Investment Q&A

Q: I am down 53% with NewAlta which I have always considered to be an excellent investment. I am heavily overweight in the oil and gas sector, with SGY, HSE and WCP forming approx 43% of my portfolio. I believe in an eventual recovery and do not need to draw on the portfolio within the next five years. I have found myself in this overweight position being drawn by the high dividends. NAL is my only service industry holding, and I am more inclined to double down rather than sell. I see myself as an aggressive investor.

Realizing I have got myself into a difficult diversification position, I am inclined to wait it out and, possibly even average down. What are your thoughts?

Q: Hi, Any reason you know of that is causing to drop for the last 5 days? They report 16 Nov....what are the expectations?
Thank you!
Silvia

Q: Any sobering thoughts on LIQ?

It’s getting hammered (pun intended)! 52 wk low.

Your last report (C rating)

Turnaround is taking hold
Dividend continues to be risky in our view
Valuation is questionable given prospects

I note in their Nov 5th MD&A:

“Management further believes that the Company’s annual cash flow from existing operations and available credit are sufficient to sustain the Company’s dividend at the current level.”

Q: Any comments on the third quarter? Looks like a pretty painful decline reflective of the industry. I've liked the way this com pay has been managed in the past - good company in a bad (for now industry). Should I hold my shares or divest?

Q: what is the expectation for Amaya going into earnings, will the cdn. dollar impact them. dave

Q: Hello team, How would the good US employment numbers and the strength of US$ affect TCN? Would this be a good entry price?
Thank you!

Q: Just noticed this press release and was wondering what your thoughts are on Bin now. Is it still a hold in your opinion. Thanks for your great service.

08:44 AM EST, 11/06/2015 (MT Newswires) -- Progressive Waste Solutions (BIN) shares were initiated by Credit Suisse with a underperform rating and $21USD price target.

Q: Any thoughts on Dorel's latest earnings release? Took a nasty hit on Friday due to earnings miss. Looks like primarily a FX impact. I've had this stock for many years and it's essentially trading where I bought it so have made no money on it other than the dividend.

Q: Seems cheap - recent earnings look OK? Your opinion, please.

Q: I have 1800 shares of WIN which I purchased at 3.00. Would you recommend selling it and buying something like TNC or any other high growth stock.

Q: When would it be time to sell this stock? What is the usual end-game for these type of firms?

Q: Please,the expected EPS & REV of CGX,which is reporting Nov.10.Thanks a lot

Q: Some observations:

ACQ is finally stating that they are concentrating on acquiring dealerships in eastern Canada as opposed to western Canada. This is very good I believe. They are to acquire 6 by May? 2016, having acquired 2 Nissan dealerships in Ottawa, Ontario recently, so 4 more to go.

ACQ has stopped being a dividend grower as there has been no growing over the past four quarters. Stopped as in they had been increasing the dividend every 1/4 since they started paying.

I suspect the glory days are over for ACQ in so far as its rapid share price growth and it has become a more "traditional company" slower grower of revenues..., dividend and share price as automobiles will still need to be bought/sold and serviced for years to come. At least until self-driving autos become dominant.

I think it is "reasonably priced" now. It had gotten way ahead of itself when it was, say, $60+.

Stan

Q: hi Peter It appears win has reached the floor around the $1.50.
What catalyst do you and your team feel it would take to get it up.
Should one take the loss now and move on or sit on it?
It in all like hood be dead money for a long while.
Appreciate your comments
Regards Stan

Q: Hi there

I am a bit puzzled as I hold Western Forest Products WEF which has gone up about 15% in the last week. Yet Acadian Timber, which I also hold, has gone down about 20% since its peak of $21 and it fell in price all this week. I bought in today at 17.40 yet it continued to fall as low as 16.57 later on Friday. It has been falling in price despite a strong earning report last week, a dividend increase and a strong US housing market. Just wondering what am I missing? Wondering if I should be adding more to my position of 2.5 of my portfolio?

Much thanks

Stuart

Q: Would you hold off investing in this till at least oil shows a sign of a sustainable rebound? The jobs report that came out said Alberta lost 11,000 jobs overall in October(but Edmonton gained 3000 net I think) and the Canadian economy overall is not that great (Canada did add like 40,000 jobs but over 30,000 were part time) The Canadian dollar falling really hasn't even impacted exports that greatly and manufacturers from the US still say Canada is not competitive enough to reverse the trend. So would you likely wait till next summer to think about investing? I feel as though they bought their dealerships out West at the top of the market and are now buying dealership out east at a possible top. Also I don't really believe that the VW scandal will have no impact on their 5 dealerships, that has to hurt the brand overall, it doesn't matter if it only effects diesels. Also they missed the lowest of the lowered expectations for this quarter when Auto sales in Canada were fairly strong I thought? There was allot of potential here before, but right now I just see too much risk I think, and can't really decide if I should tie money up that may go nowhere for a year that would be better allocated somewhere else. Anyways, thanks ahead of time for your opinions.

Q: I have been holding this since 4$ a share. I am now feeling like there is an opportunity cost of holding this any longer.

"With our third quarter and year-to-date operating and financial results as the back-drop, we are looking forward to a strong finish to 2015 and towards ensuring AutoCanada being well prepared to face continued challenges in Alberta in fiscal 2016," stated Thomas Orysiuk, President & Chief Executive Officer. "In order to provide us with flexibility to execute on our continuing acquisition strategy and to fund our capital expenditure requirements, while maintaining appropriate operating liquidity, we are in advanced stages of negotiations towards expanding our revolving credit facility. As part of this process, we have amended our banking covenants to align with current industry lending practices. Together with our free cash flow from operations, the expanded revolving credit facility will provide us with the necessary flexibility to meet our capital requirements."

I did not like this and the 10% drop today is saying something although the volume isn't massive. I'm interpreting it as 'sell now and buy it back in 12 months' What do you guys suggest here?

On another note, this cold temperature is getting me and my wife exited about our upcoming CMS/5i cruise!

Thanks and have a great weekend.

Q: AS PRESIDENT OBAMA SORT OF PROMOTE RENEWABLE ENERGY OVER FOSSIL FUELS,I'M DISAPOINTED BY TODAY BEP HAIR CUT,I'M 72 AND 6% OF MY RETIREMENT PORTFOLIO ACCORDING TO 5I INCOME CRITERIA IS INVESTED WITH THIS SINKING BOAT,NEWERTHELESS HOW YUSTIFY A PE.OF 164,COULD YOU PLEASE EXPLAIN.
THANK YOU TO PETER & TEAM

Q: Can you shed some light on why Enbridge has been beaten down the past few days? Is it a good time to add at these prices or do you foresee more downside. Thanks

Q: Do yesterday's results change your outlook for ACQ?