Investment Q&A

Q: Hi Peter & Team,
What is the way to calculate an estimate to a target price based on: forward P/E or Price/Cash Flow or Price/Sales or any of "per share data".
Is there any other data I need? or where can I get this info?
Thanks,
Morris

Q: Hello Peter & 5i Team
As a Canadian expat living in Europe, my current equity portfolio includes (in order of magnitude) European, Canadian, US and Australian equities. Given your experience in the industry, I would be interested in your views of international markets. More specifically, would North American markets provide better/worse growth/income etc than European markets or vice versa. I appreciate this is a very broad question that includes currency risk among others but I was wondering whether there is a "common knowledge" within the investment industry of the pros/cons of investing in the various markets with respect to quality of company reporting, dividend issuance, growth potential etc.

Your insight is always appreciated and I am constantly learning from your replies and reports. Thank you.

Q: I was reading some information about Avigilon (AVO) a few days ago. Apparently, Veritas suggests some issues that could affect AVO are channel stuffing (something to do with collaboration between AVO and its channel intermediaries) and early revenue recognition. Veritas also was concerned about uncommon auditor review practices. As a consequence to its review they are suggesting caution. It seems to me that these are probably consequences of a fast growing company rather than something I should be particularly concerned about; however, the frequency I get burnt by trusting my instincts is too high so wished to get your valued opinion. Thank you

Q: Newcomer to 5i after seeing you on BNN. Searched but couldn't find anything on Neptune Technologies (NTB:CA). Alex Ruus was "banging the table" on this one a couple of months ago on BNN, but said the good news would come in the back half of this year. It's since gone from around $2.90 to $2.30 a share. Any thoughts on this turn around story?

Q: Hi

What are your thoughts on TOS, company name TSO3 and it's product and viability over the next 12months? I bought sometime ago at $2, should I sell or do you see some life in this company?

Thx,
Frank

Q: Your opinion on phx at this time would be appreciated.

Q: With the big drop in HNL (Horizon North) and relatively smaller drop in BDI (Black Diamond), which stock would you pick for the the most capital gain potential (in the next 1-2 years) and why.
Would you buy at todays prices or wait until the dust settles on these stocks. Thanks!

Q: Hi Peter and team,
Quick thoughts on Credit Acceptance Corp, CAAC.US

Q: What do you think of CBIZ (CBZ.US). Thanks.

Q: Hi Peter and team,
Quick thoughts on Female Health Company? FHCO.US

Q: Hi Peter and team,
Quick thoughts on Amtrust Financial Services, AFSI.US

Q: I own MBO formerly LXV. You commented on the stock last November. This stock has done badly. At .075 is there any hope for this company? Thanks.

Q: Hello Peter,

Regarding the question I ask (August 01) concerning portfolio diversification, allocation and types of accounts for tax efficiency. Thank you for your answer and also for Lance’s comments (August 04) may I say I find this most informative and educational in helping me in my investment decisions. Ronald

Q: Hello 5i team,

Questor (QST) down 33% over the last month. Do you consider the current price a good entry point? or should one wait until price stabilizes? I have a long term position in mind.
(Understood that it is a high risk holding.)

Thank-You.

Q: Hi Peter,
I initially accepted the investment risk associated with acquiring Questor, but it has been in a downward spiral since and now find myself down 20% since I bought it. If it were not for the eco-conscious potential associated with Questor`s product offering, I would typically move on; could I have your opinion towards the potential upside to this stock? If I stay put, should I be taking advantage of the current price and increase my position, or would you hold off and wait for a rebounding indication of strength. For what it`s worth, BMO have tagged a support price of $.40 ( scary). Can you enlighten me Peter?
Thank you kindly for all you and your team have done for neophyte investors such as myself.
Rick

Q: Hi there. I am reviewing my current holdings and I'd appreciate your comments on Lyondell Basell (LYB-N) in terms of the current stock valuation and on the company's prospects going forward. I've had the stock for about a year. Would this be a long term hold or more of a cyclical? Thanks.

Q: peter & Co.
May I please have your analysis and opinion on Romarco Resources (R on the TSX)?
With appreciation.
Ed

Q: would it be possible to allow a user to see 10 pages of questions at a time rather than only one page? In other words allow 10 times the questions to be on 1 page?

This makes it easier if you have an iPhone because because you don't have to say next page as often.

Thanks,
Ken

Q: Hi 5i: A comment on Ronald’s question (Aug 1) about spreading holdings across more than one account (RSP, TFSA, Taxable). I took his issue to be that, given the amount of his total investments, two 5% equity positions would max out his TFSA capacity, resulting in his betting his potential for TFSA tax benefits on only two higher growth (and quite possibly higher risk) equities. I suffered through a period where a similar concentration that did not work out as desired seriously hamstrung my ability to grow my TFSA. Back in the first couple of years of TFSAs, when the accumulated contributions were $5k or $10k, this concentration for equity holdings was only really avoidable through an ETF or mutual fund. But now that one’s total contributions may be as high as $31k, and one may have grown from that with some years of investment returns, TFSA account balances can be large enough to warrant treatment as mini-portfolios and in my view many of the regular principles regarding diversification and stability should be applied. I agree with your general suggestion that the TFSA accounts be weighted toward higher growth companies because if you can get some of the high growth benefit in a tax free form it is great. Probably even better than no tax bill is the accomplishment of increasing your total allowable tax free investment space, which would otherwise be severely restricted by the annual contribution limits. However, by the same token, the value of that tax free investment space makes the TFSA the worst place to suffer a significant loss. So I would say have some high growth potential in your TFSA but also have some relatively stable reliable stuff in there that will preserve your ability to salvage the account and recover in the event that one of the high growth vehicles doesn’t work out. That probably means you don’t concentrate your TFSA in just two positions (at least, it wouldn’t fit most people’s investment profiles to be that concentrated). Particularly now that an equity transaction costs most do-it-yourselfers $10 or less, you are not costing yourself much in fees to have some diversity in TFSA positions starting in the 3 to 5 thousand dollar range. And you are not costing yourself much in extra fees to have some of the same holding in different types of accounts in order to have a stabilizing or growth effect on each of them. Thanks!

Q: Hi 5i team,

Could I please get your recent thoughts on PTA (Petroamerica) subsequent to the acquisition of Suroco?

Much appreciated in advance,

Jon