Investment Q&A

Q: Most of my investments are North American and at this time I am looking at adding some international through an ETF. Looking at EEM, FEZ and VXUS. What are your thoughts on this selection looking at a 5 yr window. Would one enter now or even though we are having an up day is there more down side to come. Also any other recommendations.
Merry Christmas to you and staff.

Q: Good Morning Peter and team: I would like your opinion on Flowserve in the US. The valuation appears attractive after the "oil sympathy" sell-off, and I'm wondering what you see in this stock. I do not currently own it.

Q: Hi Peter, I currently have 6% of my portfolio in Oil; split evenly between HSE and SGY. I am looking to take oil exposure to 10%. I am considering 1 or 2 of PXT, WCP or XEG. Please provide a recommendation on which stock(s)and timing of the purchase.
Thanks for all your advice.

Q: an updated opinion on mux please, damn, ive never seen these shares so low,even rob must be concerned.tkx pat

Q: Have these three in portfolio and want to sell two by Dec23 for tax loss. Would prefer to leverage up on the remaining name to mitigate the realized loss. Any suggestions for a confused investor with a long term investment horizon. Thanks Doug

Q: Are utilities selling off strictly due to potential interest rate concerns or is there a potential link to lower energy prices. For instance, lower energy prices might reduce demand for alternative energy sources (wind, solar, etc.)? Also Northland Power in particular has been hard hit, any specific reason you know of? Thank-you.

Q: I am mystified by the "buy" rating accorded this stock by several respectable stock rating services. Does your perception of their data give you a similar perception?

Q: thinking (hoping) markets are near a bottom. order got filled today for cve @ $20, bep.un @ $33, bns @ $63.75. trying to pick up some +4% yielding stocks and hold in my rsp for the long term. brings my sector weights up to 7% oil/gas (ex pipelines) and 6% financials. decent buys at these levels?? Thanks

Q: 7:55 PM 12/16/2014
Hello Peter

Despite your somewhat lukewarm advice [you were quite right to be cautious] about Canadian Oil Sands [COS] I purchased 1% position some time ago. I am now down 62%. After the dividend cut I would think it is now somewhat safe however I would appreciate your advice on whether to just hold for many years or whether I should switch to a pipeline or a utility that might have more growth potential and more liklihood of dividend growth too.

I would like to get a dividend in the 4 to 5% range as I imagine that would be safer and maybe allow more growth.

I was wondering about switching to one of : PKI, GEI, ALA, IPL, PPL, AQN, INE, EMA. Can you tell me which 2 or 3 are most likely to have reasonable growth and a solid growing dividend that would be better than COS, and could you rank them in order of preference.

We now have a 4% position inclusive in these three : BNE, SGY, BTE. Is COS "Dead Money" for the next few years or will it spring to life if the oil price rises? Would you advise a switch or would you just stick with COS?

Thank You... Paul K.

Q: Does anyone know if GCU will survive or should I sell and hope for better odds in vegas. I had assumed with the gold resources they hold something would have been done by now.

Now I am not sure if anything good will come out of it. Losses in every stocks including U308, palladium, technology are washing me out of the market. I am starting to think that I should have stay in Vegas last year instead to buy anything Canadian at least I would have had the 10% odd of getting ahead. If I may ask what are the odds of the Canadian companies surviving this sunami? I took good losses in oil and gas but will wait a few years before to even look at anything oily.

Q: Question on the Deferred income taxes of $5,594,000,000.
Do you have any insight into this on the current report in section 22 they explain $655 million as an increase of Mexican income tax. What about the rest?

http://www.goldcorp.com/files/annual_reports/Goldcorp_AR13_full_v08.pdf
Page 87 is the balance sheet. on page 130 and 131 they explain it.

But it is a big one.

The below only explains $665 M

In December 2013, the Mexican President passed a bill that increases the effective tax rate applicable to the Company’s Mexican operations.
The law is effective January 1, 2014 and increases the future corporate income tax rate to 30%, creates a 10% withholding tax on dividends
paid to non-resident shareholders (subject to any reduction by an Income Tax Treaty) and creates a new Extraordinary Mining Duty equal
to 0.5% of gross revenues from the sale of gold, silver, and platinum. In addition, the law requires taxpayers with mining concessions to
pay a new 7.5% Special Mining Duty. The Extraordinary Mining Duty and Special Mining Duty will be tax deductible for income tax purposes.
The Special Mining Duty will generally be applicable to earnings before income tax, depreciation, depletion, amortization, and interest. In
calculating the Special Mining Duty there will be no deductions related to development type costs but exploration and prospecting costs
are deductible when incurred.
As a result of the law becoming enacted in the fourth quarter of 2013, the Company recognized a non-cash charge of $655 million related
to the deferred tax impacts of the above tax changes.

Q: Is there a reason to have sustained faith in Yamana? You have spoken (written) a few times on the geo-political risk that companies take on when they are located in "problematic" countries. Brazil and Argentina seem to come up often enough in terms of areas with political risk. Given that much of Yamana's resources are located in these two countries, what danger might it pose to Yamana's survivability?

In an off-shoot question, related to this topic: Has there been any resolution to Magna's investigation in Brazil?

Thanks for your help.

Q: With CDV.TO holding OK, and MDA.TO seeing new high, CMI.V continue to decline. I am seeing a big drop today for no reason. I have a small position bought at $1.75, and attempted to add more. Please help me to analyze the situation. I can tolerate volatility.

Thank you!

Q: Transat has been hit hard since reporting recently. What do you expect is driving this weakness?
It would appear that:
Lower oil prices help;
other recreational travel ops are trading higher (eg. cruise lines, RCL);
airlines (AC, WJ) are trading higher.

Q: Some of the stocks in my portfolio have been beaten up pretty bad, so much so that the downside risk has diminished considerably and the upside even with just a rebound, over the next year outweighs the risk. My energy exposure is 8% and the canadian financials is 19%.
Would you approve moving out of some steady eddies like BYD, DSG, ESL, MDA, MNW and STN and increase positions in ACQ, HCG, TOU RMP and BXE?
If you do approve are there any names above that you would not include in the rotation?
Thanks.

Q: Sorry another AYA question. I currently hold a 5% position in the company. When i read your answers to earlier quesitons on AYA I get the since that the potential down side is 50% or more, yet the upside is "slight recovery" to quote your words. The risk reward seems to be unfavorable now. Will you be cutting your weighting in your model portfolio, and would you suggest reducing weighting to 3% considering the risk/reward currently.

Thanks as always
Darcy

Q: Stantec is almost at it's annual low. Do you think this is warranted, or rather an opportunity to purchase at these levels? or wait for it to plunge further?
PS I assume you still see it as a long term hold.

Q: I have been following CXI since your report, with a the intention of opening a half position. It is down a little today and I assume that's a reaction to currency markets and the Ruble. Would you advise holding off until currency markets settle a little or is now as good a time as any?
Also, thanks for the sage advice on TOU, I assume todays rise is in reaction to the Talisman deal?
Mike

Q: Hi
I am about 7 years out from retirement. I have no health care associated stock and am wondering what you would suggest to enter that sector. ie Medtronic (MDT.us) or CCT

Q: Good Day,
I currently do not have any gold positions in my portfolio and would like your top 3 picks. I feel with the current and likely continued unrest in the world there is going to be a push back to gold. You thoughts?