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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: Hi Peter are you familiar with Valeura Energy (vle)? It's a Canadian oil and gas management team currently operating in Turkey with a focus on nat gas. The mgmt team has had good historical track records with previous companies but so far this has been a huge dissapointment over the last 2.5 years or so. I see Scott Lamacraft ( CEO of Cormark Securities former Sprott Securities)has recently acquired a large position and is now the largest shareholder. Any thoughts would be appreciated. Thanks.
Read Answer Asked by Chris on January 09, 2013
Q: Hi Peter & co.
Would you recommend Reitmans at this point? I see a number of analysts are thinking Target will be a threat, and they did poorly over the holidays. It's the only stock on my watch list for dividend TFSA that's wouldn't be a high buy at this point. Perhaps there's a good reason for that? Thnaks
Read Answer Asked by M.S. on January 09, 2013
Q: Hello, Great site. MRD has announced that they intend to start up a REIT and sell many of their producing assets to that REIT. I would like your opinion on what impact that might have on my shares in MRD.
Bill
Read Answer Asked by Bill on January 09, 2013
Q: Hi Peter & 5i: In your answer to john's bonds question you referred to investments "exposed to" fixed income securities. I'm interested in how an eventual move off the bottom for bond interest rates will impact valuations of different kinds of equities. Aside from the obvious link to income stocks, that to some extent trade off of their yields, what kinds of companies have material exposure to fixed income securities, in terms a foreseeable negative impact on a company's growth, profitability, cash flow, or other relevant valuation metrics? For example, Cdn banks. I've heard that banks generally benefit from rising interest rates. But given their involvement in the fixed income market, would parts of their businesses suffer in a significant rates-driven market shift from bonds to equities? Thanks!

Read Answer Asked by Lance on January 09, 2013
Q: Hi Peter- This question is about Fairfax Financial Rate Reset Preferred Shares. FFH.C can be called in Dec./2014. Between now and then you will get 8 dividend payments totalling $2.88. It currently trades at $25.87. There will be a loss of 87 cents meaning that your profit is $2.01 share or 3.9% over 2 years.
FFH.G gets called in Sept/2015. There will be 11 payments totalling 3.44. It is trading at $24.70, so add a 30 cent gain for a profit of $3.74 a share or 5.5% per year over 2.75 years.
The one that seems to be too good to be true is the FFH.PR.E which expires in between these two in March 2015. It trades currently at only $23.11. A gain of $1.89. With 9 payments totalling $2.67, you have a total gain of $4.56 on an investment of $23.11 or an amazing 8.8% average annual return over 2.25 years. What am I missing? You have 3 pref issues with a relatively close annual dividend and relatively close call date but with extremely different market values. Same company. All Rate Reset. Is FFH.E a buy?
Read Answer Asked by RANDY on January 09, 2013
Q: Hi, Peter. Could you let me have your thoughts on Purepoint Uranium (PTU), please. From about two weeks ago, it went from 6 cents to 9 cents on Mon 7 Jan, after being almost dead for over a year. They recently (a few months ago)struck some kind of deal with Cameco, who hasn't been doing that well either. Thanks, Dale
Read Answer Asked by Joan on January 09, 2013
Q: Neptune Tech and Bioresources (NTB). On the one hand expert opinion and copycat attempts indicate there seems to be value in the Krill oil patents, but I am concerned about the quality of management (apparently so are some other investors who filed a lawsuit today). After holding the stock for years they seem to nearer to producing earnings. I understand they have an excuse in that the plant blew up but again that poses questions as to quality of management. Are the management unlucky or simply incompetent? Is it worth hanging on or better to cut losses?
Read Answer Asked by Andrew on January 09, 2013
Q: Would you have any tips for Convertible Debenture issues for my RRSP on a long term hold? I currently own FCR.DB.E and MRT.DB.A from issue and am looking to add a third or fourth in the aftermarket...Jeff
Read Answer Asked by Jeff on January 09, 2013
Q: I would like your opinion on the large amount of insiders selling PBG (Petrobank) in December, after the announcement but before the reorganization of Petrobank where they distributed the shares of Petrobakken to Petrobank share holders.
Then on Jan 3rd after the reorganization many of the insiders were buying PBG, PBG is almost trading at it's cash on hand.
Also can you recommend a book on insider trading, Iv'e been following insider trading for the last year and seem to be doing fairly well.
Thanks
Read Answer Asked by Doug on January 09, 2013
Q: Hello. Could you give me your opinion on MSV(minco silver). They released an update and advised of some potential interest coming out of China. They seem to have a good balance sheet also. thanks
Read Answer Asked by George on January 08, 2013
Q: Peter please give me some insight on dennison mines or northern minerals thx
Read Answer Asked by frank on January 08, 2013
Q: Although I don't mind shopping at Sears (SCC), I wouldn't want to invest in it. How's their valuations? Is it just competitors beating them now and eventually Target?
Read Answer Asked by Michael on January 08, 2013
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