Investment Q&A

Q: I own a package of O+G service companies that have been crushed......PRW, MCR, E, ENT, WEQ and GKX. My logic was related to the eventual go ahead of LNG on the West Coast, new pipelines to the West Coast and expansion of oil sands activities in Alberta.
They all would appear to be vulnerable to project cancellations and high debt levels.
How would you rank these from safest and most likely to eventually prosper, to those in jeopardy of failing.

Many thanks.

Q: Peter and team,
This is a question that i am hoping either you or one of the other members of the site might be able to help me with. I have US holdings in my RRSP but to sell and keep the dollars in US currency, my self directed brokerage requires me to put the proceeds in another us holding same day. In canada, there are many high interest savings accounts to do this with but i have been unable to identify the same type of account in US dollars. Any suggestions? I have used FLOT but would prefer a high interest savings account if possible.

Thanks

Q: Hi:
I just saw a report that Jim Pattison has recently bought 600k shares. Is this newsworthy or indicate anything happening of substance to the company? I've often heard the Pattison wants to take the company private.

Q: I own it. Showing strength and up 2.5% today. I do not see any news or buzz and I am wondering if the low Canadian $ is a factor as they are Southeast and Southwest U.S. I am just curious.

Q: I am 45 percent underwater on cannacord with a 3 percent weighing. Would you average down? It appears to have hit bottom but am weary of catching a falling knife.

Q: I am considering selling my 2% position in WSP Global Inc and increasing my 2% position in BYD.UN to 4%.

I am looking for a minimum 15% ROE and I am disappointed with the performance of WSP and BYD has returned over 50% for me. I wonder if I am selling WSP too quickly.

Do you think BYD will have better returns than WSP over the next 3 years?

Q: Hello Peter, I've held this ETF in my RRSP for two years. While the yield is approx 6%, it has also dropped in price by a total of almost 6% in 2 years (resulting in net annual gain of only 3%). My question is that with generally falling interest rates and an improving US economy - presumably translating to lower defaults/default risk levels - I'm unable to understand how a corporate bond portfolio could lose 6% of its value over two years. I have not looked into the specific components of the ETF but if you can help me understand the loss, much appreciated. I am not risk-averse and won't need the funds for several years. Would you suggest a better vehicle for higher US returns? Thanks, Bob

Q: Hi 5I
I've tried in vain to understand IRE delisting (ADR's)from NY. I am with a discount broker (BMO) and I hold 1200 shares. I don't know if I can continue to hold the shares in kind at BMO (ADR'S) or do they get converted (or liquidated) and after 1 year can I continue to hold the converted security in the discounted brokerage.Excellent Site.
Thanks Bob

Q: I ask your opinion on equity diversification. Does diversification improve returns or merely reduce volatility. If I invest in the same proportions as the TSX make-up (30% financials etc.), will I achieve similar (or better/worse) returns than a well diversified portfolio over time (5 years for example). The equity investments would still have to meet the requirement of being at least satisfactory equities as indicated by 5i.
A second question is - do I need the to invest in other than equities if I believe that I have at least twice the investments to fund a reasonably comfortable retirement and keep sufficient cash on hand for about 2 years expenses. As a sombre/humorous note what is at risk (I think) is our children’s modest inheritance, and they are all in middle aged and in reasonable shape financially.
I understand that there are no perfect answers, but experienced, informed opinion is of high value.
I greatly appreciate the rational unbiased advice on 5i. Thanks.

Cyril

Q: I understand that one of WSP recent purchases The Focus Group is involved mostly in Oil and Gas contracts.What percent of total revenue comes from Focus and do you think it will have a serious effect on the bottom line? Thanks again for your fantastic service and great help.Jim

Q: Hello Peter and team,

On Feb 2nd deletions from the S&P/TSX Canadian Dividend Aristocrats Index will include Evertz Technologies (ET) (in your income portfolio), and two of your covered companies (CSU and HLF).

As of Jan 23rd the iShares Canadian Dividend Aristocrats Index ETF (CDZ) had $21,797,887 worth of ET shares. My math equates this to 1,371,799 ET shares. This represents 5.2% of the floating shares.

Similarly CDZ had $12,124,809 of HLF shares, which equates to 598,756 HLF shares. That is 5% of the floating shares.

The number of CSU shares held by CDZ would be 0.2% of the floating shares, which is negligible.

How does the ETF go about disposing of such a large quantity of ET and HLF shares? Does the ETF have to sell all of them exactly on Jan 30th, or does the ETF have days or weeks before and after Feb 2nd to gradually dispose of their shares (so as not to flood the market)?

If the ETF has to dispose of all their shares on Jan 30th, do they wait until the last minute of trading? And being that it is 5% of the floating shares in the case of ET and HLF, won’t this have quite a negative impact on the share price (in the short term)?

I may be interested in acquiring some ET and HLF shares. Is it possible to take advantage of this situation? How would I do this? Should I place a low ball order on Jan 30th and see if I get filled?


Paul J.

Q: There is an interesting and cautionary article on Auto Canada by David Milstead (writer for the Globe & Mail) regarding the current structure of the company. The article was in the G&M on Jan 26/15, and may be of interest to members that either own shares of AutoCan or are looking to buy shares.

It can be found by googling "Why I am still cautious on AutoCanada" by David Milstead.

Publish this at your discretion.

Q: what is your opinion on the guggenhiem equal weighted rtfs. thanks

Q: with a recently announced reduced (74%) 2015 capital program and a 50% dividend reduction, how do you feel about PGF? Continue to hold? Buy some more? Sell?

Q: Hi Peter, I rode the wave and cashed out on Concordia. Thanks to you I did all right! I am looking for another healthcare company,suggestions?

Q: Are you aware of any news that would drive this stock down 20% today??

Q: Dear Gentlemen,
Your answer to Jim today : US based ETFs will get captured under the US tax reporting rules, where Canadians need to declare assets in the US above $100,000.
You had about same question, last year, I remember that you corrected your answer, I understood 10000$ by holding not in total
I am wrong ?
Thanks
Best Regards

Q: The last time you commented on CSIQ you were cautious. Would your views change now and would you buy it. I am thinking of selling CLCT and buying either CSIQ or HACK. Please advise. Thanks

Q: Could you please provide an update on Orvana. Do you see it as a buy?

Q: Hi Team,

Just wondering if you could provide an update on crt.un (valuation metrics) and your opinion. With the withdrawal of target and the Cdn tire stock doing well, does this affect the upside potential of the REIT?
Thanks