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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: Hello 5i, Could you comment on Renegade Petroleum RPL as to the current Proxy brought forward by Frontfour to change the board.
Also which way would 5i recommend if possible to comment on.
Thanks
Michael

Read Answer Asked by Michael on December 30, 2013
Q: Do you have any further update on SGN.V and the oct 29th question regarding the financial results for November? What do you think of the Dec 16 news of the el cajon mine getting final approval for the future of Scorpio? It sure got beat up this year but is there light at the end of the tunnel to pick up some shares at this price? I am a young investor so I got some time to see some returns take shape...hopefully. Thanks!
Read Answer Asked by Jeremy on December 30, 2013
Q: may 3 2013 was last question re gvc glacier media. do you still feel it is a classic value stock . would you buy it at 1.35?
Read Answer Asked by brian on December 30, 2013
Q: My question is about Great Canadian Gaming Inc. (GC).

In your recent report you gave this company a B rating. I am trying to understand how this came to be. I most definitely do not understand something as I do not see this in a positive light (but you have proved me wrong many times and I am trying to learn). The following is what I have read in your report.

- The company pays no dividend and has high debt.

Additionally, reading the section on "Recent financial results" the following stood out when I read it.
- For the 9 month period, revenue was $305.9 million, basically FLAT compared to the prior period.
- These arrangements are NOT as attractive as the previous ones and overall revenues have DECLINED from these facilities.
- Boulevard also produced REDUCED revenues due to proximity of highway....
- These negatives were offset by IMPROVEMENT in the other casinos, notable River Rock (sounds like we're putting our eggs in one basket)
- For the 9 months, adjusted net earnings were $34.9 million, DOWN 4% from last year.

Additionally, I do not believe that I read about much growth. In the "Growth" section of the report.
- Growth can come from the of new sites, BUT this ability to grow is strictly controlled by provincial/state regulations.
- The Ontario Lotto and Gaming Corporation is evolving its operations in Ontario which MAY present opportunities for GC.

Overall, what I feel I read is that the company pays no dividend, has lots of debt, its financial numbers are flat (if not decreasing), growth is a possibility (however it is out of the companies control) and there are "exceptionally tight regulations and any violations are met with strict penalties, ...". How would this be a "B" company? Especially if we also consider that the stock has already had a run up.

I have missed a number of your great stock opportunities due to my incorrectly questioning your analysis. This time I thought I would ask before writing it off for other opportunities.

Thanks again. There is no rush to respond to this question. It can go at the bottom of the list.
Read Answer Asked by Walter on December 30, 2013
Q: Hello, I've had CCM440 (IA CLARINGTON TACTICAL INCOME FUND T6) for 7+ years which has an MER of 2.48%. It also appears to be lagging the average return for this class of funds. I'd like to replace it with a good quality ETF with decent dividend returns. Can you suggest several?
Thanks Graham
Read Answer Asked by Graham on December 30, 2013
Q: Hi Peter and Team, regarding Renegade, RPL, in your opinion at what share price would you see true value, taking the debt into consideration, in order to possibly average down on this one? Frontfour see's value in the company but I'm not sure at what price there is value. Thanks!

Happy New Year to All at 5i and All Members...and Happy Investing in 2014!
Read Answer Asked by Hussein on December 30, 2013
Q: Avalon (AVL) entered into an agreement (Nov 27) with Lincoln Park Capital Fund, where AVL could sell $30M shares in the next 3 years and Lincoln is obliged to buy it at the prevailing market price. With AVL having no debt and this long term commitment of presumable knowledgeable people would that represent a good opportunity in an out of favor segment. Thanks for your great service, and Happy New Year to your team.
Read Answer Asked by Peter on December 30, 2013
Q: Happy holidays 5i team, thanks for the great market insight this past year. Curious to hear your thoughts on REIT INDEXPLUS Income Fund (IDR.UN) from Middlefield. Its yield is 7%+ and is a combination of active/passive management with a fairly low fee (0.6). I like it for the income and diversification across the sector, as I have no REIT exposure currently. Good choice, or would you recommend one or two specific REITs above all others? Thanks and happy new year - Brad
Read Answer Asked by Brad on December 30, 2013
Q: hello peter,
we have about 80k RESP for two children (one 11 and one 10). We would like to take some risk. please provide 8 to 10 stocks for us to buy and hold. Happy new year and thanks.
yingzi
Read Answer Asked by Yingzi on December 30, 2013
Q: Peter, Have done well with DHX Media (DHX-T) with one purchase @ $1.56 and another @ $2.07. It's now $5.59 and I'm thinking of Selling and moving on.
Bought Enterprise (E-T)in Oct/13 and it doesn't do much. What do you think?
If I sell DHX, I am looking at some Stockchase ideas as follows:
Axia NetMedia (AXX-T)
GuestLogix (GXI-T)
Merus Labs (MSL-T)
Neulion (NLN-T)
Symbility Solutions (SY-X)

Your thoughts please.
Read Answer Asked by Bill on December 30, 2013
Q: If you could invest in the ishares of any region outside of N America for 2014 where would it be? It seems Japan might be a good bet with Abenomics and resurgent inflation. However S Korea also seems to be a promising growth story, while Brazil has been a poor performer in 2013, but will it come back?
Read Answer Asked by Andrew on December 30, 2013
Q: Good Morning Peter & Team :
I think there are good investment opportunities in businesses involved in financing loans to self-employed people or people with poor or no credit history, euphemistically called "bruised credit". These are companies that provide chattel mortgages [mainly car loans] and/or "Payday" loans. The companies must have rigorous and effective loan loss controls in place. Many of the widely advertised payday loan companies such as Wonga and Cash Stores do not appear to trade on any exchange but there must be others that do.

So far I have identified Easyhome [EH], Carfinco [CFN], and Rifco [RFC] which might fit into this general category of high risk loans.

I would appreciate your advice on what other companies there are that I should consider, and I would value your opinion on the best and safest way to invest in this category, for both strong growth and at least a modest dividend.
Thankyou........... Paul
Read Answer Asked by Paul on December 30, 2013
Q: Hi,

I have just joined and been browsing.

With regards to your model portfoliio, is it possible to add a column to say if it is still a buy or a hold. I mean, at the time of portfolio initiation, maybe a stock was a buy, bur its price appreciation may have made it a hold and not an attractive buy at this time.

As a new member, how can I know if it is still OK to set a portfolio to match your model portfolio?

Thanks
Read Answer Asked by Behrouz on December 30, 2013
Q: I would like to know which of your model portfolio companies would be considered suitable for an income portfolio.
Thank you.
Read Answer Asked by Martin on December 30, 2013
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