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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: Good morning 5i
While skimming local media this morning the article in globe business caught my attention; Acasta.

Taking the article at face value highlights the benefit of not being rushed to put capital to use. Mistakes can be costly; overpaying and large debt levels.

I don't like seeing Gud underwater but I know it is not permanently impaired nor priced for destruction.

Pg b17. Globe business. Mar. 24

Thanks for the service.
Dave
Read Answer Asked by David on March 26, 2018
Q: hello Peter & Team

I have been a STN shareholder since April 2014 a few months prior to the STN stock split announced Oct same year. At the time, I took a 4% long term position based on the company rarely if ever missing on expectations and it having a history as one of the Dividend gems over a very long period of time - 50+ years if I recall.

I have been very patient and although consistent capital gains are unfair to expect from every investment, I have to admit especially when considering the pedigree and your resent report, the sideways motion of this stock price over the past 4 years has been less than flattering in my view. And now they have missed expectations 5 of the last 8 quarters.

My expectations over the past 4 years when I bought the stock? A nice dividend which I have realized, and a modest Capital gain (say 5 - 7%/yr) which I didn't think unreasonable. I bought my shares @ pre-split $67.54. Today the stock is trading at (pre-split) $65.24.

I recently read your Oct 2017 report which outlines an A- rating which would lend me to believe this is an excellent company to hold in my portfolio for solid dividend & capital gains growth expectation. But as I see it right now, there is nothing on the horizon which lends me to believe anything is going to change. Interestingly, if you google STN in the Globe & Mail, it comes back as "no news for the past 2 years." And that pretty much sums it up!

Comparatively speaking... if I had bought SJ at the same time I would have seen a 35% Capital Gain over the same period of time.

Questions... If you were me, would you be happy with this performance? Would you recommend continuing to hold STN and if so why? (A- rating) And is there any reason you see for the dramatic increase in trading volume over the past 3 days?

Apologies for sounding disillusioned.

Thanks for all you do

gm
Read Answer Asked by Gord on March 23, 2018
Q: To re-balance my portfolio, I could use more consumer stocks. Currently I have Starbucks and Hanes Brands.
If Hanes Brands is considered Consumer Cyclical, I would would be looking for a Consumer Non-Cyclical. Would ATD.B a good choice with the recent pullback or would would you recommend something else. The stock would be purchased in my TFSA account.
For a Consumer Cyclical BRP is of interest but with yesterday's increase, should I wait for the next pullback or can you offer another alternative.
Thank you
Read Answer Asked by J Stephen on March 23, 2018
Q: Hi there,
Just doing some portfolio re-balancing as my portfolio seems to have gotten off track a bit lately. I am running with about a 22% weight in industrials but have CCL and richards Packaging classified there. I always struggle where to classify these two - more suited to materials or do you have an alternate classification. i am extremely underweight in Consumer Discretionary. Any recommendations? i have been reluctant to buy anything in this space lately!
Read Answer Asked by kelly on March 22, 2018
Q: Hello 5i team,
I hold 3 stocks in the energy sector: ENB since 2012, KEY since 2010 and PKI since 2006.
With an average total return of 5% per year (which basically equals the yield) ENB is, by far, the worst performer.
That begs the question: granted ENB is a good company, but it does not seem to be a good stock to own.
Thank you,
Antoine
Read Answer Asked by Antoine on March 21, 2018
Q: I have owned this stock for several years and it would appear that the company is executing its strategy well, albeit much more slowly than I would have liked. As it results improve, I am wondering how you see its growth going forward and combined with that what you see as an ultimate viable exit strategy. The last few quarters results have been good (in my eyes) and while the stock price has grown, the trading volume is so low that it seems that even if I wanted to get out, I could not. (Just for the record, I don't). But do see the ultimate end play as a takeover in which case I won't have to worry about liquidity? Or is it just a sleepy stock that has enough shares outstanding to not make this an issue?

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on March 19, 2018
Q: The CEO of Blackberry was interviewed on BNN today. He said that they are branching into security software for many devices including auto and end point devices. Is this a major threat to the business of ABT? If ABT cant get their sales growing would that be an indication that they are ripe to be disrupted and made obsolete rather quickly?
Read Answer Asked by Joel on March 19, 2018
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