Investment Q&A

Q: I currently own small positions in XEG, CPG, ARX, WCP and VET. They total 6% of my portfolio and I plan to move towards a 10% oil weighting by the end of the year.

I'd also like to buy a position in small cap energy so that I can benefit from the rebound, but I can't pick which one to invest in and am afraid if I buy just one, it may end up being the small cap that goes bankrupt. What do you think of me buying Sprott's Energy fund? I don't usually like mutual funds because of the high fee (2.5%) but if I buy very small positions in 10 small caps myself, it will cost me 1-2% in transaction costs anyway. Also, if the fund goes up 30 or 40 percent, I won't care much about the fee. Do you think this is a good idea? Do you like the fund? Are there any ETFs that would be comparable? I own XEG but it is mostly large cap oil, so not comparable.

Q: One of the may investing lessons you have communicated clearly and frequently .... and so many customers seem to be keen on applying .... is the theme of "diversification". So many questions!

Would it make sense for you to simply refer us to your Growth, Income and Balanced portfolios as indicators of your current thinking regarding sector allocations for these 3 types of investors?

I know that these portfolios frequently have a small cash position, but statistically that should not change the other sector percentages by much.

Q: Hi Peter and Ryan,

For a RESP, would you prefer AQN or BEP.UN or both ?
Thanks again for the great service.
Peter: Keep up those good articles in the Financial Post !

Dave

Q: I wonder if you would explain the corporate structure of this company. I am shareholder and done very well but still don't really understand the structure. Its complicated to me anyway.

Q: Really appreciate your endorsement of BNS & the other big 5 can.banks & calming influence.So much negativety & fear mongering leading up to their 1st Q reports stated Feb 3 & ended Mar 1 with BNS,that it was unnerving.Moodys on BNN stated in a severe stress scenario ,can banks may even need to cut dividend or issue more shares to raise money.As far as I can recollect the big 6 have never cut dividend.Moodys & the other rating agencies endorsed the sub prime pakages buy US banks in the 2007-2008 financial crisis.John Aiken of Barclays Capital cut the target price of the big 6 by 20%.After graduation,he workrd for National Bank,then Dundee & since 2009 for Barclays,ranked 3123/3730 analysts & rated 1/5 with 1 being the weakest.4 of big 6 increased div(CM,TD,BNS & RY) & 4 beat convincingly( CM is the best--$2.55 eps beat $2.41 expected) & 2 were pretty closed.BNS had the biggest appreciation after release--up 5.97% @ close Mar 1.Re my Q on Feb 19,the big 6 are amongst the strongest & safest banks in the world CM leads in T1 capital @ 10.6 & BNS @ 10.1.Big 6 performed better than the US banks

Q: Would you consider the current price per share @ 238.57 a reasonable entry point or wit for pull back??

Q: If you could add 5 US stocks to your current balanced portfolio, what would they be? Or would you add an index fund or two for US exposure?

Q: In your expert opinion, would the above be considered as growth, value or income stocks? I am trying to construct a "somewhat safe" growth portfolio. Thank You Ron

Q: Hello,

hoping you can comment on the 4th quarter results. Also, I know there have been some red flags with management in the past (I read a seeking alpha article that painted a not so pretty picture a couple years ago) and I seem to recall you guys commenting so - any further comments to this?

p.s. great showing by Ryan on BNN - curious if you get to have fun and choose what you want to recommend independently or if as a team at 5i ya'll decide what stocks to talk about?

Q: I own these stock and I am under water (CSW.a-22%, BOS-24%, DML-37%). Could you please provide your comments and recommendation (continue to hold or sell).
Thanks

Q: Hi Peter, I noticed some companies have high debt/equity ratios (above 50%) both in their most recently reported year and over the 3 previous years: RSI: 77%, PKI: 85%, BCE: 134%, CJT: 289%, ATD.B: 83%, CNR: 70%, LAS.A: 100%, AGT: 106%, BIP.UN: 193%, REF.UN: 58% (70% in the past), BYD.UN: 139%, BIN: 137%. How and where do I know that a particular industry's standard is acceptable? For example, maybe all of the telecommunications industry is operating at unsustainable levels (although doubtful). I do realize that some of these industries or comparing A to B will be necessary for years to come (hence why a good investment), but I just don't understand how maintaining high debt can be okay or they can get away with it - i.e. banks and utilities seems to have high debt to equity ratios. Why invest in them then ... thankx.

Q: What is this reit trading at in terms of price to cash flows and how does this number compare to it's competitors? Also, is this a more utilized valuation metric than discount to NAV and which metric is better to consider? Thanks!

Q: hello 5i:
I note there are no questions yet on this ETF. Your take please?

Q: I hold small positions in both. Do they overlap too much? Should I keep both or sell one and increase the other?

Many thanks

Q: Hi is there a guideline of what makes an A/A- or B/B- for your report cards for your gross margin and net margin? What is a good gross and net profit margin to you - above ~15%? Do you use net income or operating income for this calculation? Thanks.

Q: I will like to trade this stock,, please give me your opinion

Q: Which would be your favourite small to mid cap gold stock at this time?

Q: quite a few stocks in the oil and gas sector have been going up and I am under water on them all but the weight is quite small and wonder if better to sell them in the momentum or ride it up and then once a downturn sell or average down to bring the weight higher and hang onto them. If I sold these stocks I could then add to my other holdings(non oil and gas stocks) to bring their weight higher.
Thanks
Dolores

Q: Could I have your thoughts on buying PTG here.
Management has backed off ( I gather) and at least one analyst puts the value / potential share price at $1.50.

At 45 cents is the risk/reward look compelling?

Thanks.

Q: Would appreciate your thoughts on their last quarter and year, published today