Investment Q&A

Q: Hello Peter,

What is your view on current market valuations versus risk? In general prices look pretty fully valued right now especially in the US. I'm holding some cash right now but hesitant to buy more at this point as risk/reward profile looks a little shaky.

Are you continuing to buy at these market levels?

Q: Hello Peter & 5i team:

I currently hold shares in various quantities of Ithaca Energy, Iona Energy, Mart Resources and Surge Energy. During the oil price decline I have suffered through with these shares to nearly 50% decline in their share prices.

For Ithaca is a large holding in my portfolio and my current average price is over $2.00 and I have bought a small amount more at less than $1.00 to lower my average cost a bit but it is still over the $2.00 mark.

For Iona I had an average price of over $0.50 and it has dropped to less than 0.10 lately. I bought more to lower my average cost to $0.20.

For Mart Resources I have an average cost of about $1.40 and have not bought any recently in this downturn to lower my cost.

For Surge Energy my average cost was over $8.00 and I recently doubled my position to lower my average cost to about $6.00.

I have some extra cash at my disposal and I am wondering what your viewpoint on these four stocks would be before I make a further investment in any of them. I am heavily in oil at the moment with my portfolio about 60% which I know is not advisable but I have been in and out of Ithaca and Mart before and made money on them both and I am a long term investor and can stomach the huge variability in this sectors prices. I know that my money could be dead money for 2015 but this could be the buying opportunity of a lifetime in the oil industry. I am a bit of a contrarian that when people are saying buy it is time to sell and when people are saying it is time to sell it is time to buy. 2008 showed that to me for sure. All of these four stocks have great catalysts ahead and some have had execution setbacks but which or all four would you think is a better buy right now.

Thanks in advance,

Brendan

Q: May I have your thoughts on this contrarian play. Also interested in insider buying/selling.

Q: I'd like any updated thoughts on Dollarama (DOL). I currently hold it and have seen it rise significantly over the last few months. They had good earnings, but the rise seems to be greater than expected. Although I'm not complaining, is it overbought? Prior to becoming a 5i member, I probably would have sold already, so I'd like your thoughts on whether I should keep holding.

Thanks for everything, and I hope your team has a wonderful Christmas!

Q: Hi Peter,
Can you give me your opinion on alaris and should I continue to hold? thanks Clare

Q: Hi Peter and Co.

May I have your opinion on this bond...TRANSALTA MTN 6.4% 18NV19? The bond is presently trading at $110.36*, and I do have a nice capital gain. I have no problem holding the bond (in my RSP) until maturity, but am concerned about the safety of the bond considering the price decline in TA's stock price. Your thoughts are appreciated.

Merry Christmas to the staff at 5iResearch.

Arnie

Q: Hi Peter & 5i Team!

WOW !! I fully expected to have my question answered either on Monday or over the week-end since I asked it at almost 7 pm on a Friday night. But to see it answered in a matter of MINUTES !! This is an AMAZING SERVICE !! THANK YOU SO VERY MUCH! Don't you Ladies and Gentlemen have any fun on a Friday night! lol.

Just in case I do not bother you for the rest of the year, I would like to wish you Peter, Ryan and all the other amazing people at 51 Research a very Happy Christmas/Holiday season as well as a prosperous New Year 2015. May God bless each and every one of you and your families.

With gratitude for ALL that you do for ALL of us.

Francis

Q: As a follow up to Janice's question re: Health Care ETFs, on Dec 12 Market Call Jaime Carrasco mentioned a new ETF being launched within 2 weeks by Guardian (Harvest?). He indicated it would be a Canadian based ETF, covering USA-based health care companies (I guess similar to how TCN works), with a 7% dividend and the symbol was to be HHL.U (I might have the symbol wrong). Have you heard anything about this?

Thanks,
Steve

Q: Follow up on CXI. Your report on the firm is positive, but it is not in the model portfolio. Please explain how you decide what goes into the portfolio and when you make changes to the composition. Thanks.

Q: In the conference call,the Ceo stated that Objectvideo's revenue is"in the millions" & more financial details will be disclosed later.The purchase also includes recurring royalty revenue stream from Object video & patents application being developed till Jan 31,2015 Your expert view please.Always appreciate your usual expert opinion & services.

Q: Hi 5i team,
RAD is up significantly over the past years. Still highly leveraged, the interest rate environment plays in their favor. Restructuring charges seem to be in the past. Their strategy: remodeling stores, wellness rewards program, better buying cost management, etc. seem to be driving same store sales and earnings growth despite the generic drug impact. Demographic evolution of the US population should help. I expect RAD to make its entrance in the S&P500 in a not too distant horizon (2 years? which is well inside my investment horizon). It might look a little expensive, and be a little volatile.
I would like to have your thoughts on the company (including on management). Besides reimbursement program, what are the main threats? Is this a good way to get a first direct exposure to the US economy in a portfolio?
Thank you for your help, Eric

Q: Have your views changed on this company after they got the regulatory approval from FDA. Are there more risks or rewards from this point? Do you see potential for big gains?

Q: what is your opinion of this company?

Q: Could you give me your opionion on this etf?
I'm looking for disney, netflixs, etc.

Q: Good afternoon. The first and last question with respect to VMS was on Jan. 2014. Since then, I believe the mine they are partners in (with HudBay) is in production, and VMS is receiving cash flow from said mine. I have previous (unsuccessful) experience with Junior miners, and am unsure what expectations to have with VMS now that they are producing. My broker advises to hold, but I'm not so sure. Other than VMS and a small position in Goldcorp, I have negligeable exposure to mining.

What sort of upside does VMS have, assuming copper prices remain steady?

Thanks,

Cam

Q: Hi Team - best of the season. Would ELW fit as a higher risk and higher return oil pick? Who would make your top three?
Merry Christmas

Q: I was looking to pick up some Crescent Point but I noticed this morning that the CEO Scott Saxberg disposed of 603,462 shares. (disposed of by private transaction) This seems concerning to
me or is it something to do for tax purposes.

Q: Could you please compare these three health care ETFs(FXH, VHT and FXH). Alternatively could you recommend two or three health care low risk stocks in the U.S. market.

Thanks

Q: Hi guys,

I have 2 separate questions, but I thought it would be simpler to submit them both together.

1 - Given the recent bounce in energy stocks, do you believe we've put in a bottom in oil and the energy shares or do you think its just a bounce to be followed by renewed selling pressure. Despite the strong performance in shares like CPG and VET, RSI indicators still show that these stocks are not close to overbought yet.

2 - I have no fixed income exposure. I'm fairly young at 36 years old, but I want to increase exposure to fixed income over the next few years as interest rates, potentially, start to rise. What type of fixed income products, do you prefer? Corporate debt, rate reset preferreds, GICs (if rates get high enough) and should I stagger these purchases after central banks start raising rates or wait a bit after the first rate hike and then purchase.

Thanks for your help and happy holidays!
Jason

Q: Which one of the above companies has the better chance to
rebound in 2015, and why? Are their dividends sustainable.?