Investment Q&A

Q: I have an Athabaska bond (7.5% coupon; maturity 19-Nov-2017) that is currently trading below par. Given the news about the additional cash payment just received by ATH, it seems to me that they should easily be able to repay this bond upon maturity in just over two years.

Do you have any idea why this bond is trading below its par value? Is there a significant risk of default by Athabaska over such a short time period?

Thanks!

Q: I have just recently tried to find value stocks to invest in and am currently watching about 40 stocks and I would be interested to know what you consider to be the main value indicators to watch such as P/E ratio, debt to cash flow ratios, state of balance sheet etc. I would also be interested to know what indices you consider important before making a decision to buy a particular stock. For example, a P/E ratio below 20.. You may well have been asked this question before and if so please refer me to your response. Thanks

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Q: Read your comments today re: the 6/30 quarter for PHM. However, since these statements are only INTERNAL, I would appreciate your opinion as to their veracity since the erstwhile Principals leave me somewhat uneasy and skeptical. Thank you.

Q: I don't understand how a (quite liquid) Closed-End Fund can have a share price that has a significant discount to NAV over an extended period. If I were to buy a fund such as EEF.US (European Equity CEF), could I expect that the current 10% discount to NAV will eventually tend to zero (or at least be significantly reduced)?

Thanks!

Q: Hi Peter and Team,

In my RRIF,I have 1425 shares of ABT with an average cost of $9.7042. (ABT closed today at $8.33).

In today's mail, I received an "Offer to purchase for cash, up to $50,000,000 in value of its common shares at a purchase price of not less than $7.75 and not more than $9.00 per common share". If I want to accept the tender offer, I need to inform my broker by Sept. 30.

I am confused as to what course of action I should take, or should I do nothing and hope that this share buyback will increase the value of my shares, hopefully above $9.7042? It's obvious that I bought high, and would feel better if I was able to sell at at least for what I paid. Or is ABT's range for this tender too low, and they think that the stock isn't worth any more than $9.00, and I should tender my shares for $9.00 in their "Dutch Auction"? (The other alternative offered by Absolute is to let them determine the price which could be as low as $7.75 or as high as $9.00).

Sorry for such a convoluted question, and as always, await your timely advice.

Q: hi.. Could you comment on this stock . Should be a buy?

Q: Hi Team,

Would you sanction a full switch from ARX to TOU? I'd like to have a name that'll bounce back highest when oil prices recover, and I'm also a bit underwater on ARX so I could book a tax loss. Other O&G names I own in addition to ARX are WCP, RRX, and BDI.

Thanks,

Jordan

Q: I am considering adding Valener Energy to my portfolio. However I note that the dividend is rather high and am wondering about the stability of this company and its ability to continue to pay its dividend.

Thank You

Q: Hello 5i Peter and Team, I need to diversify, I have not rebalanced in years!
I currently own AD, BMO, DH, IPL, MCD, WCP. What stocks would you recommend to add to this list for more diversity over the next 6 months. I like dividend payers but do not need income yet. I am comfortable with a certain amount of risk.
Thank You

Q: I mistakenly stumbled on Gartner in the U.S. when looking up the chart for Intertain since they have the same ticker symbol. I was amazed to see Gartner has a sharp straight up chart since 2009 that always bounces off the 200 day moving average, which is where it's currently at. I've never seen Gartner mentioned here or on Stockchase. It's a technology research company that touches every industry and operates in 85 countries. Sounds like my kinda stock. Any comment? Thank you.

Q: Peter and Team:
It will be 3 years until the kids start needing funds from their RRSP, and I am slowly selling individual stocks and moving to etfs to spread risk and reduce volatility.
They have good exposure to US Market ETFs, but all Canadian Exposure is through individual equities. Is now a good time to purchase ZCN (or suggested equivalent)?. Also how do you fell about low volatility ETF's i.e. ZLB vs. broader market equivalents.

Thanks for the great service and deduct 2 if you see fit!

Phil

Q: Hi Peter and Team!! In a nutshell, could you explain to me how income trusts work. How are they taxed? Would now be a good time to buy some, and if so, which would you recommend? Thank you for your tremendous service!!! Cheers, Tamara

Q: STN is a company highly rated by 5i. What do you make of its recent acquisitions? The company's SP has been dormant for sometime and there is no sign of life in sight. I like to take a position but is concerned that it may be dead money for quite awhile yet.

What's your read and recommendation?

Q: Can you comment on the fact that BNN Market Call takes place during the trading day and not all of us can be watching while we are at work. I have frequently come home to see their picks and I an interested in a stock, but find it has traded up 10% or more just after the pick is announced on the television. This seems unfair for those who cannot watch. Do you have any pull with the BNN producers. Maybe we can get them to air it at 1:00 after the market has closed. Do you have any advice for other than to wait to see if the stock trades down to a reasonable level before buying?

Q: Hi there
What are your thoughts on this reit .
Couldn't,t find its payout ratio but it look ok
Thanks for the help

Q: Do you feel Easyhome's recent stock decline is market specific or company specific? Do you think it is a decent investment at these price levels?

Q: HR.UN is the only REIT stock that I owned. It make up 2.25% of my portfolio. I am under water by 12%. Would you recommend this stock as buy and increase my holding or add another REIT? If I should add another REIT what would you recommend.

Thanks

Q: Are you a fan of the frequently expressed strategy of having your per cent of fixed income match your age? I suspect this is a personal decision based on one's risk tolerance, but as a general rule does it make sense? For myself, 50+ in fixed income seems like a lot.

Q: Greetings! Today, this stock declined by 23.08%, closing at $2.70 USD. I don't see any news. Do know of any reason for the decline? What is your opinion about this company as a growth stock? Thank you.

Q: I bought PHM in April at $1.60. It has since plummeted to $ .60. I understand that averaging down is frequently like catching "falling knife" but with PHM now having recovered to $.80 I am considering "averaging down" and buying another 1000 shares. What is your opinion. Thanks