Investment Q&A

Q: I get the impression that, even while the price of oil-versus-natural-gas producers have declined in parallel because of overproduction, their underlying market dynamics are distinct and de-coupled. Oil prices have collapsed because (a) oil is something you can (mostly) move around, so prices are set globally; and (b) some OPEC producers realized that, by selling even more oil, they might take market share from higher-cost North American producers.

Gas prices, on the other hand, have collapsed because (a) gas is harder to move around, so prices are set more locally; and (b) too much gas is being produced specifically for the North America market. This matters (or should) because, for example, even were Saudi Arabia finally to cut back on oil production, this should not, in theory, provide any boost for natural gas producers.

But, in any case, the price of natural gas itself isn't that different, now, than in 2011 or 2012 - so what is the economic rationality for penalizing domestic natural gas producers for market dynamics that should be limited to oil? More specifically, why should the market capitalizations of ARC, Tourmaline, Pine Cliff, and so on, track the price of oil when they (mostly) don't compete in that market?

Q: can you tell me what percentages of business of total revenues is done province by province thanks

Q: I know 5i is keeping faith with Mart, but with oil priced so cheaply AND turmoil in Nigeria, what's really so compelling about it as compared to, say, beaten-down domestic producers - even, say, PWT - which have the potential to recover with the price of oil? Put another way, what about Mart makes it so ten-bagger-ish - net cost, recycle ratio, proximity to Europe, etc.?

Q: Can you provide and update on eqb - they have increased the dividend and their book value grew by 17% last year and their PE is trading at 8.8.

Q: What did you think of their latest earnings report released yesterday after market close?

Thanks
Peter

Q: Wonder if you could update your views on HWD. Stock has held up remarkably well during the recent market sell-off. Is this due to its small cap size, low trading volume and lack of significant analyst coverage? Look forward to your analysis.

Q: Hi Peter and Team,

I own Tourmaline (TOU) and Stantec (STN). The former pays no dividend and the latter a small but growing one. Both are weak lately and I was thinking it might make sense to switch them both to good quality dividend payers while waiting a recovery. My thoughts were to trade TOU for Peyto (PEY) and Stantec for WSP Global (WSP). Both pay over 4%. Do you think the dividends in PEY and WSP are "safe" and is this a good idea. I am getting closer to retirement and would like to gradually shift my portfolio towards income-paying companies.

Thank you.

Michael

Q: How can we find the production cost of the company? Who are the best low cost producers? Thx

Q: Hello % 5 I Team ,
Could you provide your insight in this small company.
Would you recommend it a good buying opportunity. The 3 year chart looks attractive. It is indirectly in the gaming space.
Thank you for your reply

Susan

Q: Fission Uranium recently announced it's maiden resource estimate which seemed to surpass expectations. I know this sector has been unloved. and we may be a few years away from working thru any uranium supply surplus. Wondering if it might not be too early for forward thinking investors, to consider the uranium space, and in particular FCU. Do you consider it a potential take out candidate somewhere in the future? Thanks very much.

Q: I would like to get your opinion on Espial Group's recent contract win. Do you think it is material to the company? I recently bought a half position in ESP (3% weighting in a 15 stock small-mid cap growth portfolio) and I am considering filling my position. My other tech holdings are TLA, SVC, PHO, and WIN; however, SVC is also only a half position. Which would you prefer filling?

Thanks for the great service!

Q: Hi Peter and Team,
Could you please comment on LUN - Lundin Mining Corp. Is it still a buy?

Thanks

Q: I am in a quandary, Peter. Of my own making. I am due to make a RRIF payment later this month.I am fully invested so something needs either to be sold or transferred in kind. My winners are mostly 5i stocks that I bought for the long term and would like to keep. My losers are O&G (surprise) and it's here I thought I would make my selection. The two worst are Black Diamond and Twin Butte. Each would need to double or triple from here for me just to break even. (Please don't ask how I managed to get into the abyss as my response would not be suitable for "family viewing." LOL )So, what's the best course of action? Dump one or both and move on or transfer to the cash account and wait for the dawn of a better day?
Thank you and kind regards,
Geoff

Q: Hello Team
What do you make of Vecima networks these days. Do their fundamentals look solid and do you think they can maintain their performance.
I have a 3% position. would it be advisable to increase to a 5% position
Thank You for sharing your expert abilities with us
Clarence

Q: To Sell or Not to Sell, that is the question...Should I bite the bullet and take the loss and try to re coup the loss by buying westjet or ac or something that should do better in this low $ low oil price environment. I too believe that eventually oil will go up and probably fairly quickly when it does, but when of course, is the question. So while tog is in my rrsp I am more stuck but if you thought it was the worst of the three I may still decide it is worth selling and try and make up in a better category and then buy back into energy when it stabilizes somewhat. Thanks very much for your expert advice. I very much appreciate your service and what I have learned thru it.

Q: Is HCG a buy at these prices & could you give me your outlook on HCG going forward.
Phil

Q: I've had my eye on PUR for a while, looking for an entry point, it's off 17% over the last month, what are your thoughts?

Q: Would you consider the new IPO for NPI convertible debentures 4.75% to be an acceptable investment for aTFSA?
Thanks Guys

Q: Hi Peter & team, BNS and all banks keep falling....do you expect more downside? Also, if a stock trades in the US and Canada (like BNS does) do you check both exchanges to get a better"feel" before you buy/sell? I ask this because BNS in the US has come down to the level of February 2014.....are we to assume BNS Canada will also get down to its low of February which would be ~58.00?

Than you!

Q: I have some US$ to invest. What do you think about MFC, and would there be any negatives to buying it in the US? Jeff