Investment Q&A

Q: Hi 5i,

Wishing Peter, Ryan and everyone at 5i the warmest of holiday cheer.
Thanks for all you do and the great service.

Two quick ones for me...First, can you let me know the expected top and bottom line #'s are expected out of ESL today?

Secondly, can we have your quick thoughts on the acquisition Avigilon made today?

Thanks,

J.

Q: Just wondering what you think of the purchase of ObjectVideo's patents. I think your original thought was that AVO would use cash to make an acquisition. ObjectVideo appears to be a private corp and perhaps not available for acquisition although they would seem to have made a good fit.
Does $80m for patent purchases advance your investment thesis as well as an acquisition?
Mike

Q: Good morning all;
I hold bdi and am 50% underwater. Do I have a possibility of regaining my investment within two years?
I hold chp Cipher Pharma as my only health stock. Please give me your three top suggestions to add to this sector.
Thanks for all your help and Merry Christmas to all at 5i!

Q: Curious about enercare, i know you like it well off its highs,i own quite a bit, any reason for the drop, could it be realated to oils drop and what about the possible takeover. Dave

Q: I have been considering investing in MDA for growth, but I am concerned about its high historical P/E of about 30. How much growth would be necessary to justify this high multiple and do you think MDA will be able to achieve this?

Thanks,
Hans

Q: I did not tender or sell my Contrans shares, my account shows the value but I cant access those funds, could you please explain where I am in this situation. Do I just sit it out and see what happens or is there another option I can take. Should I have tendered or sold earlier?

Q: Are utilities selling off strictly due to potential interest rate concerns or is there a potential link to lower energy prices. For instance, lower energy prices might reduce demand for alternative energy sources (wind, solar, etc.)? Also Northland Power in particular has been hard hit, any specific reason you know of? Thank-you.

Q: Question on the Deferred income taxes of $5,594,000,000.
Do you have any insight into this on the current report in section 22 they explain $655 million as an increase of Mexican income tax. What about the rest?

http://www.goldcorp.com/files/annual_reports/Goldcorp_AR13_full_v08.pdf
Page 87 is the balance sheet. on page 130 and 131 they explain it.

But it is a big one.

The below only explains $665 M

In December 2013, the Mexican President passed a bill that increases the effective tax rate applicable to the Company’s Mexican operations.
The law is effective January 1, 2014 and increases the future corporate income tax rate to 30%, creates a 10% withholding tax on dividends
paid to non-resident shareholders (subject to any reduction by an Income Tax Treaty) and creates a new Extraordinary Mining Duty equal
to 0.5% of gross revenues from the sale of gold, silver, and platinum. In addition, the law requires taxpayers with mining concessions to
pay a new 7.5% Special Mining Duty. The Extraordinary Mining Duty and Special Mining Duty will be tax deductible for income tax purposes.
The Special Mining Duty will generally be applicable to earnings before income tax, depreciation, depletion, amortization, and interest. In
calculating the Special Mining Duty there will be no deductions related to development type costs but exploration and prospecting costs
are deductible when incurred.
As a result of the law becoming enacted in the fourth quarter of 2013, the Company recognized a non-cash charge of $655 million related
to the deferred tax impacts of the above tax changes.

Q: With CDV.TO holding OK, and MDA.TO seeing new high, CMI.V continue to decline. I am seeing a big drop today for no reason. I have a small position bought at $1.75, and attempted to add more. Please help me to analyze the situation. I can tolerate volatility.

Thank you!

Q: Transat has been hit hard since reporting recently. What do you expect is driving this weakness?
It would appear that:
Lower oil prices help;
other recreational travel ops are trading higher (eg. cruise lines, RCL);
airlines (AC, WJ) are trading higher.

Q: Sorry another AYA question. I currently hold a 5% position in the company. When i read your answers to earlier quesitons on AYA I get the since that the potential down side is 50% or more, yet the upside is "slight recovery" to quote your words. The risk reward seems to be unfavorable now. Will you be cutting your weighting in your model portfolio, and would you suggest reducing weighting to 3% considering the risk/reward currently.

Thanks as always
Darcy

Q: Stantec is almost at it's annual low. Do you think this is warranted, or rather an opportunity to purchase at these levels? or wait for it to plunge further?
PS I assume you still see it as a long term hold.

Q: Hi Peter, Do you think ACQ is getting beat up unfairly considering that's it's now trading at 12.2X Forward P/E (Yahoo)? At the current price, do you suggest to add more to an existing position (4%-5%)?

Q: Hellot 5i team, This from Bloomberg:

Canaccord Genuity Group Inc. (CF) and its investment bankers aren’t the subject of a probe by regulators into trading of Amaya Inc. (AYA), the Canadian gaming company that acquired PokerStars for $4.9 billion this year, according to Chief Executive Officer Paul Reynolds.

“I can assure you that Canaccord Genuity is not the subject of this investigation, nor is any member of our capital markets group,” Reynolds said today in an internal memo to employees. “This is strictly a request for information related to individual trades in our client accounts.”

Excuse my ignorance...would you pls. explain, specially the last sentence....that would be clients of Cannacord? Is this a reassuring thing, nothing to worry about.

http://www.bloomberg.com/news/2014-12-15/canaccord-genuity-bankers-not-target-of-amaya-probe-ceo.html?cmpid=yhoo

Thank you!

Q: As is Michael in a previous question, I am also taking a hit on this stock. The principal reason for purchasing the stock was considerable insider buying. Do you have any comments why they are doing so. Thanks, Bill

Q: Hi 5i team,
In response to my question on replacing BDI (tax selling) you suggested HNL. This was on Dec.10th. Two days later in response to question from Hans you suggested selling HNL due to debt levels and removal from TSX index. I am a bit puzzled there...?
I replaced BDI with HNL last Thu and now down 15% on this stock in just 3 days. Can you please confirm either one or another recommendation? I have 2% of portfolio in HNL (my O&G total 18%) and wondering whether I should keep HNL or sell it and get additional 3K loss?

Q: I notice that your have recommended that investors do nothing for now.

If, by chance, AYA or senior officers of the company are found to be guilty, what would you expect to happen to the stock?

How badly could the stock be hurt and for how long?

As usual, thanks for shedding light in so many ways.

Q: Seasons greetings 5i.

What are your thoughts on an entry point Trimac.


Thank you

Q: Hello, we are looking to both put the maximum 5500.00 in to our Tfsa accounts early in 2015. We have done well with Parkland in a registered account but am wondering whether it is heavily or overly dependent on the Alberta economy. Also considering Concordia/Currency Exchange/CCL as well. Our focus is 3 year minimum hold. Your regular comments to invest in companies rather than trade the market is very reassuring when there are sudden moves in the market. Thank you! Bill

Q: Can you offer any insight as to how long the Amaya situation may go on for before the truth comes out?
Days, weeks months or years?

Thank you