Investment Q&A

Q: Good Morning, Peter,

How will the planned changes in June 2015 by the TSX affect a typical Canadian investor with a portfolio of less than $1 million who trades equities about 10 to 20 times a month?

Reuters reported that the TMX "...wants to introduce a "long life" order type on both its main Toronto Stock Exchange and its sister venture exchange which will be executed ahead of other orders at the same price..."

Thank you in advance for helping clarify the impact, if any, that these changes will have on the average 5i member.

Gail

Q: General Trading question. I have been investing in stocks for only a couple of years and recently wanted to try out Trading however I have found that I am way too slow to make a decision. Some of my hesitation centers on how to read and understand the implications of a companies reports. For example a report saying revenue is up while profit is down to me should be a positive thing for a company. Also, the "street estimate" is only an estimate, while the company reported figures are factual. Would not a company who has improved revenue be worth more whether it was short of the "street" expectations or not. I realize you guys/gals are not traders but do the very quick traders trade on "any bad remark"

Q: I have been invited to attend a presentation by Raintree Financial Solutions ((Exempt Market Dealer) where Private Capital Markets Investing will be the main topic. Three companies will be profiled specifically, Enercapita Energy Trust,Equicapita and Solar Income Fund Inc.
I am interested in hearing what you think of this new category "Exempt Market Dealer".
Private capital investing seems to have been the domain of high net worth individuals therefore not available to small retail investors. Raintree claims that private investing adds diversification to a portfolio and is not as susceptible to downturns as we have experienced in the past few weeks. What would be your opinion?
Your view of the companies being profiled, if any, would also be much appreciated.

Q: I've been a very happy holder of this for 2 years. Just wondering: they announced plans for a spectacular new headquarters in Edmonton that will change the downtown landscape. Would the expenses of building this and the potential disruption of moving when it is finished have a materal effect on future earnings, even if just for a Quarter or two? If so, it could be a good time to add more if short-sighted investors sell on a couple soft quarters?

Q: I have a 5% position in this stock. has been slowly sliding down. Just to clarify the sale, if I hold till close I will receive $11.25/share plus special dividend? so if I hold till close I don't have to concern myself with current price?

Thanks
Dale

Q: I own it. It is down on Q3 results and I can not pick up on the issues from the NR. Could you review the NR and comment. Much thanks.

Q: Hello 5i,
Any reason you know of for the gap down today on Corus?
Small buying opportunity?
Thanks,
RD

Q: In view of today's quarterly report on Corus (CJR.B), I wondered if your favourable opinion of last May was still held. Do you regard today's decline as a buying opportunity?

Q: Thanks to 5i & Russ who provided an excellent source of closing Block trades. Demonstrates the power of informed forums.

I asked the question in respect of AVO trading. The data has raised the question of what do they mean.

I assume that if the buyer is different from the seller, they are interested in disbursing the Block to retail according to their views on what is likely to happen to the price. But what is the reason for the same Brokerage firm selling to it's self?

Perhaps there are other motivations? For me it is interesting that buyers & sellers are interested in making Block trades, but can the transactions be interpreted to mean anything?

Your personal experience with this please.

Ernie

Q: I have a general question as to how, and if, analysts' reviews affect stocks.

On Wednesday, TD Securities downgraded Canaccord Genuity Group to "hold" from "buy" with a price target of $12.50 (Canadian). The stock was around $11.00 at the time. It subsequently plummeted about 10% and continues to drop today.

Today, Raymond James upgraded Mullen Group to "market perform" from "underperform" but cut its price target to $25 (Canadian) from $27.50. The stock has dropped about 5% so far.

In both cases, the stocks were about 10% below the analysts target. Once was considered a downgrade, although it was still a hold. The other was considered an upgrade but its target was not going to yield any greater returns.

My question is threefold. Is "market perform" considered different than "hold" (since they seem pretty similar to me); secondly, why was one stock hammered so much and the other wasn't when they are both expected to perform about the same, at least as it pertains to their target prices; finally, should TD be considered impartial since they are downgrading a competitor.

I am hoping that with your insight, I will move closer to understanding how things work!

Thanks so much.

Paul F.

Q: Hi Peter and Team,

Can you comment on Brookfield Asset Management acquiring another 30% of BRP today? Would you advise continuing to hold BRP after this (I'm up about 25%) or is this a good time to sell and take a profit?

Thanks for all you do.

Jordan

Q: On Oct 20th you answered Robert regarding 5I following US stocks. You mentioned that if 5I "closes membership" in Canada you might consider it,
Question ; Is 5I only a temporary service in Canada? I sure hope not!

Q: The stock seems to be drifting downwards, any thoughts on it? I have had a good run but with no dividend makes me wonder if I should just sell and invest in a dividend bearing equity. Your comments please? Thank you Phyl

Q: Canaccord (CF) has dropped significantly in the past 2 days. Earnings release is upcoming on Nov 5th. Is there any negative news that would have a LT impact on their investment bank business or is this a good entry point? If not CF, are there alternatives you would recommend? Thanks for all the research you guys provide! Great learning experience. Thanks - John

Q: OTC is down 4% even though earnings look great. Any idea of why?
thanks

Q: I'm looking at buying into the small cap biosciences sector with only growth in mind. Two companies I am currently looking at are Merus Labs (MSL) and Knight Therapeutics (GUD). I realize they aren't the same business per se and do have risk, which of these two do you believe is a safer buy longer term.
Anything else I should consider?
Thanks for your help.
Jim

Q: Ryan's report on SLF and MFC was very interesting and is a great explanation for why you prefer SLF. I got the impression that in the less likely event of equity markets moving more than 10% along with a 100BP move in interest rates, that MFC would do better than SLF. Is this correct (and why) and if so, can you estimate the probability of this scenario happening ? Also want to say that the addition of the name along with the stock symbol as the identifier for each question, is a helpful addition-thank you.

Q: Hello Peter & team,
I already have 10% of my portfolio in O & G stock and do not wish to go higher. In this context do you consider cfw,tcw frc ses, pd & tdg in the same group or is their movement pattern different? Any reason why the are up/flat today while O & G
stocks are significantly down?
If Oil & Gas stays at $80/85 & < $4 respectively, will demand for their services decline? Would PD & TDG suffer more than the other 4 with prices as above? Finally considering that they are still down 30% from peak would you consider any of them worth
buying & if so your preference or any other similar stock that
you like?
Thank you for your guidance.
Tony

Q: Could you please provide more info and your opinion on EXO.

Thanks,
Milan

Q: On the 5 safest Canadian stocks outside of utility and energy companies question of Oct.22, I was surprised to not see any financials included. Do you not feel a bank like BMO which has paid dividends for some 200 years would make the cut, and if not, why? 3 choices in consumer staples seems under-diversified. Thanks, J.