Investment Q&A

Q: A general question on rate-reset preferred shares. There are many that have had their share prices hit hard because of the worry over rising interest rates, and that makes them look quite attractive if their share prices recover. Wouldn't the share prices move back to par as the reset date approaches, as the new yield would compete with then-current rates?
If so, then buying a rate-reset preferred with a share price of $20 should provide a very nice return.

Q: Happy new year team!
Any idea why CGI (GIB.A) is down below the trend line today? Very unexpected...

Q: with the sharp drop of stocks of precious metals companies, some of them have dividend rates 2% or more

I would appreciate your take on SVM, especially, with this in mind

http://business.financialpost.com/2013/12/19/silvercorp-short-seller-accused-of-fraud-by-securities-watchdog/

Q: Happy New Year Peter & Team :
I am interested in the micro-cap company Input Capital Corp INP.V I read with interest your answer to Owen dated October 06, 2013 and wonder if you have any additional information.

They lend money to canola farmers in exchange for 6 year contracts giving Input the right to buy a certain percentage of the crop for an average price of $79.05 per ton which the farmer then delivers to the grain elevator who in turn pays Input the prevailing price for canola, currently about $450 per tonne.

The canola price has ranged from about $250/tonne to over $700/tonne over the last 10 years. I cannot determine whether Input engages in futures trading or not to hedge their expected profits, nor whether this could be a good practice or not.

This looks like an excellent business based on a proven business model and has enormous potential growth. Supposedly crop insurance protects Input in case of a crop disaster, and there is perennial global demand for the canola. They currently have 10 signed contracts worth $18.1 million, about $767,000 cash in hand, and no debt.

The issue I see is the cost of capital to Input, and whether there will be future share dilution. If Input can borrow at a reasonable rate [5-6%] it should go well but if Input are borrowing at 10% or higher it may not be economic. Can you find out the relevant facts on this company for me and give me your valued opinion.
Many thanks... Paul

Q: I have a follow up question on your answer to Micheal.If you decide to drop a company from your portfolio,would the volume of 5i members selling have an effect on the stock?I have seen buy or sell recommendations on BNN have a significant affect on a stocks price.Thanks Terry

Q: Thoughts on Firm Capital (FC) as a dividend play?

Q: Please comment on your view of copper stocks and which hold the best prospect going forward

Q: Hi Peter,
Could you give me your opinion of CKI and do you consider it a buy at this price.
Thank You,
Barry

Q: In a previous response you mentioned that Brazil could see a recovery this year. Is there an ETF you can recommend that is either a pure play on the Brazilian market or at least one with a heavy weighting in Brazil?
Separately, I would like to also diversify into Europe. You recently responded that for Europe FEZ is “hard to beat”. In previous responses I believe you have at different times also recommended both IEV and VGK. What is your top ETF pick for exposure to Europe (long term) for new buying at this time?

Q: Hi Team - I know you have been critical of RIB.un in the past. It has been a decent yield play and has held up fairly well in the NAV dept. They are proposing an increase in their leverage to a max 35%. Thoughts? Happy New Year

Q: Hi Peter.

I am a new subscriber and have enjoyed reading the great information and questions and responses in your news letter. My question is with regard to your Portfolio. It has done extremely well since March and I like the stock picks. I would like to invest in some of these companies but I do not know if I have missed the run up. Is there any indicator that would assist a new investor to the stocks and the portfolio to know whether this is still a stock to buy or just to hold? Thanks and I look forward to your response.

Michael

Q: Hey guys was wondering your thought on which has a greater growth potential menus labs Msl or dhx media thank you for the great service

Q: Happy New Year everyone. And for a new year, a new stock. TEL. I can't find out much about it other than it being up 176% last year. What do you guys think of them?

Q: Has this stock have any potential for future upside. Shp. Shole point energy

Q: Happy New Year. Please provide your top 3 candidates in each of the following TSX sectors - Industrial, Cons. Discretionary, Cons. Staples and Info Tech. Thanks for the wonderful service. Best, Don

Q: Hi loved your recent posting on how to pick small caps in light of that what would be your top 5 small caps that you think will out perform the others thanks

Q: what are your thoughts on U.S. Steel I have held it for past year and its seems to be geeting a little over priced.

Q: Happy New Years gang. my question is which of the Canadian banks are going to split and is there any indications when?

Q: I've been checking my sector weighting and find that I'm over weight in financial sector if I include my REIT's. I'm underweight in industrials and materials although I'm not sure I have categorized my stocks correctly. Is there a website that categorizes which stocks are in which sector? I'm thinking of selling some REITs and buying TCK.B and RUS to even things out. Does that actually do what I'm trying to do? If not would please suggest other stocks I should look at.
Thank you for your great service over the last year. I'm looking forward to following your reports and Q&A in the New Year.

Q: I'm pushing 81, my wife is 66. We have CM, CPG, TRP in my TFSA and BNS,CPG,and IPL in hers. What can you suggest for this year? We are more interested in safety, dividends and drips but we would like to keep up with future inflation, so reasonable growth would be welcome.