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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: hi, what is your opinion on the ev/ebitda multiple? Do you use it when rating companies, and how come financial websites don't publish it? also what is a good ev/ebitda ratio, thanks.
Read Answer Asked by Pat on February 19, 2013
Q: Hi Peter and Team, is there any possibility of getting your help on Royal Nickel Corp, RNX? Any thoughts and insight on this one would be greatly appreciated. I bought this one a while back due to management teams background, for a long term hold at 1.20. Thanks!
Read Answer Asked by Hussein on February 18, 2013
Q: Hi Peter and Team, any further thoughts on Detour Gold Corp, DGC? They just announced their first pour ever, first four gold bars, 2000 ounces of gold. Would you rank it as a premier intermediate producing Canadian gold company? Where do you see the stock price going in 2013 if gold remains in the current range of 1,600 to 1,900, any insight on their current financial position would be greatly appreciated. Thanks!
Read Answer Asked by Hussein on February 18, 2013
Q: Noranda Income Fund reported recently on Q4. What are your thoughts on these results & what do you think of TD's $8.00 target price?

Thanks!
Read Answer Asked by Tim on February 18, 2013
Q: What does 5i Research think of Iona? Will purchasing Carrizo's 15% stake in the UKNS Huntington field be a company game changer for (V.INA).
Read Answer Asked by Gareth on February 18, 2013
Q: I have had a good run with WESPAC BANKING CORP (WBK: New York)in my TFSA, & notice that it generally seasonally "tops out" on Mar 1st or April 1st of each yr. Should one sell some or all in advance of Mar01, 2013, or just ride it out?
Thanks in anticipation, Best wishes, Paul.
Read Answer Asked by Paul on February 18, 2013
Q: Hi Peter & Team:

I am trying to pay more attention to sector diversification rather than just stock diversification. Could you comment on and/or provide a resource to help in determining how best to achieve appropriate sector diversification ? How critical do you feel this is and what information or signals does one look for when, because of general market changes, there should be an adjustment ? How does sector diversification strategy change depending on whether your portfolio is for growth,or income or balanced ? Can you recommend a site that classifies Canadian and US stocks into industry standard sector descriptions ?
You mentioned that you are doing a 'model portfolio' - will this also incorporate what you consider to be the best current strategy for sector diversification and will you do updates of that as appropriate ?
Would it be possible to provide a 'sector sort' for the stocks that you comment on in your Report and Member Question sections ?
Thanks so much for a great stress-reducing practical and educational service !
Read Answer Asked by Alexandra on February 18, 2013
Q: Peter is there a discount for 51 R members who want to subscribe to CMR mag.?
Read Answer Asked by James on February 18, 2013
Q: Marvel MRVL or MEMC WFR I was looking to buy into the semi conductors and thought these might be the way to play that sector. What do you think of these companies and which (if any) would you prefer. I noticed MrVL has been underperforming or late. Is this an opportunity?

Thanks!
Read Answer Asked by Gerald on February 18, 2013
Q: Bear raids, market manipulation, IROC, And the like....

Peter i own some T.ORT (comment if you think it a good or bad investment) last week it had an interesting "flash crash" markets opened and within a few minutes (i am sure you can get the records) ORT crashed to $1.33 from about $2.50. The volume taking it down was supposedly only about 250K shares (not enough to do this damage). 4M shares ended trading that day, IROC (whose side are they on) cancelled or repriced orders to $1.90 and claimed it was a CIBC "fat finger" trade. i believe it was criminal trading using CIBC likely out of country beyond IROC control and related to naked shorting, etc. I've seen this happen before (DNDN was the most famous example just before approval news), from your experience what is typically behind "flash crash" and should i be worried.
Read Answer Asked by mike on February 18, 2013
Q: Hi Peter,

I have few hundred shares of HNL with average cost of $6.30/shares. what is you opinion of the company going forward. Do you suggest me to hold on or move on with my loss. I will appreciate your comments.
Thanks.
Hari, Ottawa
Read Answer Asked by Harishchandra on February 17, 2013
Q: what is your view on the magic formula/ebitda/ev multiple, just curious, thanks, i always appreciate you input, thanks.
Read Answer Asked by Pat on February 17, 2013
Q: Hi Peter & 5i: Brookfield Residential's (BRP) share price has more than doubled within the last year. Is it too expensive to buy or hold at this point or are the numbers there to support the move and to suggest room for additional appreciation? Would you view the stock as an effective way to invest in the US real estate recovery from this point forward? Thanks as always!
Read Answer Asked by Lance on February 17, 2013
Q: I don't understand the long term impact of A&W Food Services selling units of A&W Revenue Royalties Income Fund (aw.un). Does this affect your B+ rating?
Read Answer Asked by Doug on February 17, 2013
Q: 5I Team, I finally took over my investments, drafted my own IPS and noticed that I am underweight in the Consumer Goods & Services and Manufacturing & Industry sector. Would you mind sharing your top picks for abovementioned sectors? I really enjoy your website, Thanks Sylvain
Read Answer Asked by Sylvain on February 17, 2013
Q: Peter...hi...maybe outside your comfort zone...but I was wondering about Personal RSP Mortgages to finance income properties? pros/cons....any links you can point to...thx..

regards

Art

Read Answer Asked by Art on February 17, 2013