Investment Q&A

Q: I understand the Q3 report showed a dip in new car sales which spooked the market a bit. With the sharp decrease in the oil and gas market, I wonder if the Prairies will experience a downturn (or sideways) movement in the economy, or at least give the perception of tougher times. New car sales might be the first to suffer. This could cause some negative news for the next few quarters. On the other hand ACQ might pick up some cheap acquisitions. I love the company but I wonder if it might be best to get out until the dust settles. I would appreciation your advice.

Q: Hello Peter,
Is the stock price ahead of itself for Amaya? Would you consider it as a hold, add or trim to one's holding. I have about a 3 percent weighting. thanks very much

Q: With DH sitting at or near their 52 week high, do you you still consider them to be a good buy, or would you wait for a pullback?
Thanks

Q: Hi Peter
Took your advice early in the week and was very happy with purchase. Did they really need to dilute things today with the new issue or are you happy with it?
Thanks for all the effort
Dennis

Q: Is AHF a buy,sell or hold after it's recent slide?
Thanks
Garry

Q: I hold Sylogist as 5.6% of my portfolio, with a nice healthy gain (yesterday's price) of 47.7%. (Thank you!) Having hit its all time high in the early fall at $12, it can never seem to push beyond that. Is it time to claim profits and re-assign the very healthy profits to another more growth-oriented stock, or do you foresee impending catalyst to take this stock higher?

In another semi-related matter, I find it difficult to wrap my mind around what is termed "Book Value". I assumed that Book Value meant the price you paid for the stock, factoring in the trading fees, for a net purchase value. I notice, however, that Book Value fluctuates, from week to week. Am I going cross-eyed, or is there a logical explanation for the floating values? Excuse my naivety on this one, but I'm honestly perplexed. Thanks, as always, for your valuable comments.

Q: I have a question about Mediagrif Interactive. Seems to have flattened out what do you think of latest quarter . Thx

Q: Upon analysis of my portfolio I found I need to increase my industrial holdings. 4% of my portfolio (my only holding is WSP).Since it might follow that lower energy prices should favour this sector, I would appreciate it if you could suggest a few companies. (both/either Canadian or American). Reasonable risk is acceptable and a decent dividend would be appreciated. As always, thanks in advance for your guidance.

Q: Good evening! I will be liquidity (100% cash) one of my accounts $350,000....20 stocks...most covered by 5i...AYA, ACQ,AVO,MG, CSU,MDA,T, VRX, ESL...I will be doing so prior to Dec 24...I know timing is impossible...but looking for guidance or suggestions on selling off portfolio over the next 5 weeks.

Thanks
Matt

Q: I hold HLF in TFSA (approx 15% position). It is down 2% from purchase. I am considering replacing HLF with CCL.B based on your latest report. I am emphasizing growth in my TFSA. Your opinion re this idea ?
Thanks

Q: Mark me down as stupid, but I have no idea what is going on with STN. All I can figure out from their news release as stated on their website and from the entries here is that I'm getting their standard dividend of 0.185 per share and I'm under water by over 49%. Could you please elucidate?

Q: Just observation.Over the last 2 quarters,noticed 2 stocks,SJ & CGX(both in the Model Portfolio) appreciated after missing Revenue &/or EPS estimates.Both reached 52 week high,SJ on Nov 14,& CGX on Nov 13. On 8/20,V Hirsh on Market Call stated that she loves SJ which has great management.Last Q was a little weaker as the cost of treated wood rose.Next Q also might not be fantastic.But growth for the next 2 years is fantastic.Also grow by tuck in acquistion. CGX's Ceo,Jacob appeared on BNN immediately after earnings release & went through the details-beat all metrics except for the poor 2014 summer movie slate,but expect 2015's to be better. Thanks

Q: Would you buy CF today if you have a 2 year horizon?

Q: Question about averaging down or buying on major dips.

I have seen the comments "we don't like averaging down" on a number of occasions.

If I consider a stock like AHF, which I believe you liked when you prepared your report on this company and still like today, what would be wrong with averaging down (assuming we keep our stock weights somewhat in balance and possibly increase our exposure a little bit).

The way I read your Q&A to AHF is:
- The fundamentals have not really changed. In fact, they are possibly better. The focus is on higher margin business.
- The dividend (7%) is secure with good cash flow. (This is a great dividend which we can collect while we wait for the stock to go higher. Not many companies pay 7%.)

As a result:
- If we buy the stock at this price, our risk is greatly reduced. The stock is selling at 70% the price it was recommended at and your opinion of the company has not changed. It is like going to the store and buying stuff on special.
- If the stock goes back to the price it was at when recommended ($1.22), that is 42% upside. If we assume it takes 2 years to do so, that would be a 21% annualized gain, plus about a 7% dividend per year for an annualized gain of 28%. And this assumes the price only goes back to the price it was initially recommended at for purchase.

If averaging down is not a good thing, when fundamentals are same if not better, and our risk of financial loss is lower (as preservation of capital is paramount) and the dividend is exceptional... Then as some people would say, is it not time to back up the truck, is it not the time to be greedy when others are fearful...

And if it is not a good purchase at time price, then should we not get rid of it and move on.

Your valued opinion is greatly appreciated. I've learnt a lot.

Thank You.

Q: I'm looking at buying into either WSP or Badger (BAD). Which do you believe is the better purchase as a growth stock or (assuming sector weightings are in line)do you think taking a position in both is a good idea.
Thanks
Jim

Q: Hi 5i team, FCR reported Q3 report on Nov 3rd. Would you pls. give your opinion on the results. Would you recommend it at today's price for RRSP and TFSA accts?

Thank you!

Q: I like QST's technology. I looked at their website and I only see Audrey Mascarenhas as the Management Team. I watched her BNN interview which was good but do they not have other professionals in management or perhaps a Board of Directors. Does a diverse management team and a competent board make a company stronger?

Thank You

Q: what is your opinion on a 3year horizon

Q: I am a retired Dividend-Income investor and need to bump up my asset allocation in the Industrial-Tech sector.

I have narrowed it down to WSP and ET from your Income portfolio. ET looks good but seems fairly illiquid. WSP appears to have better metrics than ET (P/BV, P/Sales, upside based on Globefund summaries), but the beta is a little higher. Additionally, RBC has WSP as overvalued.

I like to give a stock time to run and have a healthy dividend. What are your thought on buying WSP vs ET at this time?

Thanks for your great service.
Steve

Q: This is more of a comment than a question, although I would be interested in knowing what drove the action yesterday - extremely unusual for any stock. It started with a huge gap down, no doubt in response to their earnings. Then, wow! It took off with volumes 5 times the 100 day MA. My first response was, as other correspondents, to sell. But the four analysts available on the Scotia iTrade website are all on the positive side, agreeing with you at 5i. And since I am not a trader but an investor, I am holding on. Something positive seems to be in the works.