Investment Q&A

Q: Peter - ESL has been hammered lately, over 5% today. Any explanations on the background of the decline? Is this a good time to get in? I am looking at 3% to 5% position.

Thank You!

Q: When the market is hit by a pullback of momentum stocks, is it better to buy AVO or ENG, which was hit especially hard, or one of the ones that way only minimally affected?

John

Q: Hi,

Regarding BYD.DB, can you explain in some detail how this security will behave? Since it is trading well above its conversion price, my understanding is that its delta should be close to 100% of BYD.UN, but it will have 5.75% interest payments instead of the ~1.35% distribution? Does this not make it more attractive than holding BYD.UN? Can you also put into simple language the redemption features?

"On and after December 31, 2015 but prior to December 31, 2016, the Debentures may be redeemed by the Fund, in whole or in part from time to time, at the option of the Fund, at a price equal to the principal amount thereof plus accrued and unpaid interest up to but excluding the Redemption Date (as defined herein), on not more than 60 days' and not less than 30 days' prior written notice, provided that the volume weighted average trading price of the Units on the Toronto Stock Exchange (the “TSX”) for the 20 consecutive trading days ending on the fifth trading day immediately preceding the date on which notice of redemption is given is not less than 125% of the Conversion Price. On and after December 31, 2016 but prior to the Maturity Date, the Debentures may be redeemed by the Fund, in whole or in part from time to time at the option of the Fund, at a price equal to the principal amount thereof plus accrued and unpaid interest up to but excluding the Redemption Date, on not more than 60 days' and not less than 30 days' prior written notice. The Debentures may also be redeemed by the Fund in the event of the satisfaction of certain conditions after a Change of Control (as defined herein) has occurred. See “Description of Securities Being Distributed - Offer Upon Change of Control”.

Thank you.

Q: Hi Peter and team, Enghouse and Constellation are both down by more than 4% today. Is there any reason to worry? Thanks, Gervais

Q: Hi guys, ESL continues to slide -- really starting to scare me. Do you have any insight into what's going on there? Thanks for your great service!

Q: Hello Peter,you answered a question regarding 5 must buy/should have small cap Canadian stocks. The ones you suggested look good to me and I would like to put 3/4 of my portfolio on it. God hates a coward right! What are your thoughts?

Q: Wondering if 5i comment and/or any current and 2012 (1st year) subscribers claimed 5i membership as a deduction claim on "carrying charge" on Line 221 -> I'm saying that 5i is financial research not a newsletter magazine. I'm doing it again for 2013. I didn't have any problems for 2012. Peter / 5i staff -> you've done a great job!

Q: At some point I would like to buy a vanguard canada etf that gives me US market exposure. VFV is the S+P index unhedged and VSP is the S+P index CAD hedged. Can you give me a simple answer as to when it makes more sense to buy hedged rather than unhedged? For example, if I think the canadian dollar is going back to par, which do i buy. If it stays at it's current level, which do I buy and why.
Thanks

Q: Re Cineplex (CGX): Based on Morningstar data, CGX has had an average 5 yr payout ratio of approx 114%. If this data is accurate, is the dividend payout being supported by free cash flow? Is this feasible in the long run?

Q: Hi Team: looking for a comparison between ALA and KEY. only need one in this space, who gets the nod? thanks

Q: I have a small holding ( just over 1%) in Market Vector Rare Earth etf (REMX) Since I bought into it sometime back, it has gone down over 40%. Its downward trend appears to stabilize in the recent past. Are there any posssibilities of an upward movement for this etf in the near future ( may be over next year or two). Or should I just sell it and take my loss?

Q: Hi Peter. Could you please give me your opinion on PGF going forward. Thank you. Betty

Q: Hi Peter and team
I am looking at TRN WMB HON UTX and TAL as secure long term holds. Could you give me your pick of the best two.
Thanks
Gary

Q: I have 3 pharmaceutical stocks unfortunately bought before I started receiving good advice from you. They are ARWR - U.S., COM and TLB. I am down an average of 25% on them. I have been waiting for an upswing to sell them. They seem to be on a one-way trip going down. Your suggestions? Apr. 4 before the market opened at 9:30 a.m. the futures indicated very high openings for the DOW and the NASDAQ. By 12:00 p.m. they were both down over 100 points and falling. Do people behind the scenes manipulate the futures for their benefit - so that the naïve investor gets the impression that it will be an up day in the market. Dennis

Q: PHE is the Tactical Hedged Equity Fund from Purpose ETFs, which Som Seif is now involved with. Assets are now above $50mm, performance has been reasonable since inception last autumn, and management fees are under 1%. Would this qualify as a true hedge fund in the same league as Picton Mahoney and Donneville Kent's as net market exposure seems high around 80%, and how would their mandate for hedging the equity market compare with the others including Venator etc.? Also do you have any opinion on the 5 Purpose ETFs in general, or any experience with Som from his time at Claymore? Thanks, J.

Q: I regret not following model portfolio last time,i want to follow this time TO RAISE fund what should i sell or all from following,ATH,CMI,CDV,DML,EDV,IAE,PRB,PLI,VCM,WIN,FM,PLZ.UN,FVI,P?I am over 65.Thanks from the bottom of my heart.

Q: I am confused about GUD Knights Therapeutics. I bought 1,000 shares just a few days ago at $5.00. They are now $6.78. They have issued special warrants $180 million. It closes April 10th. I can't find how many shares they have outstanding anywhere or what the warrants are worth. Basically, I don't understand it. Should I hold my shares or take this huge profit in just 4 or 5 days before the warrants close. Thanks for your help.

Q: Hello: can you recommend 5 or so " must/should buy" Canadian small cap stocks?

Thanks

Q: Hi Peter and Team,

What are your thoughts on Gladstone Land Corp, LAND.

Q: Team,

Athena down 10% today, Valeant down 5%, both on no news..... I'm thinking this is all the healthcare sector rotation you've hinted at, however, Concordia Health is up 5%? I'm so confused... I own all 3, is this just random market activity?