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,

Another weekly market report letter I received says "do not let little losses turn into big losses" (cut your losses after 10%). DIRT and ENTERTAIN I've had for quite some time and are down 35%-40%. Since you know these stocks well, if it took them 8 or 9 months to fall that far, will they recover in 8 or 9 months? One month ago, I took a position in TNC, and it is down over 10%. Should I hit the sell button? You know that stock better than I do. In your email, you recommended some plays in AYA, CUS, and I believe SPB. I am thinking of trying to recover some of my money with one of these email recommendations. Out of the three, which one do you think going long on will be the least risky?

Thanks,
Dennis
Read Answer Asked by Dennis on March 02, 2016
Q: Hi,

I am not sure whether you want to use one or two question credits, or none, as there companies are in the portfolios.

AW.Un has a B+ rating and was one of Mr. Hodson's top picks. I read the report on AW.UN. Can you please clarify on the 5 year EPS growth, which
is strongly negative. What is behind it? Does that not detract from your assessment of AW.UN? Do you think that AW.UN has a strong possibility for share price appreciation in the next few years?

Also, a few weeks ago you identified CXR as one of the companies with the largest potential for share price appreciation in the next few
years. Is that still the case?


Thanks,
IF
Read Answer Asked by ishay on March 02, 2016
Q: I am not in any rush and have a five year plus horizon but am concerned with the considerable losses with this holding. I still maintain a full position.
Buy. sell or hold?
Thanks for the great service and love the blogs!
Read Answer Asked by Gregory on March 02, 2016
Q: I am interested in the explanation of Royalties. What is the model for companies and brands like A&W and others. What are the structures for payments to shareholders? Are they a percentage of sales or what are the Royalties payments based on.
Read Answer Asked by Herbert on March 02, 2016
Q: Dear 5i
I read that PBH is one of your favourite companies . I`m seeing however that their ROE and ROA are quite low and the total debt relative to net income is quite high. The high debt to me would add a lot of risk unless the expected growth rate is quite high . Is this the case ?
Thanks
Bill C.
Read Answer Asked by Bill on March 02, 2016
Q: Dear 5i,
I continue to watch ACQ and debate on initiating a position. Do you think this stock has found a floor and most of the risk is already priced in? I find it odd that approx 50% of it's dealerships are outside of Alberta and the stock has not participated in the recent rally and continues to decline. In previous answers you have said to give it 3 years. Excuse my lack of understanding. In three years do you expect ACQ to have recovered to it's previous prices/growth valuation or that the Alberta will have simply recovered and the stock price will start to move up in 3 years? Is it a buy at this time?
Thank you,
Kerri
Read Answer Asked by KERRI on March 02, 2016
Q: Wondering what you think of the latest report. They beat rev and eps but net income was down due to the US plant and USD debt. Their 2016 projections are consistent or above estimates for the year when you convert them back to CAD, since they are going to report in USD from now on apparently. Anyways, what do you guys think? Could it actually go up for once?
Read Answer Asked by Bryan on March 02, 2016
Q: On BNN 2/25,guest V Hirsch said that SJ,whose business is utility poles & railway ties,has great management.SJ is starting to get major orders to replace poles as its average live is coming to an end.CNR stated that it is expediting replacement of railway ties because of slower volume when it is easier to do it. 5I,any other news & is it reporting on. March 14.Appreciate your normal great services & views.
Read Answer Asked by Peter on March 02, 2016
Q: Hello 5i, Can I get your analysis on Richards. One thing I noticed going thru the financials is that the distribution is a return of capital and not a dividend. Could you clarify that as well and the implications on my investment as I understood it to be them simply returning my money as opposed to getting a dividend from profits. Thanks
Read Answer Asked by pietro on March 01, 2016
Q: I do not understand-to buy Enbridge now or wait? Thank you.
Read Answer Asked by M Anne on March 01, 2016
Q: In a response to a recent question, you said that you could see Cannacord increasing by 50% or more in value with better capital markets. My question is this. Do capital markets usually improve before the price of oil increases (as I assume CF is largely dependent on activity in the oil patch) or after an increase or could a continued lower price also stimulate activity as the strong take out the weak? Guess I am wondering what type of catalysts to look for when deciding whether to continue to hold this.

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on March 01, 2016
Q: Any thoughts on today's decline? And would you initiate a position in this company today? Thanks as usual.
Read Answer Asked by Curtis on March 01, 2016
Q: Peter; Thank you for the reply re the Enbridge new issue. I am having a problem figuring out the difference between a short seller going short a stock - which happened in Canada last year quite a bit- and then issuing a derogatory report to drive down the stock and cover his short position. Then you have major Canadian dealers going short ENB in the full knowledge they are going to be doing a new issue at a huge discount. They have no risk as they can buy the new issue to cover their short position- plus they get fees to do the deal. Why is this not insider information? What am I missing- is this just the way all new equity issues are done in Canada- and the U.S.. Seems like a deal to me- but not if I bought stock from the Enbridge dealers at $45.00. Can you explain the difference to me- and maybe other members? Thanks. Might be two questions in here so you can ding me for them. Rod
Read Answer Asked by Rodney on February 29, 2016
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!