Investment Q&A

Q: What are your thoughts on PMI.V sudden surge;good entry point?
Thx.Gerry

Q: I would like to clarify my understanding of convertible debentures. AFN.DB, for instance, matures Dec 31 2014 and pays 7% interest. It is callable Dec 31 2013 by the company. I understand that its conversion rate was set at 22.23. Assuming that AgGrowth does not call the debenture and that I was to purchase it in early January, I believe I could expect two interest payments in 2013 and then 22.23 shares if the shares have reached their target price of $44.98 or higher by the end of 2014. Presently, the debenture is priced at about $40. If the shares do not gain further value in 2014, do I get $1000 in cash at the end of 2014 when the debenture matures or does the company change the conversion ratio in order to return the value in shares? Is there a negative impact; i.e., a significant dilution, on the stock price when the company suddenly releases all those shares to pay back the debentures? What is meant by the premium on the debenture? Is it the difference between the present value of the debenture and the value at the conversion rate? I thank you for your information and look forward to your reply.

Q: Hi Peter,
Could you offer an update on Artek Exploration (RTK)? What would be an attractive price to add to my current small position?
Many thanks, Peter!

Q: Hello Peter
Olympia Financial Group just declared a $10 per share special dividend. So now we have to work out what will happen to the stock price right away, and also after the dividend is paid. Does the share price rise now in the expectation of the dividend? Does it stay at the present price after the dividend is paid or does it drop $10 after the dividend? The company may be "dividending" out the profits to the large insider shareholders [and the rest of us]in preparation maybe for selling the company to another bank who might just bid a higher than current price to get it. What current strategy would you advise?
Thank you for the excellent advice. Paul

Q: Give your assessment of MRC

Q: Assumption: The U.S. equity market continues to remain healthy & positive overall for the next 12 months. The question is what, in your opinion, is the best way to buy the US equity market from a Cdn.registered acct. relative to the current surcharge(incl.fees & exchange)of nearly 7.5%.
Thanks for a great year.

Q: I would appreciate your outlook for KP Tissue (KPT)

Thanks - Ken

Q: I would appreciate your input regarding which 3-4 companies in your Model Portfolio represent the best value currently. A brief explanation for your selection would be helpful . Thanks.

Q: new year, new model portfolio?

Q: CKI Clark Inc. Have you changed your opinion since last March? 5% div and cheap. Seems like the payout is reasonable but the debt seems high.

I like companies where the Officers take a stake.

Thank you.

Q: Further to the earlier question today on DHX Media, I'm curious why it ran up so much on the news. Seems counter intuitive to me. Thanks.

Q: I would value your opinion on Torex Gold (TXG on the TSX). Given the present climate of gold, I do realize this will be a speculative position, but would nonetheless appreciate knowing if the fundamentals of this company will carry it through to recovery in the gold sector. How would this compare to Mandalay Resources (MND on the TSX), fundamentally speaking? In terms of geo-political risk, is Mexico a better/worse environment than Chile, in which to invest?

I am interested in deploying some speculative cash into this sector and am trying to choose between Mandalay and Torex. Any preferences? Or both?

Thank you, as ever, for this wonderful service!

Q: Hi Peter
I have had a very good run with ATD as play on Europe. Should i take profits and what consumer income stock would be alternate in RRSP. Thanks Hamish

Q: Hi 5i team,

CSCO, your opinion on Cisco? Taking a bit of beating lately.
I'm down about 9% to date, and don't mind holding for the long term.

Thanks.

Q: HI 5i,

Now that tapering appears imminent, how badly do you think dividend stocks in my portfolio, like Telus, IPL, Suncor and PBH will be affected?

I sent you this question a couple days ago but haven't heard from you. (Perhaps i sent it to the wrong address?)

Thanks G

Q: Hi Peter
could you give me your opinion on ZAR why it goes up 10% today

Q: TA.pr.D
I read your recent comment on TA common shares, but does the same opinion apply to their reset prefs, this one trading at a very attractive price and yield. More broadly, so many rate reset prefs are off, in particular the past 2 weeks. While part of an income portfolio (the lower current costs seemingly protecting against rate increases), are they possibly still a bit of a value trap, even at these reduced prices? Thank-you as always...

Q: Hi Peter and Team,

Thanks for the on-going terrific insights and stock suggestions.

Given the aging infrastructure issues (pipes,electricity etc) that seems to be facing all governments and in particular the Ontario government can you suggest some ideas (which stocks are best positioned to profit over the next many many years)

Happy Holidays to everybody at 5iresearch and keep up the great work in 2014!

Q: I am looking for a lower risk income product for short term holding. Hoping for more than 1%. I came across BBO.PR.A which is a closed end Blackrock split corp pref share product holding Big Bank and Oil. Seems to stay just above it's NAV of $10 except back in 2008. Seems like a pretty safe 5% yield holding. Volume is low though. I can't really get a handle on the split corp structure and risks etc. Any guidance or comments would be appreciated. Anything that would be better? I am also considering BMO Covered Call products. Thanks!

Q: I have held ZEDi for many years.I am now above water a little
Should I sell or hold to see if they find a buyer? What does the
Telus situation mean (if anything)?
Ross Sinclair