Investment Q&A

Q: Peter....wow...page FP8(JULY14) really is an ad for 5iRESEARCH....and conflict free advice...what with your placement beside ETF GUY plugging ETF's from an ETF firm.... but Jain's data does seem sound. why should I stay with active managed funds?...............again....what are the material downsides to a large broad based index ETF over the long term.... doesn't an INDEX FUND or INDEX ETF still have all the structural trading balancing concerns as outlined in your column?

regards

Art

Q: Hello Peter, Do you have any information you could share regarding Largo (LGO). Seems like they have their financing done, they have and off-take agreement for the Vanadium, and Brazil seems like a good country to be in for mining. They bumped up about 20 percent last Friday but doubt if that means much. I suspect the main risk is whether the management team has the skills to pull off the difficult task of building a mining operation. Do you know these guys at all? Thanks.

Q: Hi Peter,

I have a small portfolio which for some reason has become heavily weighted in resource stocks. This portfolio includes MMT, TOL, LEG, ELD, FVI, KGN, ZNGA and AM. I am stuck with some of these because they are down in some cases more than 50%. MMT is the only one where I am in the green. Do you think I should reduce some positions even at a loss and replace them with non-resource stocks or hold on and sell on strength. Thanks

Q: There was an article in the Globe & Mail regarding insider buying of Premier Gold Mines.

http://www.theglobeandmail.com/globe-investor/investment-ideas/insiders-buy-at-premier-gold/article4415030/

Does this look like a good investment at the current time and do you have an outlook for Gold.

Thank you.

Q: Good day Peter
Encouraged to see your stock picks for the National Post are doing well we knew you were one of the best, but have not been able to find a 5i review on Mart one of your 3rd quarter stocks picks that just started paying a dividend.
kind regards greg

Q: I sold some Crescent Point to reduce my exposure to energy, and I'm looking for something with a comparable dividend to replace it. Temple Reit is given as a strong buy by the Globe and Mail, as is Chorus Aviation which has a staggering dividend-is it too high to last? And is this a very volatile industry? I'd like your opinion on these two stocks. Thank you very much.

Q: I have shares in BCE telecom,due to low interest rates and global e conomic volatility these shares have become overbought by canadian institutions at the moment they are trading at 6.8 times estimated EBITADA some investers thin they are due for a share pull back to as low as 33$ per share, the question is should I sell now then reinvest after the correction?

Q: Can the VIX Index go to a zero value, why or why not?
This HUV on the TSX is being crushed, but why?
Horizons Betapro S & P 500 VIX Symbol: HVU-T
Is this reasonable level to buy?
Many thanks for sharing your knowledge with us all.
Sincerely,
ANDY

Q: How are you feeling about GLN these days. I picked up some shares on what I took to be a stink bid. That I got them so easily makes me suspicious! Do you think they can get their Mojo back?

Q: Why is the TMX Group Inc (X) not trading at $50.00? Would you buy at these levels for a short term trade only?

Q: Legecy LEG.T. I am down about 25% and worried. I thought that : management is good, quality oil, good reserves, and many experts that seem to like this play. I am usually invested only in plays that have a dividend but this is an exception. Where have I gone wrong or what would you do now.
thanks
Yossi

Q: Great service by 5i! Do you have an opinion on AXX which was a 'top pick' by RBC a couple of years ago but seems to have gone nowhere?

Q: Hello Peter, If we are currently experiencing a real estate bubble in Canada as espoused by many in the media, how will the potential bursting affect REIT's such as Boardwalk (BEI.UN)? Is now the time to sell and look elsewhere? and Would you recommend a comparable REIT in the United States?

Q: Any thoughts on Notice of Action against ECI..is sell-off on news a buying opprtunity or is it too early to say at this point? Thanks.

Q: Hi
Re:WIN
I just looked up Wi-lan's history and it only showed positive eps in 8 of the previous 10 years. Is this correct and if so how do you justify an "A" rating?

Q: Hello Peter. I really like the advice. What do you think of Dorel, years ago it was on every analyst radar. Now not a word, the company seems to make constantly better results, and also over the years the number of shares have been reduced, the only drawback is the too conservative dividend. May be you are working a report on it? Looking forward to your answer.

Q: EnerCare (ECI, $8.83, 2-SP, $9.50 target) – Customer attrition could heat up in second half of 2012
 EnerCare announced that it was served with a Notice of Action from a competitor claiming damages resulting from
EnerCare engaging in unlawful surveillance activities. As a result of the allegations, EnerCare will temporarily
suspend its program to combat attrition, while it conducts an investigation of the allegations.
 Attrition spike could be higher than expected in 2H/12. We had previously expected a spike in 2H/12 attrition
stemming from further customer pushback as EnerCare attempts to increase New Contract penetration, without making
the customer terms more favourable (lower termination/buyout clauses). Our current attrition estimates call for 21k in
Q2/12 and 45k for 2H/12, and believe they could be biased
higher.
 Given that the company's multiple trades closely with attrition,
we believe that a sizeable increase in attrition could lead to a
pronounced multiple compression. If we apply a 5.5x
Daily News Alerts
EV/EBITDA multiple on the Legacy segment (same multiple from Q3/09 to Q2/10 when ECI experienced an increase in
attrition driven from D2D competition) and 14x EV/EBITDA on the company's high-growth sub-metering division, we
would get a target price of ~$8.00. any thoughts

Q: Peter,
I'd like your take on Sandstorm Gold. I like the royalty structure and they had some cash on hand last I checked and no debt. They also seem to have the management pedigree to make the right choices in terms of which mines to finance. My biggest concern with them is that they don't have what I would call a "bazooka" of cash to make deals like, say, Franco Nevada does.

Your thoughts are very much appreciated.

Q: In some of your writing and responses you indicate that Canadians have too much exposure to the resource sectors. For someone in their mid-40s with no need to access the capital what would be reasonable? I would include firms that sell to the resource sector. As well, do you see gold miners as a part of that? If not, what would be a reasonable amount of exposure? I have persoanally tried to diversify inflation protection to hard assets other than just gold. Thanks for the excellent service!

Q: Peter, what do you think of Brookfield, BAM.A? They seem to be able to grow their cash flow over time and have exceptional management. Thanks!