Investment Q&A

Q: Seasons Greetings Peter and 5I team!

I am looking to identify the proverbial “baby(s) that got thrown out with the bathwater” in the Canadian mining sector. It feels like this sector is “washed out” and that there may be oversold equities that are beginning to turn-around. What is your opinion?

On reading through your recent history answering questions on Lundin Mining, I sense that you have had some comfort with this company’s turn-around prospects. Would you kindly offer your comments on LUN’s current outlook.

Is LUN’s cash flow is expected to pick-up in the near term. Is it expensive based on current earnings? If so, are there any catalysts for organic growth to spur their earnings?

Are you able to identify which base metals are expected to be in shortage in the next year or two, and for which of these does LUN have capacity to meet market demand?

With respect to the base metals producers, what are the key factors to guide whether it is timely to wade back into this sector?

In your opinion, what companies in this sector appear to be poised to be recognized by the market to lead the turn-around in this sector? For example, although FM and HBM are debt laden, despite the likely impact of increasing interest rates negatively impacting their debt, what metals do they primarily produce that you think will sufficiently help them to handle to offset their debt burden?

If necessary, please feel free to deduct more than one credit for this inquiry. My thanks for your help.

SGR

Q: BPF.Un is per forming very poorly especially compared to A&W in more or less the same business. Their reported Q3 loss was related to "fair value adjustments" - which I do not understand. Is there more to this than just the pizza business?? I am showing a significant loss. Your suggestions, please.

Q: Hi 5i team,
I have a few shares in my cash and RRSP accounts. [av 10.47]
I'm thinking of adding to my positions.
What do you think of the last Q3 #'s and do buy into JC's long term turn around strategy?

Q: What do you think of their recent revenue update?
Many thanks

Q: What's the last day of the year for tax loss selling, thanks

Q: Hello Peter and 5i team members,

I have CGI group in my portfolio representing about 4% of my RRSP account.Now I would like to add 1 or 2 names in IT sector to bring up my sector weighting to about 10 to 15%. Could you please provide some recommendations for a long time holding (say 5 to 10 years)? Thanks.

Wish you and every one of your team a very merry Christmas and a happy new year!

Lin

Q: Hi 5i Team
I note your last comment was on 11/03 for this stock. I bought it in 03/14 and am down 46% [av 1.71].It just bounced off a .90 low.

On 09/29/15 it entered into a MoU with China Communications for Auto deploying satellite systems.
1] will anything develop from this in the near future

On 12/20/15 they issued 550,000 grant options to D/O exercisable @$1.14. Earlier in the year Oak Financial was granted 400,000 exercisable @$1.25 & 1.75 over the next 2 yrs.
2] your comments on these grants.

3] is it worth waiting for any potential or significant growth in the next 2-4 years

4] any other observations or comments.

All the best of the season to all!
Cheers
Hank

Q: I have held for over two years: this year the stock has declined a fair bit. Further to this: last Q was brutal, high debt and pay-out ratio. Perhaps it is time to bail. They, I believe, have a good USA presence now which should be helping with the high USD? This one is not looking very good to me right now.

Q: Not much in the grt. history. What do you think of this reit for a long term hold.I do not hold any reits at present. Looking for income and some growth if possible. Also can you please tell me what a 'stapled unit' is?

Q: What is your opininion of this ETF?
As the holdings in this ETF are a broad base of other BMO ETFs,what weighting would you recommend in a diversified income portfolio?

Thank you and I continue to be impressed with the service you provide.

Q: The 5-year chart on SJ is classic, and your report is positive, but it is expensive now. How much has the PE multiple expanded on this stock over the past 5 years, and what has been the rate of earnings growth? Has it kept up to the stock price?

Q: At least 4 times a year I wake up to a stock that has fallen out of the sky. DIRT and IT both down considerably from their highs and under performing the market for quite some time seems to be what happens to these stocks that fall out of the sky. I still have DIRT which is fallowing a pattern just mentioned so I wouldn't be surprised if it falls out of the sky. From past history I guess I should be getting out of this one too. thanks Dennis

Q: With IT being kicked to the curb is AYA next? The stock is already 50% off the highs of 2015 and a similar attack could see AYA at $12.

Q: Peter, Ryan and Team:
My TFSA has 20 stocks, overall has done quite well and I do not need income or capital from it in the foreseeable future. It has quite a number of picks from 5i's Balanced & Growth Portfolios (leaning more to growth) but I have significant losses (-45% and more) on 5 of the usual suspects: BDI, QST, SLW, SGY, WIN. I am quite prepared either to sell them and replace, or to wait 2-3 years for a recovery. I am under the impression from the Q&A section that you feel all five are a 'Hold'. Is it reasonable to assume that providing they weather the next year or so, that because of how far they have fallen, it is likely the stock price may double or more in price in the next 2-3 years? How does that stack up against selling them and replacing with stocks that you might have more confidence in now, but whose gains over the next 2-3 years will be more muted because they have not fallen so badly? I am really stuck in an indecision groove on this and would appreciate your comments and any suggestions on how to approach making a decision in a logical way both generally for this kind of problem and specifically for this situation.
Also, just to add my thanks to that of the other 5iers for the great service you have provided since the beginning...it has been a bridge over troubled waters !! The very best of the season to all.

Q: In light of the fact there has been no indication of Canadian interest-rate movement, can you suggest a handful of U.S. insurers with decent dividends. And a ETF in that space as well.
Thanks for the great service

Q: BNS and TCN don't do much since some time. Both are down around 18% lately.

Should one stay the course, or look for alternatives ?

Q: I want to diversify out of Canada. I'm thinking of an ETF for Europe. Do you have any suggestions?

Q: I am looking for a Canadian ETF that tracks the Nasdaq and one that tracks the Russell 2000. I am looking for a product that is not hedged to the Canadian dollar. From what I gather this is not available.

Q: Hi, after watching for almost a year, I started a position @43.05 in WSP global, this week. The move was based on the fact that there was no apparent reason for recent pullback. Several months ago WSP did a secondary offering @42.50 (I think). During recent past, stock price touched a high of $49.18. The stock has a dividend yield of 3.50% and will perhaps benefit from infrastructure spending plans of new federal Govt. Incidentally, WSP was also a Top Pick on Friday Dec 18, 2015 Market Call tonight by Keith Richards, a Technical Analyst and BNN guest. As per his comments, this stock sees occasional pull backs and a purchase along its trend line ($42.50-$43)should be a great opportunity. Would appreciate your comments, please. Thanks

Q: I bought HCG in my TFSA at the top of the market and it is now down an astonishing amount. Is it a reasonable place to leave my much reduced investment? I am retired, but do not need the capital soon.

merry christmas