Investment Q&A

Q: From Cindy,
To Peter and 5i Team,
I would appreciate your comments on the biotech stocks and etf for us as well as Canadian stocks. Thanks

Q: re:CSX

Hopefully you can help with this U$ Equity question.

I purchased 200 shares of CSX a number of months ago and it is doing ok with a good dividend. I purchased CSX because it was considerably cheaper than Can Railroads and I do have a need for U$ currency with a son that attends a US college. I have about 20% of my portfolio in US equities of which 5% is in CSX.

I have just read another article regarding CSX and they painted a picture saying "the present value of the company's discounted earnings, adjusted for dividends, is around $2 less than shares trade for right now."

It gives reasons being CSX' earnings growth estimates are lower than it's competitors. It goes on to say "Curiously, analysts have not been moving earnings estimates up at CSX as they have for Norfolk Southern (NYSE:NSC), where earnings have been furiously upgraded by more than a dozen analysts recently."

Long and short of it... it appears CSX shares' valuation has been up to the same forward earnings multiple (14) as it's competitors but doesn't appear to offer the same earnings growth going forward.

Can you give me your thoughts on CSX moving forward and do you think share value will be negatively effected based on the street consensus.

Thank you for all you do

Gord

Q: Re: HLP.UN Healthlease Properties
I currently own HLP.UN. When the takeover is completed, what happens to my exiting shares? Are they somehow rolled over into the new company or am I paid out at the takeover price?
Thank you.

Q: If I remember correctly, did you ever mention that bloomberg had a feature that showed how companies reported earnings over a certain number of quarters? If so, is there any way it could be incorporated into the site? For example, include it in the monthly portfolio updates?
Thanks again

Q: I intend to run with the following group of stocks. I have half of my equity holdings in XIU and the balance in: AVO,ESL,SYZ,AYA,BYD,DHX,LNR,CNR,QST,WSP,SJ,MND,VET HCG & SLF.

Do the individual names compliment each other and if not would you please suggest alternatives. Any other feedback is appreciated. Thank you.

Q: Hi,
If you were to sell IPL to rebalance into lower priced hodings within the same sector which ones would you reccommend at this time. Thank you!

Q: Gilead Science GILD.US had 2 pieces of good news today. UK government has approved its drug for Hepatitis C at the full price charged in the US. Roche had its patent challenge rejected. GILD has moved up by about 2% on this news and is up about 20% since the beginning of June. This is now about 10% of my portfolio.
I would be grateful for your comments.

Q: Between me and my wife, we have about 14% of the market value of our portfolios in 5 REITs: CUF, HR, AAR, TPH (I know, not strictly a REIT, but similar) and HCP-NYSE. Based on our cost the collective dividend yield is about 7.6% and we're up about 9% overall. Should we consider reducing our exposure to this sector (in light of possible future interest rate increases)? If so, which would you suggest we sell? Thanks.

Q: Peter -any current thoughts on AIG post ILFC SALE -and as such new balance sheet flexibility?ALSO-any view on CHMT -Chemtura -Kim

Q: Peter; I saw your June 26 comment on PD . I own some and am thinking of adding to my position after
its drop lately. Would you still be a buyer? Thanks.Rod

Q: Are you in favour of stop losses. I am thinking specifically of IPL which is getting quite expensive on a p/e basis. Thanks.

Q: Could I get your comments on ipl and ppl.Thanks Jim

Q: Re Long Run Exploration (LRE) - is this a good entry point? Tx

Q: While holding Health Lease HLP.UN til tendering, will the monthly interest still be paid? Thanks.

Q: I have about 21% of our portfolio in oil with full positions in HSE,BTE,CPG,WCP,SU and a half position in SGY. Today's paper had a column in the business section disparaging the oil sands. So I am considering selling SU, increasing SGY to a full position and adding one more oil. We rely on dividends for 50% of our income, so - 1. What is your opinion of SU? 2. If I do sell SU, can you recommend another decent energy stock.

Q: YOUR COMMENTS ON THE BLOW PLEASE
THANKS
YOSSI
Bellatrix Exploration: Deeply Undervalued And Likely To Achieve Significant Price Appreciation
Aug. 15, 2014 5:00 AM ET | 16 comments | About: Bellatrix Exploration Ltd (BXE) Subscribers to SA PRO had an early look at this article. Learn more about PRO »

Disclosure: The author is long BXE. (More...)
Summary

Bellatrix Exploration is a USD $1.3 billion market cap E&P with an average trading volume of US$3.3 million on the NYSE and $34.8 million with the TSX included.
Bellatrix trades at a discount to peers and must appreciate 76% to reach the median peer group multiples.
Bellatrix has net debt / Q2 2014 EBITDA of 1.2x, which is lower than 7 out of 10 peers, and affirmed production increases of 33%, which is higher than peers.
Due to increased firm service capacity, Bellatrix alleviated near term constraints on production growth. Their 2015 and 2016 gas plants will fully eliminate those constraints.
Continued increases in production growth, and a new PR campaign in the US will cause a re-rating of this stock. My 12 month price target is C$16.

http://seekingalpha.com/article/2425605-bellatrix-exploration-deeply-undervalued-and-likely-to-achieve-significant-price-appreciation?ifp=0

Q: Re EIF Exchange Income, are you still relatively positive on EIF after conference call? The market seems generally positive although the guidance for Westower remains a bit dicey with no improvement in margins until next year. Would you consider this high risk?

Q: The article from Bloomberg reflects my sentiments quite succinctly. I had bought AVO at $30 and is currently 3% of my portfolio. I am torn between diametrically opposite courses of action.
- The stock has tremendous potential but very risky. If I double my position, the cost base comes down and the percentage risk diminishes but the risked amount increases.
- I could hold on to my current position and I think the downside risk is a lot lower from this point on.
- Or I could take my losses and justify that not doing so would be an opportunity cost of investing elsewhere with lower risk; in case the gain in stock price is not substantial.
I ask your advice as a voice of reason. I have itchy fingers and very often gamble and very often the end result proves the old adage that I was lucky in love.

Q: I own CXS since 2 years in my TFSA and am down over 35%. Should I continue to be patient? I am tempted to use the cash to buy either PHM or GXI. Thanks for the excellent and invaluable service.

Q: Hi Peter, Ryan & Co.,

I came across this in a Rob Carrick column; you, and many of your members, might already have seen it but I enjoyed and thought that it might put a smile on a few faces for those who haven't yet seen it.
http://www.fool.com/investing/general/2014/08/12/an-honest-stock-market-update.aspx

Publish at your discretion, no reply necessary.
Have a great weekend!!
Cheers,
Mike