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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: Why does mux keep dropping with the price of gold rising and their recent purchase of black fox, one would think the share price should be differently reflected.
Was black fox a mistake, why were the earnings down in the last quarter and with gold seemingly headed higher what should I expect from mcewen going into the next quarter or two and/or over the coming year. Thank you
Read Answer Asked by Maureen on August 22, 2017
Q: Hello Peter and staff:
I hold shares of Tourmaline in my RRIF account and they are down 47% and I was thinking of selling them and investing the money in shares of Rio Tinto.
Your thoughts on these two companies and the soundness of this switch.
In my question today, I forgot to ask that since common shares of Rio Tinto are being purchased in a RRIF account, is there foreign tax withheld from the dividend that it pays?
Thank again
Thank you.
Read Answer Asked by Isabel on August 22, 2017
Q: I have been looking for high yield stocks with low volatility, where I am less interested in capital gains. OCS.UN has a 10 per cent yield and a beta of 0.20. It has lost a fair amount since 2015 but seems to have stabilized. I realize that its financials are opaque, but Onex claims that the shares are undervalued. What is your opinon on OCS.UN? Thank you.
Read Answer Asked by Kurt W on August 22, 2017
Q: I notice that you often recommend Telus and Rogers, but I haven't seen anything about Quebecor. However, I am up 38% over the last year. Is there something I am missing? I do like Telus, not so much Rogers. Do you like QBR.B and should I continue to hold? What news do you have in the pipeline that might make this stock not so desirable, if any? I can only find two comments about QBR.B in the past year.
Thanks, Elizabeth, Hamilton
Read Answer Asked by Elizabeth on August 22, 2017
Q: Marc Cohodes seems to think that accounting practises at Bad are either incompetent or fradulant.

He is still extremely bearish on the company and its accounting practices, claiming that the company is “…counting revenues they don’t even have invoices for” and that Badger reported $60 million in non-cash revenue, approximately half of Badger’s quarterly revenues, as “trade receivables” in the single month of June.

I know that it seems to be legal to do accounting in this way. But, for a layman it is difficult to draw a conclusion. I wondered if you had an opinion on this?
thanks as always for your wonderful and profitable service,
Read Answer Asked by joseph on August 22, 2017
Q: Good morning Peter and Team,

I just read about David Driscoll's recent appearance on BNN, where he summarizes his eight steps to a winning "investing recipe":

Here are eight steps to a winning recipe:

Low fees: The lower the fees, the more you make.
Low turnover: By investing in businesses and not trading stock prices, transaction costs stay low and you keep more of your capital for growth.
Invest in companies that consistently grow their free-cash flows: These companies have the financial flexibility to raise dividends, invest in innovation and make strategic acquisitions.
Diversify globally: Long-term returns outside North America have historically been one per cent to two per cent higher.
Re-balance the portfolio when necessary: Having a high concentration in one stock can lead to trouble if that company’s stock price crashes to Earth (i.e. Valeant).
Avoid correlated assets: In 2008, all the Canadian banks fell 40 per cent, not just one of them. Pick one Canadian bank and move on.
Manage your cash prudently: Given that the market has risen for eight years, it’s prudent to hold some cash to take advantage of opportunities if the market corrects.
Choose stocks with above-average annual dividend growth: The average growth rate of stocks globally is about seven per cent. Those that grow their dividends faster provide investors with greater income to use in retirement. Their share prices also tend to grow at a faster rate.

Seems to me that Mr. Driscoll must be a 5i member, since most, if not all, of his points have been mentioned from 5i over the years! In any event, it's always reassuring to see other financial types who share 5i's philosophy!

You may publish at your discretion. Thanks for everything you do to help the small retail investor!
Read Answer Asked by Jerry on August 22, 2017
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