Investment Q&A

Q: PLease advise when SJ is reporting.Expected EPS of .45 & Rev.$362.05m--are these correct.Appreciate your usual great services & views.

Q: Hello Peter,
I am down about 30% with AutoCanada. The stock used to move higher when the price of oil ticked higher, but lately, it continues in a downward spiral. Is it better to sell it and move into another stock that has better potential or hold it for longer term. Alternatively, do you think it is better to sell half and move those monies into a stock with greater potential. Can you provide your comments on longer term aspect or on selling full or partial and which stock would be better replacement? Thanks, and I would appreciate it.

Q: Another question on CCL Industries. Appreciate your patience.

The Globe and Mail - Friday, January 29, 2016, 19:38:22

"CCL Industries Inc. is close to oversold levels in terms of RSI with a reading of 36.5, and the stock price remains well above its 200-day moving average. RSI has worked well in uncovering profitable buying opportunities in the stock, most notably when a buy signal in October of 2014 was followed by a 130-per-cent rally (not a typo) to Jan. 5 of this year. More recently, CCL industries stock fell close to oversold levels in August and October 2015 and quickly recovered.

Past performance, as always, is no guarantee of future returns. CCL benefited tremendously from the decline in the loonie – 83 per cent of its revenue is generated in the U.S. and Europe – and the Canadian currency has been showing more signs of stability lately. Investors must complete fundamental research before making any portfolio transactions."

Would appreciate your comments with respect to stock's technicals. Last tear in August and Oct/2015, I clearly remember, price rebound from oversold levels was spectacular. To me, current conditions appear to be very similar. Is the recent stability of CAD$ impacting investor sentiment, in your view or is it the valuation? To my knowledge, CCL has made several strategic acquisitions in past few months and it's growth prospects have only improved. Thanks

Q: Good Morning Peter, Ryan, and Team,
If this question has already been answered then please ignore it. I just wanted to get your take on the proposed management buyout of AYA at $21 CDN. I would be surprised if a deal got done at this price but I would appreciate your sage opinion of this breaking development. Thank you, DL

Q: I wrote 5 I in May on this stock which I held for a long time
Pre 5 I it has since went up significantly in a tough market and i am at odds why you would not follow and recommend this stock to your subscribers .

Q: Is there anything in particular causing the big drop in CSU the past couple of days. Seems odd with many tech stocks going up that this one is heading down. Thanks.

Q: i have been noticing a fairly large uptick in volume on knight over the last few days or weeks,normally it trades around 100k a day, but lately much more, maybe your bloomberg terminal give you more info than i can see.
also healthcare stocks across the board are selling off, concordia, knight, phm and even large biotechs in u.s. is this all because of hilary and u.s. election or something else. dave

Q: Haven't read aything on this company for a while. I am considering taking a position in a food company and am thinking of PBH but wanted to first get your opinion on how it compares to MTY. I like the dividend from PBH but was wondering if the growth profile matches or exceeds MTY.

Appreciate your insight.

Paul F.

Q: Hello team. CSU appears to be in a downward trend for the last 5 days. Is this because shareholders want to lock in gains in a down market to balance their losses or is this a rotation out of thecnology stocks and into oil and resources. I note that ESL, DSG are also behaving similarly. I am a long term investor and want to better understand what are the drivers pulling these well performing companies in a downdraft. If there is a particular concern in the technology sector what might this be and what should one expect. Aside from this other recently well performing stocks such as Stella Jones and CCL Industries are on a downtrend and if these are lumped together with the other stocks mentioned above appear to all be selling off. What can you share with us and how would interpret my observations.

Thanks for your detailed insights.

Joseph

Q: Mr. Hodson, CSU 487$ ?

Q: Hello team,

I understand that it is really tough out there and people are just selling everything they can for they may not be able to withstand the losses otherwise. I have been watching AYA going from 6$ to almost 40$ in the good times and now watching it reaching back to 13$. I added more when it came down to $20 and was still okay for it to fall down to $15....but I have to admit that it is testing my patience at $13. I guess I am only asking for some reassuring words that AYA will not go further down from here. Why such a huge drop? Isn't this the same company when it was 3 times higher? I cannot care less for the market swings and I will be hanging there in the mean time. But would I see AYA back to its glory or would it be even lower than what it is now 5 years from now? Is it just the debt or is it the US$? Would you not think that CEO has another major acquisition in mind for he did not say anything about where the expected future guidance was based on? (I don't have any regrets for not selling AYA at its highs for I want to believe that having great companies for a very long time is the only insurance one might have in the stock market....I hope I am not mistaken!) Thank you for holding our hands all along!

Q: How would my reit valuation's react to a possible negative interest rate in the future?

Q: CCL industries stock has held up relatively quite well during the recent market decline. company made some tuck-in acquisitions recently and has sufficient dry powder if a nice big acquisition opportunity presents itself. With majority of CCL revenue outside Canada and US$ still expected to remain strong for 2016, is it reasonable to believe that company will continue to deliver strong results in foreseeable future? With recent market downturn, stock has come down and appears to be making a good base around $205-$215. Do you consider it an excellent opportunity to buy/add at current levels? Thanks

Q: Would you buy a 5% position all at once if you could buy ESL at $55? Is $55 a great buying opportunity for a 5 year hold?

Thankyou

Q: Any news to account for ahf going up in price this week .

Q: Good morning - I have Currency Exchange and DHX as part of my Tfsa. Are these still names that you would recommend for Tfsa, or are there others that you think are better. Thanks.

Q: Hello.
Would you please comment on Insider Buying of SYZ.
Reports show CEO buying most of the shares traded on Jan 25 (37K against total 54K) and a standing order at start of the day today indicates either company or potential insiders continuing to buy.
Should an astute investor be buying with SYZ company purchases or let them hold up the market price and see what happens when company buying backs away?
For broader reference, clearly buying is positive but how dependable is this form of activity toward a positive individual investor outcome?
Thanks for your thoughts on this.
Dave

Q: Hi, Just read your review of Rdm very good review of a company with good potential. I am just curious, do you share your reviews with the companies top management? I personally think that would be a good idea and would benefit the company as well as shareholders because this would start a dialogue within the company about shareholder expectations from the perspective of an analyst/advisor to potential shareholders...Just my thoughts. Cheers, Shyam

Q: I have 3k of CSA.
I am considering selling the stock now, at 4.75 ish and using the funds to buy high quality companies with the following criteria:

reasonable and safeish dividend
Good fundamentalist and management
have been beaten down unreasonably by this "CRAZY" market

I have : AW.UN - full position, BPF.UN full position , CSH.UN half position, DH half position, DRG.UN full, NWH.UN half position, SPB half position
Your recommendations :

wait ( when would you expect the buy out ? )
sell at $4.75ish ?
sell now and buy or increase positions on beaten down down stocks YOU RECOMMEND
PLEASE RECOMMEND A FEW

Thanks

Q: Hello Team Members
Would you mind telling me if owning FSV requires the filing of CRA Form T1135

Thank you