Investment Q&A

Q: Hi Peter & 5i: I have held a number of REITs in an account where maintaining the level of income is a significant purpose. With the potential for rising interest rates in the next few years, I’d like to raise the growth potential in the portfolio and reduce the rate sensitivity. With that in mind, and assuming no overweight positions result, what would you think of moving some money from the REITs into a pairing of Canexus (CUS) and Chemtrade (CHE.UN)? I realize that the level of yield implies risk and that a move like this could be viewed as exchanging one kind of risk for another. But I think that both CUS and CHE.UN are currently making efforts to grow, have more of an industrial orientation, and provide yields that can help maintain the portfolio income. I realize that both are somewhat cyclical businesses but my sense is that cyclical potential is part of the attraction at the current stage of their cycles. Does another company/stock come to mind that might be a better candidate for the kind of shift I am trying to make? The portfolio is already about market weight in lower yielding financials. Thanks for any ideas!

Q: RE DHX: I'm considering re-entering DHX after this gap pullback finds a bottom. Is there anything of concern at DHX fundamentally - is it still a Strong Buy? Is there anything else you would like more for capital appreciation in the new year? The fiscal cliff chatter will evidently be looming again quite soon - lol - Your thoughts going into 2014 are greatly appreciated. Thanks.

Q: Could you update me on Western Zagros WZR, for an exploration play it doesn't seem to be putting out much news. It seems to be around NAV, is it a takeout play and a buy down here.
Thanks

Q: Most gold stocks move up today. What happened to AR? Thanks in advance.

Q: Please could you elaborate on the Canadian Tire/Shoppers transaction mentioned in your answer to my question (10/Dec/13) on switching out of MRU to something else, eg CTC.

Q: CP has moved up nicely since your last comment January 10. The new management team has done a fabulous job increasing EPS, lowering the operating ratio and changing the culture. They are now talking about possibly increasing the dividend or instituting a share buyback program. Would you continue to hold this stock for further gains? Thanks.

Q: Your opinion on Metro (MRU) and possible substitutes would be appreciated. When I purchased MRU about a year ago I had looked at it as a "park & hold" type of investment. However, after reading your answer to someone else's question in May/13 when you indicated that MRU is not that kind of company, I realised my mistake. Now it seems that MRU, along with other companies in the same business, are experiencing a tough time and maybe it is time for me to move on. Do you think a switch to either Dollarama (DOL) or Gildan (GIL) would be advantageous? If so, what would you favour at this time as a replacemant (in the same general sector) for MRU - DOL or GIL or something else - I already own Couche Tard (ATD.B) in the Consumer Staples sector?

Q: Hi Peter and Team
Bought MCR at $7. Now down to $6.65. Do you think it is a buy, sell or hold at this time.

Represents a very small part of my portfolio.

Many thanks.

Q: Can I get your thoughts on HPQ:US please and the over all impact of 3D printers. I bought DDD:US 9 months ago and have done very well - maybe time to take profit and put it into another 3D printer company.

Thank You As Always

Q: I have a smallish position in Orbite Alumina - ORB -and I would appreciate your opinion on its prospects for the future.

Thanks for this great service,

Bob.

Q: Hello 5i Team,

I would like to get your opinion on GILD (Gilead) as I would like to purchase a 5% holding in my invesent portfolio. I currently do not have pharmaceutical/health care exposure.
With it current price quite high at $75, is it still a buy?

Thanks for your great service

Q: I greatly appreciate your insights and this service.

I have a position in RDI. I would appreciate any opinion you can offer on this stock. It is up from a year ago by roughly 100% in revenues and carats of diamonds found. It still makes a small loss.

Q: What do you think about FSL for a Rif?
Thanks, Ron

Q: Could you please elaborate on an Enterprise Value as a benchmark in establishing a value of a company?
I am usually looking at the Book Value but maybe the Ent.Val is more accurate?
For example : Is it correct to assume that if the Market Cap value is lower than the Enterprise Value
the market is trading at a discount to the true value of the company and it might be
potentially a good buy (considering that other ratios like P/E, Revenue growth etc. are also favourable) ?

Huge thank you for your great market insight.

Aga

Q:
I have a 3/4 position in NPI. From 1 Nov to today it has fallen almost 7%. Buy, hold, sell? Your opinion please.

Q: I currently have a 12% position in consumer discetionary stocks that includes a 6% position in cineplex, and 3% positions in dollarama and tim horton's. I was thinking of adding between a 2% and 3% position in Alimentation Couche Tard (ATD.B).

Do you see anything I am missing in this weghting and basket of consumer discretionary stocks? How much of a weighting would be considered too much for a consumer discretionary sector?

Thanks again. I probably wont be writing in again till after the new year so to all the staff at 5i, and its subscribers, have a terrific and safe Christmas and holiday season.

Q: I have held FTS for 3 years now with little growth, would EMA be better for growth . Thanks so much for your reply. As a recent new member really like the service.

Q: Could you please give an updated opinion on SMF.
Thanks
Martin

Q: 5i team & Peter, Hi,
Opinions on ELY & DDD please.
Thanx,
THE BLAZE

Q: FLY -V Had a good run up today. It is now at .49 cents. Is it a good buy for the long run say 2 - 3 years? Your service is excellent, keep up the good work