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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: Hello Peter. I really like the advice. What do you think of Dorel, years ago it was on every analyst radar. Now not a word, the company seems to make constantly better results, and also over the years the number of shares have been reduced, the only drawback is the too conservative dividend. May be you are working a report on it? Looking forward to your answer.
Read Answer Asked by francois on July 12, 2012
Q: EnerCare (ECI, $8.83, 2-SP, $9.50 target) – Customer attrition could heat up in second half of 2012
 EnerCare announced that it was served with a Notice of Action from a competitor claiming damages resulting from
EnerCare engaging in unlawful surveillance activities. As a result of the allegations, EnerCare will temporarily
suspend its program to combat attrition, while it conducts an investigation of the allegations.
 Attrition spike could be higher than expected in 2H/12. We had previously expected a spike in 2H/12 attrition
stemming from further customer pushback as EnerCare attempts to increase New Contract penetration, without making
the customer terms more favourable (lower termination/buyout clauses). Our current attrition estimates call for 21k in
Q2/12 and 45k for 2H/12, and believe they could be biased
higher.
 Given that the company's multiple trades closely with attrition,
we believe that a sizeable increase in attrition could lead to a
pronounced multiple compression. If we apply a 5.5x
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EV/EBITDA multiple on the Legacy segment (same multiple from Q3/09 to Q2/10 when ECI experienced an increase in
attrition driven from D2D competition) and 14x EV/EBITDA on the company's high-growth sub-metering division, we
would get a target price of ~$8.00. any thoughts
Read Answer Asked by andrew on July 12, 2012
Q: Peter,
I'd like your take on Sandstorm Gold. I like the royalty structure and they had some cash on hand last I checked and no debt. They also seem to have the management pedigree to make the right choices in terms of which mines to finance. My biggest concern with them is that they don't have what I would call a "bazooka" of cash to make deals like, say, Franco Nevada does.

Your thoughts are very much appreciated.
Read Answer Asked by Marc on July 12, 2012
Q: In some of your writing and responses you indicate that Canadians have too much exposure to the resource sectors. For someone in their mid-40s with no need to access the capital what would be reasonable? I would include firms that sell to the resource sector. As well, do you see gold miners as a part of that? If not, what would be a reasonable amount of exposure? I have persoanally tried to diversify inflation protection to hard assets other than just gold. Thanks for the excellent service!
Read Answer Asked by Derek on July 12, 2012
Q: Peter, what do you think of Brookfield, BAM.A? They seem to be able to grow their cash flow over time and have exceptional management. Thanks!
Read Answer Asked by Derek on July 12, 2012
Q: Peter..can you give me your thoughts on the Loyalist Group LOY..
Read Answer Asked by Wayne on July 12, 2012
Q: do you have any comments on Student Transportation for growth & yeild? STB.
Many thanks for all your material.
Read Answer Asked by Vicki on July 11, 2012
Q: re: cus (canexus)

The pulp and paper industry seems to be showing weakenss (recent rbc guidance on canfor, cfx) and cus share price are also showing weakness.

What's your current outlook on cus - is this one an exception to
the avoidance of averaging down?
Read Answer Asked by Jim on July 11, 2012
Q: Peter,

Do you think there is still room in ICI to go up in a possible takeover scenario? Is a small position worth the risk? Thanks
Read Answer Asked by Imtiaz on July 10, 2012
Q: Hi Peter, can you explain the liquidity on Mart Resources (MMT)right now? My trading platform lets me see the volume involved for the top 10 standing "bid" price levels and the bottom 10 standing "ask" price levels. I've never seen so many shares on both sides of the bid/ask, at every penny of price level, for a company the size of Mart. I'm guessing this might be a short term phenomenon but can you help me understand it and how it might be resolved? Is there a risk component to it for current shareholders?
Read Answer Asked by Lance on July 10, 2012
Q: Hi Peter
I really enjoy your website and postings. I am in the process of transferring my rrsp mutual funds, bought through an investor, into my self directed account.
Should I have the mutuals transferred to my account and I would sell them, or should I have them sold and then the cash transferred into my account?
Thank you!
Read Answer Asked by Heather on July 10, 2012
Q: Peter for my fixed income bond portfolio - I use ETFs - IShares seems to dominate the market - is there any risk in holding all my bond ETFs with IShares ? Thoughts are appreciated.
Read Answer Asked by Patrick on July 10, 2012
Q: Hello,
Some broad general questions for you.
Opinions into how the upcoming US federal elections may impact the market?
Opinions on possible QE3?
Opinions on the definition of swaps occurring with respect to the Dodd-Frank act and how that may impact commodities generally, and silver especially?
Thanks for your time. As usual great work and website. Also enjoying the recent money saver, love reading that as well.
Read Answer Asked by Frederick on July 10, 2012
Q: hi , i own swisher and looking at a big loss.do i take the tax loss wait 35 days and buy back or just sell and slink away, or hold till they get their act together. i see they have a new cfo and logistics manager
Read Answer Asked by brian on July 09, 2012
Q: Hi,
I bought VXX as insurance when Europe was looking very bad and have ended up in the red. It seems to be bouncing around $14 now and I was thinking of holding it until things go wrong again and at least try to break even. Some of the BNN brain trust suggest that one should never hold these funds for any length of time but my feeling is that it is somewhat stable here and will either stay the same or go up. Am I missing something? Thanks for your answer.
Brian
Read Answer Asked by Brian on July 09, 2012
Q: Peter....pros and cons of ETF's?

http://online.barrons.com/article/SB50001424053111903431804577502782508373066.html#text.inc
Read Answer Asked by Art on July 09, 2012