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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 owned this company a while back and sold before it fell off a ledge. The stock seems very cheap and I'm considering buying some. Any thoughts for a long-term hold? The prefs seem attractive too. Thanks.
Read Answer Asked by Ben on December 16, 2014
Q: Seasons greetings everyone
I have a weighting of about 5% in Bellatix and remain optomistic partially because of the involvement of Orange Capital. BXE has allowed Orange a seat on their board and the release states that BXE and Orange have reaced a "standstill" agreement to Nov 30th 2015. What is meant by a standstill agreement, and can you comment on how such an agreement might affect the stock going forward?
Thanks again for your excellent sevice.
GUY R
Read Answer Asked by Guy R. on December 16, 2014
Q: Looking into 2015, which of the following do you project will perform the best - financials, materials, energy, consumer,utilities (and why)? and is there a specific sub sector that you project will be an outperformer? thank you.
Read Answer Asked by KEN on December 16, 2014
Q: Most of my investments are North American and at this time I am looking at adding some international through an ETF. Looking at EEM, FEZ and VXUS. What are your thoughts on this selection looking at a 5 yr window. Would one enter now or even though we are having an up day is there more down side to come. Also any other recommendations.
Merry Christmas to you and staff.
Read Answer Asked by Loretta on December 16, 2014
Q: Good Morning Peter and team: I would like your opinion on Flowserve in the US. The valuation appears attractive after the "oil sympathy" sell-off, and I'm wondering what you see in this stock. I do not currently own it.
Read Answer Asked by Donald on December 16, 2014
Q: an updated opinion on mux please, damn, ive never seen these shares so low,even rob must be concerned.tkx pat
Read Answer Asked by patrick on December 16, 2014
Q: Have these three in portfolio and want to sell two by Dec23 for tax loss. Would prefer to leverage up on the remaining name to mitigate the realized loss. Any suggestions for a confused investor with a long term investment horizon. Thanks Doug
Read Answer Asked by Doug on December 16, 2014
Q: I am mystified by the "buy" rating accorded this stock by several respectable stock rating services. Does your perception of their data give you a similar perception?
Read Answer Asked by David on December 16, 2014
Q: thinking (hoping) markets are near a bottom. order got filled today for cve @ $20, bep.un @ $33, bns @ $63.75. trying to pick up some +4% yielding stocks and hold in my rsp for the long term. brings my sector weights up to 7% oil/gas (ex pipelines) and 6% financials. decent buys at these levels?? Thanks
Read Answer Asked by Richard on December 16, 2014
Q: 7:55 PM 12/16/2014
Hello Peter

Despite your somewhat lukewarm advice [you were quite right to be cautious] about Canadian Oil Sands [COS] I purchased 1% position some time ago. I am now down 62%. After the dividend cut I would think it is now somewhat safe however I would appreciate your advice on whether to just hold for many years or whether I should switch to a pipeline or a utility that might have more growth potential and more liklihood of dividend growth too.

I would like to get a dividend in the 4 to 5% range as I imagine that would be safer and maybe allow more growth.

I was wondering about switching to one of : PKI, GEI, ALA, IPL, PPL, AQN, INE, EMA. Can you tell me which 2 or 3 are most likely to have reasonable growth and a solid growing dividend that would be better than COS, and could you rank them in order of preference.

We now have a 4% position inclusive in these three : BNE, SGY, BTE. Is COS "Dead Money" for the next few years or will it spring to life if the oil price rises? Would you advise a switch or would you just stick with COS?

Thank You... Paul K.
Read Answer Asked by Paul on December 16, 2014
Q: Does anyone know if GCU will survive or should I sell and hope for better odds in vegas. I had assumed with the gold resources they hold something would have been done by now.

Now I am not sure if anything good will come out of it. Losses in every stocks including U308, palladium, technology are washing me out of the market. I am starting to think that I should have stay in Vegas last year instead to buy anything Canadian at least I would have had the 10% odd of getting ahead. If I may ask what are the odds of the Canadian companies surviving this sunami? I took good losses in oil and gas but will wait a few years before to even look at anything oily.
Read Answer Asked by gilles on December 16, 2014
Q: Question on the Deferred income taxes of $5,594,000,000.
Do you have any insight into this on the current report in section 22 they explain $655 million as an increase of Mexican income tax. What about the rest?

http://www.goldcorp.com/files/annual_reports/Goldcorp_AR13_full_v08.pdf
Page 87 is the balance sheet. on page 130 and 131 they explain it.

But it is a big one.

The below only explains $665 M

In December 2013, the Mexican President passed a bill that increases the effective tax rate applicable to the Company’s Mexican operations.
The law is effective January 1, 2014 and increases the future corporate income tax rate to 30%, creates a 10% withholding tax on dividends
paid to non-resident shareholders (subject to any reduction by an Income Tax Treaty) and creates a new Extraordinary Mining Duty equal
to 0.5% of gross revenues from the sale of gold, silver, and platinum. In addition, the law requires taxpayers with mining concessions to
pay a new 7.5% Special Mining Duty. The Extraordinary Mining Duty and Special Mining Duty will be tax deductible for income tax purposes.
The Special Mining Duty will generally be applicable to earnings before income tax, depreciation, depletion, amortization, and interest. In
calculating the Special Mining Duty there will be no deductions related to development type costs but exploration and prospecting costs
are deductible when incurred.
As a result of the law becoming enacted in the fourth quarter of 2013, the Company recognized a non-cash charge of $655 million related
to the deferred tax impacts of the above tax changes.
Read Answer Asked by Terry on December 16, 2014
Q: Is there a reason to have sustained faith in Yamana? You have spoken (written) a few times on the geo-political risk that companies take on when they are located in "problematic" countries. Brazil and Argentina seem to come up often enough in terms of areas with political risk. Given that much of Yamana's resources are located in these two countries, what danger might it pose to Yamana's survivability?

In an off-shoot question, related to this topic: Has there been any resolution to Magna's investigation in Brazil?

Thanks for your help.
Read Answer Asked by Sylvia on December 16, 2014
Q: With CDV.TO holding OK, and MDA.TO seeing new high, CMI.V continue to decline. I am seeing a big drop today for no reason. I have a small position bought at $1.75, and attempted to add more. Please help me to analyze the situation. I can tolerate volatility.

Thank you!
Read Answer Asked by Dong Sheng on December 16, 2014
Q: Transat has been hit hard since reporting recently. What do you expect is driving this weakness?
It would appear that:
Lower oil prices help;
other recreational travel ops are trading higher (eg. cruise lines, RCL);
airlines (AC, WJ) are trading higher.
Read Answer Asked by CAMERON on December 16, 2014
Q: Some of the stocks in my portfolio have been beaten up pretty bad, so much so that the downside risk has diminished considerably and the upside even with just a rebound, over the next year outweighs the risk. My energy exposure is 8% and the canadian financials is 19%.
Would you approve moving out of some steady eddies like BYD, DSG, ESL, MDA, MNW and STN and increase positions in ACQ, HCG, TOU RMP and BXE?
If you do approve are there any names above that you would not include in the rotation?
Thanks.
Read Answer Asked by Rajiv on December 16, 2014
Q: Sorry another AYA question. I currently hold a 5% position in the company. When i read your answers to earlier quesitons on AYA I get the since that the potential down side is 50% or more, yet the upside is "slight recovery" to quote your words. The risk reward seems to be unfavorable now. Will you be cutting your weighting in your model portfolio, and would you suggest reducing weighting to 3% considering the risk/reward currently.

Thanks as always
Darcy
Read Answer Asked by Darcy on December 16, 2014