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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: Peter,
I know it is repetitive on my side and repetitive on your side..
but, tell me even this type of information is not even make you blink?
''Corporations are now the single largest buying source for U.S. stocks – authorizing buybacks of their own stocks to the tune of $754.8 billion in 2013 alone.

And it’s a long-term trend. According to Birinyi Associates, for calendar years 2006 through 2013, corporations authorized $4.14 trillion in buybacks of their own publicly traded stock in the U.S. — raising the question, just what kind of a bull market is this?

JPMorgan Chase, the largest U.S. bank by assets, has turned share buybacks into an art form, buying back a whopping $17,945,000,000 of shares from 2010 through 2013. In just the calendar year of 2011, JPMorgan spent a stunning $8,827,000,000 on stock buybacks''.

There is debt attached to that, it is not gone! 4 trillions buyback!!
To me this is madness in proportion of the 2000 and 2009 madness.. So ''they'' think they can get away with it this time.. Of course attached to that is the explosion of derivative (http://www.advisorperspectives.com/dshort/updates/NYSE-Margin-Debt-and-the-SPX.php?utm_source=Triggermail&utm_medium=email&utm_term=Markets%20Chart%20Of%20The%20Day&utm_campaign=Moneygame_COTD_072914) leverage but everybody is on the same side of the trades as usual. Give me a serious black swan and you still do not worry?

Thank you for having again the patience to explain the reasons why you are so little worried.
CDJ
Read Answer Asked by claude on July 30, 2014
Q: BDI - should we be concerned with the press release and decline?
Read Answer Asked by Greg on July 30, 2014
Q: Can You call Zargon's (ZAR) latest report?The share price dropped following the news. I would appreciate your comments. Thanks for all your help.
Read Answer Asked by Donald on July 30, 2014
Q: I read this morning that CGI was able to generate 1.1 billion of cash flow, surprising analysts positively. They reduced their debt by 500 million. Earnings per share met expectations. Valuation is at 16.5x trailing earnings. Now that the debt and cash flow concerns are gone, it seems to be the perfect time to buy. What do you think about earnings?
Read Answer Asked by Matt on July 30, 2014
Q: Hi Peter and Team, regarding Mandalay, MND, any further thoughts or updates since your last response in March on MND? Thanks!
Read Answer Asked by Hussein on July 30, 2014
Q: WIN Wi-lan of course! Numbers are in. Market likes. Whaddya think? Skip Q if already asked.

TIA
Read Answer Asked by Gerald on July 30, 2014
Q: hnl, With the release of 2nd quarter 2014 results (released yesterday) below analyst expectations, what would you suggest, keep the stocks or sell it off now and wait for a turnaround in two quarters.
Read Answer Asked by Vinod on July 30, 2014
Q: Could I have your thoughts on AAA.would you say its a buy now and a potential take over candidate?
The Israelian company has a big stake.
Thanks
Read Answer Asked by Josh on July 30, 2014
Q: Hi Peter and Team,

What are your thoughts on Axis Capital Holdings, AXS.US
Read Answer Asked by Graham on July 30, 2014
Q: Brookfield asset management has a lot of subdivision.Is it better to own BAM for growth or different subdivision ( power,real-estate and etc.)?Thank you,ebrahim
Read Answer Asked by ebrahim on July 30, 2014
Q: Hello Peter,
Thanks for your prompt replies and expert advice. I was listening to BNN last night, and interesting points were made. I have two questions:When companies buy back stock, the EPS goes up which is good for the stock; however, does it not reduce the book value. I was looking at CNR and the stock is trading over 4 times book. If this is the case, how is it that CNR keeps ticking higher (is it because it has a high barrier to entry and investors feel there is safety in the stock). Second question that came up is that the bank stocks have not hit a top. What metric would suggest a top in the banks? Is it if the PE goes over 15? Thanks again
Read Answer Asked by umedali on July 30, 2014
Q: I own PWT PennWest petroleum bought it for a turnaround and management Rick George.
News this morning not good ie accounting irregularities. Those words always make me cringe.
The only comfort is that the company itself has found these irregularities and not outside accountants.
But they say their debt covenants are at risk. Sell right one at the open or don't panic and wait for the review. Where there is one cockroach there are usually more but I am inclined to give PWT some slack. What do you think with all your experience? Thanks.
Read Answer Asked by Helen on July 30, 2014
Q: Is this a bad time of the year for auto stocks? ACQ continues to move downward, as does LNR while MG is basically drifting.
Read Answer Asked by John on July 30, 2014
Q: A year or so ago, you mentioned that LAS.A on T was on your to-do list. Just wondering if it is nearing the top of list and if you still expect to cover the name. I think you also may have said the same about ADW.A. And so will that be covered in the future? What would your "back of the napkin" rating by on these 2?

As a suggestion, have you given some thought to publishing a "here are the next 5 (or 1 or 10 or whatever) names we will be covering list" so that someone contemplating those names might wait for the reports. Just a thought.

Rick
Read Answer Asked by RICHARD on July 30, 2014
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