Investment Q&A

Q: Petronova PNA;T A strategic review has been initiated as mgmt feels company is undervalued. In general, once a company announces such intentions, if long the stock, should one wait hold, sell? I had bot it for int'l exposure in oil exploration
and am thinking the story is over and it is time to move on.
Would you agree?

Q: Hello to all ... in your most recent survey you asked some questions regarding paying a side bar fee to have you or Ryan comment on personnel portfolios. I am retiring in September and am relying on the 5i portfolios to generate a healthy income. RIF, LIF, TFSA and Cash accounts will comprise of my overall direction. Although my questions are basic, should I be asking my questions via Investment and Company Q's or should I send Q's off camera for you 2 to comment on? As always TY.

Q: RTK Artek Exploration provided an operations update on June 18th which gave some indication of their well results in the Inga Fireweed area of the BC Montney Play. No further information.
Do you know the management of Artek? What is 5i's opinion of the company?
Thank you
Nadine

Q: Do you have any opinion on KSM on the venture exchange?Thank you

Q: I have a question regarding CEFL.US, which is a 2X leveraged fund of funds product created by UBS. If I buy this in a taxable account, is it your belief that a 35% foreign withholding tax would have to be paid? I think that withholding tax would have to be paid on it's cousin BDCL.US because it has MLPs as its consituents, but I'm not sure about the former. I know you guys aren't accountants but I thought maybe you would know. thx

Q: I am a long-term investor and am considering buying XSR and BIP.UN. May I have you opinion please? Thank you.

Q: Hello 5i Team
Sadly I have have not paid proper attention to our investments( left it up to advisers),and within this year we will need to draw income. Please give your opinion on the following( about 30% of investments), including whether to continue holding or switch, and alternatives if switching is advised.
1) BNS.PR.Y (72.2k) 2) AGF4076 (50k) 3) FID281 (140k) 4) FID227 (14k and the only international exposure) 5) Total Energy Services Inc Con Unsec Sub Deb Mar 31 2016 5.75% ( 42.4k).
Thank you in advance, Bill

Q: Peter:

Caldwell Partners International (TSX: CWL) released Q3 after the market closed today and the results appear to be very strong. Do you think the stock still has lots of upside from its current trading price of $1.24 for small cap investors?

Q: What did you think of the latest qtr from MTY? Thank you.

Q: I have some cash in my U.S. account that I want to put to work towards a high yielding stock that trades in the states. Was going to buy ORAN ADR on NYSE, however, judging from response to a previous members question on it, I would be better off investing in another company. I am looking at BLX on the NYSE. Do you have any suggestion for company with gooder outlook and possibly a higher yield?
Regards Anthony

Q: What is your opinion of the high dividend ETFs SDIV and DIV available in the U.S.I am considering one of these funds for my RRSP but am somewhat suspicious of the high dividend rate offered.
Are they too good to be true and should I perhaps look elsewhere.Thanks, Joe

Q: Good afternoon...I have $100,000 that I keep in cash and will not need to touch for 1 to 1.5 years...ideally would like make some interest/income....I would not want risk but will to take conservative risk....what options would you recommend...I have other investments full invested in the market...

Thanks

Matt

Q: Hi there, I was wondering if a product like "TD Inv Sav Acct TDB8150" would be considered a "deposit" in the event of a bank bail in? Is it covered under the $100,000 bank deposit insurance provision? If it would be taken in a bail in, where else can one hide cash?
Thanks

Q: I own both GOOG and GOOGL. GOOGL is up today whereas GOOG is down. Why is happening? Thanks.

Q: Hi Peter & team,
Just want your thoughts on Raging River Exploration (RXX) At the moment. Do you feel as if this is a good entry point after the recent pullback or is it worth waiting to see how it will play out in the coming days.

Thanks

Q: Hi 5i: Exchange Income Corp (EIF) – It is difficult for investors to size up these negative/”short’s” reports. Many people will remember Muddy Waters’ report on Sino Forest and the subsequent disintegration of that company.

About 2 years ago Prescience Group issued a report on Student Transportation (STB), claiming that the company was effectively a Ponzi scheme, that the dividend was unsustainable, and that the intrinsic value of the stock was about $2 per share. STB dropped from 7.38 to $5.71 (intraday levels) in a little more than a week, largely on the strength of the report. Since then $5.71 has become the 2.5-year low for STB, which has made its “unsustainable dividend” payments, without reduction or interruption, for 24 consecutive months. STB shares have spent most of the past year on an upward trend between $6 and $7, although they have popped above the $7 level on a couple of occasions. The dividend yield with STB at $7 is still nearly 8%. Not bad for a stock that was supposedly worth a toonie a share!

So back to EIF, here we go again. What are we to make of Veritas Research’s disembowelling of EIF? Does this put the company’s recent management “expansion” and reshuffling in a different light? Would you be significantly concerned about EIF’s convertible debentures (especially the G series, which you seemed positive on in a previous comment)? Thanks!

Q: This may very well be outside you area of focus, however thought I would still ask as I respect your opinion on equities.

Contra the Heard was on BNN yesterday with three very small US bank recommendations and a previous small bank recommendation. I am starting my due diligence and chart work. Any thoughts you may or may not have would be appreciated.

The stocks in question are FUNC, MCBC, CACB, BUSE.

thanks in advance, Mike

Q: re: diversification, O& G and trending in general

I have consistently heard you loud and clear over and over again your sound advice to focus on long term rather than short term "market predicting" for lack of a better phrase.

Having said that there are at times when certain world wide situations effect a sector - such has the lessening of conflicts in the Ukraine & the middle east resulting in oil prices coming back down to earth.

The "majority" of recent commentary on BNN has suggested we may see a slight correction over the next few months - especially in O&G - after a very strong move. As such I have taken a small portion off the table from my O&G holdings and am now sitting on some cash.

What would you suggest would be a good sector to look at today and what names might you suggest in that sector that have good value based on their EBITDA and affordability with minimal debt?

OR... would you suggest sitting on 5% cash?

Thanks for all you do for all of us

Gord

Q: I’ve been wondering if I should make some amendments to some of our investments in the financial sector which amounts to 20.75% across four registered portfolios for me and my wife. We are both close to 70 and need a little income from our investments. Dividend payouts are barely keeping up with withdrawals from the RRIFs.

We own stocks in four major Canadian banks:
Toronto Dominion TD – 3.43%
Scotiabank BNS – 3.43%
Bank of Montreal BMO - 2.87%
CIBC CM – 3.51%

We also own:
Power Financial PWF - 2.42%
Sun Life SLF - 2.87%

And
Ship Finance SFL (US) - 2.22%

The four banks were bought at different times and have all done quite well overall, some seeming to move ahead while others were lagging and then the picture changing and the positions being reversed. I know you like BNS, but I was wondering if it is a good thing to spread the investment over four institutions for diversification.
Same question for the insurance companies. This time around, I bought them both at the same time, but Sun Life has done better than Power Financial.
Ship Finance is a recent purchase and too soon to comment on.
In separate correspondence after my initial message didn’t get through, I note you answered my question that that you think the financial sector should be 15% – 20% of a portfolio.

Thanks for your advice.
John M

Q: Could you comment please on Questor QST-V. Saw an interview on BNN about this Canadian companies technology to reduce emissions from oilfield flares. Their patent runs through to 2019. Who might be their competition. Thank you.