Investment Q&A

Q: Hello Peter and team:

You may want to perhaps address this question through your Blog or answer it here. Whatever you think is appropriate is fine with me.

What do think of the article in the Globe, Report on Business section, Saturday September 24 2016 edition by David Milstead on Big companies using non GAAP methods to report their earnings, profit, write downs and such. Except Imperial Oil, all the companies fail GAAP standards his article claims.
Many of the companies that you recommend don't fare well in the analysis by Veritas. For example Agnico, Manu Life, Magna, Interpipline etc., In fact 4 out of 5 companies negatively highlighted by the Globe are your favourites! Interestingly all the banks fare reasonably well which surprised me! The same bankers who "forced" the Govt to enact "opt in" measure come out as "reasonable"?
I went through the table provided by Veritas very carefully. I find that the following companies seem to have the least variance between GAAP and non GAAP measures: AGU ATD, BCE, BMO, BNS, CM, CNR,CTC, DOL, EMA, GIL, IMO, MRU, NA, POT,POW, PPL,RCI, RY, SAP,SJR,SNC,T, TD, WN.
Am I right in interpreting that these companies are "reasonably" clean in their corporate governance? Does this list by Veritas correlate with other lists by other companies that measure or evaluate ethics of a company by entirely another set of variables?

Do you folks consider this accounting issues when you choose a stock?
Thank you for your patience in advance. My apologies for this rather verbose question.

Q: I have held the Vertex Hedge Fund for about 15 years. In the early years the returns were acceptable. In the past 5 years the returns have been a disappointment. What do you think of that fund and its management? Should I continue to hold or sell and move on?

Q: /A potential class action litigation resulted in a positive reaction on 9/23 with a close of $4.79 after a high of $4.86.Please explain the class action & if the positive effect will continue.Still holding my shares & trying to sell @ possible best price.Always appreciate your normal great services & opinions.

Q: Although very different companies in size and industry, which one in your opinion has the better growth profile over the next 3 to 5 years. Thanks.

Q: Given that most, if not all of your highly rated IT co's are software business solutions co's and diversified across many sectors, is there any need to apply a 'sector' limit to them. I know they may all move with the IT sector during rotations, but not on fundamental issues that affect all co's in some sectors e.g. resources. Applying a sector limit seems to be excluding many fine growth co's from a portfolio, at the expense of including less attractive co's in the quest to diversify sectors, but is this necessary? Why have a sector limit at all when the co's in question are themselves diversified?
Thanks, Peter.

Q: For the most part we (subscribers) seem to ask you questions on the same stocks in some sort of rotation that I have not quite figured out. So it must be time again to ask, what stocks are we not asking about (very frequently perhaps)that we should be considering for our portfolios?

As always, I appreciate your insights - my best performing stocks are generally ideas I've picked up here!

Q: Hi team: I wonder if you would recommend a buy at these prices of Sept 22.

Q: any thoughts regarding TWM

Q: I have been a bit worried about the US market, as measured by cyclic PE it seems quite expensive. I have used the recent strength to sell some of my low conviction stocks and take half positions in what I consider to be better companies. My cash is now up to 10%.

My first question is do you think this cash level is appropriate for the market now? My second question is, given a pullback how would you deploy the cash. Immediately on the day of a big drop, say over 200 points on the Dow?. Or try to time the bottom using technical analysis? Or gradually ease into a position starting the day after a big drop in the market? Any other suggestions gratefully received.

Q: Sunopta has almost doubled in price since the end of May. Is it good value?

Q: COULD I HAVE YOUR THOUGHTS ON MX, AND IS THIS A GOOD ENTRY POINT

THANKS

Q: I have the following in my TFSA:
ALA;BEP.UN;BHX.B;ET;FTG;HCG;MRT.UN;PHM;PUR;&TNC
I have about 12K contribution room left to top up my total limit and Im looking for 2 or 3 names to add which would fit in and will make it a appox.50k portfolio.Suggestions?

Q: Hi,

I am looking to balance out my portfolio with some dividend paying companies that will do well in a slowly rising interest rate environment. Something to balance off my utilities and reit's. No financials please. Ideally a dividend of 2% or more.

Regards,

Robert

Q: ON Sept22 you answered my question re what agricultural investments were worth looking at. You mentioned a stock AGE. Is that the correct call letter as I can't find it.

Thanks

Paul

Q: I am having difficulty investing new money into the market in the current environment because of perceived high valuations. If a stock is rated as a strong buy on the TMX web site, would you be comfortable starting a new position? Thank you.

Q: Hello 5i experts
Given that a Trump victory is looking more and more likely, can you give me some advice on what effect it will have on the stock market (both short and longer term) and what evasive action retired investors like us should be taking.
Great service...couldn't be without it. Thanks as always
Joanne

Q: Does it make sense to switch my position in this company with something else? BOS hasn't performed well since I purchased

Q: I have held DHX for some time and it has gone nowhere. I am becomimg quite disheartened with the stock and considering swapping for TOY. Would appreciate your comments.

Q: Do all above companies fall under Industrial? My total weight is 13% Is this too high? I feel that I have too many companies in this sector and may be better to have only 4-5? STN and WSP are similar so would it be better to sell one of these and add to the names that are listed. I am also thinking of selling ET and taking the proceeds to add to the other names now leaving me with 5. Is this a good approach?

Thanks
Dolores

Q: Hi Guys,

Your thoughts on Tucows, I hold a 1% position and thinking of selling and moving the money to another tech stock which I currently own, either ESL, OTC or SYZ.
thanks,
Jim