Investment Q&A

Q: With the continuing decline in can dollar which companies will benefit the most?

Q: My college age Son had over a double in DHX (his only equity), with my advice he sold half, bought into Surge at $5.53. His account balance is now back to where he started. He's not happy with his advisor at the moment - hero to zero you could say. Should he hold Surge or take the loss, if the latter, any suggestions for a youngsters TSFA?

Q: In Dec. 2014 a question was asked about Neptune Tech. Your comments were fairly positive yet you said this company was not one of your favorites. Could you please list a company or companies that you would favor more in the Neptune sector?

Q: Currently, I have a few canadian companies that do work in the states like Catamarin and patient home Monitoring and open Text. Could you name some other companies that do business in the States particularly in the Health care field that I could invest in. Actually PHM is an American company.

Q: Bought in the fall to play seasonal trade. Currently down over 20%. Do you see much growth potential going forward? Is it currently fully valued?

Q: Hi, I have minimal healthcare exposure and am looking to increase my holdings in this sector for diversification. Wondering what your top picks would be in the healthcare space within Canada for the long term? I am interested in either an ETF (XHC,ZUH,FHH) or specific Canadian healthcare stocks).

Q: I heard today on BNN that it is being removed from the Cdn Dividend Aristocrats ETF

Q: considering U.S. growth, please rate these aas most-to-least







considering U.S. growth please rate these most-to-least "compelling" and why - thanks as always

Q: I noticed that Knight Therapeutics (GUD) is lending Synergy Strips Corp $6M. As part of this deal, Knight will receive 15% interest on the loan, and get a 10-year warrant to purchase 3.5 million shares of Synergy at $0.34 a share. Synergy shares are currently trading at $0.425

My potentially easy question is: what does Synergy get out of this besides the loan? Do they get any corporate knowledge from Knight? 15% interest and a 10 year warrant to buy shares at a (potentially significant) discount seems like a really bad deal for Synergy, and a fantastic deal for Knight. What am I missing here? Couldn't Synergy just go to a bank for a loan?

Q: 5I Team,

Which companies in the 5I coverage universe do you foresee being the biggest beneficiaries of the ongoing momentum in the US economy and weakness in the Cdn$?

Thanks,
Scott

Q: Western Forest Products has dropped from its recent high, while West Fraser Timber got back to its high. I assume this is because $WFT was mentionned in an article on Bloomberg as well as in LesAffaires. Do you think that's likely it, or did I miss a piece of news? $WEF, which is lagging, is cheaper and pays a dividend. I'm intrigued. Also, it seems to me forestry stocks are in an excellent position right now, with not only lower oil prices but a lower CAD. I'd love to get your insight.

Q: I have had a position in STB since 2009 (ACB $9.86). To date it has been a very good investment.

Last year I had a good look and to my untrained eye it looks like the Shareholders Equity and Book Value have been steadily deteriorating.

Due to that I reduced my position substantially.

I also noticed that there has been a substantial amount of dilution.

Somebody mentioned that SNCF has been “buying” 95,000 or so shares each month. I believe that they aren’t actually “buying” those shares, they are “reinvested dividends” and a major source of dilution.

The current low fuel prices will help them and the SP has held up nicely. That said I find myself wondering if STB is a bit of a “house of cards” and will ultimately get into serious financial trouble and have to reduce the dividend or worse at some point in the future.

Q: I'm trying to pay more attention to sectors when managing my investments, and I couldn't find much on recommended allocations in your Q's and A's. Should I use the 10 sectors listed on the 5i Summary table, and if so,what allocation would you recommend or the average investor?

Also, referring to that table, I would have thought ENB and IPL behaved more like Utilities than Energy stocks and I'm surprised BAD is listed as Basic Materials. My last question, what category would you recommend for BAM.A? Thanks

Q: Further to Claudette's question on DRT; Mr. Nutall said the the company had a 25% organic growth. How is that possible when its PEG ratio is less than one? Is there some other metric that provides an answer? We often hear on BNN that organic growth is very positive for stock price appreciation.

Q: Currently holding MAL, and somewhat disappointed in recent results,not sure why their price has fallen, and am considering either switching from MAl to CAE, or adding CAE to have broader coverage in this industrial space. Appreciate you input with thanks. JIm

Q: Most recent question and response on this company was July 2014. I wonder if your opinion is much the same as at that time, or do you see an improvement; or perhaps a falling off since then or in the cards for a bit later. Importantly, do you see the dividend which is north of 10% as safe. Thank you very much for all you do

Q: Hello team,
I have 7% gain on my holdings of MOS(+ US$ gain). Does it make sense to sell it and buy AGU or POT in Canadian $ ?
Thank you always!

Q: Air Canada has had a strongly negative day for a stock in an uptrend and one explanation I have read is in connection with the Government interest rate reduction. Is this a valid concern and will it effect the stock price even more?

Q: BCE and BAM have been going up lately. I am up quite a bit on both. The PE of BCE is quite high. Do you think it is time to trim it and pick it up when it goes down or use the proceeds to buy Rogers? What would your view be on Brookfield Asset Management. Thanks very much.

Q: Your opinion on these two, please: DRT for growth, EIF for high income with some growth. Thanks, Ted.