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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I'm considering cutting a loser to invest in something new that has some growth. SIS, PBH, and TOY have been poor performers for me for a while now and have been dragging down my returns. If I thought the issues were temporary for all 3 of them I would hold and wait it out but I've found each of them has been less than impressive. SIS with the equity raises and mgmt that I'm losing faith in, PBH with a million excuses as to why each quarter has negative surprises (weather, swine flu, minimum wage,etc), and TOY with disappointing numbers that seem to be getting worse with no real catalyst to get back to growth (Toysrus overhang, diminishing sales in their top sellers that are getting stale, no replacement "home run" product to turn things around. These 3 seem to no longer be growth stocks, do you think I should cut any of the three or give them some more time?
Read Answer Asked by Adam on May 15, 2019
Q: Hi 5i,
Can you recommend a good time to complete a tax loss sell on the following securities: TSGI, TV, TOY, GC. Will be buying back in either TFSA or RRSP in 30 days (If one security does not need to be rebought please feel free to comment).

Thanks.
Read Answer Asked by Dean on May 14, 2019
Q: WEF has been in losing ground for a year, and seems to have been range-bound for the four years previous. Do you think that yet more bad news on duties is already priced-in, or could things get quite a bit worse from here? Interestingly, Tier 2 data shows a disproportion of bids (vs asks) close-by the trading price; I would have thought this implied buyer confidence in future prospects - yet the price is not being supported.
Read Answer Asked by John on May 13, 2019
Q: I would like to know what the Management and employees have been doing other than collect salaries for the past 5 years, other than a few small acquisitions and filings with the authorities it seems to me that they do not deserve much compensation. I can't see them "working" 50+ hours a week looking at investments day in and day out year after year. What have they been doing? Goodman raised a ton of money at $10.50 or $11.00. I would like to see Goodman and his management team paid a salary of $1 per annum (just as Steve Jobs did) and be paid with stock options, not at the current value but at $10.50 or $11.00. I have put my faith in this guy but like a lot of shareholders I think its time to move on from Goodman and his underperforming company. Goodman's talk of an overnight success for my grandchildren does not give me much comfort. I was hoping for more of a shake up yesterday and was disappointed it did not occur. The fact that his Dad owns a company that competes with Knight was something new that I did not know when I purchased GUD shares.
Read Answer Asked by stephen on May 13, 2019
Q: Is it time to bail on NFI or are the worst of the operating issues behind them? I have owned it since 2015 and saw the shares rise from $17 to $60 a year ago, only to half the amount today.
The Q1 results are not encouraging. Operating cash flow is a deficit of $7 million, earnings were down 46% or 56% adjusted. Gross profit margins declined Q/Q by 240 bps to just 16%. There have been substantial investments in new products (with learning curve troubles), a new zero emission bus, facility upgrades, a new parts facility (with start up problems and cost overruns), IT harmonization project, oh and they lost the Setra distribution rights in the motor coach division.

Concerningly, on capital allocation, they have increased the dividend with lower earnings and have a substantial debt funded share buy back. Annual interest is now about $25 million. This looks like brave policy unless the business really is about to turn the corner and shares return towards their $60 level.

What do you think?




Read Answer Asked by Keith on May 13, 2019
Q: ENB had decent results,but market response was muted.Any reason? & is this a good time to start a position? KXS missed on eps,but beat on many metrics.Initially it jumped to $82.14 then closed much lower @ $74.62. Any reason? Is it ok to start a position here?
Read Answer Asked by Peter on May 13, 2019
Q: I dont understand when PHO says ""The industry is witnessing significantly curtailed investments in the memory sector, which are expected to persist for the foreseeable future" , then I look at the chart of SOXX that until recently has been straight up year to date. Was SOXX oversold that bad and investors are ahead of the curve or is PHO making excuses? Just a point on the comment from PHO, I appreciate companies not being over promotional, but using a phrase like " foreseeable future" seems to me the opposite of promotional.
Read Answer Asked by Charles on May 10, 2019
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