Investment Q&A

Q: I am very curious about exactly how oil/natural gas price hedging works. Who takes the hedge bets and are they sufficiently funded to meet their obligations now that most, if not all, hedges have to be paid due to low commodity prices? In addition, typically, how much would a company pay to hedge the price they wish to guarantee and has anyone ever defaulted on a hedge?
Thank you.
Steven

Q: Happy New year to Peter and the rest of the 5i team

Yet another question on a U$ equity which I know is always "a little" out of bounds but... this is a very large cap company that has some significant upside from what I can see. Yet it continues to go down reaching it's lowest point today since Nov 2012.

7X 2015 projected EPS, 25% increase in backlog, Q3 GM up Q over Q, and an expectation of a considerable increase in revenue moving forward.

What am I missing here?

Thanks for all you do

Gord

Q: currently have only Canadian index funds in bulk of portfolio;
plus a dividend fund... am considering the addition of the banks and insurance etf to take advantage of the pull back in the banks and the long range benefit the interest hikes could give impetus to the insurance industry. your thoughts??

Q: What are you some of your recommendations for $US denominated bond etfs? Should I be selecting short, intermediate or long term bonds (or broad-based)?

Q: I've been watching GUD for the past couple of months looking for an entry point, and hasn't seemed to pull back at all with the rest of the market. I know you advise against timing the market, but do you think now would be a good time to jump in? Or do you think there will be more volatility in the short term? Also, what 2-3 other growth companies outside of oil and gas would you recommend for a TFSA with a 3 year investment horizon?

Thanks

Q: What is your opinion on this company for potential growth as well as maintaining it dividend?

Q: I have been researching Ridley, and have noticed that they seem to have paid generous dividends (all by way of special dividends, annually) all (well, three years, anyway) in excess of per-share net income and very close to or sometimes exceeding per-share cash flow.
That doesn't appear to be sustainable -- or what am I missing or misinterpreting?
Have the last three years merely been a "catch-up" to investors for prior years without dividends?
I understand that dividends under a policy such as theirs (i.e. special dividends) is less certain than a regular quarterly or monthly stream, but how much comfort level can we take on future dividends from RCL?

Thanks for doing your part in distinguishing investors in quality companies from "investors" in the market!

Q: I am considering this stock for my Beat the TSX in 2015. What is your outlook for the company in the coming year as well as its ability to maintain the current dividend?

Q: Happy New Year! We have exposure to the above Banks. After these 2 day's of decline I am concerned about the future and we are considering selling them now and coming back later. Would you consider this the right move OR would you advise to stay the course. Some of this Bank money will be used mid summer for a new house build so we need to make as few mistakes as possible right now. Thx for any help you may be able to give.

Q: What is the best method for an average investor to hedge these low energy prices for our benefit at the pump long term

Q: I realize that forecasting the bottom of oil prices is not possible, but just for fun, if you think oil will see $40 and possibly less, would you sell your various oil holdings now - bte, cpg, sgy etc, even if you have a 50%+ loss??

Q: You have not been asked about IVW for some time. It has done nothing for years and now at $0.05 it seems to be at a multi-year low. Provided it can survive until economies around the world begin to pick up, it may be a good "bottom fishing" opportunity. Do you have a current view on this Company?

Don

Q: Follow-up to Matthieu's question:
My layman's understanding of the car dealerships has always been that they make relatively little profit on actual car sales but rather on follow-up service and repairs. If that is the case, it would seem to me that any "temporary" (e.g. < 2 years)reduction in Alberta car sales should not have a drastic effect on dealership profitability. Consequently, I do not understand why ACQ stock is being hammered so severely in the current environment. On the contrary, it now seems to be a good buying opportunity.

I would appreciate your comments. Thanks!

Q: Your thoughts on Rba

Q: What is the criteria for choosing a stock for a DRIP portfolio ? Assuming the company I consider has a 5i Research report, What attributes should I be looking for (low debt, clear growth plans etc. )

Thanks!

Q: Would you consider this fair value or expensive?...looking at it for the
Risky part of the portfolio...
Thank you
Glen

Q: In the Dec 2014 model portfolio results, the last column "Current Allocation" does not reflect the information in the Notes section (e.g. AYA is shown as 7.5%, but the Notes say it was reduced to 5%). Shouldn't the "Current Allocation" column reflect the changes that were made to the portfolio on Dec 31st?

In the Sep 2014 model portfolio you do reflect the changes identified in the Notes (i.e add WCP and FM) in the list of stocks showing their weighting.

Shouldn't the reports be consistent in reflecting or not reflecting what changes were made as identified in the Notes section?

Paul J.

p.s. It is not necessary to keep this private. Publish if you feel others would benefit from the answer.

Q: In your opinion, what five Canadian oil companies will survive the downturn in oil prices. Thanks

Q: I want to feel comfortable with my holdings when interest rates eventually begin to rise. Could you simply categorize the following industries into one of three categories. 1) Greatly affected negatively. 2) Affected moderately negatively 3) Not much effect 4) Will affect positively.

Financial - Banks, Insurance, Investment co's

Utilities - Gas/electrical , Pipelines, telcos

Manufacturing ( includes technology )

Consumer - Durables & discretion

Resources - Gold + Materials + Oil & gas.

Pref shares

Any general comments also welcome.

Many thanks

Paul C

Q: I own Genworth Financial (GNW.US) in TFSA account, and it reported very poor earning last quarter and its cash reserve has been down unexpected significantly. Genworth is scheduled to report in February, and I am afraid it will be another disappointing quarter. Since I can't claim it as capital loss, do you think I should cut my loss to move on other companies or wait for its turn around? I like Starbucks and Michael Kors quite a lot; however, Starbucks valuation is very high, and Michael Kors has just been downgraded by Credit Suisse today.Does it make sense for me to switch from Genworth to Starbucks or Michael Kors at this time? Thanks for your great tips always!