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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: Hi,
CLR has been sliding for the last few weeks. Is there any reason to be concerned? Don't know if I should sell or hold on to it.
Thanks
Read Answer Asked by Rob on March 06, 2014
Q: Just a quick question. Since your model portfolio is up substantially would you recommend that at this time that I follow the portfolio and invest $100,000.00 today using the aforesaid model portfolio. Thanks

Mike Walker
Read Answer Asked by michael on March 06, 2014
Q: Hi,

Can you please comment on CJT's results. Thanks

Read Answer Asked by Imtiaz on March 06, 2014
Q: Peter and 5i team,

With an equity financing, like what has taken place with E recently, how does the average investor buy into the financing? If it's a stock that an investor already likes and is looking to pick up more shares, it sounds like a good opportunity to pick up the stock at a cheaper price (in instances where the financing is done at a lower price than the current market price). I'm just unsure on how to go about participating in these financings. I currently trade with Questrade.

Much appreciated in advance,

Read Answer Asked by Jonathan on March 06, 2014
Q: Please comment on APL (US) Why has it dropped 25%?
Read Answer Asked by rand on March 06, 2014
Q: I have heard you use the EOITDA frequently.What does t mean and how useful is it for evaluating any stock?Thank yu and have a good day
Read Answer Asked by ebrahim on March 06, 2014
Q: What is your opinion on the Knight Therapeutics (GUD) financing at $3.50? The market seemed to act favourably today as it reached $4.50. Mr Goodman retains a significant ownership but do you see this stock trending lower when the financing closes on March 19th and these new shares can be sold for a quick profit?

Thank you
Read Answer Asked by Marty on March 06, 2014
Q: My Question in short:
Can you quantify the change in size of the alternate mortgage lending market due to the recent mortgage regulations changes in Canada? Can you also comment on the quality of said mortgages given that the regulations have essentially raised the bar on the mortgages that the big 5 will write up?

My Question in long form:
I’d appreciate you input on the change in the alternate lending market and any corrections you wish to add to the information I’ve provided.

From my research, there have been three sets of regulations changes to the financial industry in response to the 2008 financial crisis, the Volker rules, Dodd-Frank and Basel I, II, III. From my understanding, the Volker rules limit proprietary trading/derivatives and are thus irrelevant to this subject. The “Dodd-Frank reform” is a sort of blanket US legislation that is being written SEC and rolled out in pieces, some already in effect, until 2018. I believe it will have a direct effect on mortgage quality regulations in the US, but Canadian banks will be able to place there US operations in subsidiaries and thus Canadian operations will be unaffected.

On the other hand, Basel I, II, III and other OSFI policies will have a direct effect on the Canadian mortgage market in a two-fold fashion;
-Bank capital reserves requirements are more stringent from both a quantitative and qualitative measure.
-Rules regarding who qualifies for mortgage insurance have been elevated.

Benjamin Tal recently commented that these new regulations will raises the bar on who qualifies for a big 5 bank mortgage and thus create a new high quality tranche of mortgage business for alternative lenders such as HCG. Would you agree with that hypothesis? I believe the mortgage market is around 1.2 trillion in Canada; do you have an estimate on the size of this tranche of the market? Are there any other alternative lenders similar to HCG that stand to benefit from the change in the market place?


Thanks in advance for answering my question and also for the great research reports you regularly deliver.
Read Answer Asked by Emile on March 06, 2014
Q: In response to Chris (and Greg) per Frac Sand companies, there is a private one called Canadian Silica and a small cap public junior named Stinkine Energy (SKY.v).
Read Answer Asked by Evan on March 06, 2014
Q: Hi - Gear Energy GXE just released an update and indicated a NAV of $4.23 I noted they are trading right at this price - my question is what is a typical price to NAV ratio in this sector and in this case would GXE be considered under valued? Thanks -terrific service you provide.
Read Answer Asked by Robert on March 05, 2014
Q: What are some some examples of light oil and heavy oil companies-there seems to be a feeling of increased light oil on market ?
Read Answer Asked by terrance on March 05, 2014
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