Investment Q&A

Q: ESI has not announced any future dividends. From their web site, I see that in the past 2 years they had already announced by this date. What is the best way to determine when they will make the announcement? Is this a warning sign that they have not announced yet?

Thanks

Q: Hello Peter & Co,
6.3% of my RRIF portfolio is in this sector (HWO, TOU, VET and WCP).
Given the turbulence in this sector, I have 2 options:
1) sell my holdings and absorb a 7% loss (impact of 0.4% on the portfolio); buy holdings back after the dust settles
2) hang in there, grin and bear. However, given the supply situation, prices a year from now could very well be as low as now.
I have a strong feeling that you would lean towards option 2
Thanks in advance,
Tony

Q: If I can get COS at 16.75 would it be a good long term buy(3yrs). I would be buying it for the dividend and is the dividend safe for the long term?

Q: The ex dividend date is Nov 26.2014, the date of record is No 28. If I sold the stock on the 26th who gets the dividend.

Q: Good morning Peter and Team, What are your current thoughts on CAR.UN? As an anecdote, we live close to several of their properties, and they appear to maintain them reasonably well for rental buildings. Their 5% discount on DRIP'ed shares is also attractive. Alternatively, are there other investments in this space that you prefer? Thanks in advance for your guidance.

Q: In response to Dennis Mcv comments on brokerage permissions.
I understand that brokers/bankers can only loan out your shares for short selling if they are in a margin account. So they tell us!!!
I think the only way to ensure that your shares are not short sold is if you hold in your hands the physical stock certificate. but who does that today. I have always believed that the practice of short selling is not a good thing and is destructive by its very nature.

Q: Hello Peter & Co,
I'd like to know which energy producer ( one in oil, one in gas) you would choose to invest in (one with yield, one without yield).
Thanks,
Tony

Q: Could you please update your 2013 answer on the interesting ETF.
Many thanks !

Q: What's your opinion of KKR? Would you suggest buying it today as an income stock? Is there any growth potential there? Alternatives (e.g. BX)? Thanks.

Q: Hi, like most of your members, I have an on-line trading account. The problem that I encounter when I wish to buy shares is that I'm at work when the markets are open and I don't want to use my work computer to make trades. How do you suggest we place a Buy order once you've chosen an equity that you wish to purchase. You once wrote that we shouldn't place a "market" bid as that is like giving a blank cheque. Should I place a bid in before I leave for work and limit it to the previous day's closing price? Or what do you suggest?

Thank you for the education,

Q: Hi Peter and team, On Nov 5th YRI and K hit multi-year lows. Just 20 days later they have gained/recovered 22% and 54% respectively from that multi-year lows. Would like to know the underlying reasons for this quick recovery. Thanks.

Q: My question concerns RIF withdrawals. Within my RIF portfolio, I have Canadian and U.S. equities, cash, corporate bonds - 2018. During the course of the year, I require about 75% of the minimum withdrawal to cover the expenses for the year. I generally withdraw the assets in-kind. I would like some advice as to what strategy I should use to determine what assets should be withdrawn.

Q: Want to replace HLP.UN with same similarity, please provide 2 or 3 suggestions? Thanks.

Q: Good morning,

Can you please comment on LOY latest quarterly results that were released last night.

Also. please give me your thoughts on picking up the shares at this level as an initial position.

Thanks once again for providing a unique unbiased service!

Tom

Q: Hi Peter and team,

Could you please suggest several investments for a portion of a portfolio, in a non-registered account, where capital preservation and income (as frequently as yearly or more) are a priority?

It would be important to avoid the risk of losing capitol over a 5 year time frame. A distribution/interest/dividend/etc payment is also important for this investment.

With GIC rates being so low, I'm struggling with what to do.

Could you please recommend a few ideas which would yield more than a GIC while also minimizing risk and taking into account the tax implications of it being in a non-registered account.

Thank you very much for all of your helpful answers.

Q: Hello Peter:

I am looking for your unbiased opinion on Ithaca Energy. I currently have it as a holding in my portfolio along with other energy stocks and it has been really beaten down this year. I have made money trading it in the past when I have sold it at $2.55 and again at $2.90. However in June and July I ended up obtaining my full position again with a current average cost of $2.50. With the current oil environment and the meeting of OPEC on Thursday would you think it would be wise to lower my average cost by buying more after this meeting in light of the potential positive catalysts of Stella doubling current production in the 3Q of 2015 and their current break even price is $20.00 per barrel for current production and hedging. I am expecting the price of oil to drop further after the OPEC meeting however I am thinking Ithaca will withstand the lower price and still remain profitable. They have had some setbacks over the last few years of either not meeting production targets or dates and have been hit hard because of it. Some of these setbacks are due to 3rd parties like TAQA and Petrofac but the management gets the blame on bullboards I also read for research.

At the current price of $1.40 it is extremely cheap. Other analysts have the stock still at $2.80 - $3.20 target. Their net backs are still high and will be higher when Stella comes on line, however I do not want to throw good money after bad.

Thanks in advance for your opinion.

Q: Hello Peter

I am wondering what your opinion on Iona Energy is since the last time I asked a question on this company. The management has changed and they have since signed a deal with CNRL for the Orlando field. This will be brought on in late 2016. Their current producing asset Huntington is planned to be re-started in early Dec after a 6 week shutdown due to gas pipeline maintenance (BP CATS pipeline). They currently are trading at less than $50M market cap which is less than 1 times cash flow. The new management has bought in at $0.40 a share and the current price is at $0.14. There is discussion that they can get a $500M RBL at a low rate if they buy another producing asset. They would be able to get rid of the $300M bond with that and it would be at a lower rate. Their are a lot of potential catalysts in the pipeline so is this a buy in your opinion?

Thanks in advance

P.S. Would IAE be a better NS oil investment over Iona?

Q: Just wondering if I should continue holding Surge Energy and if the dividend is safe? It seems to be under a lot of pressure with falling oil prices. Also Crescent Point seems to fall into the same position. Thank you for your great help, Herb

Q: Did you read in the Nov. 18 Financial Post that the S&P Dow Jones Indices and MSCI Inc. announced plans to promote real estate from its current designation under the financials sector, to a sector of its own, thus bringing the total number of sectors to eleven. This is to be implemented in 2016. In this scenario, how might you revise your sector weightings? And would you recommend already gradually incorporating these changes into one's portfolio?
Thanks!

Q:


Hi Peter et al:
I owned 1000 vod at a cost of $25,459.95. for every 11 vod I received 6 new vod. I also received 263 verizon shares, and a cash payment of $4928.01. I know you are not in the tax advisory business, but perhaps wsome member comments are possible. BMO INVESTORLINE tells me they will issue a T5 showing the full cash payment as foreign income. They also mentioned an election under section 86.1 of the act to defer
some or all of the amount. When I checked section 86.1 deals with spinoffs. Comments Please.

Thanks,
BEN