Investment Q&A

Q: I regards to your comments on aw strategy to use only beef raised with out steroids hormone is true however as a retired beef producer I don't believe you can buy beef to day, with steroids and hormone enhancement . I believe that left the industry years ago and the growth enhancement been replaced with genetics .there are calves being born today that have a 4 plus pound a day rate of gain far exeding any artificial enhancement .
I would invest in aw for the financials but to get wrapped up in adds I wonder if that is the right course

Q: I thinking of buying Evert for long term hold. It has come down and pays a good dividend. Evert would approx. 4% of my portfolio. Is it a good and well manage company?

Thank
Paul

Q: Why the surge in price mid day?

Q: With the massive selling going on now, can you give me your top 5 stocks that you think are oversold?

Q: I have been watching T.KXS waiting for a pull back to initiate my position. With it down 6% as of right now would you be comfortable initiating a position? half position? or would you wait for further decline?

Q: Do you have any thoughts on why DRT continues to slide. Is short selling causing this. There seems to be no news.

Q: When does the deal close buying CUS? Will they be able to get and cost saving synergies with this acquisition? When I look at my data supplied by CIBC this company looks like a stay away from stock; however, when I read your analysis from Dec. 11 it looks like it is o.k. to buy -I was thinking for my TFSA?

Q: Peter & Team, I have a handful of market darlings that all declined roughly 5 times worse than market today: SJ, CCL.b, BYD.un, CSU, CIG, FSV. Any idea why these would perform so badly today and is it telling us something? I note a couple of BNN market call experts sell when stocks break down usually applying stop losses. Given I have substantial taxable gains on these holdings, would you recommend paring back or selling (and buying back at lower prices as the Market Call people are attempting to do)? I note some of these are 5i top picks for when the current rout is over.

Q: Hello,
I am trying to follow your balanced equity portfolio. I have bought the securities that you have rated A, A-, and B+. As I go to B-, I'm wondering why they are included, when you have higher-rated stocks in your overall list. I would guess that they do not fit under the "balanced" criteria, but perhaps when put together (e.g.: an income stock and a growth stock) they would make a balanced combination? I could do this myself, but I like how following your portfolio takes the effort out of sector diversification.

thanks,
Henry

Q: At the moment, the TSX is down 1.06%, supposedly on cheaper oil fears. However, your Balanced portfolio is down almost 2.5%, despite having only one oil related stock - which is up, ironically. Why would this be the case?

Q: Hi 5I Research team, Trying to read PHM' annual report. Some question marks:
On page 6 : " Revenue for the 12 month period ended September 30, 2015 revenue totaled $71.7 million up $50.5 million from the same period in 2014. The increase in revenue for the year w as driven primarily by the acquisitions of Black Bear, Black Bear North, Black Bear NH, West Home Health, Sleep Management and Legacy Oxygen in 2015, and Care Medical in June of 2014. Combined these acquisitions generated approximately $47.2 million revenue in the year from their respective date of acquisition. In addition favorable exchange rates benefited revenue by approximately $4.1 million." : the numbers seem to indicate an organic growth negative? What am I missing?
Bad debt expense= 6 M$ (approx 8% of revenues): versus 5% of revenue the year before: can we expect this to be a recurring expense? Is this a sign of bad management or a necessary bad that comes with the business?
Impairment of goodwill and customer relationships = 10 M$ : Isn't worrying to decrease the valuation of very recent acquisitions (Legacy, West Home, 0891532BC-a related party transaction, RMG and RMC)? Does it mean they overpaid for these acquisitions, bad allocation of acquisition costs or the new management is cleaning-up the balance sheet when starting their reign?
Stock-based compensation = 9 M$: Is it a one-time expense for the work done during the last fiscal year or is it a recurring expense? Written differently: can we expect other expenses for the acquisitions made in that fiscal year or exclusively new ones for future acquisitions?
Can you explain why and to whom the options were issued over the last +2 fiscal years (nearly 47 M! > 10% of shares)? Is it a way to pay the management in place or is it to pay while making new acquisitions and keep new "acquired managers" motivated?
This company seems to have a good strategy. The current year will reveal if operations are in good hands. But, the price paid for some acquisitions, and its accounting generate question marks. Do you agree?
Thank you for your collaboration, Eric (sorry for the lenght)

Q: You last commented on these prefs in Apr. Since then they have declined a lot further and now appear attractive for at least yield. Are you still comfortable with the credit rating of the company in today's environment?
Thanks

Q: With new TFSA money, which stocks in the Growth portfolio would you top up in the current enviroment?

Thanks

Q: Hi Peter,

I'm 32 years old and have $150k in new cash from the recent sale of a business. I'm looking at investing these funds in a variant of your Balanced Equity profile. I'm ok with risk and am wanting a long term investment with a higher upside. Are there are any changes that you would make to the portfolio to match my situation?

Thanks!

Q: What is you opinion of this company?
Thank you.
Lillian

Q: Hi, although I have learned plenty since subscribing to your service about two years ago, iam now realizing that my portfolio consisting of about twlelve total stocks from your portfolio's, majority of which are growth stocks, that my beta is about two at least, Do u think I should rebalance or stay the course in this tough market? I can handle it but it is more difficult than I thought, I won't need the money for about five years, thanks?

Q: What looks cheap in the BE portfolio? Thanks.

Q: 5i Team -

Can you please provide your analysis on Whitecap Resources? What is their debt/cash flow? Can they survive with $30 WTI over the next Year? How does WCP stack up against CPG? Thank You!

Q: Was looking at this utility: TTM PE=16, P/B of .93, low debt/equity of 16%, low ROE of 7% and a P/R of 92%. Price has gone up a lot lately - not sure why as EPS on a Q basis has not been that stellar as indicated by low ROE. I already own FTS as my utility unless you count ENB and TRP: so, I know you like - but, why as it seems to be of less quality as the afore mentioned.

Q: Greetings 5i Team,
I have been patiently (no pun intended) waiting for this company to bounce back after all bumps it went through the past year. As things were looking good at the beginning of the year (due to positive year end results), it has taken another step back recently due to what's been happening to markets around the world. I was wondering if it's a good idea/time to dilute the price of my $0.95 cost/share now. Thank you for your time.