Investment Q&A

Q: I have a 3.9% (ACB $15.90) position that I acquired in 2014. Liquidity is a problem. It took several small purchases over a few months to establish the position which in $ term is actually quite small.

To date Algoma has been a bit of a disappointment.

There have been 2 recent developments.

On Jan 15 they announced a joint venture with Nova Marine to create a Global Cement Carrier Fleet. Growing / Diversifying is good but the cost and how they intend to fund it was not disclosed.

On Feb 16 they announced a favourable arbitration outcome re Mingde. No numbers were announced. Mingde has declared bankruptcy. This process will take some time and there is no way to know how much Algoma will ultimately recover.

I understand the value of patience. The current yield is abt. 2%. The shareholders aren’t being paid much for their patience.

Is it time to move on or would you give Algoma another year or so?

Q: Looking to increase REIT exposure. With growth and income as the objective, which is the better play for 3-year hold?

Q: Could you please comment on CHE.UN 4th quarter and annual report.
Thanks
Roy

Q: Cubic has had a bad year and its share price has tumbled to the point where the company is now so ugly that it seems rather pretty today. 5i likes momentum, which of course works in both up and down directions. Cubic thus has momentum going against it. But in my dumb emotional reptilian brain, I can’t help but be attracted to it. I like its business model. Perhaps I didn't get the biz model (?) (My history has some litter of past mistakes)

Before I back up the wheel borrow and fill it up with Cubic stock , I seek your opinion , hoping it shall be based on substance , on some depth of data , combined with your own thoughts. Trailing data on Cubic is off-putting. But I believe you use data , both trailing type, and forward looking. I expect to have to wait two or more years before any positive movement occurs on Cubic share price. The near noise is inevitable and is not an important factor provided you agree the business model is sound. Cubic would be for a TFSA.

In your opinion what are Cubic’s prospects? I seek an opinion based on your own thoughts plus analyses by reliable types working at the more reputable sources.

Q: Hey Peter and 5i team:
I'm thinking of buying some Royal Nickel Corp. Any thoughts you could give would be helpful.
Hugh

Q: hi; when these reset june 1 2017 could they exchange them for new as they are trading at a low price.others have done this hair cut. if left the same they would yield over 6% + 5 year rate u.s. thanks for the great service--brian

Q: My simple calculation for SGY NAV is $4.01 whereas the corporate report states $4.88. I'm not an accountant - please explain.
Thank you.

Q: I actually own TDB3099, the new series D version of TDB976 with a much lower MER.

Question 1 = Over the longer term this fund has outperformed. Do you like the underlying securities?

Question 2 = I can't find any reference to the fund being hedged or not. Now that oil and the related Canadian $ are no longer plummeting, hedging is more of an issue. Will this fund be impacted by the exchange rate?

Thanks,
Steve

Q: Hi folks,could you please comment on Q results for First Quantum,latest Q seems to be an improvement over previous Q's, and heard previously somewhere of a potential sale of nickel mine to believe HudBay? for app $1B to help reduce their debt. Any update and overall, would you rate fm/t a buy,hold, or sell. Thanks as always,jb

Q: Good morning Peter and 5i team. Can i get your recommendation on Oceanagold? It recently initiated its first ever dividend after successful acquisition of Romarco. I am very underweight gold/materials and looking to add OCG or other stocks in the sector that you favour instead of this one. Thanks again! John C.

Q: Lots of changes. They seem to be raising a lot of liquidity; selling assets, cutting dividend, stopping DRIP, and increasing credit facility. Doesn't seem to make sense. Do you think there are skeletons in the closet that are not apparent that they are preparing for? Could things be worse than they look? Or are they eyeing opportunities? Would you be a buyer?

Q: Hi Guys,

Would you sell First Capital Realty (FCR)and buy Boardwalk Reit (BEI.UN) with the proceeds at todays prices and outlook for the future for both companies?

Thanks
John

Q: Could I have your thoughts on this company's recently reported earnings and do you consider it a buy at the current price. Thank You.

Q: Hi Team,

May I please have your opinion of Roxgold and their recent financing? How risky would it be to invest in this company - just a small position in a well diversified portfolio?

Thank you very much.

Michael

Q: Would you consider Veresen a Buy, Sell or Hold at this point? Thanks

Q: Recently Citi’s chief US equity analyst, Tobias Levkovich, responded to the current no growth school of thought by suggesting, that virtual and augmented reality will be a very strong driver of growth over the next decade. His estimate is for $650 billion invested over that period. He expects it to be transformational and to impact all sectors of the economy.
He suggests that “ current infrastructures will require major upgrades to handle the virtual world given more limited installed computing and graphics capabilities versus the new technology’s requirements”

I am wondering what Canadian companies you think will be able to take advantage of this?

Also, it suggests major expenditures by the telecoms, and I would appreciate your opinion on which of the “homegrowns” are best positioned to take advantage?

Many thanks
Mike

Q: The big 6 Canadian banks are amongst the world's strongest & safest banks.BNS rated 18th in 2012 & 7th in 2013 strongest ,whereas CM is the only one to appear between 2012 to 2015(3rd,3rd,15th & 18th respectively).All @ historical low PE.eg BNS @ 9.7(trailing) & 9.3(forward).Majority of guests on BNN opined that there are short term headwinds plus "short" by Americans,but recommended hold for 2 years or longer.They have generated decent & stable returns over timer expect for last year.Please advise if the negative factors including the effect of sharp drop in oil prices & its knock on effects are priced in.Each stated that the loan exposure to oil is no more than 2% & it is manageabl.,All report next week with BNS on March 1.

Q: Would you still choose BNS if this was the only bank you were to hold or would should suggest another bank? This will be the first stock for a TFSA that has $4000.00 in it and will be holding and adding to it monthly.
Thanks

Q: What are your thoughts on ACD last results? I already have a full position in EFN , GSY and CXI. I feel a little overweight in financials, and I'm thinking about selling add, what do you think ?

Q: What are your thoughts on the new Purpose Premium Yield ETF (PYF). It is advertising a 7% distribution by holding quality Canadian and US companies and selling puts and covered calls.