Investment Q&A

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: We plan to invest $5500 in each of our TFSAs for 2015.We do not have any investments in the following sectors--consumer staples,materials and utilities.Could you suggest 2 or 3 stocks for each of these sectors.

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!

Q: A&W Food Services of Canada Inc filed an "Early Warning Report" this morning wrt A&W Revenue Royalties Income Fund. The text is long; can you explain; what impact might this have on the current share price.

Q: Good morning and Happy New Year to all at 5i.

My RRSP was recently transitioned to a RRIF. I understand that an "in-kind" transfer of a stock held within the RRIF can be made to a non-registered account (and of course taxes must be paid when doing this.) My broker (Scotia iTrade) informed me that I can opt for an in-kind transfer using the stock's lowest price, or highest price, or closing price for that particular day. What are the relative advantages and disadvantages for each option? Also, in answer to another member's question, you said that in general, it's better to sell the 'lower' stocks; would this advice also apply to an in-kind transfer? Thanks as always for your advice. Joining 5i was the best financial decision I ever made!

Q: I noticed your caveat about AYA with regards the ongoing insider trading investigation. As I recall (never having owned a stock that was under one) these investigations can take a remarkable long time to get to first base (if the "raid" is considered putting the ball in play)even. Surely months if not years. With the growth that AYA has displayed (a good Q4 expected) it seems likely(to me)that a recovery of the share price is a reasonable assumption. Would you comment around these observations for me please?

Q: We have a 1.5% position in WSP Global and 1.5% in Stantec (STN) and no holdings in the Transportation sector. Do you have a recommendation re adding to WSP versus buying Trimac (TMA) or Transforce (TFI), or other thoughts.

Q: Happy new year Peter and 5i,
Once again it is time to add funds to our grandson's RESP [14 mos]. Currently his holdings are: XTC 20 % of portfolio up 35%, DHX 19.4 % of portfolio up 92%, AYA 25% of portfolio up 285% [wow]. We reduced his holdings by 50%, and AVO 8.1% of portfolio down 42%. We would appreciate your opinion of new picks and assessment of current portfolio
thanks again

Q: Hello- Do you think and investment in the large US banks might be a good idea right now? Of JP Morgan,Citi, Wells Fargo,Bank of America,
Goldman Sachs or others, which are a few of your favourites?
Thank you.

Q: Please provide your recommendations for Bri-Chem. At current price do you recommned an investmen in this company?
Do you know the level of debt of the company and asscoiated risk. Do you think company can survive in low commodity price environment ? If I would like to select one company in Oil Field Service sector which is the one 5I recommends and why?

Q: Last year I asked you what foreign stock market would be the best performer for 2014 and suggested ishares Japan or Germany as options to buy. You went for Brazil which didn't work out too well, while my own prediction for Japan was only slightly better. What is your prediction for the country ishares to buy in 2015?

Q: Looking to add one stock to my TFSA.Which one would you choose between CXI and DHX.B?

Q: I have held Intact for some time and have a decent profit. Would you continue to hold or would you recommend a switch to another Insurer/financial?

Q: Hi guys, Happy New year. I just have a quick question. Whenever I sell a US security in any account (CA, US, TFSA, RRSP), I get charged US tax. The tax is next to nothing, for example I sold $10,800 of a security and they charged me 24 cents. Out of sheer curiosity, what is this tax?

Also, I thought the only US tax charged or withheld was when a Canadian received a dividend in a non-RRSP account. Does the US government also withhold/charge tax when a Canadian sells a security?

Q: Can you recommend some funds that are CDN dollar and overweight in CDN industrial companies? I would like to take into account the growing US economy and the declining CDN dollar, allowing CDN manufacturers to prosper.

Q: I own Norbord (NBD) at a much higher cost. I sold Ainsworth (ANS) and bought Western Forest Products (WEF) a few months ago. Should I sell Norbord and buy more Western Forest or another forestry and wood products company. My only holdings in this sector are NBD and WEF.

Happy New Year, all the best in 2015. Thanks for the wonderful service you provide.

Q: During 2014 this stock showed pretty good growth in it's price…..going from the mid $40s to year end at the mid $50s. What is your present evaluation of this company…both short term and long term. Wishing all the team a very HAPPY NEW YEAR.

Q: Hello,

What are your opinions on this company?

Thanks!

Q: What can you tell me about that micro-cap company that is listed on the CVE?
How promising is it and what event should we watch before buying?
Thank you
Jean

Q: To my understanding, prairie sky earns revenue by activity on it's properties. Do you know percentage of nat gas verses oil on the lands. I would imagine that revenues would be less because of less activity on their land. Would they have less revenue per mcf of nat gas and per barrel of oil extracted from their property because of lower prices. Some of the gold streamers (i.e.: Franco Nevada) have been insulated from lower gold prices. Could psk be insulated from lower gas and or oil prices disregarding sentiment toward the sector.