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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: How would you compare Fiera Capital and Gluskin Sheff going forward.
Read Answer Asked by terrance on April 14, 2016
Q: Hi Team: do you prefer CCL.B rather than CCL.A? Thanks
Read Answer Asked by LOUISA on April 14, 2016
Q: HI,
Could you please comment on the news release April 8th- Chartwell Retirement Residences Announces Redemption of 5.7% Convertible Unsecured Subordinated Debentures. How do you feel this will impact the share price in the short term. How low could it get? I have been looking to add to my position. What price would be a good entry given the deb conversion is priced at $11.00 I suspect a high conversion rate and a certain amount of selling pressure (potentially strong) as debt investors are not equity investors. It looks like it has already started selling off in advance.

Thank you
Read Answer Asked by Douglas on April 13, 2016
Q: Seems like the stock is trying to make a move up, do you think the shorts are giving up on it for now, and do you know what the short position is?
Read Answer Asked by eugene on April 13, 2016
Q: Can I please get your assessment of PBH. I like everything about it except valuation.

Carl
Read Answer Asked by Carl on April 13, 2016
Q: I didn't think I would ever want to buy into auto retailing but you make a compeliing case for the company. Two followup questions. First, how much should be made of Mr. Landry being hired? It would seem to be quite a coup to retain the former head of Chrysler Canada to run what is a much smaller business. Do you know Mr. Landry? I don't mean this to sound mean spirited or indelicate but do you think this is a case of him needing a job or do you think he sees this a fabulous opportunity?

Second, you note parts and service account for 13% of revenues but what percentage of profits do they account for and is that number within or greater than industry norms? I would think that the greatest impact ACQ could have on a dealership is how this area is run. I am assuming that owning several dealerships would lead to greater buying power (thereby lowering costs) for certain parts (not OEM) like tires, wipers and consumables, lower advertising costs ect. in addition to providing state of the art management and IT infrastructure. However, given that they own various name plates, I assume their ability to improve margins via volume purchasing on new car sales would be minimal.

Appreciate your insight and again, apologies to Mr. Landry.

Paul F.
Read Answer Asked by Paul on April 13, 2016
Q: A general question, in your analysis of ACQ you include a chart of the stock with the overbought and oversold graph. What metrics do you use to figure out if a stock is either overbought or oversold?
Read Answer Asked by Jean on April 13, 2016
Q: Thanks for your quick response. If such is the case, with resources getting stronger coupled with energy regaining favour, one would only assume the Canadian Dollar will continue to strengthen. I sold half my position this am before the drop, should I consider dumping the other half.
Thanks
Read Answer Asked by Rick on April 12, 2016
Q: A few weeks ago this stock had reached a high of $250.00 today $225.00
Are you aware of any material change in this Company?
Read Answer Asked by Rick on April 12, 2016
Q: Hi, Enghouse is down a long way from its peak and seems to be having trouble finding its feet again. What has changed there? I'm thinking of taking what's left of my earnings now, redeploying them for awhile and wait for an upward trend to get back in... Thoughts? Thanks!
Read Answer Asked by Kate on April 12, 2016
Q: Would you consider this new convertible debenture investable in a well diversified bond portfolio?
Read Answer Asked by Greg on April 12, 2016
Q: Would you consider auto Canada fairly priced to add to my 2 percent position? With new management in place maybe the bottom is in the stock and it will start to move.
Read Answer Asked by Helen on April 12, 2016
Q: Hello Peter and 5i team,
What are your general thoughts on the pipelines at this time. In the past we owned Pembina and Interpipe line. Currently we have Transcanada and a small Enbridge holding. We were thinking of adding to Enbridge but it would mean selling Telus or Bce. What do you think of selling Telus and buying Enbridge. They both have similar dividends and the technicals favour Enbridge.
Your opinions are valued as always.
Read Answer Asked by john on April 12, 2016
Q: Hello Peter and 5i team!

I am in the process of having my portfolio mirror the 5i Model Portfolio. I currently own Tricon Capital, would it be considered a good substitute for Home Capital Group or would you recommend making the switch? Which one currently has the higher upside potential? The portfolio is held in RRSP/TSFA accounts.

Thanks for the great service!
Angelo
Read Answer Asked by Angelo on April 11, 2016
Q: Hi there, can you recommend your top 5 companies with good prospects that currently have no analyst coverage (excluding 5i). Also, please briefly explain why you like them. Thanks!
Read Answer Asked by Hussein on April 11, 2016
Q: Hello Peter and the 5I team

I am curious about SIS. I have no doubt that there will be a bigger demand for these types of services and products in the future. What I am concerned about is potential competition. Who is their main competition?? What is the market share of this sector that SIS has?? What gives this company that moat to defend their market share?? I am also wondering what is the ROE of the company?? I was also curious, do they have a type of franchise system for distribution or are the dealers of the products directly owned by the company? Do they build the elevator and lift systems in China, I noticed the CEO mentioned they had people in China I expect that is to over see manufacturing of components for their lift equipment. Finally what is your opinion of the Management ( I watched a few videos on the guy, he seems Ok)???
Read Answer Asked by Darren on April 11, 2016