Investment Q&A

Q: Over the years I’m sure you have acquired some great reads and learned from some great master stock pickers – I am interested in learning more about how one evaluates companies and their numbers. From reviewing this new section I see that stocks I perceive as good, others are too, so I’m learning… Do you have any recommendations?

Q: Student Transportation (STB on the TSX) is a high-dividend paying stock, currently paying an 8.6+% monthly dividend)which is somewhat controversial because of its opaque financial statements and business model.

Is this stock a house of cards or is it a dividend seekers dream stock?

Thanks, once again.

Q: Just wondering if you might be covering Superior Plus (SPB). I’ve held this for many years, originally as a trust and although it has not always had great numbers it does appear to hold a near monopoly on the propane business in Canada.

Q: I have been a holder of Inter Pipeline,IPL-UN for a number of years with great stock value growth and a good dividend, is it time to sell or is there more to come?
Thanks

Q: What is pow-t rated at.

Q: Hi Peter, hope all is well
I have been reading about hydrogenics (HYG) and would appreciate your thoughts on the stock. Has it as much future as some are touting it could have?
Please keep up the great research
Lee

Q: What is your opinion on Eagle Energy Trust? It appears to be paying out more than it is generating in cash flow or earnings; is it likely to grow fast enough to support its dividend?
Thanks.

Q: What is your opinion on Sprott Resource Corp (SPC)? Why has it fallen so much since early 2011? Thanks, Derek

Q: Could you please explain what it means when a company takes an impairment charge? Since the share price seems decline dramatically, is it better to sell right away or what are the chances the company can turn things around?

Q: First of all, I just wanted to say congrats on the new venture. I have been a follower of yours for years, and am a big fan of your analysis and thought processes.

My question is on Trican (TCW). Their last quarter was fantastic (increased dividend and strong profits), and saw the stock rally to ~$19. Since then, like the rest of the sector, it has been badly beaten down, now trading at roughly 5x 2012 EPS estimates. I understand the nat gas sector is experiencing issues, especially in the southern states, but as a long term investor, would you look at TCW at these levels? Thanks in advance.

Kevin

Q: How reliant is algonquin power and utilities (aqn on the tsx) upon government subsidies for financial success?

Would a withdrawl of such subsidies be a material risk?

Do you consider AQN to be an investable dividend growth stock, right now?

Thanks, per usual

Q: Hi, I would like your opinion on just energy, je. Is the dividend okay? thanks george

Q: Educate me please:

I’m new to investing on my own. Previously used an investor who chose mutual funds for me – mistake!!! I know now that no-one is going to care about my money as much as me – so I’ve taken all my investments out of the hands of my investor and am slowly transferring my mutual funds into stocks. I’ve only been at this two months and already my stocks are doing better than the mutual funds ever did! But, I need some discipline, a plan and guidance.
My questions:
1. How many companies do you recommend someone should own in a portfolio. With a portfolio of say $100,000.
2. Should each company holding be of equal value and if yes, should I have equal number of shares in each company or equal amount of money in each company? Example: Wi-Lan at $6.00 a share and Boyd Group Income Fund at $12.00 a share. And I have $20,000 to invest in these 2 stocks. Should I put equal amount of money ($10,000) in each stock (about 1500 shares of Wi-Lan and 800 shares of Boyd Group Income Fund)? Or equal amount of shares (1000 shares) of each company?
3. I’ve read elsewhere that when investing I should only put in ½ of what I intend to invest in that company, then the other ½ if the stock decreases by 5% or increases by 5%. What do you think about that strategy? I’ve had this happen to me, I invest one day and the stock goes down the next day 5%, and I’ve had it go the other way increases by 5% the next day. If you agree with this strategy, how far should I let the stock go down or go up before re-investing the other ½? And how long should I wait, say if it goes down 5% the next day should I re-invest the other 1/2 next day, or wait a week or a month?

Thank-you for all your help, I’m learning so much from everyone’s questions and your answers. I wish I could attend your seminar next week, maybe sometime in the future you could have a Webinar where we could enroll in your seminar and be able to listen to it live and ask questions over the web instead of attending in person.

Q: Hi Peter,
I bought Canaco Resourses last year when you had it part of your Sprott Fund. I've kept it during the decline thinking its oversold for no specific reason have I made a mistake in holding or chances are it will bouce back in the long term.

Thanks.

Q: Great-West Lifeco(GWO) or Sunlife(SLF)? Looking for both value and growth and as a long-term investment. In your opinion, which company best meets these qualifications?
And, is this a good time to enter the Financial/Insurance Sector?
Thank-you.

Q: Hello,
I am holding two etf bond funds, CBO and CHB in my TFSA. One is corporate bonds and one is high yeild corporate bonds. I am worried about a market crash because of Europe and am wondering how these funds are likely to make out if this happens. Will they collapse as much as stocks do in a market crash?

Q: Hi, I had recently purchased ECA, TLM, and ERF but put stop losses 10% below and all were sold recently. So a couple of questions, do you see good potential in any of them going forward, and can you give some advise on using stop losses at all, and if you use them a good strategy of how? Thanks!

Q: Do you have any thoughts on SNC or AGF.B? Both are down significantly, and I wonder if this might be a good entry point?

Q: HI

I am still holding SNC. Should I bite the bullet and sell .Is Stantec a better choice.

Q: Zcl Composites (zcl on the tsx) took a beating during the financial crisis. Despite this, the company made an acquistion during that time to complete their suite of containment systems (chemical corrosives, Dualam) that was on the expensive side; but regrouped (with a new CEO and CFO) but has just reinstated their dividend.

What is your outlook for this company. Does their business model (long-life fiberglass containment systems) have an economic moat (sustainable competitive advantage?).

Thanks