Investment Q&A

Q: 5i Team,

What do I do with my mining oriented stocks? Specifically, I own Caterpillar (CAT), Major Drilling Group (MDI) and Horizon North Logistics (HNL), all of which are impacted by the health / death (life support?) of the mining sector. Unfortunately for me, these 3 companies once represented about a 10% weighting in my portfolio, now down to approximately 8%. I still like the companies, and I do have time on my side (I'm 30 years old), but everytime I turn on BNN or read the Globe, its all doom and gloom for the sector, certainly for the rest of 2013 and likely first half of 2014. Is this bad news already baked into the price (hence CAT rallying the past 2 days?) or can I see another big decline from here as more and more pundits preach how bad the sector is? Should I sell and take my 15-20% loss or just tuck these away for a couple of years and wait for the inevitable recovery in the sector?

I think its worth mentioning that I expect to double the size of my investment portfolio within the year, so I will likely be able to waterdown / dillute my portfolio exposure to the sector from 8% to 4% that way (unless you tell me to buy more of course!).

Thanks!

Q: This subscription is our best buy of the year.

Another flash crash yesterday due to high frequency trading.The apologists didn't even clain Fat Fingers this time. Will this perversion of the market place ever be stopped?

Q: Further to Alex's question about BEK.B: It looks like a very thin trader. Should this be a concern?

Q: please provide your thoughts on AAPL after earnings. Is it a compelling buy at $400.00.
Best, Don

Q: BPF.UN
Boston Pizza has been on a very positive roll. Is the valuation getting a little rich? Time to
take profit?
Thanks Gord

Q: Dear Peter: Thanks for being on BNN a few minutes ago. The question is: would you be willing to alert your 5i members when you are going to be on BNN. I would not want to miss an appearance.
Jean

Q: do you have any insight into ainsworth--ans,their mills because of orient strand board and the u.s. housing recovery are supposed to be going full out. would you be a buyer here, the stock has come a long way, but seems to be trending lower, brookfield i think owns about 30 per cent.your thoughts. thanks dave

Q: Hi Peter, is there a seasonality in stock pricing? If so, why financial companies seem to have this pattern of peaking at early of the year and bottoming around summer? Should we take this into investing for long term?

Q: The spinoff from BAM of limited partnership units of BPY.UN was valued at $1.27 per BAM share (0.0574 units), which according to their website brookfieldpropertypartners.com was 7.5% of BPY in the hands of the new unitholders. This seems to value the remainder held by BAM as "REU's" (redeemable exchangeable units) at $15.66 per BAM share (42% of BAM) yet the pro forma market cap of BPY from the website is $12 billion (27% of BAM) while the market cap of BAM is $44 billion. So did BAM underspin the unit numbers or overvalue the dividend and is the structure of different types of units comprising the LP normal for an LP structure??

Also the taxability of the proposed 4% distribution is likely to be messy like BIP and BEP so I'll likely sell the odd lot of BPY I received in a cash account and hold a round lot in a registered account as it seems to be an interesting play on global real estate as opposed to the other 2 Cdn & USA Brookfield real estate subs. Does this make sense?

Finally, the BPY units appear to be trading in a downtrend; how long can we expect this to continue before we see a reversal?

Thanks, Jeff

Q: hi, looking for any comments on rusell breweries RB.v hi risk they have a contract with china distributor. payed .02$ balancesheet not that extraordinary.

Q: What is you opinion on Chorus aviation(CHR.A)?
Thank you
Gilles

Q: I have a question regarding distributions. I have read that funds to pay distributions to shareholders are taken from the price of the stock. This implies that the price of the stock would then decrease by the amount of the distribution. If this is true, it would imply that that there are no real gains from distributions. I would appreciate your input on this. Thank you.

Q: What are your thoughts on Nucor Corp, NUE?
Thanks

Q: Hello 5i, Could you comment on Black Pearl PXX Thanks

Q: Hello 5i, Could you comment on ZCL as to ther stability of the company and the company itself also would this be a buy,sell or hold.Thanks

Q: I turned on my computer late Tuesday and found ATH to have fallen 13% and I can't find any news as to why. Have you seen anything that would make the stock fall that much? Thanks for you reply.

Q: Hi team, I am once again looking for a good dividend long term hold for an RESP and was looking at Innergex INE on TSX. The debt has been downgraded, is it too small and risky, or do long term energy contracts offset the risk at least a little. Thanks for your time.

Q: Hi Peter,

I recently bought ishares XSP-TSX and BMO ZGI-TSX ETFs. I want your opinion on those ETF's and also for tax consideration, Do I have to pay tax like the normal TSX listed companies or are they treated as a foreign companies? Thanks for your answer
Hari Ottawa

Q: peter i was wondering what is your take on ETC equitable group and CEN coastal energy thanks.

Q: CFN: The recent share offering (I believe) was at $9.75. With the price now at $9.12 or so, would this be a buying opportunity or is this looking more like "time to leave the party" in view of the decline in share value. I am under water and ignored my bias to sell when I was only down 10%. Now I am down 15% and trying to see into the crystal ball. But it is not giving me any guidance. Hopefully you can. Thank you.