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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 Peter and Team, apologies in advance to all but I need ask the following question; watched a fellow on BNN, Charles Nenner, a professor who has a mathematical system which has apparently been correct so far, so he says, that calculates the DJIA to fall to 5000...absolutely crazy, isn't it?? Have you heard of this fellow? He states that those who bought in 2009 are the ones selling into this ralley and going cash! He is all cash currently, so he says. Please see him on BNN today, and your thoughts on this would be greatly appreciated. I am currently fully invested with minimal cash on sideline. Thanks as usual!
Read Answer Asked by Hussein on March 06, 2013
Q: For the person asking for producers of rail tanks, i can propose a producer of security valves and manway for the rail tank OEM's.
It is Kelso. Because I own the stock, it is your choice to publish or not.
Read Answer Asked by claude on March 06, 2013
Q: Hi Peter, MND (Mandalay Bay Resources) had a news release this morning. I would appreciate your comments on it. Thank you
Read Answer Asked by Ilesh on March 06, 2013
Q: Surprised no one has asked for your reaction to Wilan earnings so I will---Bryon in Elmira.
Read Answer Asked by Bryon on March 06, 2013
Q: Trilogy plus Three Dollars . Earnings ? Buy sell or hold. Thanks
Read Answer Asked by Roger on March 06, 2013
Q: Great Panther is an operating mine trading near a dollar. An investment or a speculation ?
Read Answer Asked by Roger on March 06, 2013
Q: Any comments on buying QQC for exposure to the Nasdaq? My broker offers this ETF commission free, but I am concerned about how thinly traded it is. Thanks.
Read Answer Asked by David on March 05, 2013
Q: Hi Peter:
How would a Chinese housing bubble that actually came to burst (re: 60 Minutes last Sunday) affect the Canadian, U.S., and World, markets?

Thanks,

Don
Read Answer Asked by Don on March 05, 2013
Q: ESL just reported first quarter results. This line was included:

Operating expenses increased to $23.0 from $14.9 million in the prior year's first quarter and include incremental operating costs related to acquisitions as well as special charges related to restructuring of acquired operations. Non-cash amortization charges in the quarter were $3.6 million and include amortization charges for acquired software and customer relationships from acquired operations.

Buffett refers to these in his recent letter saying some are not real and it makes sense for the investor to adjust for them. Do you agree? Is this what the company is doing when they show adjusted EBITDA?
Read Answer Asked by mike on March 05, 2013
Q: Not a question but a comment. As a new/beginning investor (meaning new to investing myself because I got disappointed, far too late, with mutual funds & ETFs my "advisor" was putting me into), I'm paying attention to the message I'm hearing from 5i -- don't invest in "the stock market", invest in well-managed companies.
In the past few days, three of my new investments have reported results, not great but not really bad either. All three had immediate substantial drops in share prices, certainly much greater than what I would have expected given the results.
Which leads me to conclude that there are still too many people out their investing in "the stock market" and not in good companies! And skewing the market for "real" investors in the process.
The shares of all three (Capital Power, Parkland Fuel, Wajax) are, after the initial drop, slowly (sometimes very slowly <g>) coming back up . . . and in the meantime, are still paying the dividends that were a large part of my investing in them in the first place.
Read Answer Asked by Lotar on March 05, 2013
Q: I'm interested in Newmont (NEM) mining. Management has promised that their dividend is linked to the gold price. That sounds attrative if the biase is positive over the medium term. I feel like this is a good stock to have exposure to the gold sector, while be given a dividend to wait until the next upleg on the gold price. How does Newmont stack up with the other gold companies in your opinion?
Read Answer Asked by Eugene on March 05, 2013
Q: the comment below is from one of our analysts. Can you comment?
" Admitting you have a problem and cutting the dividend is a good first step. However, as we said in our email, the new payout ratio is still relatively high at about 70% and that doesn’t include any growth capex that they will spend. The big problem we see is that its debt to EBITDA ratio is up around 8 times. This is way too high and we wonder where the cash is going to come from to make debt repayments. Our guess is that they grind it out for a while, but it is ugly and it is going to take time to fix their balance sheet unless earnings get a lot better (not the company’s forecast)."
Read Answer Asked by Vicki on March 05, 2013
Q: I read with interest your recent report on EQI and was reminded of FN which i hold and wondered if you could comment on the relative merits of these two mortgage-related stocks. I have noticed that FN seems to be a bit volatile and I wonder if you had a comment on that. Thanks, Bob.
Read Answer Asked by Lynn on March 05, 2013