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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: Follow the money. The company has been aggressively buying back shares during the past 12 months. Then there is very large insider selling by the the CEO followed by earnings that were poor and the share price is well below where most of the share repurchases occurred. If the company knew they were in a transition year (stated in their q release) and earnings were going to slow or falter should they have been buying shares back at 9-11 bucks? Or waiting till after this weak quarter to buy back shares at much better prices. Looks to me like the CEO is taking care of himself and not acting in our best interest. Your thoughts?
Read Answer Asked by Joel on February 23, 2017
Q: Hi team - These two stocks have lagged lately. I am a long term investor, and am more focused on where the price is 5, 10 years from now, not the near or even mid-term noise.

I believe that you see both companies having strong management, but would you have confidence in their balance sheets over the long haul? I would like to add to both positions, but would hold back if you advised against it, or believe we could see the stocks drifting lower to even more attractive prices.

Thanks.

Jim
Read Answer Asked by James on February 23, 2017
Q: I am cleaning up my portfolio and have to deal with a $35k loss on Terra Energy (TTRHF) .. what is the best way to do this? I was sent a form to sign by my online broker (Letter of Authorization - Direction to Remove and Assign Securities (Delisted)) .. is this a good idea? And what about the case of a stock that is still listed (e.g. Knighthawk - KHA) at 2 cents?
Your advice is much appreciated in dealing with these matters.
Read Answer Asked by Patrik on February 23, 2017
Q: Based on other responses you prefer OTEX over DSG when forced to choose. I understand one reason may be valuation, but please expand on your other reasons for that preference. For example, does OTEX have a better growth outlook. If one owned DSG currently but not OTEX would you sell DSG and buy OTEX. My preference is to own one or the other and trading commissions and taxes are not an issue. Thanks for your reply.
Read Answer Asked by Christopher on February 23, 2017
Q: Hello 5i,
I don't have much healthcare exposure right now but I'm thinking about getting back in. I noticed the resent many reasonably priced options in Canada - CRH and GUD seem like the go to names but each have massive P/E ratios.
As a result, I was thinking about buying a US retail pharma stock like CVS or just buying the XLV instead. I like CVS as it is kinda like "owning the race track instead of the the race car". Am I hitting the mark with this analogy or am I missing something? Some Bio tech names appear quite cheap due to pricing/political risk etc. But I also would never know which one to buy. Do you see any issues with the CVS in general? Would you recommend just buying the XLV instead? Thanks
Read Answer Asked by Scott on February 23, 2017
Q: Hello team -

A recent BNN guest has a sell recommendation on Altagas, with the comment about the company having to borrow to pay the dividend (if I recall correctly).

I know that you seem to be comfortable with their ability to pay the dividend, and that the WGL acquisition will support future dividend growth. Will this support happen soon or a few years from now? I was also wondering if an increase in interest rates would affect their ability to pay the dividend.

Thanks.

Jim
Read Answer Asked by James on February 22, 2017
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