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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: First, let me say thank you for your excellent advice. I appreciate your service to assist us.

I have an investment in PIF and I am thinking of adding as the stock seems to be technically strong with an attractive dividend. Since the stock split in May, 2015 it has done very little and it was in a decline prior to the stock split. Do you know much about the Company's history and what are your thoughts on Company's future? More specifically would you be comfortable buying?

Don
Read Answer Asked by Donald on July 27, 2016
Q: Peter; The Alberta government just announced they are going to challenge a agreement made by the previous PC government to basically allow power companies out of contracts if they proved to be unprofitable due to actions by the government. It's called the ENRON agreement.. Can you quantify which companies these would be, and the impact, if the challenge is upheld.? Thanks. Rod
Read Answer Asked by Rodney on July 27, 2016
Q: Greetings Peter and team:

I hold the BCE, Brookfield and Fairfax preferred shares referenced. Obviously they have not fared well over the last few years. I am wondering if there is any reason to hold them at this point? I did notice on Monday when the market was broadly down that they were among the few holdings that were up. Do you think holding them as insurance against a market decline has any merit, or should I just book the loss and move on? As always, your insight is appreciated. Thank-you,
Read Answer Asked by Stephen R. on July 27, 2016
Q: Scotia iTrade (and presumably other brokers as well) offers two different Sherritt bonds for purchase: Coupon 8%, maturity 15-Nov-2018, yield-to-maturity 43.94%; Coupon 7.5% maturity 24-Sep-2020, YTM 29.08%.
Two questions: (1) How can the earlier bond maturity have the higher YTM? It seems it should be the opposite.
(2) I assume that an annual yield of 44% essentially mean that the probability of bankruptcy by the first maturity date is very high. Is there a likelihood of any substantial "recovery" (i.e. less than 100%) in the event of default? What is your opinion of the risk / reward if I were purchase the 2018 bond?

Thanks!
Read Answer Asked by Gregory on July 27, 2016
Q: I was wondering if you could offer any comments on these two companies: IPT (Impact Silver) and PNE (Pine Cliff Energy). I took positions of approximately 0.5% in each about a month back (I do consider them quite speculative), and have done well with IPT (up about 20%), while I am about even on PNE (down about 5%). I do feel that silver could do well within the next three years, and I also feel that natural gas could do better this upcoming winter. Please let me know what you think about the companies, as well as their management teams; and if possible, your sentiments towards silver and natural gas at the current moment, as well as into the near future. Thanks so much!
Read Answer Asked by Domenic on July 27, 2016
Q: PLZ.DB.C 7%, 31DEC17
Hello 5i. Recognize this question is outside of small cap equities but would like to know if you will tackle this question.

Despite calling the company, reviewing SEDAR document and even reaching out to Hank Cunningham, I am left not knowing exactly what I own in this debenture. The question I have is in what are the options for company and investor at Dec 31, 2017.
Given these debentures came from take over of KEY REit, I can not follow the trail or find the specific document that identifies the features and options.
I am currently up 4%(capital) trading at $106.12 plus the income payments over a few years.
If this reverts back to PAR(Dec 31,2017) the capital will show a loss (paid $101.97). I would rather sell now and move on instead of waiting for a final income payment but do also realize 7% yield in a company I believe can keep up the payments is a very good investment.

Can you comment and/or offer facts about this debenture?
Thanks
Dave
Read Answer Asked by Dave on July 27, 2016