skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello,

I have owned a small position in Zargon since 2007. ZAR managed to survive the 2008 Financial Recession but I wonder about its future considering possible extended low oil prices.

I see it has relatively high debt to equity (71%), has some oil price hedging for the beginning of 2015 and payout ratio of FFO at or near 50%.


I am wondering what you think about its debt level?

I am wondering what you think about its dividend?

And lastly I am wondering what you think about their assets and their operations?

Thank you very much.

Regards
Stephane



Read Answer Asked by Stephane on January 27, 2015
Q: What would be your top 5-10 defensive names from the model portfolios or coverage universe.
Thanks.
Read Answer Asked by Albert on January 27, 2015
Q: Hi Peter and 5i team, Can you recommend an ETF (preferably USD denominated) that will benefit from the $1.2 trillion European stimulus/QE program? Can we expect a stock market rally in Europe similar to what we've seen in the U.S. thanks to FED's QE program?
Read Answer Asked by RAJITH on January 27, 2015
Q: I own a package of O+G service companies that have been crushed......PRW, MCR, E, ENT, WEQ and GKX. My logic was related to the eventual go ahead of LNG on the West Coast, new pipelines to the West Coast and expansion of oil sands activities in Alberta.
They all would appear to be vulnerable to project cancellations and high debt levels.
How would you rank these from safest and most likely to eventually prosper, to those in jeopardy of failing.

Many thanks.
Read Answer Asked by Barry on January 27, 2015
Q: Peter and team,
This is a question that i am hoping either you or one of the other members of the site might be able to help me with. I have US holdings in my RRSP but to sell and keep the dollars in US currency, my self directed brokerage requires me to put the proceeds in another us holding same day. In canada, there are many high interest savings accounts to do this with but i have been unable to identify the same type of account in US dollars. Any suggestions? I have used FLOT but would prefer a high interest savings account if possible.

Thanks
Read Answer Asked by kelly on January 27, 2015
Q: I own it. Showing strength and up 2.5% today. I do not see any news or buzz and I am wondering if the low Canadian $ is a factor as they are Southeast and Southwest U.S. I am just curious.
Read Answer Asked by James on January 27, 2015
Q: I am 45 percent underwater on cannacord with a 3 percent weighing. Would you average down? It appears to have hit bottom but am weary of catching a falling knife.
Read Answer Asked by Helen on January 27, 2015
Q: I am considering selling my 2% position in WSP Global Inc and increasing my 2% position in BYD.UN to 4%.

I am looking for a minimum 15% ROE and I am disappointed with the performance of WSP and BYD has returned over 50% for me. I wonder if I am selling WSP too quickly.

Do you think BYD will have better returns than WSP over the next 3 years?
Read Answer Asked by Richard on January 27, 2015
Q: Hello Peter, I've held this ETF in my RRSP for two years. While the yield is approx 6%, it has also dropped in price by a total of almost 6% in 2 years (resulting in net annual gain of only 3%). My question is that with generally falling interest rates and an improving US economy - presumably translating to lower defaults/default risk levels - I'm unable to understand how a corporate bond portfolio could lose 6% of its value over two years. I have not looked into the specific components of the ETF but if you can help me understand the loss, much appreciated. I am not risk-averse and won't need the funds for several years. Would you suggest a better vehicle for higher US returns? Thanks, Bob
Read Answer Asked by James on January 27, 2015
Q: Hi 5I
I've tried in vain to understand IRE delisting (ADR's)from NY. I am with a discount broker (BMO) and I hold 1200 shares. I don't know if I can continue to hold the shares in kind at BMO (ADR'S) or do they get converted (or liquidated) and after 1 year can I continue to hold the converted security in the discounted brokerage.Excellent Site.
Thanks Bob
Read Answer Asked by bob on January 27, 2015
Q: I ask your opinion on equity diversification. Does diversification improve returns or merely reduce volatility. If I invest in the same proportions as the TSX make-up (30% financials etc.), will I achieve similar (or better/worse) returns than a well diversified portfolio over time (5 years for example). The equity investments would still have to meet the requirement of being at least satisfactory equities as indicated by 5i.
A second question is - do I need the to invest in other than equities if I believe that I have at least twice the investments to fund a reasonably comfortable retirement and keep sufficient cash on hand for about 2 years expenses. As a sombre/humorous note what is at risk (I think) is our children’s modest inheritance, and they are all in middle aged and in reasonable shape financially.
I understand that there are no perfect answers, but experienced, informed opinion is of high value.
I greatly appreciate the rational unbiased advice on 5i. Thanks.

Cyril
Read Answer Asked by Pat & Cyril on January 27, 2015
Q: I understand that one of WSP recent purchases The Focus Group is involved mostly in Oil and Gas contracts.What percent of total revenue comes from Focus and do you think it will have a serious effect on the bottom line? Thanks again for your fantastic service and great help.Jim
Read Answer Asked by jim on January 27, 2015
Q: Hello Peter and team,

On Feb 2nd deletions from the S&P/TSX Canadian Dividend Aristocrats Index will include Evertz Technologies (ET) (in your income portfolio), and two of your covered companies (CSU and HLF).

As of Jan 23rd the iShares Canadian Dividend Aristocrats Index ETF (CDZ) had $21,797,887 worth of ET shares. My math equates this to 1,371,799 ET shares. This represents 5.2% of the floating shares.

Similarly CDZ had $12,124,809 of HLF shares, which equates to 598,756 HLF shares. That is 5% of the floating shares.

The number of CSU shares held by CDZ would be 0.2% of the floating shares, which is negligible.

How does the ETF go about disposing of such a large quantity of ET and HLF shares? Does the ETF have to sell all of them exactly on Jan 30th, or does the ETF have days or weeks before and after Feb 2nd to gradually dispose of their shares (so as not to flood the market)?

If the ETF has to dispose of all their shares on Jan 30th, do they wait until the last minute of trading? And being that it is 5% of the floating shares in the case of ET and HLF, won’t this have quite a negative impact on the share price (in the short term)?

I may be interested in acquiring some ET and HLF shares. Is it possible to take advantage of this situation? How would I do this? Should I place a low ball order on Jan 30th and see if I get filled?


Paul J.
Read Answer Asked by Paul on January 27, 2015
Q: There is an interesting and cautionary article on Auto Canada by David Milstead (writer for the Globe & Mail) regarding the current structure of the company. The article was in the G&M on Jan 26/15, and may be of interest to members that either own shares of AutoCan or are looking to buy shares.

It can be found by googling "Why I am still cautious on AutoCanada" by David Milstead.

Publish this at your discretion.
Read Answer Asked by Ed on January 27, 2015
Q: what is your opinion on the guggenhiem equal weighted rtfs. thanks
Read Answer Asked by andre on January 26, 2015
Q: Hi Peter, I rode the wave and cashed out on Concordia. Thanks to you I did all right! I am looking for another healthcare company,suggestions?
Read Answer Asked by ron on January 26, 2015
Q: Are you aware of any news that would drive this stock down 20% today??
Read Answer Asked by peter on January 26, 2015