Investment Q&A

Q: Barrick has doubled off Oct. lows.

What are investors seeing to drive this move?

Q: I am down on the following: WSP 13%, GIL 15%, MG 20%, DH 20%, TFI 32%. Would you add to any of these or simply hold. Subtract credits as required. Thank you.

Q: Dear 5i

In 2016, BNP expects a payout ratio of only 85-90% of FFO, only $25M of its debt is due and its Debt/EBIDTA is expected to be 3.3X with much of its production hedged. How safe do you think BNP if these low natural gas/oil prices persist? Will they be okay every if oil goes down to US$25 per barrel or gas prices fall. Do you think they could refinance their long term bank facilities at favorable terms in 2019 at these low current prices?

thanks very much.

Q: Is mnd still one of your favorite goldcompanies?and why?
Which gold company you think would be a good take over candidate?

Q: What is going on at OTC

Q: The following stocks are on Jason Donville's Top 25 ROE list and I know they are also in 5 I's good books. ESl, KXS, CCl are at about their 200 day moving average while CSU is below its 200 day ma. Is this now a good entry point for these stocks to take a full position.

Q: Hi 5I: I don't normally pay too much attention to technical analysis, but recent sudden drops in companies like CCL, CSU and even ATD.B, DSG and the like have provided some motivation. It is not news that stocks took a sudden downturn on or about Jan 1. Nor is it a surprise that many show a distinct local minimum around Jan 20. However, the behavior after that is not uniform. Both CCL and CSU had local peaks between the 22nd and the 29th, followed by significant dives that show no signs of slowing down. This pattern is also evident in ATD.B, DSG, GIL, DHX.B, ESL and KXS, though the extent of the dives to date are not as severe. All these stocks are ones that have shown large growth over the last year or so, and it would appear that investors are selling to protect gains. Many utilities and other interest bearing stocks show quite different behavior; instead of diving, these have gone into sharp climbs. Good examples are Andrew Peller and Algonquin, two of Peter's best picks from his recent BNN appearance. The psychology here is obvious. My question: should I sell to protect my gains, and then follow the herd back into utilities? I am tending towards selling, as who knows how long it will take for fundamentals to win out? I look forward to your advice.

Q: Hi,
I understand BIP.UN is an entity (limited partnership) whose distributions are fully or mostly taxable in the hands of Canadians. Hence it is a good candidate for one's RRSP.

Are there any other securities with taxable dividends/distributions that you are aware of and like for income purposes?

Thanks,
Mike

Q: Everyone talks about the headwind of demographics on growth. With the baby-boomers retiring, the workforce is shrinking and that compromises growth, resulting in lower expected returns from investing in the markets. Are you aware of any research that discusses when the growth in the workforce from the next generation will balance out the decline from the baby-boomer generation? Also, how much of a factor is immigration?

Great service, Thanks,

Q: Hello Peter,
Do you have an opinion on Cameco’s recent quarterly results? The outlook did not sound positive and I think the stock price is headed nowhere for at least one quarter. If you concur, then at least in the short term (3-6 months ) I want to consider selling CCO and parking the money in Intertain. Now, I have a full position in IT and recently went overweight AYA @18. IT has also been beaten down and my theory is that the downside is limited but the snapback in IT is potentially high based on what valuation AYA receives from investors/market; plus the probability of decent earnings which the management seems confident. AYA upside is probably capped but IT could be pulled along and be the beneficiary. I am looking for a quick home run (30-50%) in the short term to cheer me up as the long term investments take a battering. The intention is not to be overweight in IT for the long haul. I would like your opinion- should I sell Cameco or not, and if I do, should I park it in IT or keep it as cash while waiting for the market to settle down? Or would you suggest something else? This is in the RRSP so no tax implications.

Q: Hi Peter. I know you have been negative on BGM in the past. Have your views changed since Friday’s closing of Osisko’s financing. I put much emphasis on management in the PM sector. Since Osisko is now heavily entrenched in BGM’s management structure and both Osisko and Eric Sprott own a large portion of the shares o/s, I’m thinking of establishing a speculative position in BGM. What are your thoughts on this. Thanks, Ralph.

Q: I am thinking of taking a small position in Sunlife Financial, what are your thoughts given the following information ? I already have positions in Manulife, Great West, Power Corp. I realize that Power owns Great West but both are good companies. I love Canadian dividend paying companies and would probably never sell once acquired.

Q: Good Morning. I believe that some time ago, PHM was going to conduct a share buy back. Do you guys have any idea how that went. They should be able to retire a lot of them pretty cheaply these days.
Thank You

Q: My question concerns how significant a role Reits should play in an income producing portfolio. You mentioned in an answer to a members earlier question on Jan 27th that Reits and high yield stocks can still have a high degree of correlation. I look at dividend growers more so than high yields.

Also Please rank for long term holds your weighting preference in an income portolio for financials, telcos, utilities and reits. ( also any that I have missed.)

Many thanks

Paul

Q: I own some Couche-Tarde and 5i has said that it is one of its favourite stocks in the consumer sector. With annual cash flow of a little less than US$1 billion and a market cap of US$24 billion, it is trading at 24 times cash flow. This seems very high and appears to be discounting substantial cash flow growth. They have been able to grow significantly in the past. How convinced are you that Couche-tarde can grow cash flow in the future to justify its multipl? Will 5i be writing a report on ATD.b in the future?

Thanks, Gtreat service.

Q: hi
I hold Peyto in a number of non taxable account to back 15 years its been great. In January 2016 I made RRSP contributions in 3 accounts, mine, wife and daughter, I bought pey the stock has gone from 23 to $31 plus I get the Jan divi. I have sold 1/2 smiling at my luck. The question is why the big move up and why gas is still low $2.00 ?

Q: See Exco sold off substantially here on Friday, I guess market didn't like the flat sales once currency was backed out this quarter. Good opportunity to pick up some shares here? Appreciate your insight.

Q: Hi Peter and team,
I recently owned some of St. Andrew's Goldfields taken over by KGI. Nice recent run up for KGI. Based on fundamentals, do you think KGI has much more upside over the next year or even longer term, even if gold stays approx. same level? Currently have very little gold. Should I consider rolling my gains on a small position into a different gold stock? Thank you. Tulio.

Q: On Feb. 3 XTC released what appear to be quite acceptable results, but the stock has since been punished-- today down over 9%. Is there something else out there other than the rising CDN dollar?
Harold.

Q: I currently own Concordia in my TFSA in USD. I'm down 30%. I was thinking about selling and buying Starbucks and then buying Concordia in Cdn dollars with 2016's contributions. I need some Restaurant exposure. Do I have to wait to buy Concordia in the Canadian dollar account? Can I get your thoughts on this strategy?