Investment Q&A

Q: I have used this as a trading range stock. I have owned and sold it 4 times over the past few years usually between $40 and $46.I was slow out the gate this time with the Shaw AWS and Mobilicity deals happening before I pulled the trigger. Given the jump from 41.50 to its current 43.60, do you think the price is fully reflecting the deals now or that it still has room to run? I have been quite pleased with my decision to try 5I. After 30 years of investing and listening to generic answers its quite refreshing. (SO DO NOT TELL ME NOT TO BUY TELCO'S AND TO PUT ALL MY MONEY INTO MANULIFE)I HEAR THAT 20 TIMES A WEEK ON BNN

Q: Good afternoon. My portfolio is lacking terribly in the Industrial sector Large Caps. All I have is CNR 2.5% and a little bit of SNC (below 1%).
I am planning to fill the gap with Balanced Equity Portfolio picks. WSP 5% and MDA 4%. Will they count towards Large Cap allocation? Or are they mid-cap? In that case, what would you advise?
I could complete the sector with Small Cap buys from the Growth Portfolio: AVO 5%, LMP 3%, PUR 3% and XTC 5%. [all 5i %ages].
Thanks so much. sarah

Q: Hello Peter & Team,

From what I have been reading and hearing, we should be seeing some fairly significant long over due infrastructure spending oveer the next number of years both in Canada & especially the US - roadways and bridges are falling apart down there.

Putting aside the obvious differences between these two engineering firms (div, size etc...) both of whom should benefit from this increased spending, I am wondering whether moving out of Stantec and into DRT would be a good move or a bad move at this time.

DRT has come back fairly significantly ($7.07 as I write this missive) since its high of $8.95 on May 8th and it now appears there may be some consolidation taking place over the past 10 days or so.

STN has been showing higher highs and higher lows since it's post-split low of $29.14 back on Mar 25 after not really doing much at all for the past 18 months.

Could you please give us a comparison of the two companies, and which one you would pick moving forward for a 2 yr hold on a full position and why. And if these are the only two companies we should be looking at or if there is another engineering firm such as SNC-Lavalin you would recommend over DRT & STN... (SNC has also come back quite a bit since earlier this month)

As always, thanks for all you do!!!

Gord

Q: Your take on recent results,increase in dividend & split of 3 to 1 share(when will the split happens?).Is this a good entry point.Always appreciate your normal great services & advices

Q: Some info to add to yours & others' posts, since it started paying a dividend in ~June 2007 it has grown the dividend at ~20%/annum based on a quarterly basis.

I suspect it will continue growing it.
I have a few shares.

Stan

Q: Hi, what would your top three or four company's be with the best overall balance between growth and income, or in other words, the best of both worlds, thanks?

Q: Good Morning All,
I've been watching MSI for quite awhile and was wondering if now was
a good entry point, what do you think? Many thanks to all, Bob.

Q: HI PETER ET AL.
JUNE22 SCOTT asked about LOYALIST. I would appreciate knowing
where he gets the latest news concerning this and others.
Also, concerning my question on IPL- YOU failed to comment on the large amount of revenue they receive from the sands and how significantly a review could hit the sands compared to other deposits.
THANKS AGAIN

Q: Hi - your analysis of the pending acquisition and financing please. Does this give them some gravitas they have been lacking? the market seems to approve. what does the combined company look like? valuation? thanks

Q: I've been helping my son build a portfolio of stocks and so far he has the usual collection of banks, pipelines and utilities that pay dividends and that he can DRIP. Since he is only 23, he'd like to add two growth stocks to his portfolio. In the model portfolio, I've looked at Amaya, which has more than doubled this year (and faces insider trading problems) and ccl.b, which has gone up over 50%. At this point in time, with a longer time frame, what 2 growth stocks would you recommend for us to consider?

Q: Hi Peter and Team: Given your market update would you take some profits in your portfolio holdings that has a big gain? In our fall Fed election if a change in government it might affect the market further. Your comments please. Thank you for your insight.

Q: Peter, I am retiring from working soon and I have sufficient fixed income to cover all of my living costs. I have a decent size portfolio and I was looking at the various robo advisers, but they do not take into account your existing fixed income and most want to allocate up to 50% into bonds. I know that allocation between countries is a personal decision but wouldn't mind your thoughts on what I am thinking. Canada 60% (comprised of XEI, CDZ, VDY); US 30% (IWO, VGH, IBB, XUS or a hedged version) and 10% (VEE, FEZ). I prefer hedged ETF's over unhedged.

I do have a 5i portfolio of stocks in addition to this new one that I will be setting up. Great service!

Q: Peter, if the upcoming election is looking like Stephen may lose his majority or if it looks like he may not even form a minority government, would it be prudent to sell off a good portion of my portfolio before that time and sit on the sidelines with cash in hand? I can't imagine that an NDP government or a Liberal government under Trudeau would be a good thing for the markets.

Q: Hey Peter & Team,

Have noticed something today that I am hoping you can explain. Besides being down across the board, Volumes for all the Canadian financials are exceptionally high.

TD 11.87M (2.79)
RY 7.84m (2.30)
BNS 7.47m (1.93)
NA 2m (948k)
+
MFC 10.76m (3.23)
SLF 3.81m (1.14)

With all these share values being down, it appears to me there is a massive sell off happening in Canadian Financials.

Am I reading this correctly or is there something else at work here I am not aware of.

Thanks for all you do

Gord

Q: Your thoughts on the Ram Forest purchase?

Q: DDC has plummeted over the last few days with no news. What's the problem- funds raising cash?

Q: I'm an younger investor with a relatively high risk tolerance. Which one would you recommend for a five year + holding period? To me, HLF looks to have a better valuation but PBH has more aggressive growth plans. Also, do you think the 37% ownership stake in HLF by the founding family is an overhang?

Thanks

Q: I hold four tech stocks at present (ET, DH, GIB.A, ESL) and would like to add a fifth. Would you favour adding MDA or OTC to this mix, or suggest another stock? Thank you, Barrie

Q: hi

In my non-registered a/c:
I'm down 23% on Russel Metals. I have a 2% position. Industrials make up 10% of my holdings.

I'm down 10% on Artis. I have a 2% position.
REITS make up 16% of my holdings.

I have this urge to average down whenever I lose 10% or more on a holding.

Should I resist the urge to add to my REITS and add to Industrials instead? The 8% yield on Artis is appealing.
Thoughts?
What Sector would you be overweight in these days if any?

Thanks

Q: Your updated views on TPK please. I noticed Cormack recently initiated coverage of the Company. Based on their estimates, the Company trades at ~5x EV/EBITDA with ~14 fcf yield, 3.5% yield + 25% payout ratio.

I find this to be abnormally cheap for a company with decent growth prospects and a high margin business. Would you recommend purchasing shares? Have you met management?

Cormark thinks a reasonable multiple is 8x EV, which i tend to agree with. That yields a target of 13 dollars, which is considerably higher than the current share price. What do you think?