Investment Q&A

Q: Hi Peter &Team,
I am a bit of a contrarian investor and can wait for things to turn around. I know you prefer Badger and at it's current share price it does now look very interesting, I however have a fairly large position in LSI. Are you aware of any additional factors that have caused LSI's drop? Should I hold it or get out?
Thank you.

Q: I am confused re value received on call / reset date and would appreciate if u could clarify
Example : perpetual BRF.PR.F trading now at $22.40 and bought at par @$25.00 with a call date 31 July 2018 at $26.00. Can you explain why it would be called at this price and how likely is this ?

Example : RESET. AQN.PR.A trading now at$18.40 and bought at par at $25.00 with a reset date 31dec 2018 for $25.00 Does this mean that on 31/12/2018 the investor has the choice (or is it the company's choice ) to cash in the shares ? Secondly does the investor get the par value $25 or the current market value on that date for the shares?

Q: I own the above reference rate reset preferred shares,. All of the share were bought at the issue price of 25.00 and all are now underwater. It appears that recent rate reductions by the Bank of Canada have pushed their value further down. My question ,are these shares permanently impaired or if the five year rate were to increase, significantly, in five plus years would they return to their 25 dollar value. Is there in effect a type of " option" not reflected in the current price. Thanks

Q: Hi Peter and Ryan,
Ccan I please get your opinion of Kaminak Gold, including their drill results which were released yesterday.

Thank you and keep up the great Service !!!

Dave

Q: Hi, Wondering your thoughts on TRZ.B given a recent decline to 52 week lows the $7.50 area.

I am interested in the company due to no debt and the Dec 11 PR which noted 308 million free cash (as of 31 October 2014). Given a $280 million market cap the company trades at the level of its free cash. I understand that the USD rise will have consequence on their upcoming earnings. Your advice on the stock would be greatly appreciated.

Q: Hi folks,hold position in gps/t,can please get your opinion on Q results just realeased,looks like eps -.02 vs est -.01.Is stock still worth holding (small spec pos) as saw January,Cantor Fitzgerald changed rating from Buy to Sell with $1.15 T (they used to be very bullish.Any idea why the change and would u view stock as buy,hold or sell,thanks as always,jb

Q: Could you please give me your top 3 or 4 small cap oil and/or gas stocks that you feel will make it through the current headwinds and have the most upside potential on the other side. Thanks again for this wonderful service.

Q: Please give us your opinions on CUP.U. It seems to have quite attractive numbers but is small with a low trading volume. Thank you.

Q: This co. is a top pick here in the uk for this year for yield and capital growth. What is your opinion of this co. at this time? Thanks as ever

Q: Team

I am sitting on quite alot of US and CDN dollars in my RSP.

I would like to start picking away at some of the Canadian dividend paying stocks ( ie: BCE, CPG and others).

The one's I am looking at trade on both the CDN and US exchanges.

We the current exchange rate favoring the US dollar, would it be prudent to buy these Canadian companies on the US exchanges.

Assuming, for example, CPG/BCE stock price increases (along with the dividend it pays out), buying it in US would also give you the additional exchange amount, as well, if you wanted to convert back to CDN dollars at this time.

As always, thanks for your excellent service.

Mike

Q: Hello Peter et al.

I am wondering if you could give me a list of your top five ETFs that are not Oil or Minerals or TSX related that would provide diversification into the world markets that are not invested in the Canadian markets but are listed on the TSX.

Thanks,

Brendan

Q: I presently hold Bank of Nova Scotia . I do not have any Reits and after listening to a guest on BNN Friday night I was thinking of switching this to Cominar Reit or your suggested BMO Reit in the Income portfolio. The guest on BNN was high on Cominar and cautious on the banking sector-just wondering what you think?

Q: Hello Peter and the 5i team

I was watching BNN the other day and a question came across concerning Canacord Genuity. The guest (Jason Donneville) on the show said that they had shorted Canacord because the ratio between the P/B and ROE was far from the usual 1 to 8 ratio ( I am sure there were more reason then just the one but the other reasons were not mentioned). For example If the ROE is 16 the P/B should be approximately 2.0. This is a correlation that I had never heard before or took into consideration. Is this a metric that you use? Is this metric widely used in the stock trading world? Is this metric used more in specific sectors of the market? What do you consider the most significant metrics to judge weather a stock is a buy or not.

Thanks I appreciate your insight.

Q: I purchased SJ based on your outlook of the company I am up over 31 % in a short time The stock now represents about 16 % of a 20 stock portfolio
I did not sell a share of Surge and rode it all the way down and plan to ride it back up I do not need the funds However in hindsight I should have lightened my position

My question is should I reduce my holdings in SJ to what per cent and what would you replace it with ?
I am comfortable either selling or holding
Thanks for all you do

Paul

Q: Hi Peter and 5i Research Team,
I am not asking about the general market. Instead, can you give me your 2 to 3 best picks for Canadian companies that do significant business/sales in the US - the companies that will do well in a low Cdn $, low oil price environment. I need your top companies, please. Thank you.

Q: I am needing to add more bond/secure type investments to my portfolio. I am 70 years old and only have about 20% of my portfolio in bonds. However there are two funds that I currently have in my portfolio that have done quite well in the past year or two, and their track record is a good one. They are Signature High Income and Mawer Tax Effective Balanced. Both carry approximately 50% of their portfolios in bonds so I am considering selling off some ETFs and stocks (PKI and BCE) in order to increase my bond % through these funds. I also have some XBB. Any thoughts on these funds or XBB?

Q: I realize you like both Stantec and Stella Jones but I have room to purchase only one of these two quality companies in my T F S A? I'm looking at a 5 year window so which of the two would you recommend for purchase at this time? Thanks

Q: This large Gamesys acquisition by Intertain Group appears to have similarities to Amaya's transformational deal. When Amaya announced the deal, you were bold with your projections and subsequent share price appreciation supported your thesis. What would be your analysis and thoughts around future success of the Co.? Do you foresee a decent upside to share price from current level ($17)? Thanks

Q: Espial Group I own it. Very significant strength. You commented about Jan. 15. Do you have any further comments considering their share price increase?

Q: Hi Peter- Rate reset prefs dropped around 4% with the BOC cutting rates due to the fear of a lower BOC rate upon reset ( I think!!). We know that perpetual prefs 'should' drop on interest rates rising. Therefore, can I assume that rate reset prefs offer a good hedge to perpetuals? In my preferred portfolio, my mix is 70% Canada bank resets and 30% US bank perpetuals. Assuming yes to the first question and the current interest rate environment, do you agree with this mix. Thanks for your opinion.