Investment Q&A

Q: Hi there

I know there have been some heavy losses this year in the preferred space, and new preferred shares are being issued at slightly more favorable terms but I really am perplexed by their short term movements in price given the market knows the direction for interest rates. I bought BAM.PR.M preferred in mid October for 16.50, in short order it was over $20 and now it is back to $16.10 today. I could see this in a market where the direction of interest rates are in some question but everyone know there is an interest rate coming in the states, we have know that for 1/2 a year other than the timing of it, and it is expected that rates will continue to go up. So nothing has really changed since September of 2015 yet preferred shares prices move around like crazy (I own others like Brookfield). I have owned preferred for quite a while but have never seem this volatility. Can you give me some ideas why at this time the prices move around so much and another question - are these solid investments for long terms income still and will prices recover somewhat?

Thanks

Q: Peter et al.

With the current OPEC decision to raise the production ceiling to their current production level of 31.5M BOPD what is your current viewpoint of a timeline for a turnaround. We have had the following occur:
1. $200B worth of capital shelved worldwide in 2015 and it expected to be the same for 2016.
2. Rig counts at their lowest since 2010.
3. Production starting to decline in the US to about 8.7M BOPD
4. Inventories still at record highs of 487M barrels in the US.

When will these reductions start to appear. Heavy Oil in Canada has never made any sense to me economically as it gets a lower price (~$15 less than WTI) and it costs more per barrel to produce. It is impossible for non-Opec counties to reduce production because they are privately run so OPEC expecting this is impossible. This is reminding me of 1998 - 99. The worst part is I am heavily invested in the oil industry percentage wise and also it is where I work as well. What should I expect?

Thanks,

Brendan

Q: I am looking for equity diversification outside of the Canadian market. Small portfolio.
What would you suggest given the current value of the Canadian dollar? How would your response differ if our dollar was higher relative to the U.S.?

Q: Hello Peter
I can't believe the price for some of these stocks,the banks, the pipelines, etc. etc. There are so many of them.
If one has some cash, is it better to wait for better opportunity or buy and collect the dividend and wait.
RRSP and TFSA season will soon be upon us. Is the world coming to an end or is this just a good buying opportunity.
If there was a sale like this at Best Buy or Apple Store or other major department stores, we would be running there in an instant. You understand these thing better than I do. What is your opinion? Would you wait or buy??
Merry Christmas to you all.

Q: From the current questions it appears you prefer US options to CDN ones. Is there a US site similar to m-x.ca? Sites such as those at CBOE don't help with either implied or historical volatility or any other parameter.

Q: In light of current oil prices,how safe is the dividend ? What is their payout ratio.
Thanks,
Phil

Q: Are there any screaming buys for income investors that have emerged through this tax loss sell-off period? Please list 5 best buys.

Q: Do you think the Paris Climate Accord and the new Liberal government's apparent commitment on climate change makes Questor a buy at this time.

Q: Your current view on CGR (ETF- ishares global real estate index).
Your top choice in this sector (ETF), for the next 5 years.
Many Thanks .
P.

Q: Are you sure about your last answer on the amount paid out by this company in dividends last quarter? You may have taken the market cap instead of shares outstanding to calculate the $11 million you quoted.
I checked two sources and one shows 111 million shares outstanding and the other shows 112 million.
The last monthly dividend annoucement was for 0.01854 per share.
This should works out to about $2 million per month X 3 months = $6 million paid out per quarter, not $11 million. Big difference!!
Once the full effect of the new royalty deal comes into play, this $6 million should be fully covered.

Q: I know that you don't cover US stocks, but you answered questions re BX.US a few times before, so I'll give it a shot. Your last comments re Blackstone were quite favorable, but the stock has been falling and now it is down 30% from June high. I hold some (to the total of 3%) in my non-reg account, and I am thinking about averaging down and buying more (to add another 2%) after current sell-off. What's your opinion? Do you see it as a buy, hold, or sell at current prices/situation? You mentioned before that "it a decent alternative investment, but one that needs to be held throughout a cycle". How would it perform in the short-to-mid term with the US rates rising? - Thanks

Q: Do you think the dividend is sustainable in light of the impairments recently announced? They are collateralized adequately so I would assume so but if they lost in court would they have to cut the dividend? Thanks.

Q: What do you think of Torc at today's prices? It's my only holding in O & G right now, at 2.8% of my portfolio, down from 5% because of the beating it's taking with the rest of the sector. Is this a good time to add ... or is it a good time to sit on my hands? I would only take it back up to 5%. If I did this, I would be selling my position in Diversified Royalty. Any thoughts on this move? Thanks for your help!

Q: Other than I just switched into TOU from CPG, do you have any information as to why Tourmaline is falling 3 times as much as every other oil company today? Thanks.

Q: is the severe drop temporary? should I buy more?

Q: Hi,

I have just started investing and making my own portfolio this year. I selected a few core stocks to begin with and have been slowly adding positions in other stocks for diversity. As such my weightings range from 3 to 10%. Over the last couple of months about half of my stocks have dropped 10 to 30%. My question is, going forward is it better to continue adding new positions or adding to stocks I currently own at their lower values?

I like the names of the stocks I own. Diversification is ok but not properly weighted.

Thanks again for the advice.

Paul

Q: hi experts; if they get a sale what would be the possible out come be to the debentures. thanks brian

Q: Hi, I realize O&G is clearly out of favour right now, but would like your thoughts on Interpipe and Whitecap. Both seem to be very good companies with good managment, but both are being hammered by the general market, and oil in particular. Both are yielding about 7.5%. Do you prefer one over the other, or should we just stay away from both for now? Thanks

Q: Looking for your opinion / ideas on ways to play the renewable energy theme.

Thanks for your time.

Q: I'm finalizing my tax loss selling at this point. Which of the 3 listed equities would you liquidate?