Investment Q&A

Q: Hi guys,

I look to hold companies that are able to maintain a reasonable ROE despite being debt-free. Some of the companies that I currently hold that meet this criteria are ENGH, TOY, CSU (pretty close), RCH, VCI (very small cap).

Can you suggest 5-10 more debt-free companies that screen well to you guys?

Thanks!

Q: Hi Folks
Looking to add some companies with the following qualities to my portfolio. 1) in a fast growing non-cyclical industry 2) must be the best company or companies in it and 3) excellent management today and hopefully, in the future - can you provide some names that you feel meet the three criteria.
thanks for a great service

Q: Hi Team

Can you name 5 companies that have good growth and value after the recent sell off. Also do any of them you feel comfortable about being overweight.

Thank you

Q: Hello team

Can you name your 3 favorite companies in Financial, Industries and Technology sector. For both Canada and the US.

Thank you

Q: What is your opinion of this company

Q: I have owned TRI for many years in my RRSP and have finally been rewarded with share price momentum. With the recent sale of the financial and risk business, I am now confused on their future direction and growth drivers. Does it make sense to sell and move on? I was thinking of replacing TRI with BBU.U. Thoughts?

Q: Hi,
For the Industrial portion in my RRSP account, I am considering the above companies. With RTN, I wanted to diversify outside of Canada with a large cap stock. Do you see any issue with this company at this time? Is there something else you would prefer? I know you don't cover the US but respect your opinion.

As for the other three (TFII, TCL.a & NFI) could you rank best to worse buys at this time? I am considering adding 2 of the 3 to limit the number of stocks owned. My criteria are: to hold for long term (5 to 10 years), lower impact by any slow down of economy, good growth in dividends and low leverage. Is there another stock or two that would be better than the ones I am considering?
Thanks as always for your help.
All the best,
Dan

Q: I have just read about this company which trades on the Nasdaq.
see attached link:https://www.forbes.com/sites/afdhelaziz/2018/07/24/how-loop-industries-is-becoming-the-intel-inside-of-the-circular-plastics-economy/#6a5d3d1e1fd7.
I would be interested in hearing your views and whether or not you think this would be a good company to invest in. We know that we are drowning in plastic and this company seems to have the technology to do something about it.
Look forward to your comments.
Shirley

Q: An analyst from Citi has warned that “debt service ratios for non-financial firms” in Canada are very high, and a crisis is possible within a year. Is it safe to assume that none of the companies you recommend would have any trouble servicing their debt (TSGI, SIS, PBH, COV, TOY, etc)? Do any prominent names come to mind which might be at risk? Thanks for your thoughts.

Q: How do you feel about the various debt metrics at TCL?

Q: I have a small position in shop with a very nice profit I am pondering selling it to add to tsgi gsy and kxs averaging down on these 3. the shop position is to small to sell half. what are your thoughts on selling shop and proceeding?
Thks
M

Q: So looking at the bid price of $4.91 (down 20.29%%)and taking into account your comment on if it reached south of $7.00.....A good time to take a position. Anything fundamentally change just recently? other than the div cut.

Q: Hello 5i
1) On Nov. 28, 2018 your answer to Charlie regarding CGX was, "a stock that can decline 29% in a year is likely not right for a retiree". As a retiree myself , and down 30% plus on WCP, DOL and KWH.UN, would your answer be the same? Also, would you sell them now, and could you suggest replacements?
2) Including the market we are presently in, is there a percentage decline in price that you would suggest a retiree to cut losses and sell? Thank you for your help. Happy Holidays to Everyone at 5i, Bill

Q: in your opinion not knowing what I own what would u say is your number one stock in the USA and what is your number one stock in Canada. I understand lots of factors but just your opinion?
thanks for all your help merry xmas

Q: Hi. I contributed some money to my RRSP account and would like to buy 3-5 stocks that have a lot of upside potentials given the latest drawback of the market. Though I have a 10+ years holding period, it would be nice to see short term gain. I don't mind buying US stocks (or Canadian stock) if you can recommend.

Q: Hi
What would the BE portfolio performance be without CSU Constellation Software be as holding over time? What if it was a company listed outside of Canada. With this thought, are there any companies outside of Canada that you would consider the same caliber as CSU (same sector is not important to me)? Sorry for the outside of Canada question but I am hoping to add some diversification over the next few years.
Thank you
J

Q: Good morning 5i, I see CAR hit the market at $45.50 and I am in at $47. My question is how likely is that to cap the price and for how long. I am sick of watching losers so I am inclined to sell and replace it with a reit/other with better short-term potential. We rely on income from our investment so be it interest or growth it is all the same. What would be your top picks right now with short-term capital recovery in mind. I am becoming increasingly negative on buy and hold. Damn that Black Swan...wish he would move on to another victim.
thanks for your input,
Bob

Q: God Morning
I would appreciate your thoughts on the 3rd qtr results of NWC. They look exceptionally good at first glance but income includes a $17million insurance settlement partly for business interruption. When that is reversed out and the comparative periods adjusted, how does the quarter look to you and what do you think of the company going forward?
Many thanks for your insight.
Ian

Q: Charge as many credits as you see fit...at least 4...got lots. Annually, I follow the O'Shaughnessy system and go through the tedious process of ranking over 90 stocks into deciles. I am screening for stocks that are good value, less volatile and have a good + growing dividend. For value, I use P/E, P/B, P/CF, P/S. For volatility, I use Beta. For dividends, this year I have added 5 year growth % into the process. The resultant summary number is the cumulative of the 7 metrics, with roughly 60% value, 15% volatility and 25% dividend weighting. I then marry this up with a technical screening, using charts with a 200 mda, looking for a rising vs rangebound vs declining chart.

Question 1 = your thoughts on my screening system? I thought of adding in other metrics, but I wanted to keep it relatively simple. Factors such as payout % and ROE can always be a looked at in the next phase. Should I drop any of the metrics if they are redundant?

Most of the stocks screened as expected. However, 3 stocks didn't screen well at all and I am trying to figure out why. It may be that my population of stocks is skewed to value stocks, so if any of the other 3 stocks had growth or REIT characteristics, then they might be seen as outliers.

Question 2 = CSH's fundamentals screened horribly = 10th decile. Could it be that REITs may screen out differently, due to their very nature?

Question 3 =Both PBH and WSP screened poorly = 8th decile. Could it be their fundamental metrics exhibit more growth characteristics?

Question 4 = Reading past 5iR questions on these 3 stocks leads me to believe you are still strongly in favor of all 3. Please confirm.

Thanks...Steve

Q: Considering debt, growth and yield which one would you pick between these two companies and why? Appreciate your comments.

Thanks.