Investment Q&A

Q: Hi 5i team. I'd like to put in my 5 cents worth to give contrast to Lance's question on REIT's and specifically Riocan (REI.UN). From my perspective as an income invester, the pay-out and it's ability to keep up with inflation is more important than the value of the shares. I bought REI in 1997, soon after its debut for $8.75. Over the years, the ACB has declined to zero and the yield at cost (present yield divided by original cost as percentage) has gone up to 16.11%. Depending on how you calculate inflation, it has done pretty well as a taxable investment and because of the ACB situation, it is difficult for me to sell. I don't think it has done too badly compared with the TSX. Going forward is a different matter because, as Lance has pointed out, we are going the opposite direction as far a interest rate is concerned. Should I sell and paid the hefty tax bill? Thanks. Henry

Q: Hi Peter
Nordic American Tanker's {NAT} break even point is a $12000 daily rate. I'm having a hard time figuring out which daily rate applies to NAT. The Saudi Japan rate is currently just under $25000 per day. Is this the right rate ? Currently the stock is at or near its low point for the year. Is this a buy ? Or am I reading the numbers all wrong ?
Thanks Garth

Q: I have no exposure to precious metals at this time. I was thinking of taking a position in Sandstorm Gold or First Majestic Silver. Your thoughts would be appreciated. THANKS

Q: Cogeco,CGO, is +50% since your last comment in Oct. 2012 and I note it is approaching its former $53 peak. Would you deem this stock to be fully/fairly valued and is there long term potential in continuing to hold or is the profit better recycled into another name such as Stantec? Thanks, J.

Q: Hi Peter and Team,

I swore i asked about this company before, but when i did a search for it i didn't see it, so, what are your thoughts on Orchid Paper Products, TIS?

Q: Peter and Team,

How do you feel about White Cap Resources? I currently have a 4.5% weighting in Crescent Point Energy and am considering switching half of that position to White Cap. Any thoughts on the comarison between the two? I terms of oil plays, I also have a 2.4% weighting in Arsenal Energy and a 3.3% weighting in Legacy Oil and Gas.

I would guess that you might think that my weigting in Oil stocks is high, however, I live in Calgary and work in the Energy industry so I feel like my familiarity with the sector and individual companies justifies a higher-than-normal exposure.

Candid thoughts would be appreciated!

Q: What is your view on CNE with its recent stock run? Why has it gone up so much lately?

Q: Hello folks. I’ve sold off most of my REIT positions but continue to hold a few that are down with the rest of the sector. These are CUF.UN (-8.5%), HLP.UN (-6.0%) and RMM.UN (-9.9%).

I’m comfortable holding these long-term for income (current yields are 7.2%, 8.3% and 9.0% respectively), unless there’s a good possibility that unit prices will continue to decline as treasury yields creep up. Would also be concerned if unit prices are unlikely to recover over the next 2-3 years, especially if they keep dropping. And a possible cut in distributions wouldn’t help either.

Hope it’s not asking too much to get your thoughts on these 3 REITs. In the meantime, thanks as always for the great service you fine people provide to retail investors like me. So glad I became a member!

Q: I always like to check insider holdings to support a decision to buy/sell/hold a stock. IPL.UN according to INK Research shows no common shares held by officers or directors. The holdings fall under Class A Preferred Shares, Deferred Unit Right, Class B Preferred Shares, Limited Partnership Units, Class A Deferred Unit Right and Unit Appreciation Right. Does this imply anything regarding the executive feeling toward the future of the company? Why would they avoid common shares?

Thanks

Q: Hi Peter,

I'm interested in knowing your current thoughts on Alexco, AXR. I bought it at much higher prices as a long term investment. My question is, does this company have the legs to last long term? If I average down and hold on... am I likely to be rewarded? Or, should I just sell it, take the loss, and move on to something more attractive. Any guidance would be helpful.

Thanks!

Q: Hello 5i, Could you comment on Torc oil TOG as to the company also I think there is going to be a share consolidation you will get 1 share for every 5 shares that you own now. Would it be better to enter this company pre consolidation or after the consolidation?

Q: 2 kid RESP starting university in 2 & 4 years. How would you adjust this portfolio?
51% laddered bonds maturing at tuition dates in 2-7 years
7.1% ZWB
8.4% CGX
2.6% CSU
6.9% IPL
11.9% XRE
8.3% XTR
2.5% MG
we add $4k /year in monthly increments

Q: Peter & Team, I have had PSI on my watch list for a couple months. They had an adverse legal judgment and today they delay release of quarterly results, with the stock down 5%. The stock is off 14% from early July. Acquire now, wait or abandon? I would be grateful of your advice. I also have Badger Daylighting so I am exposed to the sector. Thank you. Keith

Q: CPG - do you see any evidence that the American investors are getting back into Canadian oil stocks? thanks

Q: Having just sold my positions in AGU and POT, can you direct me to other commodities worth considering? Also, I've sold 3/4 of my T and now hold only BCE and Shaw. What do you think about Rogers in light of this Verizon threat?

Q: Hello,
I have a small holding of Novagold that I want to sell. As advised I did nothing and watched it bounce a bit. I'm not sure but I think I read here something about fall redemptions that may lower the price of gold. If so, would it be advisable for me to sell my holding now?

Q: At today's prices would you recommend Corby distilleries or Andrew Peller? Or equal weight. Thanks.

Q: Hello Peter,

You've recommended SYZ previously and I bought shares at $4.00. It is now at $6.70 and I'm wondering if you would continue to hold at this price or is it time to divest and move on to a new stock?

Thank you

Q: Hi Peter,
ARN.DB and ARN.DB.B have fallen off rapidly. Interest is being paid and maturity is short ( 2016 & 2018 ). The common have fallen off heavily. What obligations does the company have to debs and is there still value in either common or debs?

Q: Hello,
If you know RBX ($30M market cap), can you please give me your thoughts ? My intention is solely a small position in the greed category. Thank you.