Investment Q&A

Q: The CEO has direct ownership of 5,260 common shares; 682,368 options and 54,750 performance units. In addition he also has an indirect ownership of 71,825 common shares.
What does indirect ownership mean? I have heard a high quantity of options relative to common shares is not good. Could you enlighten me on this. Thank you.

Q: Hi Peter and the team,

I acquired stn in middle of 2013 which did well in that year, then it stayed flat in 2014. Recently, it goes in opposite way from TSX like today for example. Anything wrong with this name? Should I sell it and move on to other name? Do their projects involve with energy related business? Their debt level is about 22.5% to their capital (based on data posted by TD water house), which is low comparing with their peers such as SNC. What is your view of this company this year?

Q: Hi team, Your latest views on WIN please. What would be the best % allocation? Thank you!

Q: Hi, today the OLG announced it is launching its own online gaming site. Amaya is down over 4% today. Does this announcement change your rating at all for this company as I'm guessing it's in direct competition with Amaya. Disregarding the insider trading issue and based solely on the OLG news would you still consider AYA a buy?

Q: Thank you for today's updated report; and of course for drawing my attention to BEP in your original model portfolio.

I intend to add more BEP to my holdings now and would like to know if there is any benefit to buying the US version (BEP-N)? And if the dividend in the US would likely be return of capital, as you pointed out that it is here in Canada?

Thank you.

Q: Peter and company,
Badger Daylighting went down today to $23.44. Is this still a company you would recommend? Thanks in advance.
Gary

Q: Hi,

Any idea why Trimac does not seem to be benefitting from the price of oil? Do you prefer Transforce over Trimac?

Thanks

Q: what do you think of this company for income and growth, and why is the stock moving up.

Q: Follow-up to Matthieu's question:
My layman's understanding of the car dealerships has always been that they make relatively little profit on actual car sales but rather on follow-up service and repairs. If that is the case, it would seem to me that any "temporary" (e.g. < 2 years)reduction in Alberta car sales should not have a drastic effect on dealership profitability. Consequently, I do not understand why ACQ stock is being hammered so severely in the current environment. On the contrary, it now seems to be a good buying opportunity.

I would appreciate your comments. Thanks!

Q: Congr for great results--29.3%(after 34.1% in 2013),which beat 10.4% for TSX Note you reduced weighting in AYA & used proceeds to add to WCP,BDI & FN.Why not BNS,which together with CM & NA were 3 of the most battered big 6 can.banks the last month.Repotedly,some funds in US was selling can banks today & lately.Thanks for your usual great advices & services.Peter,welcome back from your vacation.

Q: How can I find out how long are those accormodation contracts? Can customers terminate the contracts in 2015? Thx

Q: Would you add to HCG at today's prices? It appears to be dragged down along with other financials like the banks right now.

With regard to HCG, I am also trying to connect the dots on a couple of the guidelines that you have provided over the last couple of years, namely buy on upside strength and (generally) do not add to a losing position. Again, generally sell a stock when it drops 8-10%. I apologize if I am takinng anything out of context, but I am trying to make sense out this market. Case in point I have owned HCG for a couple of years, saw it drop and then recently start to reverse. So I added to my position on Monday and saw it drop 5% today! Ouch.

Hold and wait for a better time to buy or buy more now? (I am sure selling would not be a wise option for a quality company like HCG)

Thanks for helping me sort this out.

Q: I like the theme of seniors' care for the long term. I have a small position (<3%) of CSH.UN in my TFSA and it has done well over the last couple of years. Would you add to this or sell it and replace it with a different name in the same space. (I also have a bit of KMP and some D.Un in non-registered accounts, in case other REIT holdings might influence your comments.)

Thanks for your help - I've been with you since almost the beginning and I love your service!

Q: Hi Guys,

Could I get your opinion on GH at this time. I realize the price of oil has an affect on every stock in the world but has it affected GH more than it should?

You last did a report on GH in Sept 2013. Don't you think every company should be reviewed at least 1 time in the year? If you can't do this then may I suggest you are following too many stocks for the manpower you have and therefore should cut down you stock list. A second alternative would be to stop answering so many repetitive questions from members.

Thanks
John

Q: BDI seems to be settling down somewhat after recent severe weakness. Do you think it is advisable to dip a toe in the water on this name in a TFSA? Realizing that patience will be required and more volatility may follow of course.

Q: Yesterday, reports from different sources started coming out saying that canadian auto sales are doing great. Can we therefore expect their next quarter to be great? Or do you think that it is likely that the dealers that did well are those outside of Alberta and since the company has most of its dealers in Alberta, we might see little positive impact? I suppose it depends on how confident people in Alberta have been feeling about a rebound in oil and in the safety of their job.

Q: Hi team:
I made a small profit by investing in the above thanks to your advice
With the drop in crude oil prices, will it decrease the value of Bep.un ? thinking of taking some of the money off the table
like to hear your opinion, thanks

Q: I'd like to start a DRIP plan for my son
What is a good choice for a DRIP plan stock?

Q: A couple of questions on the financials. Your Jan/14 report showed $360 million in cash. The most recent quarter you noted shows $1.3biln ($14 cash per share).That's quite a jump for a company with a market cap of $700mil I am wondering where all the cash comes from?
Your report also mentioned $8 of book value. Equity as of the most recent quarter is $1.1biln with pref stock of $206mil. Does that mean $12.50 of book value?
The current ratio is just over 1, is that normal for this kind of business?
Finally you mention principal trading as a risk.Is this represented in the $1biln of short term investments?
Thanks
Mike

Q: In the event that CXI does not get its banking license, what are the implications for this company? Is the license approval imminent? Does anyone really have a timeframe on this or could it drag on for years? (I'm not certain how long a process, or how arduous, it is to be granted a banking license.) I was thinking of selling my Surge Energy and replacing it with CXI to see if I can inject a bit more torque into an account that has seen a 50% loss, but I don't want to be selling/buying a pig in a poke. (Any suggestions would be welcome, including a different company.)

Thanks for your advice! Happy New Year to all at 5i!