Investment Q&A

Q: Good Morning 5i
BNN speaks to convergence of Fed reporting with large amount of options expiring 2 days later. Is this likely to result in a brief downward pressure on stock prices?
Thanks.

Q: Hi everyone at 5i. Before I present my question, I would like to thank all of you for your excellent service! You have made me a much more educated investor. I would like to wish all of you a very Merry Christmas and a Healthy, Happy and Prosperous New Year!, My question...I have some money to deploy....I do not own Loblaws, Metro, Magna or Auto Canda. (Different ends of the spectrum)..If you had to pick one, which would it be. Cheers, Tamara

Q: So what would be your take on Westshore's value after yesterday's plunge?
Could one dip in and buy some more at these prices as I would like to buy for the dividend..

As always, thanks..

Q: I'd appreciate your comments on NWC's Q3 earnings. Thanks.

Q: Looks like they missed on both and also guided lower. Is that correct. What do you think about the stock after the current earnings.

Q: what do you think of WJA? thanks.

Q: Peter,
It is this time of the year, Xmas and the ever favorite Xmas card. This one is for you and your coworkers, via Abnormal returns...


Quote of the Day

"So I genuinely believe that if you can find a financial advisor who's trustworthy in the true sense of that word—someone who is competent and knowledgeable and whose services are fairly priced and who isn't rife with conflicts of interest, you're a very, very lucky investor."
(Jason Zweig)

Q: For sector allocation purposes you mention 10% utilities and 10% energy for a conservative portfolio. Which sector do the pipes,TRP,IPL, and ENB fit into? Thank You Ron

Q: Posting only small tastes of the new ETF & Mutual Fund letter is too much of a game of "Here kitty kitty," and doesn't seem appropriate for a loyal following that is glad to spend money for what they feel is a good value. Could you post either the full issue or a couple full articles from it? Thank you.

Q: I need some advice. If I sell some of my PHM by taking a 40% loss what other 5 companies will you suggest as replacement within the similar high growth small cap segment.

Q: KNow this has been a hot topic lately. But the reason for the fall might be a report just issued by Veritas calling DOL a sell.

Here is what they said:
"Canadian equities
Dollarama Inc. (DOL) - $81.70
Need-to-Know Veritas: Sell (PT $79)
Dollarama reported record GPM of 45.9% compared to historical average of 42%-43%, which led to a 35% increase in EBITDA to $154.8 million. Dollarama’s multiple price point strategy is the key driver of its strong SSSG, with average transaction size increasing at 3%-6% for the last several years while traffic increase was a mediocre 1% on average. Management indicated on the conference call that it will introduce new price points of $3.50 and $4.00 in the second half of F2017 and moved to a new metric: % of sales above $1.25 (instead of above $1.00 previously), which signals that the retailer is close to reaching a saturation point at the lowest price levels and needs higher prices to supplement SSSG. Given the company’s reliance on SSSG and growing expectations for ‘beat and raise’ quarters, a saturation point could create notable downside in the name should the company see slower than expected growth growing forward.

Sheldon

Q: To a largely great extent, figuring out price action (market action) is not an intellectual exercise as much as it is an emotional one. That aspect of analysis should not be minimized though 5i dismisses this. 5i can't understand the sharp drop in pipeline stocks. Before their rout, the sector had been trading a 1 or 2 --even 3 standard deviations from 10 year Price/CF average and it became a very crowded trade. This sector is a perfect example of a sector being bid up for no reason other than yield and relative safety. It's been a disaster over the last 12-18 months. They are better priced now but the next shoe to drop is in Telecoms. Comment?

Q: Given Dollarama’s recent good quarterly results and the (perhaps unwarranted) stock price reaction, would you consider this as a buying opportunity? Enough to recommend DOL over ATD.B for a new purchase today, or would you stick with ATD.B as your top pick in the consumer space?

Q: Your comments on earnings and guidance please?

Q: dollarama just pegged their price at $1.25 because of higher inventory costs because of our low dollar.I was thinking maybe a lot of people will think this is not a dollar store any more and sales will drop.

Q: Do you believe sustained low energy prices could significantly impact business of renewable energy cos., specifically BEP, RNW, AQN, NPI, BIP.UN per the IEA comments below. How could this play out and which companies would be most vulnerable? Thanks.

The IEA fears that low prices for all fossil fuels, including coal and natural gas, will sideline the renewable energy push in some countries. In the developing world, coal is becoming irresistibly cheap, encouraging the construction of coal-fired generating plants that spew out horrendous amounts of pollutants and greenhouse gases.
“We see the cost of renewables going down, but in a low-oil-price environment, we may well see that some governments may weaken their support for renewable energies or efficiency improvements,” Mr. Birol said. “We have been telling governments that it would be a historical mistake to lessen the support on renewables and efficiency as the price of fossil fuels becomes cheap. Let me be clear: Lower oil prices are a risk for the transformation of energy.”

Q: Thoughts on earnings and the future outlook? Do you feel they will be able to continue double digit growth and showing value despite the ongoing Alberta headwinds... Seems to be priced very attractively vs. NAV and their track record.

Q: I've been holding TRP stock for quite a number of years. Looking at long-term chart comparisons of TRP and ENB, it's obvious that ENB has outperformed. Short-term charts, though, are showing that ENB has been dropping considerably more than TRP, so, in a recovery, could one now expect more upside from ENB than from TRP? I'm wondering, namely, whether this presents a good opportunity to trade my TRP for ENB. Thanks!

Q: Is Csw.A still a buy? Can you comment on the valuation? Thanks!

Q: Hi Peter and 5i team,
We have shares of Com dev and we are thinking of selling [ in TFSA ]. Do you still think that MacDonald Dettwiler or another company will make a better offer? Do you have any suggestions for another growth name keeping in mind that we hold the appropriate percentile of large caps and bonds.
thank you for your advice