Investment Q&A

Q: I have a question about Badger Daylighting Ltd.
Hi Peter:
I worked for a multinational O&G for many years. Daylighting / Hydrovac has established itself as the new normal for the vast majority of maintenance related excavations. Although it's not necessarily the operatrional efficiency that drives the equation. It's risk management. Operations and Maintenance groups reduce any related uncertainty regarding potential underground contacts by either performing the entire excavation by hydrovac or identifying any existing underground infrastructure by spot hydrovacing to visually locate it prior to excavation by mechanical methods.

Peter: Do you believe it is inevitable that Badger will be taken over by one of the larger construction service providers in the next couple of years? Seems to me, there's just too much potential cash flow involved.

Q: What do you think the future holds for Torstar (TS.B)? Do you think can maintain the 7.79% dividend and do you see any support for growth prospects?

Q: hello 5i:
I've read the one question there was on DNG, in October. Wonder if anything has changed for your outlook (I realize this is a very short time lag, but.......). Here's what I have read about them:
As an ore processor alone, Dynacor is a great value play. It is currently trading at less than 0.5x sales, with a ROE of 36.01%, a current P/E of 6.67, and trade roughly at the net market value right now. This translates into a very efficient use of current assets that generate a return far superior to many other avenues in which a retail investor can invest. It's also a growth story - Dynacor has increased its daily ore processing capabilities to 220t of ore per day, and is self-financing the expansion of another processing facility. That translates into at least 50,000 ounces of gold processed for 2012 (revised up to 58,000 this month), with the new facility increasing expected production up to 100,000 ounces of gold for 2014. Its latest month saw over 6,000 ounces of gold and 14,000 ounces of silver processed, for sales of over $10 million. If monthly production is maintained or increased, Dynacor is trading at a mere 0.3x sales and an annual net profit closer to $0.28/share with four quarters at current operations, leaving Dynacor trading at a forward P/E of roughly 4.3. In other words, dirt cheap.
Very interested in this company, particularly since you say management is very good. Your opinion please.
Paul

Q: Hi Peter,
What are your thoughts on Renegade Petroleum? Also, should one buy into Canadian Phoenix Resources or straight into Renegade as I do not really understand the deal between the two. Who would be the better buy if any. Tickers are RPL and CXP.
Thanks.

Q: Canacol Energy[cne] on the TSX has had a bit of a run of late & yet it has a reverse split coming up.It seems to have large blocks of land & links with big companies. Your opinions on this company would be appreciated.Thanks for all your help.
Dave

Q: Peter: general question.
Your recommended segmentation of a portfolio of say $2,000,000 ie: 50-60-70 individual stocks in the 8 or 10 major market segments. Do you have a formula? Thanks & congrats on your first 5i year.

Q: Peter - what's happening with Mart Resources?
I own it.
You own it (FP current contest)
It just keeps sliding down every day
Avything wrong? Thank you.

Q: Hi Peter,

What is your outlook for constellation software given the fact that it is currently hovering around a 52 week high? Do you anticipate another dividend increase in the near future?

Q: Peter,

I am really perplexed with PSN. With one bad qurater, do you think their business model has completely failed. Is it because there were no barriers to entry in this area and others have jumped in and took it from under their nose. What about their present customers? The market seems to be discounting this as something which is not even going to be a 10 PE stock. Based on your earlier advice in a couple of the responses, you recommended holding the stock and not selling as there might be a year end rally after the tax loss selling is over. If the average price is around $4 is there still risk it might go to less than $3 or even more. Any help will be appreciated. Thanks

Q: What are your thoughts on Sentry Canadian Income Fund Series F ?

Q: I would like your opinion on Claude Resources CRJ

Q: WIN
WiLAN is getting smoked today as a result of its litigation update. The market appears to be treating the CAFC's ruling as a real game changer for the company. I am reluctant to sell my shares when they have dropped so much but yet the technicals look awful with the shares in a steady down trend with no end in sight. What is your expectation for this company in 2013 as a result of this recent announcement and pending patent litigation?

Q: Peter,

Thank you for your wonderful unbiased opinions.
Can you please give me your thoughts on WFI - Waterfurnace Renewable Energy.

Q: I have a question about Boyd Group Income Fund . Do you see any reason for the stock to be down 8% over the last month? Has anything changed I am not aware of?
Thanks
Dave

Q: Peter; Between CVE and CNQ which would you buy at these levels?Thanks.

Rod

Q: Of the three following companies, bad,hlf, or cpg which do you feel trade at a cheap valuation and has the most upside. I like the div of CPU and was thinking that it was oversold but hlf and bad also look cheap and should outperform next year. Thanks Richard

Q: With Loblaw'S (L-T)recent announcement of the conversion of their properties to a REIT I am finally making some money with them, about a 7% gain. I hesitate to sell because I think there is still good potential for further increases in their stock price due to the major changes that they are implementing in their stores including technological changes. What is your opinion. Thanks. (Gerry)

Q: ATP. The plus side to the significant drop in share price is the resulting increase in the % yield, now 10.3%. A very tempting buy here, but can the yield be considered safe?
Thank you.

Q: CWT.UN? My wife owns in her RRSP the conv. debenture-pd par-one more yr. left. She got a call from CIBC to ask her to convert to shares @$25.50 eac. Deb. pays 6.65% per yr. WE each own CWT as part of ETF XRE which we have owned for 4 years-so, I would think it makes sense to convert and sell to make a tax sheltered gain in RRSP? Your thoughts pl Peter. Thank you...JP

Q: With the announcement that CNOOC was being allowed to acquire Nexen, I would have expected the Nexen shares to move to CNOOC’s offer price of $27.50, but as of Monday afternoon, the shares high is $26.67. Why are the shares not trading at $27.50? That is the price I hope to sell at. Thanks … Cal