Investment Q&A

Q: I am wondering how you are viewing the US economy these days. You had been rather bullish on for several months and other than the latest jobs report, it seems to be doing ok. Is the market not in step with the economy at this time, for whatever reason, or has something fundamentally changed? I hope I am not being naive in thinking that the Fed had not idea what there were doing when they signalled a strengthening economy by raising rates.

Thaks for the insight?

Paul F.

Q: what do you think of this company for income and growth.

Q: Is there no future for this co. based on the space in which it operates ? Another Torstar ?

Q: Peter and His Wonder Team
ATA dropped again today as low as $8.57...which is a new 52 week low. In relation to there balance sheet do you think this is fair value or is it still over priced? Also, when a good company has a disappointing quarter such as this what do you think is a reasonable average number of days the stock will crash before it stabilizes or hits a new floor. For example I have heard that you should wait at least 3 trading days to see if stability occurs...I know every case is different. I am just trying to get some guidelines which may help to avoid the "falling-knife"! Ha!Ha!
Thanks for your assistance!
Respectfully...
Dr.Ernest Rivait

Q: I am down on the following: WSP 13%, GIL 15%, MG 20%, DH 20%, TFI 32%. Would you add to any of these or simply hold. Subtract credits as required. Thank you.

Q: The following stocks are on Jason Donville's Top 25 ROE list and I know they are also in 5 I's good books. ESl, KXS, CCl are at about their 200 day moving average while CSU is below its 200 day ma. Is this now a good entry point for these stocks to take a full position.

Q: Hi 5I: I don't normally pay too much attention to technical analysis, but recent sudden drops in companies like CCL, CSU and even ATD.B, DSG and the like have provided some motivation. It is not news that stocks took a sudden downturn on or about Jan 1. Nor is it a surprise that many show a distinct local minimum around Jan 20. However, the behavior after that is not uniform. Both CCL and CSU had local peaks between the 22nd and the 29th, followed by significant dives that show no signs of slowing down. This pattern is also evident in ATD.B, DSG, GIL, DHX.B, ESL and KXS, though the extent of the dives to date are not as severe. All these stocks are ones that have shown large growth over the last year or so, and it would appear that investors are selling to protect gains. Many utilities and other interest bearing stocks show quite different behavior; instead of diving, these have gone into sharp climbs. Good examples are Andrew Peller and Algonquin, two of Peter's best picks from his recent BNN appearance. The psychology here is obvious. My question: should I sell to protect my gains, and then follow the herd back into utilities? I am tending towards selling, as who knows how long it will take for fundamentals to win out? I look forward to your advice.

Q: Hi,
I understand BIP.UN is an entity (limited partnership) whose distributions are fully or mostly taxable in the hands of Canadians. Hence it is a good candidate for one's RRSP.

Are there any other securities with taxable dividends/distributions that you are aware of and like for income purposes?

Thanks,
Mike

Q: Hello Peter,
Do you have an opinion on Cameco’s recent quarterly results? The outlook did not sound positive and I think the stock price is headed nowhere for at least one quarter. If you concur, then at least in the short term (3-6 months ) I want to consider selling CCO and parking the money in Intertain. Now, I have a full position in IT and recently went overweight AYA @18. IT has also been beaten down and my theory is that the downside is limited but the snapback in IT is potentially high based on what valuation AYA receives from investors/market; plus the probability of decent earnings which the management seems confident. AYA upside is probably capped but IT could be pulled along and be the beneficiary. I am looking for a quick home run (30-50%) in the short term to cheer me up as the long term investments take a battering. The intention is not to be overweight in IT for the long haul. I would like your opinion- should I sell Cameco or not, and if I do, should I park it in IT or keep it as cash while waiting for the market to settle down? Or would you suggest something else? This is in the RRSP so no tax implications.

Q: I own some Couche-Tarde and 5i has said that it is one of its favourite stocks in the consumer sector. With annual cash flow of a little less than US$1 billion and a market cap of US$24 billion, it is trading at 24 times cash flow. This seems very high and appears to be discounting substantial cash flow growth. They have been able to grow significantly in the past. How convinced are you that Couche-tarde can grow cash flow in the future to justify its multipl? Will 5i be writing a report on ATD.b in the future?

Thanks, Gtreat service.

Q: As they both have corrected, which company (if either) would you prefer here in relation to yield, valuation and any privitization/takeout optionality? Thank You.

Q: hi, thoughts on these five going forward 2-5 years?

Q: Hi Peter,

Is it safe to pick up stocks with a book value lower than the market price. the above stock is trading at 4.00 cad and the bv is 7.00 cad

Thanks
Paul

Q: i notice that csu, kxs, otc, dsg and many of the u.s. tech companies have gotten hammered over the last few days, anything going on here like a rotation out of tech to energy and gold, i know csu is one of your favorites but reached levels last seen last april from a high of 600 seen not that long ago.is this just profit taking or something else. dave

Q: Hello: Would you recommend buying WSP at the current price? Or some other growth stocks? Objective: capital appreciation and dividends. I'm looking for some capital growth to offset the stocks in the red in my TFSA. In order of unrealized losses from high to low: CXR, AYA, LNR, CRH, BOS, TC, CXI. My losses range from 61% to 21%. Thank you.

Q: Hi team
I have a small position in ATD already, wants to add to the consumer sector
with the pull back in Dollorama, would you add to ATD or buy a partial postion in DOL ? at least a 3 year hold
thanks

Q: Hi Peter, I have a LIF with $600 that is just going to sit there for the year. It's not much but I'm thinking of buying 300 shares of WEF. I own Northland Power and Power Corp. in it and would prefer to have a third dividend stock rather than adding to one of those. I should be able to hold all three stocks for years. Would this be worth doing and would you have any other suggestion? Thanks.

Q: Hi Guys
Would it be a decent gamble to toss a bit of my mad money in the bomber at .90 cents?

Q: Hi Peter and Gang,

I would appreciate your thoughts on BAM.A's significant pull back over the past two months. I have a full position in this stock -- should I ride it out or should I start reducing my position.

Thanks,

Harris

Q: Hello 51 Team,
In anticipation of suggested growth in Infrastructure spending in both Canada and the US, and as well the SP pullback of each due to recent market overreaction, WSP and BIP.UN are looking very attractive right about now. In as much as I would like to eventually own both, I can only chose one at this time. They would be part of an Income oriented portfolio with a leaning towards stocks with a solid upside potential, expressed not only in terms of share price but consistency of dividend increases as well. Can you offer any assistance in making this very difficult choice between the two?
Thank you as always,
Rick