Investment Q&A

Q: I notice that the US theatre operators are seeing slower growth in ticket sales and are starting to discount same, albeit in only one state. "American movie-theater owners have been super hardcore about one thing, it’s ticket prices. No matter what the Europeans and Canadians do, no matter how many startups try to hack into ticket pricing, exhibitors for years have refused to budge.

Until now.

The National Association of Theatre Owners (NATO) announced Tuesday that it’s launching an off-night ticket-discount experiment sometime this year. But rather than dive in, they’re carefully dipping a toe: Only one state, which hasn't yet been revealed, will host the program, and it will run only for a limited time."

I know CGX has 70% market share but do you think it is fully valued here?

Q: 5i Team,

I own a half position in Wanted Technologies (WAN-X). Curious for your opinion on today's news about switching from a sales intermediary to more direct sales. They state this will be a drag on earnings in the short term, and clearly the market is reacting, down over 12% today. Personally, I am more concerned about management’s comments relating to competitors mimicking their service, and their competitive position moving forward:

“Historically, the majority of WANTED's revenues has been derived from its direct sales channel. Since 2010, however, the Company has licensed portions of its proprietary big data asset to resale partners, some of which have incorporated WANTED's data into their own products. As the market for human capital analytics has heated up, features in some of the products incorporating WANTED's data have begun to conflict with WANTED's own products.”

What are your thoughts of the company moving forward? I purchased a half position with the intent of adding the other half at some point, would this make a good entry point to do so? Should I wait? Or should I sell my current half position? (Portfolio is balanced on sectors and market caps with 5i names, generally a risk on investor) Thank you for your input.

Ray

Q: Hi Peter:
DND is trading below its 50 day moving average,
still just above the 200 day average,
the last e-mails in Feb at this site indicates that the
earnings are decent, I am breaking even at this point
would it be hold or buy or sell ?
thanks!

Q: Capstone (CSE) has secured a long-term contract for its Cardinal facility. Does this settle the uncertainty around the dividend such that, now, the common shares are more attractive than the (still discounted) preferreds?

Q: what companies should benefit the most from continuing Lng growth ?

Q: HI,

What do you think of WAN's loss of customer? Should I bail or hold on. Thanks

Q: Hi Peter I would appreciate your comment on First Majestic ...(FR)...also do you have a comment on the Silver sector in General

Q: Hi I am looking at pathfinder convertible debenture fund for long term income would appreciate your opinion and what is the risk level of this fund Thanks Barry

Q: Hello 5i,

I would like to drill down into VSN a bit further. I'm trying to figure out why this fairly sleepy dividend stock has been on fire since last September, up around 50%. ROE is only 5%. Forward PE is sky high. Are investors simply enamoured of their forthcoming new projects and the steady high div? Is the valuation not extremely rich?

Thank you!

Q: No doubt this is a stupid question,but where is the sector allocation noted in the model portfolio? I can't find it. thanks

Q: I was stopped out of AVO today; I set my stop loss at 94% of my purchase price. Please comment on stop losses and how to properly set them. How much of a loss is reasonable before it is time to get out before it is too late? Is the greater volatility part of the package for a stock that has run up quickly? Thank you.

Q: Hello Peter
I bought NorthWest Healthcare Properties REIT (TSX: NWH.UN) in 2013. I now think it is structured as a Limited Partnership because they pay "distributions" and not "dividends", but their website doesn't actually say so. Are all .UN listings limited partnerships?

Their website does say : "If necessary an extra distribution will be declared on December 31 each year such that the REIT will not be liable for tax that year."

They also say : "In 2013, 100% of the distributions were tax deferred, by reason of the REIT’s ability to claim capital costs allowance. The adjusted cost base of the Units by the Unitholder will generally be reduced by the non-taxable portion of the distribution."

Their table on the website shows "Total Taxable Income Per Unit" is zero for 2013, but it says the amount is shown in Box 42 [on the presumed T-slip]. The distributions I have received are evidently a "Return of Capital".

Does that mean the distributions I received are not taxable in any way and does that mean they won't be issuing a T-slip to include in my tax return? I haven't received one yet and I have received no answer back from my enquiry to the company. I am ready to file my tax return now but don't know if I should wait till nearly the end of April in case they do send one.

Many thanks........... Paul

Q: Hi Peter, I've been holding Avo since I bought at 33.35. I'm down over 10%. I'm a retired 64 year old and can't afford too many losses. Should I hold this one or change into a more secure one that pays a divident and is not as volitile.

Man

Q: I am underweight in the consumer sector and would like to make an addition, but can’t decide between DOL or ATD.B
I know you like both and I have read the previous posts. Which one do you think is a better value at current pricing and which one offers better growth opportunity going forward? Which would be your overall preference?

Q: Hi Peter.

Quick question on currency. I own AGNC T(AT&T) BTE CNK DD(Dupont) JNJ PKO SBUX & SPH all in US funds. I bought all when cdn dollar was at par or better. I am at a profit for all stocks except for BTE SPH and AGNC. When you take into account currency I am in the green on all the stocks. My question is at what point if there is a point do you sell them all and convert back to canadian? For example lets hypothetically say the cdn dollar went to 0.72 cents vs the us? Would you sell all these stock to lock in currency gain or keep stocks?

Q: AGT - could I have your thoughts on the latest quarter. How would you rank this stock? Thanks.

Q: Done well with CPX.TO do you see more upside in this stock? Also please recommend 3 stocks that pay dividend and have growth prospects for my TFSA thank you for your response.

Q: I'd like to build a small portfolio of companies that may benefit from LNG projects on the west coast. I've started by taking positions in PPY, WRG, and BDI. Could you suggest 3 or 4 more?

Q: Hi Peter and team. Have a 15% position in what i consider the "consumer" section of my portfolio made up of Cineplex, Tim Hortons, Dollarama and Couche-Tard. Was thinking of adding on High Liner Foods (HLF) on this recent dip. Cant find any material news to cause its recent decline. Have i missed something or is its recent decline just the ups and down of the market, in your opinion. Lastly, what do you think of High Liner's balance sheet and up to what percentage would you allocate to a "Consumer" portion of a retail investor's portfolio? Thanks, again.

Q: Further to my question of March10/14, my wife owns Mawer Global Small Cap fund in her TFSA. She was advised by the company that no T3 tax slips would be issued for this fund, as mutual fund investments that are registered(RRSP & TFSA) do not receive T3 tax slips. If this is correct, does this mean that if she decides to invest in individual stocks of global companies in her TFSA instead of using the mutual fund, she will not receive a T3 tax slip either?