Investment Q&A

Q: Reko International just released another strong quarter and the book value has climbed to 5.70 at the end of the quarter.
The debt has come down dramatically with over 5MM cash generated in the first half of the year.
The Reko family controls approx. 2/3 of the 6.4MM shares outstanding.
In December Reko announce a normal course issuer bid for 321,496 of its outstanding common shares.
What are you comments regarding holding/investing in this company?
Chuck

Q: Hi, Could you give us your thoughts on their 1/4, once again the market seems thrilled.
Thanks

Q: Hello Peter and team, how could you explain the 16% increase in LIF share value as of today, Friday? Thanks, Gervais

Q: I am interested to know the goodwill of snc and stn in dollars and percentage of assets. Thanks

Q: Hi Peter and Team - Could you please give me your opinion of Gold Standard Ventures, recently featured by Fabrice Taylor in the Globe and Mail. In particular could you comment on its cash position, quality of management and the potential of its discoveries and exploration. Thanks as always for providing such a top-notch service.

Q: Hello. Nice performance by Ryan on BNN last night !! I am trying to gain a better understanding of the noise around Checkpoint merger. I had a chance to glance thro' the letter sent by North Star Partners (3.9% shareholder)to Checkpoint Board, deploring their decision on the basis that agreed price grossly underestimates company's intrinsic value. North Star has a history of sending out letters to Checkpoint board in past questioning other decisions, since they became a shareholder. This time they have also asked for 3 board seats. To me it only sounds like a ploy to extract more money to cover their own losses over years. Checkpoint stock has languished for years (from $20 in 2010 to $5.80 in 2015). also no material growth in revenue over years. It's only in 2016, stock gained 65% in value ( could be merger rumors ??). Purchase price of $10.15 is a premium of about 30% from last close, which sounds like the norm. What are the remedies Checkpoint board has to deal with this situation? What are the options with CCL ? What could be possible obstacles to this merger considering the fact that this merger is "definitive" and has been approved by board of both companies? What is the likely impact on CCL share price in near term ? Thanks for your great insight, as always.

Q: Yesterday you had provided the sector allocation for a growth portfolio. Would this allocation hold for a mix of Canadian and US stocks?

Thank you

Q: can you comment on recent moves in badger shares?

do you think it is moving in anticipation of earnings soon or all the infrastructure spending talk in canada and usa?

in my opinion, this stock is under followed and under appreciated by investors, everywhere i go i see vac trucks and badger has such a great record of solid ROE and ROA and profitability

Q: Hi there, I am interested in following your Balanced Equity Model and will be purchasing all 20 of the names in the portfolio and had a few questions. Do I purchase 5% in each of the 20 names, or following the allocation in your provided spreadsheet? And I am going to be splitting up the portfolio between my TFSA and RRSP- about a 12 names in my TFSA and 8 in my RRSP, could you please recommend which you would purchase in each account for optimal potential returns? Thanks and have a great day!

Q: Hello Peter
The Negative comment yesterday on BEP.UN was from Ross Healy who rated it as "Don't Buy", and said [quoted from Stockchase.com]:
"This one is a difficult call to make. The fair market value is at or below where it is trading. The balance sheet strength is not what he would like to see. He would not be drawn to this one and he would not recommend it. It does not have the supportive earnings he would like to see."

Your comments appreciated as I hold a large position in it and have been quite pleased with the performance and income
Thanks....... Paul K

Q: Hi - I currently own the following growth portfolio positions: AVO, BCI, CXI, DHX, DRT, IT, OTC, PEO, PUR, QHR and XTC. I got burned with my GLX position.

What would your next top pick from the growth portfolio be? I am still sitting on some cash from when you recommended selling the Com Dev position.

Q: Hello,
I'm wondering if you think we're heading into a strengthening gold market long term and if you can reccomend a way to invest in it without buying mining stocks.
Thanks for the help,
Dave

Q: Within the next two years I must convert my RRSP to a RRIF. Over the years, I have never paid a lot of attention to the right mix for my RRSP…I just invested in a company I liked and if I had the cash, the stock was either purchased within the RRSP or cash account. My major holdings are CNQ, SU, and a Mawer fund (MAW105). These constitute approximately 70% of the RRSP account. With Husky at 9% and cash at 7% there are only very small holdings making up the remainder, of which Home Capital Group and WSP Global total about 6%. I don’t expect to have immediate needs for the money from cashing in, before age 71. I just wished to have some advice of what I should exchange, if any, within the RRSP. It seems that, at present, I am heavily weighted in cyclicals, especially oil. Since we probably are at the bottom for oil or close to it, I don’t see any advantage to trading for something different before I reach 71 unless there is some advantage that I don’t understand. Perhaps I should do nothing and ride out the oil depression then rebalance once oil prices improve? Can you provide some thoughts as to what, if anything, I should do between now and age 71? Thank you, I value your opinion very much.

Q: I need to free up some cash to invest in VNR. I am thinking of letting go either BIP.UN or BPY.UN. Your comments are appreciated.

Thank You

Q: Small position in Relypsa, a US biotech. Sales slower than expected and may need to raise cash...would you hold or move on? Thanks!

Q: Hi Peter, for a smaller bank would you prefer LB or CWB ? Does either seem reasonable to you at this time ? Thank you, Paul

Q: Hi Guys
Can you comment on what you think of Harley Davidson, and if you would ever consider it as a buy, and what multiple you would pay for it.
Maybe it would be a good hedge for a falling U.S. dollar as overseas sales would pick up.
thanks Gord

Q: What do you think of Canada cutting its gold reserves to 0.

Q: Hello,
Why does the company annonce a buyback at a premium to spot price ? Is that standard practice ? How do they come up with a purchase price of 36$ ? Does every share buyback have to be annonced ? Thank you for your general comments on this topic. I am a haapy shareholder but just curious.

Q: Dear 5i team:
I would like to consolidate my rather scattered (but half decent I think !) energy stocks as that sector seems to be coming alive.
I have ARX,CNQ,SU,ERF,HSE,CPG,HWO. Any suggestions which ones to sell and buy more in this list? If you think I am better off with some other stock(s)from the energy sector, can you highlight them for me? I buy dividend payers mostly though these folks have cut their dividends!
Thank you for your measured response as always!