Investment Q&A

Q: Can you recommend some US ETFs that are not hedged to the Canadian dollar for the S&P 500, US financials and technology? What are your thoughts on XLK and SLF? Any advice on when to enter these trades? Thanks so much for your service.

Q: I note that in your Sept 11 review of easyhome you state that easyhome sold off 15 US corporate stores due to profitability and unfavourable economic conditions. Give the recovery to date in the U.S. economy and the weak Canadian dollar, have economic conditions changed sufficiently to cause EH to refocus at all on the U.S. market. Is Eh a buy at $19

Q: HI- YOUR COMMENTS ON THE LATEST ACQUISITION. IS IT A BUY HERE?

Q: Can you recommend any Alberta specific companies to short beyond the oil patch? I am looking at companies that derive a significant portion of their revenues from Alberta's previously buoyant economy and may be due for a rude awakening. Would you say ACQ and MIC fit those criteria? Thanks

Q: I have 10k in my RIF A/C in $US. I am thinking of buying Telus/ and or AYA in this US A/C. As these companies are listed in the US stock exchanges, does it make any difference if you buy in the US or Canadian a/c. Thanks for your most valuable advices.

Q: Hi Peter & 5i: I heard mention recently of the prospect of Canadian O&G producers running into debt problems as a result of current debt covenants that require them to maintain threshold ratios on metrics like debt/cash flow. Lower oil prices would mean significantly lower cash flow and potential difficulty maintaining the required ratios. Also, with the prospect of the lower oil prices extending at least well into 2015, IFIRS requirements may also have them writing down their oilfield values by the February-March timeframe, which could be detrimental with any similar provisions using metrics that involve asset values. What are your thoughts regarding these concerns for the O&G stocks generally and, more particularly, for Baytex? Thanks.

Q: Would you please explain what is happening with the Bristol Water division. The stock is dropping and I would appreciate your thoughts. THANKS

Q: The market seem very volatile at the moment. Is this a good time to buy Google? Thank you.

Q: Hi Guys; A follow up question on Energy pairs trade. Can you give me the name of 3 or 4 high quality dividend paying energy companies that you would use for this strategy?
Cheers, Darcy

Q: Can you help me understand the big drop (11%) so far in this stock today.
Thanks so much.

Q: What should I do if I hold HCG. Where is the bottom? Thank you

Q: Hello 5i team,
AltaGas at $37 today, is very close to a 52-week low. The P/E has ballooned to 32X. The RSI shows it below 30, indicating it is oversold. For someone waiting to enter this sector, this feels like a good entry point, or is it wise to wait until January 2015 to see things settle down with oil and to avoid ``catching a falling knife``?
thx, and I am loving this website!
Rob.

Q: Many energy companies have hedges in place that will allow for continued capex and divs...but who is on the other side of the trade? Some organization must be losing massive amounts to balance these hedges, could it be the Canadian banks and could that explain some of their recent downslide? Thank You Ron

Q: Could I have an updated comment on ATH given that they have no dividend to cut and how much cash do they have in the bank?
Many thanks!

Q: Thanks for your service! Curious about the portfolio review you offer but couldn't find info on the website.

I currently have minimal exposure to the energy sector, and am thinking about dipping my toes in the water for about a 5% weight that could be added to if oil had another shock to the downside. I'm looking at adding a few lowest-cost larger-cap producers that would be the "last men standing" should oil stay at these levels for an extended period. What would be your choices for core holdings in the space?

Also, why do you think OPEC kept production level?

Thanks!

Q: Hi Guys,

I am a dividend investor and one of my rules in my portfolio management is to immediately sell any company that cuts it dividend without thought or question. I can repurchase the stock after a 60 day waiting period. This has helped in the past as the stock price usually keeps falling.

I own SGY and CPG in my portfolio in equal weight of 3% each. I am considering not using my "sell on dividend cut" rule as these stocks have dropped prior to a POSSIBLE dividend cut and may even rise if a cut is announced.

I would appreciate your comments.

Regards
John

Q: Amaya is off 21percent at the time I am writing this. Can AYA be bought at this level based on fundamentals.
Thanks

Q: Peter, only for the information file, I spoke with management at Surge this week. They told me the dividend is safe and they will protect it at all costs. They said they had prepared for this scenario in oil and would see there commitment on dividend through. Who do you believe, analysts or the boss of the company. I will take the boss of the company, Ken

Q: Is there any reason IT is getting hit almost twice as hard as AYA. I would think it would be the other way around. Thanks

Q: Comment only - Thank you for your comments re Amaya. As a holder I was panicked but appreciate the facts and insights you provide.
No reply necessary - Just want to say Thanks for a great service. Publish if you like.