Investment Q&A

Q: I am looking at ensuring that I have diversification in my portfolio, which hasn't always been the case. I am still heavy in energy. I would like to add a health care position. I have gone through most of your recommendations and I don't see anyone stock that is obvious. I know that KBRO is indirectly related, but it is considered an industrial. What would be your recommendation for healthcare. I really appreciate your service, and I find that I learn something everyday. Cheers.

Q: ACQ was added to the S & P/TSX composite buyback index. Is it significant to shareholders?

Thank you.

Q: Now that the market is correcting significantly, is it prudent to pledge one's shares in Contrans to the current offer, on the theory that if the deal does not go through, the price will surely drop to ?? and this loss can be prevented by taking the offer and using the cash to buy something else at a bargain price? It surely is the case that no other, richer, offer will materialize in this market. I'd appreciate your present view on this basically disappointing saga.
Thanks, Bob.

Q: Is there a way of telling just when that huge reversal of SYZ's fall happened? At one point very close to end of day it was showing down over 8%. Then suddenly it rocketed up to finish the day even. The weird thing is I was looking at it on my TD screen. I wasn't going to sell that low but it suddenly showed SYZ as being back up to 10.95. I sold some at that point, for this stock has gotten way too volatile for me, but when I checked it turned out I sold at the low of the day somehow.

Q: Greetings
Regarding Contrans (again) is there an unusually large 'liquiity event' in place for management if the buy out from Transforce is successful? I am trying to rationalize their motivation for being so keen to see this complete. My understanding is that management shopped the company around looking for a buyer and now the threat of a dividend suspension is looming as the deal is dragging on.
Your thoughts are appreciated
Tim

Q: Hello Peter et al,
Avigilon recently announced they had received patent approval.
Earlier I recall Mr. Fernandes stating that they didn't want to apply for patents because they would have to reveal the details of their unique technology.
Is this a change of direction?
Thanks Dave

Q: Aston Hill Financial Inc AHF:TSX reported Third Quarter Assets Under Management.Total AUM is declining but mutual funds are showing excellent growth. Is this a good thing? Appreciate your advice.
Thanks John

Q: I may not be the first to ask (hopefully) but do you have any idea on what is going on with DHX. I own it in two portfolios and both show no values for this stock as at 3:15 today.
GUY R

Q: Another AVO

I bailed out wen it hit $14, unfortunately the bottom. I am used to these type of drops because I have had drug stocks that do that on a regular basis when they do not get to phase 2. Sino forest, which I held a few years ago, I rode all the way down to 0. I've learned over time, the market knows best if a stock is under performing. People closest to it know it best and they are selling it. I will cut my losses if it gets 10% below my purchase fee or if it has risen a lot and starts to lose momentum. What is your opinion?
Dennis

Q: In response to some recent questions on Contrans, you mentioned that we should know in the next 12 days if they will declare /pay the regular dividend. The following is a quote taken from the Globe article 2 days ago:

“In a telephone interview, TransForce CEO Alain Bedard confirmed that the dividend (Bloomberg estimates it at $0.15 a share) that would have been declared in mid-October won’t be paid. “There are no more dividends for Contrans’ shareholders.””

My first question is what gives the right to the Transforce CEO to confirm anything with respect to what Contrans will or won’t do? And my second question is that given his statement (if we take it to be correct) what makes you believe that it is still possible that Contrans might actually pay the regular dividend.
Steven

Q: Hi Peter and Team,

First of all, congratulations to Peter for a magnificent ride supporting such a worthy cause.

Another question about CSS (sorry!): Even with the price of CSS hovering just under $15.00, I'm still up 30% and I thank you for that. How would you feel about me not tendering my shares, but selling CSS outright before any deal is finalized? I plan to use the proceeds to buy TMA to stay in the same sector. The reason for all of this is to avoid any "shenanigans" that seem to be occurring (or maybe I'm wrong about my feelings of uneasiness?)

Thanks in advance for your insight.

Q: Peter, what is your view on HLF and the acquisition of Atlantic Trading Company. Market didn't seem to react favourably. Thanks in advance.

Q: I note on Sept 24 the CEO moved 147k shares ($2.6M worth) to different accounts - including $540k worth to his RRSP. Is it safe to assume this was purely for tax reasons, and can we infer he thought the stock was finding a bottom at $18?
It's amazing that the company easily raised $100M at $29 just 6 months ago. At 1/2 that price it appears a compelling buy.
Thanks for your thoughts on the company.

Q: Hello Peter and team,

I would like to increase my exposure to the technology sector (10% to 15% of my portfolio). Currently it is 6.2% of my portfolio (4.1% in CSU and 2.1% in AVO). Should I add to these stocks to increase the weighting, or would you suggest other technology stocks to complement what I have. I am considering OTC. I am a medium risk, buy and hold investor (hold for 3+ years).

A similar question with consumer staples. I only have ATD.B and it is 3.8% of my portfolio. Should I add more to this stock, or would you suggest another stock to complement what I have.

I know it is practically against the law of investing to average down, but I could not resist picking up some AVO today at $13.52. Sir John Templeton said to “buy at the point of maximum pessimism”, and there has been a lot of pessimism lately on that stock. Easier said than done. I have not been able to tell when the point of “maximum pessimism” is reached until long after it has occurred. However, what gauges would you use to help you pinpoint the point of maximum pessimism for a company?

Paul J.

Q: Would it be a wise move to sell both CSS and CFN now as any gain now is limited and add to AVO with this dip.

This move would represent about 2% of my total portfolio.

Thank

Q: Just a comment on gaps: according to A.J. Monte of The Market Guys 80% of these get filled back in eventually so if you're bullish on AVO a reasonable target (to recoup some losses?) might be $25 where it gapped down from to $22 in May. $25 is also where the 200 day moving average is currently so it's not an unreasonable destination to look for. First though would be to break up over resistance at $17.50.

Q: CIBC report-there are some very good & welcomed positives beyond the reduction of the TP fr $40 to $25.Rating is SECTOR OUTPERFORM.Sales force growth ends as focus turns to bottom line is the headline.It is on track to meet revenue target & any shortfall can be made up by a accretive acquisition(s)with the $150m cash in hand($3 per share).The material drop over the past week is primarily due to investors lowering earnings expectations as well as the negative headline news. As I write,it is trading @ $14(up 0.45.3.2%)

Q: With the pasting in the markets, I am looking to raise some cash to purchase some higher yielding stocks such as BTE, COS etc when they appear to be reach the bottom. Accordingly I am thinking of selling DH and MIC. Both of done nicely for me but for the most part I see limited capital appreciation opportunity with them. See anything wrong with this thought process?

Q: Hi Peter, sorry one more question regarding avo. Your thoughts on Margaret Herndon as the new vice president.

Q: I'm about ready to throw in the towel on this one, having kept my shares until now to make the point to both CSS and TFI management that I was opposed to the TFI buy-out. With little chance of an alternative bid, I might as well tender. If I do, is the settlement immediate or do those who tender have to wait until the overall deal is consummated?
Thank you and kind regards,