Investment Q&A

Q: Peter; I messed up my question yesterday - so would you add to MOS at these levels? Thanks. Rod

Q: Hi, can you please provide an opinion on Blackpearl as an investment option for capital appreciation?

Q: Hi, regarding CEF.A, recently the share price has been 5% below NAV. I recall several months ago it was pretty much at NAV. For a fund like this that basically tracks the price of gold/silver (in theory), is my thinking correct that it may be better to purchase the fund than actually purchasing the bullion? This also avoids transaction costs and delivery charges. The fund seems to be audited; do you see this as a prudent strategy when the fund is trading below NAV based on market fear?

Q: Hi Peter and team

In a recent globe article on stock analysis (June 26th page B18), Long Run Exploration (LRE) was shown as having some pretty good metrics: low price to cash flow, high growth, good recycle ratio, high reserve replacement ratio. In a subsequent investigation (reading their investor presentation) it looked like it was selling at about half of NAV. Despite this it is in a long decline. What do you think of them?

Thanks

Ross

Q: Peter: You mention Magna as a growth manufacturing stock that might be worth using to offset dividend funds in a portfolio. What do you think about Martinrea instead? I believe that it is cheaper.

Q: Good Morning Peter and Team,
With gold and silver prices steadily falling I have been looking at the big streaming companies (Franco Nevada- FNV-T and Silver Wheaton- SLW-T). In the shorter term they will suffer from low selling prices but on the flip side they are likely to see wonderful opportunities in this environment to negotiate advantageous streaming deals with financially stressed producers. I would appreciate your opinion of this line of thinking. Thank you. DL

Q: BB is down $4 on earnings today, is it worth looking at as a trading stock at this price, or should i just walk away? Thanks as usual.

Q: I have a question on UUU. The $2.86 takeover of the company was expected to close at the end of this month but the price is going down and it is now trading at 2.72...? Any explanations? There seems to be no news since June 12.

Q: Rpl continues to nosedive but still is paying a dividend-i was stopped out long ago but there must be a point where something has to be done.What is our opinion of their questionable future ?

Q: Hi Peter,
have you heard of Refresh Capital Corp? They are currently offering a 6% GIC where security if obviously guaranteed and payment interest quarterly. What are your thoughts?

Q: Could you pls comment on Boardwalk Reit (BEI.UN)? Thanks
Gary

Q: I hold ABX (US Account), G, YRI, XGD plus some bullion (combined <5% of portfolio). Though underwater on all to varying degrees, I am in no panic to sell and will add to some positions over time. Do you see any value in selling the XGD or ABX which have the biggest losses and moving the money into YRI or G? To which of these choices would you be most inclined to add? Thanks for a great service.

Q: oil prices and Canadian oil stocks ?
could you give me your take on:
1.recent oil price are they not to high ?
2. at what oil price would a CPG like company be able to cover divined, drip and require capital to maintain production.
3.why is the sector so beat up if as per my guess, good producers can make money at $70. (and now get $75 $85.
4. Being addicted to divedens should I reduce holding in this sector ? at this time or wait ( I have 30% weighting in oil And gas ?
many thanks
Yossi

Q: could you explain "short squeeze" and how it pretains to the gold sector with this continued shorting of the gold price

Q: Dear team, Could I have your opinion on Pembina, PPL.UN? Thanks

Q: What does sector rotation mean?

Q: what would you consider a better long term investment, enghouse[esl], or cgi group,[gib.a] thanks?

Q: HOT.UN--- American Hotel Income Properties, $11.17--8% yield.Would this be suitable for my TFSA?

Q: Thanks much for your reply on my T and BCE question. At the moment they total just 9% of my portfolio. What would you think of my adding a half position in SJR.B or would you prefer Rogers at its present beaten down price?

Q: Hi Peter & 5i: I am wondering about dividend reinvestment plans. Could you comment and maybe mention a couple of examples? Theoretically the company gets the money back that it would otherwise have paid out in dividends (at least to the extent of the DRIP participation rate), which it can then use to grow the business and, all going well, the results can be accretive to all shareholders and the accretion would be pleasantly leveraged for the DRIP participants. But suppose there is no progress being made on the growth front, or worse that the company isn’t really earning the dividend that it would otherwise have had to pay out in cash. Then it seems like all that is happening is a kind of steady dilution and potentially a dangerously growing snowball, because each new share that is issued comes with its own dividend rights stretching forward indefinitely. If the market intervenes by lowering the share price, then the rate at which the DRIP shares get issued increases because the dividends will buy more shares. Does this ever really get out of hand? It seems that there might be a significant difference in the DRIP impact on a company with a 3% yield versus one that slips above 10%. It would be different of course if the company was buying back its own shares opportunistically to offset the DRIP’s effects, but that would seem to negate the benefit of the company keeping the dividend cash in the first place. Are DRIPs generally a negative in the context of a company that might be a relatively higher risk investment? Thanks.