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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Trying to decide between a position in Stantec (STN) or Aecon (ARE). To me, Aecon looks much cheaper. CIBC shows consensus easnings estimates for Aecon is $1.38 and $1.81 for 2014 and 2015 giving it a forward p/e ratio of 9.85 and 7.51 for their respective years.

CIBC shows Stantec's consensus earnings estimates are $3.32 and $3.81 for 2014 and 2015 giving it a p/e ratio of 15.66 and 13.64.

I know you guys like STN better (and it certainly looks like a fine company), but why such a huge gap in p/e between the two comapnies? What am I missing?

Thanks, as always.
Read Answer Asked by john on September 19, 2013
Q: Team,

I am looking to add a financial position to my wife's small, slowly growing, portfolio of mostly 5i recomendations (Magna, Cineplex, Amaya and Apple). I would classify her as a cautious medium term (2-3 years) investor.

In light of the Fed's decision yesterday (low rates in forseeable future but indicative of poorer US economy), would you be more or less bullish on US Financials vs. Canadian? How would you rank the following companies 5 that we have shortlisted to purchase? Thanks!!!!

TD
BNS
HCG
JPM
BOA

PS - I cant say it enough, I absolutely love this service and the value I know I'm getting!
Read Answer Asked by Ray on September 19, 2013
Q: Do you know what happened to Direct Cash, DCI ,this morning. The price is dropping off a cliff.
Read Answer Asked by Bruce on September 19, 2013
Q: What is happening with DCI ? Down 25% this morning.
Thomas
Read Answer Asked by Thomas on September 19, 2013
Q: In view of CCT dropped of 9% yesterday, Is Catamaran a good buying opportunity? Many thanks. Bill
Read Answer Asked by Bill on September 19, 2013
Q: Do you think XSP would be a good buy at this time for long term? Thanks
Read Answer Asked by Donald on September 19, 2013
Q: Don Walker of Magna was a very enlightening interview on Headline yesterday (archived here: http://watch.bnn.ca/#clip1006513). I have a half position in Magna from $44 US and based on what he outlined for the company such as unlimited upside sales potential I'll look for an opportunity to up my position. What concerns me is his acknowledgment that his is a cyclical industry and I've been stung before holding this stock too long. Do you see the current upcycle continuing for at least 12 months and if you were adding to the position today would you buy on NYSE or TSX? There's slightly better liquidity in U.S. and dividend is U.S.$

Thanks, J.
Read Answer Asked by Jeff on September 19, 2013
Q: Pharma stocks such as VRX and others did not participate in the rally yesterday after the Fed announcement. Any reason for the sector to underperform in this new environment?

Thanks Darcy
Read Answer Asked by Darcy on September 19, 2013
Q: Hi 5I
I was just reading an article regarding how Kinder Morgan may be overstating their cash flow, and hence their stock could be overvalued due to not allocating enough money to maintenance on their pipes, which got me wondering about companies like Brookfield Renewable Energy and how their costs could skyrocket from natural weather disasters.
Thanks Gord
Read Answer Asked by Gordon on September 19, 2013
Q: Hi Gang;

My question is about Dragonwave Inc. it has come out with a new public offering at $2.10 a share which includes a 3/4 warrant to be exercised at $2.70 a share within five years of closing. Is this a good deal? Should I be interested in acquiring a piece of this company at this price and if so, how do I do it?

Thanks in advance for your time! Love the service!!

DON
Read Answer Asked by Donald on September 19, 2013
Q: I recall you mentioning that a stock reaching a market cap of $100mm makes it more attractive to some fund managers. Similarly, I seem to recall also hearing somewhere that reaching a share price of $5 (as Redknee Solutions T.RKN did today) is similarly significant. Do you agree? Given its international clientele, do you foresee a US listing for this dynamic Canadian tech issue?
Read Answer Asked by Richard on September 18, 2013
Q: I seem to be taking a bath with this one. Purchased it when it was petrobacken. What are your views at this time?
Read Answer Asked by Denis on September 18, 2013
Q: LRE - Long Run Exploration
Hello Peter. Excellent service and information.
Recently LRE has risen on Q2 earnings. Has it gotten ahead of itself and expect a comeback or is it still cheap without attention? What are your thoughts on taking up a position here for an energy sector 12 trade ?
Read Answer Asked by David on September 18, 2013
Q: Hi Peter,

In my RRSP I hold Imperial Oil (IMO) which is a good company but the problem is the low 1% yield. Considering that my portfolio is 95% Canadian, would it be a good idea to sell IMO and replace it by Exxon Mobil which is the US mother company with a yield of 2.8%? By the way, what should be the US portion (%) of a RRSP portfolio?

Thanks,

Gervais
Read Answer Asked by Gervais on September 18, 2013
Q: Peter, your opinion on Temple Hotels Inc please. Is the div. eligible for Canadian tax credit? If you were to rate it what would it be. Thanks Peter, your information is very respected. It helps us small investors a lot, Ken
Read Answer Asked by Ken on September 18, 2013
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