Investment Q&A

Q: Good evening guys,

Just wondering if you can shed some lights on United Technologies' recent bounce in its stock price.

As usual, great work guys.

H.S.

Q: Western Forest Products has dropped from its recent high, while West Fraser Timber got back to its high. I assume this is because $WFT was mentionned in an article on Bloomberg as well as in LesAffaires. Do you think that's likely it, or did I miss a piece of news? $WEF, which is lagging, is cheaper and pays a dividend. I'm intrigued. Also, it seems to me forestry stocks are in an excellent position right now, with not only lower oil prices but a lower CAD. I'd love to get your insight.

Q: Based on your experience, will you please give your opinion/evaluation of the latest news release. It seems there are some big criteria to meet next week and I notice Mr. Graf uses the word 'could' regarding completion. Does it seem more likely to you that the arrangement will not complete or can there be another extension? Any light you can shed on this is much appreciated. Thank you.

Q: In regards to the 10 sectors in your answer on Jan 22, could you tell me what sector Real Estate would be part of. I have 2 REITS that fall under real estate.
What is our opinion on REITS at this time as interest rates dropped .25%?

Q: ProMetic Life Sciences Inc. seems to be going through a lot of insider selling. How do you read this?

Q: I have had a position in STB since 2009 (ACB $9.86). To date it has been a very good investment.

Last year I had a good look and to my untrained eye it looks like the Shareholders Equity and Book Value have been steadily deteriorating.

Due to that I reduced my position substantially.

I also noticed that there has been a substantial amount of dilution.

Somebody mentioned that SNCF has been “buying” 95,000 or so shares each month. I believe that they aren’t actually “buying” those shares, they are “reinvested dividends” and a major source of dilution.

The current low fuel prices will help them and the SP has held up nicely. That said I find myself wondering if STB is a bit of a “house of cards” and will ultimately get into serious financial trouble and have to reduce the dividend or worse at some point in the future.

Q: Hi- Superior Propane's price seems to be struggling at this point despite recent popularity and a high dividend- is there something that traders are concerned about?
Thanks

Q: I'm trying to pay more attention to sectors when managing my investments, and I couldn't find much on recommended allocations in your Q's and A's. Should I use the 10 sectors listed on the 5i Summary table, and if so,what allocation would you recommend or the average investor?

Also, referring to that table, I would have thought ENB and IPL behaved more like Utilities than Energy stocks and I'm surprised BAD is listed as Basic Materials. My last question, what category would you recommend for BAM.A? Thanks

Q: Why does business TV always talk about US crude oil inventories, rather than US crude production, which would seem to be more relevant?

Q: Hi- I know that when a new closed end fund is started up that the first buyers end up paying for the administrative costs of the fund. Is the same thing true of a new ETF? Horizons has put out an Insider etf which I find interesting, but I want to buy it when it reflects the actual fund's value.
Thanks

Q: the BNS.PR.C has fallen sharply in the past couple days, is this due to the BOC cut? i was told to also expect share price declines in other rate reset pref's when the US starts to raise their rates...do pref's only move one way? thanks as always...

Q: Do you feel that Intertain Group (IT) is poised to make a fairly strong move upward in the near term? It seems to be making higher highs and lower lows and recently had a target set at $18 by one analyst. Over $14 is it something that may have some room to run? General reading seems to indicate lots of potential. Thank you!

Q: I have a small holding in CQE(down65%)& kel(down 50%).Both reported production update today & yesterday respectively,& both dropped Thinking of switching to WCP.Appreiate your normal expert opinion & services.

Q: Can you tell me if, as a rule,Canadian Mutual funds which invest in US securities have a hedging mechanism in terms of currency. If so is this information disclosed?

Q: I currently hold trp. Would you see any merit in a switch to either Pembina pipe (ppl) or Keyera (key)?? I have more interest in growth than dividends. Thanks.

Q: What are you thoughts on HSC:NYSE

Q: Hello,

With the bank of Canada rate cut today and the subsequent drop in the canadian dollar i would like to get your thoughts on Gildan in terms of its exposure to the US market and your outlook for the company over the next 18-24 months.
Thanks!

Q: Hi Peter and Co,

Market didn't seem to like RBC's decision to buy City National today, as it's down roughly 2% while the other banks are up. I haven't read any negative press on this deal from the analysts, so was wondering what your take on this was.

thx.

Q: Hi 5i team,

Could I get your updated view on TPL in light of the lower oil prices?

Q: Hi 5i team!

With $47 oil would you know what SGY's approx. net back is? I know it was disclosed in the recent quarterly release at much higher oil prices, but the royalty rate also fluctuates. I am looking to go overweight in my portfolio with SGY and am willing to be patient with low oil prices for 2 to 3 years, but I am wondering SGY's "going concern" (risk of bankruptcy) with prolonged low oil prices. From my perspective if SGY is still making money at $30 oil when their hedges roll off then the long term investment should pay off?

Thanks for the advice and looking forward to the 5i Conference!
Angelo