Investment Q&A

Q: Hi,

Kelso looks pretty good to me right now. TD waterhouse shows 0 EPS for 2015 and 0.46 for 2016 which is a huge jump. They have a patent for what they do. The stock is trading at 1.40 with a 2.4% dividend that could be collected while one waits for the recovery. This looks like a total no brainer to me. Am I missing something? What is your long term outlook for the stock? And what risks are there at this price point?

Best,

Carla

Q: 5I Team,

Any thoughts in particular on TRP.PR.C? The 8%+ yield looks attractive, especially for a Blue Chip preferred, but I do see that the share price is down about 40% yoy as both the preferred and the energy sectors have come under pressure over that period. Would you touch this pfd now?

Thanks

Q: I would like to know your thoughts on CU. Does being an electric utility in Alberta give you concern such as Trans Alta. I have had it for years with a great gain so reluctant to sell.
Thank you
G

Q: Hi Peter
What impact will a rate hike in the US have on the stock price of Canadian REITs? I'm wondering whether the potential hike is already built in????
Many thanks.
Wayne

Q: Hi Peter and gang.
Nice seeing you all at the Money show. I'm looking to get exposure to the US market and I've yet to dip my toe into the ETF field. However the CLU seems to consistently be reported in Money saver in the top ten. Would you recommend this as a way to get diversification in the US and which of the three do you think would be most appropriate. All of my money is invested in Canadian stocks at this time.
GUY

Q: There seems to be chatter about a current shorting situation of a number of Canadian stocks. Can you comment on this chatter, and what advice you would give if I owned a stock that seems to be targeted by short sellers. Perhaps, what fundamentals should I specifically look at?

Q: I just discovered that this stock has been delisted from the Nasdaq. Can I sell my shares through the TSE? What are your thoughts on the stock/

Q: I know this isn't a chat forum but I am intrigued by Saeed's question and wished to comment. Perhaps food for thought for some other members. I took a close look at Valeant also, because some of the selling was motivated by fear, and this can represent an opportunity. I chose to pass because:
1) I don't really understand how they are making the profits they report. They buy established companies with valuable products. OK. But what are they adding that allows them to earn so much more than the original owner? It is hard for me to believe that they can continue to grow this fast for very long. Anyhow, if I don't understand the business, I don't buy the shares.
2) VRX response to Citron, to me, was all bluster and obfuscation. VRX never came out and said in plain language that all their sales were absolutely legitimate. Instead they seemed to emphasize that their accounting was technically legal. And, by the way, whenever any organization delays giving answers but instead hires a team to "investigate" themselves....that is a sure sign they have been caught doing something wrong. It is a tactic to delay and hide the truth.
I hope for Saeed and others that VRX wrongdoing is only minor and that the core of the business is legit. Would be good for us all if it bounced back. I'll be on the sidelines though.

Q: hello 5i:
in a recent question, asked by Justin, about the new Liberal gov't (hmm, interesting, I know his last name can't start with T), re: infrastructure plays, you advised that WSP, STN, SOX, AND BDT would be some companies that would benefit. I can see that, but wouldn't companies like SCL and BAD benefit even more? After all, they will be doing the groundwork where most of the money is spent and have the lowest valuations due to the hits they've taken.
Just wondering
Paul

Q: Hi Team,
I own atd.b and like it. However, I would like the perspective of somebody who might not like it (other side of the trade). Could you please give me possible reasons to not like it. Hopefully this won't be bad timing since it is having a small correction. I think it will be good practice to get an unbiased view.
Thanks, keep up the great work guys.

Q: With the sudden share price drop of Progressive Waste Management (BIN), I am considering the purchase of more shares in the company which at current prices constitute approximately 1% of my family’s investments. A simplistic examination shows debt to be high, price to book in excess of 2 and my crude forward estimate of PE to be about 30 if current earnings continue for the next year. All of these are negative to a purchase; however, as you have alluded to in the past, it is a growing company so one cannot expect low PE’s (although currently they are showing negative growth and assets are reducing). To further investigate I listened to the company’s webcast of October 19 which strongly suggested the downfall was mainly due to mismanagement in the Western Region exacerbated by flooding in Texas earlier this year and FX issues. With the background of the CEO in finance, it is understandable that he would not be quickly attuned to operational and maintenance problems in this important geographical area of the company. The 5i thorough review of the company rated it as a “A-“; which was my original reason for purchasing shares earlier in the year, and the Webcast presentation provided support for my plan to purchase more shares at the current depressed prices. In further investigation, I noticed that CEO and CFO significantly reduced their holdings in late August and all officers essentially eliminated their holdings at the same time. The only purchases from insiders were by directors during September. This disposal of shares 1.5 months prior to disclosure to the public does not give me a good feeling. Am I totally misguided in regards to insider trading prior to disclosure being an important issue? If so I plan to purchase more shares for at least a 5 year time frame since before the management issue, you showed strong belief in the company as shown by placement in the Model portfolio and your “A-“rating. As always, I very much value your opinion in terms of share disposal by insiders, general current metrics of the company, possible re-rating of the company, and any other thoughts you may have.

Q: Do you think it is safe to buy CGX at these levels; it is just off its 52 week high. Do you think that Star Wars is already built into the price or can it go up from here. Thanks

Q: Hi team, What are your current thoughts on Norbord as opposed to WEF? Thank you.

Q: Any comments on this R play?
Thanks
Jean

Q: Insta-Teller's of major Canadian Banks such as CIBC are now promoting the withdrawal of US dollars from their machines. So a Canadian who needs US dollars can now go to their local bank branch, even after hours, and get US dollars from a machine. Super convenient way to get US dollars for any Canadian with a bank card. Will this eat into the business of CXI in a meaningful way? Or could this serve CXI if they get their licence and the Banks outsource the currency conversion work to CXI?

Q: Is there a reason the TSX is down 1.83% (at 3:36 pm) when the oil price is up and the S&P 500 only down .32%?

Publish if you wish.
Thanks
PB

Q: What is your opinion of Canam? Did they exceed quarterly expectations this week?

Q: Just out of curiosity, will you be doing any events out on the West Coast (Vancouver)? I'm sure there's a legion of readers (myself included) who'd love to get a chance to meet and chat.

Q: Hello team,
On Monday last week, I purchased a 10% position in Valeant. This was after seeing the videos on BNN on both side and also asking you a question about my decision to do this. I reasoned that I am a long-term investor and I would not touch this money for at least another 10 years. This has not changed. What has made me question my original decision however is the promise of new report that is even worse, further reveals Valeant’s accounting practices, and shall “nail” the company following their presentation last Monday. I didn’t think philidor story could carry that much weight in the end and that is why I bought in. Now, I think where this whole story is going to stop with a masterfully planned report releases to do maximum damage. Would that point be “beyond point of repair” for the company?
I know everything is possible and I know you cautioned me against too much weight here. I made the mistake and I learned my lesson. My question here is how much I have to pay for the lesson. I know that the additional loss on Friday was a response to the news for this Monday release and the damage is already in the stock again. What I am asking here is: should I look away and ignore all of this noise or should I at least try to lower my weighting and reduce my overall losses. I will be still holding the company if it happens to be around 10 years from now.
I think time is the only thing I have on my side as a retail investor. Andrew Left and other short sellers have made their money. Bill Ackman will make money by averaging down. And perhaps, I won’t lose money if I sit still and don’t react at all.
What do you think?
Having you guys at 5i cannot be appreciated enough during such times. Thank you!

Q: Can you comment on the latest quarter, sustainability of the dividend and your comfort with this name for longer term income investors? thx