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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: The Altagas (ALA) purchase of 25% of Petrogas sounds good, except how do we determine whether the price was reasonable? The news release indicates it will be accretive to earnings and cash flow per share, but doesn't give a timeline. Any thoughts on the merits of the purchase, or is it a case of wait and see. I hold a 3% position from a purchase several years ago and will continue to hold, but would purchase more if the deal appears to be particularly good from the ALA view.
Read Answer Asked by Robert on September 13, 2013
Q: Having reviewed my oil and gas holdings with the objective of strengthening this part of my portfolio, would you advise selling and then replacing BNP,PWT, CPG and ERF with TOU, BTE,VET and either PEY or TET?

As usual, a big thankyou for your helpfulness and guidance.
Read Answer Asked by Donald on September 13, 2013
Q: Re: KBL
looks like to be a good company, am I correct that
the yield is 3.4% a year ?

Good entry point to hold for 3 years to get some dividend
and some growth ? thanks!
Read Answer Asked by Michael on September 13, 2013
Q: CDI or ESN for drillers exposure ? Thank you, Nancy
Read Answer Asked by Nancy on September 13, 2013
Q: Dear Peter and Staff,
My husband and I have recently received an inheritance of $200,000. We are concerned about the future purchasing power of our pensions and riff income due to the effects of inflation. Please recommend a portfolio strategy (including stocks) that should give us an ever increasing stream of income at a rate that is greater than that of inflation. Many thanks, I look forward to your answer.
Read Answer Asked by Catharine on September 13, 2013
Q: The US portion of my portfolio consists of CSCO, MCD, UTX, BHP and AAPL (a little bit heavy on the Tech side because of no exposure on the Canadian technology front). I took some profits and trimmed my exposure to CSCO and MCD after nice run-ups and am looking to use the proceeds to further diversify. I'm thinking perhaps a US financial (and really a play on Consumer Discretionary spending) like AXP or a Medical Supplies company like BDX. Or does something else jump out at you as being a nice complement to what I own? Thanks.
Read Answer Asked by Randy on September 13, 2013
Q: Peter & Team, I bought SUM early in the summer and took a 25% gain off the table. I liked the recent quarter and concur with your positive comments. The stock is now back at the level I originally bought and am thinking of buying back in. The joint CEO's have announced they will sell about 15% of their shares through an ASDP to understandably diversify their portfolios. They will sell 900,000 shares, or about 2% of issued shares. Is this a buying opportunity or is the stock too highly valued at 63X earnings? I like the story and expansion plans.
Read Answer Asked by Keith on September 13, 2013
Q: I am wondering why BCE.PR.A & BCE.PR.C preferred shares are experiencing such a price decline. According to BCE's web site,
their annual dividend is 3.45% & 3.55%, guaranteed to Sept 2017 & March 2018 respectively. On those dates the shares then may be converted to floating rate preferred shares. Do you have any explanation as to why the share prices have been in a steep decline since April of this year. Thanks ... Cal
Read Answer Asked by cal on September 13, 2013
Q: Hi Team ; a question on short selling / long conv debs: How does the seller make money- they are responsible for the dividend on the shares and if the shares go up they get squeezed - if shares go down, they could lose on the deb? thanks
Read Answer Asked by Scott on September 13, 2013
Q: Hi team, May I get your comments on Harry Browne's Permanent Portfolio that divides assets into 25% Gold Bullion (CGL), 25% Cash/Government Short Bonds (ZFS) , 25% Stocks (XIC/VTI/XEF/XEC) and 25% Long Government Bonds (ZFL)? This mix of assets is supposed to protect the investor through the different phases of the economy ie inflation/deflation/recession etc. Does this seem like a reasonable portfolio mix for someone that will retire in 15 years? 25% in gold bullion and 25% in Long Term Bonds seems like this would be a very risky mix going forward.
Read Answer Asked by Ken on September 13, 2013
Q: Can you give me your thoughts on AMW and the buyout by Fission. Would you buy either of these at the current price for a small speculative position? I understand they are tough to but a value on now but the market seems to love the story as AMW is up almost every day.
Read Answer Asked by Andrew on September 13, 2013
Q: REIT's are unpopular now, so maybe worth a look.
I think of apartment REIT's as less volatile and wonder why True North Apartment REIT (TN.UN) is paying almost 9%. Even if the condo market heads south, their apartments rent for much lower than condo rentals, so not much competition. They are nearly full, as there is a shortage of low rental housing, and have access to CHMC loans at low interest. The CEO has been buying at higher prices. What's not to like?
John
Read Answer Asked by John on September 13, 2013
Q: What is your current assessment of the investment merits of PUR? The stock has been rangebound between $4.00 and $5.00 for most of the year. There is a rule of thumb in technical analysis that notes ... the longer the consolidation, the higher the run ... do you believe PUR has this potential? Thanks for your insights.
Read Answer Asked by Owen on September 13, 2013
Q: I have heard on BNN various commentators say that if interest rates rise, it is better to be in insurance companies than banks. I would appreciate your thoughts on this. thanks.
Read Answer Asked by wendy on September 13, 2013