Investment Q&A

Q: Hello Peter and the 5i team

I was watching BNN the other day and a question came across concerning Canacord Genuity. The guest (Jason Donneville) on the show said that they had shorted Canacord because the ratio between the P/B and ROE was far from the usual 1 to 8 ratio ( I am sure there were more reason then just the one but the other reasons were not mentioned). For example If the ROE is 16 the P/B should be approximately 2.0. This is a correlation that I had never heard before or took into consideration. Is this a metric that you use? Is this metric widely used in the stock trading world? Is this metric used more in specific sectors of the market? What do you consider the most significant metrics to judge weather a stock is a buy or not.

Thanks I appreciate your insight.

Q: I purchased SJ based on your outlook of the company I am up over 31 % in a short time The stock now represents about 16 % of a 20 stock portfolio
I did not sell a share of Surge and rode it all the way down and plan to ride it back up I do not need the funds However in hindsight I should have lightened my position

My question is should I reduce my holdings in SJ to what per cent and what would you replace it with ?
I am comfortable either selling or holding
Thanks for all you do

Paul

Q: Hi Peter and 5i Research Team,
I am not asking about the general market. Instead, can you give me your 2 to 3 best picks for Canadian companies that do significant business/sales in the US - the companies that will do well in a low Cdn $, low oil price environment. I need your top companies, please. Thank you.

Q: I realize you like both Stantec and Stella Jones but I have room to purchase only one of these two quality companies in my T F S A? I'm looking at a 5 year window so which of the two would you recommend for purchase at this time? Thanks

Q: Any new thoughts on Gamehost? I am a long time holder of GH, and it is about 4% of my portfolio. Down 20% over the last 3 months, much of it on the oil drop. Are there any other concerns at Gamehost, or is $12.80 a good price to add another 1-2%?
Thank you.
I am really enjoying the Member Questions, and the knowledge level of both the members, and your crew, is sure helpful.
Grant

Q: Do you see much more upside with Stella Jones? It was a great pick of yours and has done well. I want to keep my profits so wondering if it is still fairly valued or should I sell and redirect the profits to another of your recent top picks.

Q: Hi peter and team,

Nice to see your recommendations on BNN. Is there a compelling reason to switch into BIN if i already hold WM. Both seem to be doing well although BIN is cheaper on a PE basis but WM pays a bigger dividend. It is held in my registered account so there are no tax issues and i pay a minimal trading fee on my account so those aren't considerations.

Thanks

Q: Looking for dividend paying stocks Wanted to get 5i thoughts on HNL

Q: On BNN Thurs, Jason Donville stated that ESL is fully valued and hence would not recommend buying it. He also stated that it is a good well run company. Do you have any comment on this?
Gary

Q: I have held this company since October and it has not gone anywhere. Would you recommend to continue holding or alternately sell and buy Amaya? With thanks. Bill

Q: http://affaires.lapresse.ca/bourse/201502/06/01-4841757-amaya-manuvie-dorval-au-coeur-de-lenquete-de-lamf.php

Just wanted to mention this February 6, 2015 article indicates no Amaya employees are involved in the AMF investigation concerning Amaya.

Q: I am a new subscriber and I tried to put <Sylogist> in a watchlist and it would seem that the symbol SYZ is unkonwn.

Where does it trade

Laurent

Q: Hello team
I know you have respect for Jason Donville and I do also. Yesterday on BNN he floored a question on DHX media. He seemed to have an issue with the way they dealt with some revenue stream accounting which I don't quite understand. There was nothing dishonest about it but he seemed to feel that the ROE (he likes 20% ROE) and profitability metrics weren't there. He seemed to question the revenue stream from the media inventory.
I know the 5I team likes the stock so what is your balance on what Jason says. Is 20% ROE a stretch in some cases.
It takes two to make a market !
Without Prejudice
Thank You
Clarence

Q: just wondering if you have put a call out to those guys yet as promised?

Q: Peter I have held this stock since I joined your group and has served me well I was however disappointed how far it in rating last year the leadership seems more focused on tv ratigs than the core buissness .I have about a 20% gain in capital on it .My question is would you sell and pick up AW ?
Kind Regards
Stan

Q: Hello Peter. holding this stock for quite some time (before launch of 5i) and has done very well for me. As such it is now a 9% portfolio weight. As much as I still like it, but getting bit worried from portfolio management point. Do you think it would be prudent to reduce weight say to 5% . Your opinion, please. If you recommend selling some then please advise some 2-3 other choices with a similar characteristics - safety, income and growth. Thanks.

Q: I have been waiting patiently for the carfinco deal to close and I am wondering if it is worth waiting or if I should move on to another holding that may offer more than the approximately 5.5% upside to the closing price of $11.25? What about the special dividend that has been mentioned? I have been considering a position in CXI as an alternative. Any thoughts would be appreciated. Thanks
John

Q: You answered a question a couple of weeks ago stating that this was a good defensive stock. Is there still growth in it? I am kicking myself as I lost patience with it a year ago and sold - missing out on a 25% or so gain. Lesson learned. good entry point?

Paul F.

Q: Boston Pizza has done okay during the year that I have owned it, largely because of the dividend but I am wondering if a switch to MTY is in order. I like dividends and Boston's is certainly higher but MTY seems to be growing theirs and at the end of the day, I am looking for one that will achieve the higher overall return over the next few years. Is a switch in order?

I also own A & W and am very happy to keep it if you think that is a good combination with one of the others.

Thanks. Invaluable service.

Paul F

Q: Peter and Team,

The segment in the link here: http://www.bnn.ca/Video/player.aspx?vid=545085

Was shown on BNN today. It is on why Cineplex is a short. Agilith has been short and touting their short call (and getting gashed, by the way) for some time. I've owned the stock for a number of years now and like it and still like it but I am curious if you have any thoughts around their short thesis on Cineplex and their claim that the dividend isn't covered by cashflow.

Thanks,