Investment Q&A

Q: re: CBI Chicago Bridge & Iron

Recently started watching CBI looking for value after it was highlighted on Market Call as a Top Pick and the very significant drop back in 2nd week June.

And since the 5i team last took a look on June 13, the price is down a further 15% with a majority of that being attributed to a 9% drop in today's trading alone.

Do you have any explanation for the falling value and, do you see any value in CBI based on it's current metrics?

Thanks for all you do

Gord

Q: Please comment on the recent offer by Long Run to acquire Crocotta Energy at .415 shares of Long
run ($2.30). There is a further spin-off offer of ExploreCo ($1.70). I have been contacted by Crocotta and need your expert advice if I should vote for this. It appears that ExploreCo may be a very valuable and gas producing property.
Thank You Once Again!

Q: Dhx has received approval from the Crtc. Have they got the cash to buy the family channel or do you foresee another financing?

Q: PPY, BXE, TOG, I would like to consolidate my half position in these stocks into one full position. Do you agree and which one would be your recommendation. I am well represented in energy stocks with 37% weight in my portfolio. Thanks for your expertise , Jerry Gazarek

Q: I awoke this morning to find our CSS was being sold. I jumped on line to see the increase in share price. Wow talk about lunch bag let down 5% premium on the recent share price seems extremely light. Like other 5i members I am concerned. ps who cares about a 52 weeks avg share price. It seems the executive of CSS have sold out and abandoned the shareholders. Listening on line to the Transforce call they seem very happy with the deal of course. The commentators on BNN were positive from a Transforce perspective. Where is the voice of the CSS shareholders? Sorry for the rant, am I off base? Is there a trend for light buy out prices the BA price seemed a little light and CSS's price seems very light. Is this because there is not enough competition in Canada for these companies. mike

Q: I sure appreciate having someone who I can consult about the financial market. People I deal with would not have the answers. I am asking about a few stocks but most of these are on my 5i watch list because they come up on the question and answer list regularly. Since there are a few of them I do not expect you to spend a lot of time on each question. They are:
CEB (Ceiba) - had a big drop today; SVC (Sandvine); CF (Canaccord); TC (Tucows); CXR (Concordia); DHX (DHX Media); and CWL (Cladwell) - If you could rate them in order.
Thanks
Dennis

Q: Could you comment on Premium Brands(PBH) for income, with respect to payout percentage, dividend stability and debt levels? I am looking at about a 2% position and currently hold nothing similar.

Thank-you

Q: Good morning 5i team,
Re: DHX In response to Rod L.'s question of July 23, the following NR came out at the end of the day, yesterday.

DHX Media receives CRTC approval on $170M acquisition of Family Channel and three other children's channels.
24 Jul 2014 - ACQUIREMEDIA

Q: Hi,Peter

Could you please comment on NFLX.US and Qcom.us earnings,
Is it a long term hold? Thanks.
Selina

Q: May I have your thoughts on Facebook?

Q: Hi Peter and Team,

Please speculate as to why Amazon's stock price is so erratic after hours. I am aware of their negative quarterly results but why the bounce back then???

Q: What are you thoughts on Atrium Mortgage earnings.

Q: A broker research report on IPL states that "Our target price ($30) is predicated 75% and 25% on our 2015 and 2016 financial estimates,respectively, as follows: 1) 25% EV/EBITDA multiple of 15.5x, 2) 25% relative dividend yield of
175%, and 3) 50% free cash flow yield of 6.5%. Our target price also incorporates a 2.50% 10-year
Government of Canada bond-yield assumption."

They give IPL (our 8th largest holding) a forward PE of 28X and the others we hold in the Pipeline Sector at lesser weights than IPL - for ENB 23X and ALA 25X though the target prices for the other 2 are positive. We all know that brokers' research reports are intended to get clients to trade but I wonder if I should at least reduce IPL holdings to boost the other 2 especially as the PE numbers are quite rich?

Also do you agree with the research numbers and do you perhaps feel that the sector as a whole is pricey? Thanks, J.

Q: Your opinion please on Husky HSE. Their quarterly seemed OK, but their price continues to drag. Is it time to sell HSE and switch to something else? If so, what would you suggest? I already own CPG, SU and PPY in this sector.
Thank you very much for your thoughts.

Q: Hi guys , great service been in for a year plus and am very happy.
Can you project what will happen to dividend flat and dividend growth stocks if we see a bump up in inflation and a rise in interest rates.To the point are dividend stocks overvalued historically, in the relentless search for yield.

Q: Any comments on DEE operations update? The stock was up %5 today.

Q: Please help me decide between TOU, PEY and VET. If you have a suggestion with regard to the account the purchase goes into, that would be welcome too.
Thanks.

Q: re:SUM Solium Capital

Anything to update since last discussed May 13?

Thanks for all you do

Gord

Q: Is it time to sell my junk bond ETF CHB? I watched this video today by Christine Hughes of Otterwood Capital. Seems to make sense:

https://www.youtube.com/watch?v=xD859cTLrtI&list=UUEmSqcxB2lCJyIjoYysrVEA

What's your opinion on this? I have about 10% of my portfolio in CHB. Thanks so much for all your great advice. Not sure what your policy is on posting links, but If it's not cool, just delete it. cheers

Q: Hi Peter and team: what is your latest take on VFX, Virtutone? I know its very small; recently they got some debt financing in place, it seems that this will finally allow them to grow revenue faster. However I'm not sure how it may affect their margins, which they are trying to increase. Do you see their game plan unfolding in a positive way? Or do you think their business plan is flawed?