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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: Hi Sir, My question is about Exchange Income Fund [EIF]. This stock has taken a huge fall from +-$32 to +-$19. Are you aware of any problems and is the dividend safe? Thx Colin
Read Answer Asked by colin on July 30, 2014
Q: Good Morning Peter, It would be appreciated if you would provide your views on MAL, MX LRE, POU and SPE three months and three years out. With thanks, Colin
Read Answer Asked by Colin on July 28, 2014
Q: I am looking to add BDI, which is in your model portfolio, to my portfolio. The share price has been dropping quite steadily since mid June and is down almost 9% in that time frame. It is down 1.5% to-day. Are there developments I am unaware of which are causing this significant downtrend in a market that is up (a bit)? Or is this a buying opportunity?
Read Answer Asked by John on July 28, 2014
Q: Good afternoon,
I would appreciate your view upon the outlook for Telefonica (TEF). My only other holding in this sector is Telus.
Thank you.


Read Answer Asked by Peter on July 28, 2014
Q: I have held Premium Brands for a few years and been happy with the results. What are your thoughts going forward with this company? Thanks for the great service.
Read Answer Asked by Brenda Jean on July 28, 2014
Q: Hi Peter & Ryan,
I hold 100 shares of Keyera in my TFSA and it is up substantially. I am curious as to whether you think it might have the potential for a stock split should the share price continue to climb and what impact that would have on the dividend (since I bought it for the dividend in the first place). I know the Canadian banks are not adverse to stock splits and we also saw it with Badger. Not too sure how Keyera would view such a move. Any thoughts?
Thanks as always!!
Cheers,
Mike
Read Answer Asked by Mike on July 28, 2014
Q: Hi 5i: Previous governance issues aside, it seems to me that Enercare’s management is looking like a combination of clever and lucky. Presumably they were working on the details of the announced business acquisition from Direct Energy for the past few months, while watching the ECI share price working its way above the $12 level. They get to a deal they like the look of: immediately accretive to earnings and growing the business in a reasonably logical way. While all that is going on they get an overture from TSSP with a low-end valuation of $13.50 and when that news is released their currency for the Direct Energy business purchase (i.e. their share price) jumps up above 13.50 and they immediately sell out a $310mm financing at $13 per share to fund it. Now that Direct Energy deal is looking just that much more affordable and hence that much better; they have a bunch of new shareholders in at $13 and expecting a profit from that level; and they just made ECI into an even more valuable entity to sell to TSSP or whoever else may be interested. Initially they had responded to TSSP by saying we aren’t even interested in talking to you at $15 per share (which appears to have been a number TSSP put into the conversation). So where does it go from here? Would you consider it to be a good idea to add to a partial position (about 3%) at the current market price? To balance out my little sketch, can you please highlight the main risks for investors? Thanks!
Read Answer Asked by Lance on July 26, 2014
Q: Could you comment on Premium Brands(PBH) for income, with respect to payout percentage, dividend stability and debt levels? I am looking at about a 2% position and currently hold nothing similar.

Thank-you
Read Answer Asked by grant on July 25, 2014
Q: What are you thoughts on Atrium Mortgage earnings.
Read Answer Asked by Tom on July 25, 2014
Q: A broker research report on IPL states that "Our target price ($30) is predicated 75% and 25% on our 2015 and 2016 financial estimates,respectively, as follows: 1) 25% EV/EBITDA multiple of 15.5x, 2) 25% relative dividend yield of
175%, and 3) 50% free cash flow yield of 6.5%. Our target price also incorporates a 2.50% 10-year
Government of Canada bond-yield assumption."

They give IPL (our 8th largest holding) a forward PE of 28X and the others we hold in the Pipeline Sector at lesser weights than IPL - for ENB 23X and ALA 25X though the target prices for the other 2 are positive. We all know that brokers' research reports are intended to get clients to trade but I wonder if I should at least reduce IPL holdings to boost the other 2 especially as the PE numbers are quite rich?

Also do you agree with the research numbers and do you perhaps feel that the sector as a whole is pricey? Thanks, J.
Read Answer Asked by Jeff on July 25, 2014
Q: Hi guys , great service been in for a year plus and am very happy.
Can you project what will happen to dividend flat and dividend growth stocks if we see a bump up in inflation and a rise in interest rates.To the point are dividend stocks overvalued historically, in the relentless search for yield.
Read Answer Asked by Greg on July 25, 2014
Q: Accord financial (ACD) released earnings. Can you comment on its valuation in light of the earnings?
Thanks.
Read Answer Asked by Michael on July 25, 2014
Q: Perhaps you could indulge me with a few suggestions. I have owned TML for ions, but I see insider buying. Should I sell now or perhaps buy more. I have been successful with CWX on buying because of insiders and am up 20% in 2 weeks. Should I sell it now since I see the future 1/4's may be cyclically weaker. I have also owned TMM forever, I am above water but wonder if I should sell and deploy somewhere else. Now that Sentry has put their person on the board do you forsee upside (as in possible merger or takeover)?
I am wondering because CAT remarks have indicated little business in the mining sector, if I should give up on the golds despite the so called good seasonality of the metal at this time. Would you sell the above mentioned positions and deploy elsewhere, and if so what sectors would be appealing. I could add to health, tech,consumer cyclicals, I will await your comments & recommendations. Thank you so much for your objective evaluations, they are very much appreciated.
Read Answer Asked by Maureen on July 25, 2014
Q: I would like your input on PSD Today price at 52 week low. Is this a good entry point? I am longterm investor, don't trade regularly. Thank you
Read Answer Asked by marc on July 24, 2014
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