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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: Good Morning Peter and Team,
I have been looking at a small company in the energy sector, Pulse Seismic (PSD-TSX). The financials look good and it appears to be reasonably priced. ROE is near 30% and they use some of their free cash flow to pay a dividend, pay down debt, and repurchase shares. Year to year results can be lumpy but they also look to be in an interesting niche. I would appreciate your opinion of this company's business model along with any other wisdom that you could share. Thank you, DL
Read Answer Asked by Dennis on April 15, 2013
Q: When buying US stock, is it wise to buy in Can $ or would it be best to open a US account.
Read Answer Asked by diane joan on April 15, 2013
Q: This is a tax question that may be outside your comfort zone, but I do my own taxes and have a query. I know that if you sell a holding , with the objective of creating a tax loss, you cannot re-purchase that holding for 30 days. If you do, the first transaction is deemed not to have occurred for tax purposes. I wonder if the same is true for the reverse situation. I sold shares for a healthy profit (covered call assigned) and quickly re-purchased them after the price dropped below the strike price. Can I not report this as a capital gain, thereby delaying the tax on any eventual gain?

Thanks, Bob.
Read Answer Asked by Lynn on April 15, 2013
Q: One of the toughest lesson I have had to learn in investing is that a good company does not necessarily mean a good stock investment. You appear to grade the company and not the stock price. Would it be possible to grade the stock price as well as the company? The stock grade would change much more frequently than your company grade.

Your comments please.
Read Answer Asked by John on April 15, 2013
Q: re Gold and Goldcorp in particular. Being an independent investor with limited fundamental analysis ailities, I have used technical analysis and stop losses to keep me out of trouble over the years. With your fundamental approach and model portfolio, are you content to hold positions in Goldcorp as gold markets sell off? At what stage would you take a loss on Goldcorp or do you assume it will come back and you are ok holding a losing position?
Read Answer Asked by orion on April 15, 2013
Q: As we aproach the time of the year when markets can be soft I have been looking at my holdings for companies that could be vulnerable in a weak market. Davis-Henderson has been trending sideways for some time and perhaps could fall into this category. On top of that there are rumors that the company could be at risk of losing a large contract.Have you heard anything along these lines and what is your current view on the company?
Read Answer Asked by John on April 15, 2013
Q: Peter,

I have a few resource names including LYD, CS, NPK and MND. All of them are down roughly 10% or more. Would you recommend selling and getting out or holding on for eventual recovery and forget about intermediate capitulation.

Thanks
Read Answer Asked by Imtiaz on April 15, 2013
Q: I just read a report on surf-online.org entitled The Paper World of Brookfield Asset Management. This report paints the structure of BAM as being extremely complex and opaque. In my reading about investing one message that is clear is that one should not own a company that has the attributes that this article describes for BAM.A and BIP.UN. I am now facing a decision - should I sell my holdings in these two equities? I would greatly appreciate any insight you can provide me which will aid me in making this decision.
Read Answer Asked by Dennis on April 15, 2013
Q: Hi Peter
Telefonica(tef). I'm underwater(-30%). Should I sell and take my
loss,average down and buy more or wait for better times.Many thanks. Bob
Read Answer Asked by Robert on April 14, 2013
Q: The S&P 500 is at a high right now, and may be ripe for a correction. I was considering Horizons HUS.U as a way of getting any upside left in the market and protecting my capital in the event of a black swan event. Your thoughts on this ETF are welcome. Thank-you...
Read Answer Asked by David on April 14, 2013
Q: hello 5i:
I am very interested in KTOS, a small cap company with great prospects. What is troubling me, and I really subscribe to your conservative approach, is the debt issue this company has. Can you comment please
thanks
Paul
Read Answer Asked by Paul on April 14, 2013
Q: Sell in May and go away? It seems to me that it makes more sense to buy bargains between May and September, rather than sell dividend payers and forego the dividends and incur capital gains on your winners. Could I have your opinion?
Read Answer Asked by William J on April 14, 2013
Q: Hi Peter & Staff;
I will try to keep a very complicated question short. The government printing presses are running steady, and the gold
believers are intact. Many guests on BNN,however, claim that the
QE is in no way contributing to inflation because the money is not being lent to consumers. They maintain that the velocity of money is important and now it is very low.

COMMENTS

Thanks,
BEN
Read Answer Asked by BEN on April 14, 2013
Q: I understand the hesitation towards "target prices" however what about "fair or fully valued"? Many of the stocks in your model portfolio were a lot cheaper (good job!) when they were first added to your list.
Read Answer Asked by mike on April 14, 2013
Q: Hello 5i. I'd appreciate your comments on Augusta Resources(AZC-T). Is it worth holding? Bought in at the mid $3 range about a year and a half ago and it has never got back there.

Read Answer Asked by Dave on April 14, 2013
Q: Do you think gold's fall on friday has anything to do with Cyprus saying they want to sell some of their 14 tonnes of gold?

If so, what do you think would happen to the price of gold if other countries with high sovereign debt decide to follow in Cyprus' footsteps and sell some of their gold reserves, like Portugal (382 tonnes) or Italy (2451 tonnes). Is this a viable option for these countries?
Read Answer Asked by john on April 14, 2013
Q: What are your thoughts on Zillow now, would you buy, the P/E is still very high, but the growth is unbelievable. Or would Shaw Group (SHAW) & Reis Inc (REIS) be better buys?
Read Answer Asked by Sunita on April 14, 2013
Q: A Website which tracks the price differential between WTI and Edmonton select: (asked by Richard)

This price is listed at:
http://www.dailyoilbulletin.com/

Halfway down the home page the entry below has the differential calculated:

Net Energy Sweet Closing Price* -$2.10 USD/BBL
Read Answer Asked by Russ on April 14, 2013
Q: The US market has outperformed the TMX in 2011, 2012 and so far in 2013. For the last couple of months, the analysts appearing on BNN have been recommending shifting from Canadian to US investments. I think there are a lot of opportunities in Canada, even if resource stocks continue to falter. Do you think that Canadian investors should look south of the border for a larger portiion of their investments?
Read Answer Asked by Hans on April 14, 2013
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