Investment Q&A

Q: Hi, could you please comment on Boyd Group earnings release. Thanks

Q: Good morning 5i Team

NFI share price peaked in late March and has been been dropping since. The slide has accelerated since the Q3 report. Having read the report and listened to the call, I can't figure out what is causing such a sharp selloff. Here are four things that are noteworthy but still don't justify it in my mind:
1) new manufacturing plants (increased competition in the future)
2) Slightly lower backlog
3) Revelation that for every 10 new units sold, NFI typically takes 7 units in trade, and the re-sale value of trade-ins is declining, hurting margins.
4) Today's news (that the market has probably known for over a month) that 70 jobs will be moving to the US to accommodate the 70% US content rules.

I guess a fifth would be the overall market decline.

I've been watching NFI looking for an entry point. This looks like a good time but I feel that I must be missing something here. I would appreciate your thoughts before I pull the trigger.

Thanks. As always, your insights and guidance is much appreciated.
Peter

Q: I don't see any news on PEO (-5%) do you?

Sheldon

Q: In a previous answer today, you said you would be ok start a postion but not adding to it. How do you come with that ? If its under a 1 % of your total portfolio, doesnt that matter? this was a praised stock at $120 and it doesnt seem like much has changed.

Q: Hi can you provide your thoughts on BYD.Un. Seems like another high flyer is going down at a rapid pace

Q: Hi, Could you please post estimates for earnings release of tomorrow. Thanks

Q: Dear sirs,
Aside from previous earnings commentary, would you add to or initiate positions at these levels in Premium Brands?

Thank you,

Q: It would appear that many of the investment firms share the same positive views of KXS going forward. While there were a number of reduced 12 month targets, the adjustments were relatively minor. For example, Canaccord is now $97,50, TD is $98, 8 Capital is $100 and RBC is $105.

Q: comments on earnings please.

Q: Help me understand WEF please. Seems like they have mo debt, although Morningstar shows approx. $230M of “other liabilities” on their balance sheet. What could those be?
Morningstar states they earned about $80M TTM. True?
Why does the stock trade as if it could go out of business any time? Is the industry that fragile?
I note the stock was under 20 cents in 2008-9 crash. Can this happen again given their low debt?

Thanks
John

Q: Can you explain and justify what’s going on with Photon. I didn’t sell at the highs When I was up almost 100%, preferring to look more long term than trading. Now, for the first time, I am under water on it. I thought they were rolling out some new products that were supposed to do well and drive numbers up. Do you still see it as a long term (3-5 year) hold to get back to the $2+ range? Or do you see it as a missed opportunity, live and learn, sell and move on?
Thanks

Q: Would you sell a 70 call and buy a 70 put on KXS at this point?

Sheldon

Q: I'm looking for a straightly growth stock for the next two years. What would be your preference between GSY and SHOP, or you have a even better one (or ones) than these two. Thanks.

Q: Hello 5i Team,
Judging how emotional this market is, would you suggest in waiting for Savaria's earnings on Nov. 14th before stepping with a full position for a long-term hold?
The company forecasted 44 -45 M for 2018. What if they miss?
Keep up the great work!

Q: Do you do a detailed competitive analysis when you research a company? If so, can you provide such for NFI. My specific concerns are the new plants being added to the US that will compete with NFI, 2 that will be online by next year:
- Novabus' new North American assembly plant
- Gillig is in the process of building a new plant in California
An additional 3 new entrants have announced their intention to enter the NA market

Thanks

Q: Using low end of guidance @ $2.18 the shares are trading at below 11x P/E. Globeinvestor chart is showing RSI in oversold territory (unless I am reading wrong or using incorrect data - which could be a possibility :)).
The long term debt is still pretty high but if we are to believe mgmt.'s story the shares are cheap. I've been picking away and I'm at half a position with an ACB of around $30. Would you suggest buying the other half position with the share price currently at $23.01 as I am writing this question? Or continue to average in during the tax loss selling season?

Q: Hi Peter and Ryan,I see you seem to be taking a lot of heat about your balanced portfolio's performance lately.Just to put things in perspective,I have been a member since you began and with a little help by using margin sometimes(something Peter doesn't recommend lol!!)my total return for 5 years,even after this pullback is 175%.I remember you warning investors after a couple of 30% gain years in a row that things wouldn't always be that rosy.You also always stress not to panic every time markets have a violent pullback.People investing in the stock market should be prepared to deal times like this,it's not easy I know.Anyway,I'm quite happy with the service 5i provides,it's the best investment I've ever made!!!

Q: High Artic beat all estimates but the stock has not responded positively.
Should I assume its just an "irrational market" or is there some other explanation.
Thanks
John

Q: What are your top 10 dividend income stocks right now from as many different sectors as possible?,Thank you!

Q: I own shares of KXS. It’s been a bit of a wild ride. Today the stock is around $68, a price it last reached about 12 months ago. With this reset on the price the mkt seems to be saying its future potential as an investment is equal to or worse than it was a year ago; that despite a year of operations, the company is not stronger today than it was a year ago. While I would be hesitant to buy more until the share price decline stops, the risk/reward for KXS for a longer term investment is becoming more compelling. Your views?