Investment Q&A

Q: Hi Peter I hold in three different accounts a substantial position in wcp with a fairly low cost base still positive by 20pluus%.
Given were oil is going Iran supply ect would you exit your position and book your gains or ride it out I realize this is probably the best of the group however I would hate to see all my gains eroded.
Your opinion is valued.
Kind Regards Stan
PS I guess I will soon be paying surge to hold there stock

Q: Hi 5i. In your opinion please: "When is the correct time to use a margin account (or any sort of leverage) for the average knowledgeable investor?" Also to what extent in the form of ratio to assets and/or income. I know this is dependent on individuals but your knowledge and experience are highly valued by me.
Thank you
Jeremy

Q: Which energy company do you prefer and why or would you put them in the same boat?

Thanks

Q: Good Morning,
I have completed a review of my portfolio and have concluded I have 10% insurance exposure probably a bit too high, made up of SLF,MFC,GWO and PWF. I know GWO & PWF are basically one in the same as PWF owns GWO. Which ones would you drop to reduce some exposure here? Thank-you.

Q: Between 5I, CMS and Derick Foster one does not have to look any further for investment advice. Thank You. Do know if the interest paid in a margin account negotiable. Maybe you or someone in the 5I community might know. I am with TD and love the service there. I read all questions daily and find it to be very informative. Your the best.

Q: Can you please provide an opinion of EEFT. Thanx Robbie

Q: What are your feelings on yhoo going into January 2016 and beyond. Seems like value. Given spin off of baba. Yhoo Trading now with yhoo core valued at under 1$, seems ridiculously cheap to me. Am I missing anything?

Q: What is your opinion on this fund. This is a closed end investment fund; could you briefly elaborate what this means. Would an investor able to see the under lying assets of the funds like an ETF and MER?

Q: Please deduct one more question credit as I should have included this in my last question on Tourmaline but would it be wise to move my assets out and into a dividend payer like Whitecap. I imagine both stock would behave similar in a further down or possible up oil market. At least I would have a dividend.
Thank you
Jeremy

Q: Hi Team,

Given OTC's recent weakness and perhaps your knowledge of their management team, do you think it is starting to look like a takeover candidate? If so, any idea who the potential suitor(s) might be.

Thanks for your great service.

Michael

Q: HI, I hold this stock in two portfolios should I be a seller due to these allegations it seems to be in a downward spiral. Bob

Q: I would like to have your thoughts on AJX.
The good : balance sheet (no debt and 10 million $ in cash : 15¢ per share), but 25 % in intangible assets and goodwill; the industry, gross margin, divested non-core businesses(usually at a profit; restructuring seemed finished), strong USD (lowers Canadian expenses), positive cash flow from operation for the past two years, not taxable for the next few years (unrecognized tax losses on the balance sheet), 31% insider ownership following the merger (including 15% by Investor Growth Capital, “IGC” an independent venture capital firm specializing in expansion stage investments),
The not so good: management turnover over the last few years, erratic sales growth to be kind, cannot seem to grow revenue to amortize fixed cost (merger should help), cannot seemed to capitalize on promising industry trends, goodwill write-off $40 M, micro-capitalization, stock liquidity,
The unkown: merger (60% vs 40%) with a private entity (Novariant: $30 M in sales) that's taking awhile to get done (announced mid-March 2015), they changed auditors (KPMG to) mid-April and the CFO leaves mid-may.
This investment represents 1% of my portfolio, I am trying clean my portfolio. My decision (of selling) is almost made (do not want this type of investment in my portfolio in the future: 5i provides better risk/return recommendation), I am trying to minimize loss here. I think there is some upside at this level/time Your recommendation: wait to see some quarterly results of the merged company before making my mind (my guess is: it's going to take several quarters of good results before the market jumps in following years of disappointment)? Sell on some technical strength? Sell immediately (not seem warranted as the stock is down recently following a major selling by an important shareholder for reasons not related to AJX)?
Thank you, Eric

Q: Good Morning!

Both ECA and CQE are trading at ultra low multiples. Realizing the challenges ahead facing the oil and gas industry, which company would you consider to be the best speculative value investment for midterm/long term growth? Or, is there a better choice that I have not identified?

Q: Hi team:
as a Canadain investor I have held the above for a few years, on BNN
market call late last week, the speaker was answering about a question re: pipeline and energy stocks in general, the caller was implying that the US does NOT want us to sell our oil and gas to Asia and the 3rd world at the Market price, but want to buy our oil cheap, I understand that as a Canadian, it would make sense to ship our oil to the East where the refineries are (we are importing oil from other countries); the BNN speaker also mentioned that all the provinces due to political reasons refused to co-operate to have a pipeline built to ship the oil and gas from Alberta to the East coast (The Federal govt does NOT want to see that either)
What is the real future for CNQ; SU, CVE and the big name oil companies ? I do think that unless one trades them as short term trade, the outlook for the long term is bleak for the investors due the the negative political situation. Many thanks for your comments and insights
Michael

Q: Hi 5i team,
Using the following classification: micro-cap < 250 < small cap < 1000 < medium cap < 5000 < large cap. 5i recommended to an average investor (?) a portfolio allocation of: micro-cap: 10%, small-cap: 25%, medium-cap: 35%, large-cap: 30%.
I believe in and am practicing capturing the liquidity premium of small cap, and investing in companies followed by very few analysts, companies that will start dividend or that are growing their dividend. I have seen several companies in which I am invested slowly migrating up towards the next group cap. What is your asset allocation capitalization recommendation for an patient investor. I don't like the term aggressive investor, I prefer to say: not nervous, who can ride a market correction, and who is willing to reinvest in his best selections in market downturn. What additional risk am I bearing versus average investor? What economic environment should I fear?
Under the assumption that this portfolio is diversified in 20 companies and between industries. I won't withdraw from capital for the next 15 years.
Thank you for your collaboration, Eric

Q: I am interested in your opinion on Prism Medical.Thanks for the invaluable website.

Q: Peter; Last week I asked a question re the large insider sales of PHM. You basically answered my question in reply to " Stephens" - so I did not need a reply- my point is there a way I can recall/ cancel my question so you don't have to bother with a reply and save your group the time? Thanks..rod

Q: I think on June 17 you mentioned tpk as cheap at 12X earnings. I seem to see fy2014 earnings .45/share and q12015 .11/share This is more like P/E 20. Am I missing something??
Thanks Jim

Q: Hello All,
The silence is deafening. Since Lehman Bros., Central Banks have been in lock step in printing money and keeping interest rates artificially low. Both inflationary. Commodity prices have plunged. World economies have been relatively healthy.
The stock markets and real estate have performed. WHY THE DOLDRUMS IN COMMODITIES? No one seems to be discussing the implication of such huge worldwide debt and how we work ourselves back to normality. Such silence! Your thoughts, please.
L
Thank you,
L

Q: Hi Peter
Thanks to you folks I'm up 20% on GILDAN. However, I read where 18% of the stock is being shorted. Should I be concerned about this. Thanks, as always
GUY