Investment Q&A

Q: With John O'Connell from Davis Rea joining Elkwater's Board at their annual meeting on Feb. 19, and bringing 70 million shares, insiders will own 25% of the stock according to the recently mailed circular. They are consolidating the shares and changing the name to Striker Exploration, for some reason.
The stock has been under pressure - small oil play in a lousy market - but I am wondering if sellers are anticipating a financing and selling out to participate and obtain warrants.
The Board is very strong and experienced which gives confidence to shareholders.
My question is do you see any value here for a 3 year time horizon and is there a large short position?
Thanks.

Q: The charts of REITS (e.g., XRE) and MICS (mortgage investment corporations), for example Firm Capital FC, roughly parallel each other over the years. But in the last few weeks they've gone in opposite directions. FC is way down, and XRE is way up. Other MICS are similarly down. Can you see any reason for the divergence? Could it be a buying opportunity for a stock like FC, if this divergence tends to correct itself somewhat? Thank you.

Q: What is the relationship between Intertain and Amaya? I believe that Amaya owns some of Intertain. If that is the case, is it useful to own both or is one "better" than the other? In an earlier response, you seem to suggest that you recommend both.

Thanks.

Paul F.

Q: The stock is down significantly and there is now an announcement of a major corporate shakeup. Was the reorg done in the natural course of business or a recognition that things are off the rails? Are the moves, in your opinion, and their stated strategy good for the company or a sign of confusion?

Thanks.

Paul F.

Q: Hi Peter,

Can you give me your opinion on their latest results? The results appear lackluster considering pulp prices were strong for the qtr, oil prices were down, Cdn Dollar weak....my expectations were higher.

Would you consider this a long term hold or is it time to sell.

Thanks

Q: Hi Peter and Team,

I am in an MBA stock picking contest, which runs from Feb 2nd until the end of March. We are all given '100k' to 'invest' in US companies.

Are there any potential home runs (short or long) that you can think of (keeping in mind that it's just for fun)? Most players are trying to time the market with triple leverage funds, but I thought I'd check in to see if you have any other ideas that might be interesting.

Thanks for all you do. The XIT call options that I had previously asked about are now up over 200%, so thank you!

Mike

Q: In 2010 Starbucks decided to sharply focus on return on invested capital (ROIC) as a metric of success as opposed to solely earnings + revenue growth. Lease portfolios were growing faster than revenue and profits - costs were going up and performance was sub-optimal even though revenues were going up. Deploying increasing levels of capital into high-growth, high-return areas has been a winning formula for them - as well as closing under performing stores. Where can one find a list of companies with high ROIC's?

Q: Hi folks,please ask your opinion of Q results last night for rkn;EPS of +.02 vs est of +.04 but thought overall was good Q,after big misses Q4 & Q3.Your thoughts going forward and would be buy,sell or hold,thanks as always,jb

Q: Likely this has been asked, but could you clarify what your A,B etc rating means. I currently invest in most A to B+ rated companies. You touched on this in yesterday's market call segment.

Q: Per IShares website, CPD's current trailing and distribution yield is 4.82%, or 5.32% pre MER which looks attractive. However, in scanning the current yield of Scotia Capital's preferred share universe holdings it is hard to envision the universe yield is nearly that high. IShares reflects CPD's monthly distribution simply as a cash amount of about 6.2 cents, no other break-down is provided. While CPD may not exactly represent the Universe it is very diversified and appears relatively representative. Do you have any thoughts? Thanks.

Q: For U.S. exposure I have concentrated primarily on two ETFs, VIG and COW. I am thinking of adding IGM. Please provide your thoughts on the latter. Many thanks.

Q: I am holding MAS.US,it hit a new high today. What are your thoughts on the company and do you think I should continue to hold.

Q: Hi Peter
Please let me know what do you think about this company as a growth company in the portfolio?
Thanks
Ram

Q: Please provide me with your opinion on Service Now. Thanks

Q: What is your current view of TV....is it a buy/hold or sell?

Q: Hi Peter & staff:
In the event of a 25-30% market correction in what order would you rate the above stocks in order of safety? Thank you for all your help.
Ron Noble

Q: Flex appears cheap with a forward p/e of 10, it has had a nice run up in 2014 do you still see much upside in this one?

Q: Would you prefer BIN to WM? And why (not)? Thanks

Q: I need your advice on the fixed income portion of my portfolio, currently 17%. The equity portion is a well diversified mix of dividend payers, mostly 5i companies. Current fixed income holdings are:

CBO (2%)
XHY (2%)
CVD (2%)
CPD (2%)
CF.PR.A (1%)
5 year GIC Ladder (3%)
HISA/Cash (5%)

The first rung of the GIC ladder recently matured, but I have been reluctant to purchase another 5 year GIC with rates being so low (~ 2.05%). Would I be better off with a floating rate ETF like HFR or FLOT, or should I just continue with the laddering strategy knowing that eventually it will adjust to rising rates? I am also aware that I lack any government bond exposure. I am considering CLF, but with a YTM of .75% I wonder if I would just be better of with a HISA at 1%. I am 40 years old with a 10-15 year time horizon. Your input is most appreciated.

Q: Hey Guys, your thoughts on Gildan ' s press releases yesterday.
Thanks,
Jim