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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 Team Peter: Would like any thoughts you might have on the IBI Group (IBG) on the TSX, Hold a few in a "legacy" account and wonder if I should add or bail. Thanks
Read Answer Asked by Bill on November 04, 2012
Q: Could I have your thoughts on Corby Distilleries - CDL.A. Thanks.
Read Answer Asked by William on November 04, 2012
Q: Hi, re FP article "But no matter who wins on Nov. 6, Canadian oil and gas producers are losing their market share amid a massive U.S. energy growth spurt."
My question is, with new technology and U.S. political resolve for independent energy, what extent will Cdn oil & gas producers, energy services companies, renewable energy producers and pipelines be vulnerable to a U.S. energy renaissance? Would the oil sands be most vunerable? Thank-you.

Read Answer Asked by Gary on November 04, 2012
Q: Great work Peter! I'd appreciate your comments on Allied Nevada Gold (ANV-TSX). Should I continue to hold it in my precious metals portfolio?
Read Answer Asked by Ralph on November 03, 2012
Q: Peter, what can you tell me about the Pimco Floating Rate Strategy Fund (PFN()-trades on NYSE & pays 8% dividend? It is a closed end investment fund of some kind. Is it safe holding for steady yield in my USD acct?
Read Answer Asked by James on November 02, 2012
Q: What do you think about using Covered Call ETFs like ZWA,ZWU or ZWB for example. I manage my own accts thru CIBC IE and it costs too much to write my own CC against my positions.
Read Answer Asked by James on November 02, 2012
Q: Hi, I have significant holdings in renewable energy producers. Could I have your thoughts please on the following article in the globe..Thank-you.
"The possibility that Ontario’s highly politicized electricity market could face a perfect storm leading to higher power rates “is low but increasing,” warns credit rater DBRS in a new report.

The storm, should it occur, would be a concern to investors in power producers such as Algonquin Power & Utilities Corp., Innergex Renewable Energy Inc., and Brookfield Renewable Energy Partners LP.

The Toronto-based bond rater is worried that pressure could build for electricity rates to start rising by 10 per cent, due to the high cost of new wind power and other renewable sources coming on stream, unplanned nuclear outages, and the eventual recovery in natural gas prices from current depressed levels.

Should power prices start rising this rapidly, the firm says there is a chance the province would reintroduce a rate freeze, as it did in 2002, to the detriment of electricity generators.

“Electricity prices have only one way to go: up,” it concluded.

For power industry investors, the DBRS warning should be kept in mind. A worry for any company supplying power in the province has to be rapidly increasing electricity prices that lead to ratepayer protests and pledges by politicians to limit the pain. Under such circumstances, it will be difficult for companies to pass on costs, and profits will sink.

Here are the three most likely pressure points for prices, according to DBRS.

Going green is great for the environment, but it costs money. Coal fired electricity, the dirtiest power source, is available for about 3 cents per kilowatt hour, or the amount of juice needed to run simultaneously 10 light bulbs each rated 100 watts for an hour. Wind and solar costs more than 10 cents a kwh. Ontario is shuttering its coal plants and increasing its dependency on wind.

Natural gas, now cheap and plentiful, is another worry. Should prices again reach $6 per thousand cubic feet (compared to about $3.50 currently) rates would rise as much as 15 per cent because the province has a heavy reliance on natural gas-fired plants.

The province’s aging fleet of nuclear reactors could also cause trouble. Key pressure tubes used to move energy around in the reactors have a history of mishaps, in which case plants may need to be shut for more than two years for repairs. Should this happen, the province will be even more dependent on natural gas, which is subject to wild price swings."
Read Answer Asked by Gary on November 02, 2012
Q: I would appreciate your assessment and outlook for Sandstorm Metals and Energy (SND-T).

Thank you,

Roman
Read Answer Asked by ROMAN on November 02, 2012
Q: Peter,
Can you please provide your take on Renegade Petroleum's recently announced transformation and whether this makes an attractive investment today?
Read Answer Asked by Marc on November 02, 2012
Q: Hi, What do you think of ANS.T(ainsworth lumber).It has performed well recently and seems to be linked to an improving US housing market. Is this a good time to buy?
Read Answer Asked by George on November 02, 2012
Q: I've held Penn West [PWT] for a number of years and have been under water for a while now. However, they do pay their dividends. Do you believe that the actions that company is taking today will allow them to support paying the dividend for the future and that their share price will recover into the $20s at some point? Thanks - Ron
Read Answer Asked by Ronald on November 02, 2012