Investment Q&A

Q: http://email.seekingalpha.com/track?type=click&mailingid=2725315&messageid=2800&databaseid=&serial=2800O2725315O1417550693.ee8baa118f6bde76b6a9a57f2d931657&emailid=1079842&userid=1079842&extra=&&&3000&&&http://seekingalpha.com/article/2725315-canadian-oil-sands-whats-it-worth?source=email_rt_article_readmore&uprof=46

Mr.Hodson, this is a follow-up to my recent questions on Canadian Oil Sands Ltd (COS). The market is currently doing a carnage on COS, but this paper puts things in a different perspective. See also comments by Uncle Pie, who owned COS for a long time. To what extent do you agree with the author and Uncle Pie ? Should you think this would be useful to other members, feel free to act accordingly and let them see your response. It just does not make sense to discard a company that had better days, and still might continue to do so in the future, while having a superior product (SCO or synthetic oil). Of course, the market is king, and should it decide to punish COS, just like other oil producers (with regular Canada crude), it might be better to acknowledge the market is always right. What's the correct view in such a case ?

Q: Could you comment on NPR.UN. It seems to be sliding more then the general group. Thank You

Q: Supposing we make the assumption that oil (WTI) is going to average US$60 over the next 5 years. Are there ANY companies in North America that could continue to operate at that price for that length of time? Secondly, if that happens how much of the world oil production would disappear? Thirdly, if this lost oil production is a substantial amount of world total production (which it must be because world oil production is way up over the last 5 years due to the NA shale boom), could it be replaced by the remaining oil producers (mainly OPEC)? If not, then would that not drive the oil price back up to well above $60.00?

Q: Hello Peter and team, I have some money available to invest for a longish term (5 years+). Can you suggest around four names to add to a diversified portfolio, in particular companies that you think may currently be at unduly low prices due to tax loss selling and other year-end positionings. Stantec and Surge come to my mind. Would you agree, and if so can you please also suggest two or three others (though no more in the Oils; I'm already quite full there). Also, I've separately wondered about acquiring a foreign stock like Nestle. Do you know if/how I can acquire that in my self-directed RRSP? Thanks in advance!

Q: A while back I asked about WEQ WESTERONE INC. you felt it was Ok and new the management. Recently bought more at $5.75.Its now skirting 3.50> 4.00 range.
I am assuming the latest Qtr. was not great plus the pull back in oil prices are the culprit for the price decline?
Other brokerage firms have cut their target price off coarse after its fallen significantly.
Do you any updated insight into this company?
Thoughts on a dividend cut?
Where do you see this company going under the new CEO.
Should I sell as a tax loss. Originally bought 1K at 8.00 another 1k At 5.75???
Is this stock turning into a Yellow Media or Hot Water Fund debacle?
A.J.

Q: Hi 5i Team, Peter's erstwhile colleague, Peter Imhof, recommended Diversified Royalty (DIV at Toronto) at BNN. Your most recent (October) comment on the stock was "wait and see". Any further thoughts on the subject? Thanks as always. Henry

Q: Hi, I would like to sell for tax loss Tourmaline, Vermilion and Delphi. I was thinking about replacing them with 3 similar valuation/quality name as to keep sector exposure just in case it reverse shortly after I sell. Would you say this does make sense? I do have gains to offset.

Q: This stock is currently up 24% today. They announced a conference call for Friday to discuss the recent acquisition but I can see no other news. Do you know what is up?

Don

Q: May I have your fresh look at MTL.
Now holding TFI and thinking of adding MTL.
Thank you for your excellent service
D McV

Q: Peter and team I was away for a couple of weeks and see that TOG has taken a hard hit can you enlighten me what happened should I hold or sell .

Jim.

Q: Is there any reason you know of that agt is getting hit so hard today. Thanks.

Q: I already own ADW.A but with the recent decrease in the price of the B shares I am considering adding a purchase of the B shares. I would appreciate your opinion.

Q: Hi team, Your comments please on the new acquisition. They'll pay $32.7M in cash and the remainder thru issuance of almost 3M shares, which will result in dilution. Your thoughts please. Thx a lot!

Q: I am learning a great deal from your question and answer pages but for the life of me I cannot understand why a company like Loyalist keeps loosing share price. Over the past week or so there have been several positives including record earnings, new acquisitions, insider buying and the share price goes down or stayS even. This is DRIVING ME CRAZY! (All caps means I REALLY mean it!) Can you tell me why the price isn't going up?

THANKS!!

Q: I see that CIBC picked up coverage of these two with Out Perform ratings. Certainly reflects your view of the impact of price when this happens.

Q: I have some new money to invest. Still working at 56 but plan to retire in the next 5 years. Plan is to live primarily off dividends when I retire. I have no company pension. I am fortunate in that in a worst case scenario I could still work part time if this does not work out. Would you advise investing in the complete model income portfolio or the complete model portfolio. Both have done well. My gut tells me to stick to higher dividend stocks at this stage in life. Thanks

Q: hi folks:
looking at the chart of fts and to a lesser extent ema I wonder if we are in effect 'going parabolic' (as far as staid utilities can go)
these are fine companies with fine earnings etc, yet at what point does one think that perhaps much of the huge move in the last 2 months is not based on 'fundamental' future improvements yet simply by old people (me) and my parents buying what is perceived as a 'safe' dividend producing asset?

18x pe is surely not cheap for any utility

the charts each look like $34 would be a good price to buy or re-buy

comments

thank you in advance

Q: I hold CFL in a registered account mainly for its dividend (currently 11%). Bought it at $3.00 and was doing well for a while, but is now down 27% from my cost. Recognize it's a small cap with some revenue coming from the oil & gas sector, so not without its risks. The recent quarterly report didn't seem too bad, though recognize that's looking backward. The stock has recovered a bit today, up 4% as I write.

At today's price, it represents about 1% of my total equity portfolio. Do you see the stock price recovering eventually? Does the dividend appear sustainable? If yes on both questions, would it be worthwhile (or foolhardy) to top my CERF holding up to 1.5%?

Thanks as always for your sound advice and terrific service.

Q: Any insight into the correction here? Thanks.

Q: Morning ...first of all I want to thank you and Ryan for answering all our concerns regarding the oil sector. These are trying times for us amateur investors (especially me) ...we are living the results of proper diversification and weightings, I think these are valuable lessons for all of us. My question is this ...you mention the hedging aspect of companies selling oil at a certain price ,can you tell me how far into 2015 does Surges hedging go? Would I be correct in presuming the dividend is safe till new prices (lower) then hedged in? Thanks as always.