THE TEAM I lost money with ATP but very happy WILL RENEW and recommend the service to any one including my brother .
many many thanks
yossi
Read Answer Asked by JOSEPH on March 04, 2013
Q: Hi 5i. Would like your opinion of Hecla's take over of Aurizon. Would you play it by purchasing ARZ or HL, or stay out of it. Thanks
Read Answer Asked by Doug on March 04, 2013
Q: Peter;; If you thought China's real estate market was in for a severe decline where would invest to profit from this? Thanks.
Rod
Read Answer Asked by Rodney on March 03, 2013
Q: What do you think of Algoma Central? I like the company. They are spending money up-grading their ships and with interest rates so low that seems a smart thing to do. (The first ship will be delivered this year). The company is controlled by the Jackman family and if I understand correctly they take the road of borrowing cash instead of share dilution. With lower fuel oil prices and a reviving economy I think they should be able to hold their prices as their costs decrease. I think they are the major Great Lakes shipper so I feel it will prove difficult for competitors to undercut Algoma's prices. I have been held-up at the Hamilton Lift Bridge while their ship sailed into the inner harbour - they must be delivering iron ore to the mills. Not sure if they are a grain handler too. I suppose their balance sheet will show some debt which is going to increase as they take delivery of their new ships which will depress the stock. The stock went from $100 to $15 last year (there was a 10 for 1 split). They recently raised the dividend. Sorry for being so long winded - appreciate your thoughts.
Read Answer Asked by James on March 03, 2013
Q: What do you think of Bonterra Energy? 3% of our liquid wealth is with Bonterra. I sort of like the company and according to the Globe it is one of 3 Oil sector companies which have managed to increase its oil (or equivalent) barrel per share over the past year. One the other hand I believe oil prices will be weak as it appears alot of production from "fracking" is coming on-stream now and in future. I think oil is down about 10% so far this year. I can break even if I sell now.
Read Answer Asked by James on March 03, 2013
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