skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

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

Q: Hello all at 5i,

I am keeping a close eye on TSGI as are at least a few others. I have held TSGI for a long time, trimmed several times as value grew and am still nicely ahead on my remaining shares. They are in a taxable account so each time I sold I had to consider and manage the tax consequences.

After the recent decline I want the build TSGI's value back to a more historic percentage of my portfolio. This time I plan to do the purchasing in my TFSA spread out between now and the end of december. I'm also thinking of transferring in kind shares from my taxable account to my TFSA in january (and deal with the tax) as my 2019 contribution. This would leave a portion of my shares in my taxable account.

Your thoughts please on the above (purchase and transfer), pros, cons and potential plan changes I should consider.

Thank you for your insight.
Read Answer Asked by Brian on November 14, 2018
Q: If you have lots of questions in the queue, this can wait, no rush.
You sometimes say GUD is dead money it has been and may still be I agree. However I have 300k of GUD and the last 6 weeks I probably saved 60k since most of my other stocks are down 20 to 25% and GUD has held up. Now suppose I take the dead money approach and invest my 300k in dividend paying stocks say 5%. That would give me 15k by Nov 2019 assuming those stocks keep their value no guarantee there. But if I keep my GUD it needs to go up .41 cents to $ 8.68 as I write this to cover the 15k. Question, what are the odds GUD will trade at 8.68 one year from now ? What are the odds it will trade down .41 cents ? As a fund manager you would respond one way, but would like your view as a personal investor.
And if they do make a large acquisition, I suspect the sp would jump 20% at the open, and this why I keep GUD my biggest position. Question do you agree ?
As you I am disappointed they have not made a large acquisition, I am questioning if they ever will based on their strategy since inception. After all Mr. Goodman did say this was for his grand kids. He has money, is in no rush obviously, perhaps prefers a stress free life at this point of his life. When did you speak with him last time or to management ? They would never reveal they were ignoring a large acquisition anyway. Question do you feel he has the drive for a large acquisition ?
Thanks, for your help.
Read Answer Asked by Luc on November 14, 2018
Q: Add our names for two thumbs up for 5i research! I am suffering like everyone else. But, I realise that I have received good advice from 5i. But, I don't expect you to have a crystal ball. And so the final decisions are ours.

We are wondering whether it is too late to sell Premium Brands for a tax loss. It is already the 14th, which means that we would not be able to buy it back until mid December. I expect much of the tax loss selling would be finished by that time, and , if it ever does turn around, it might be before that date that PBH starts to climb. (I suppose despite all of this we are always optimistic!) So, would it be just better to hold than to book the loss and possibly miss the turnaround, if it comes?
thanks
Read Answer Asked by joseph on November 14, 2018
Q: Good morning 5i Team

NFI share price peaked in late March and has been been dropping since. The slide has accelerated since the Q3 report. Having read the report and listened to the call, I can't figure out what is causing such a sharp selloff. Here are four things that are noteworthy but still don't justify it in my mind:
1) new manufacturing plants (increased competition in the future)
2) Slightly lower backlog
3) Revelation that for every 10 new units sold, NFI typically takes 7 units in trade, and the re-sale value of trade-ins is declining, hurting margins.
4) Today's news (that the market has probably known for over a month) that 70 jobs will be moving to the US to accommodate the 70% US content rules.

I guess a fifth would be the overall market decline.

I've been watching NFI looking for an entry point. This looks like a good time but I feel that I must be missing something here. I would appreciate your thoughts before I pull the trigger.

Thanks. As always, your insights and guidance is much appreciated.
Peter
Read Answer Asked by Peter on November 13, 2018
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!