Investment Q&A

Q: Read the recent questions re: CSU so will reframe mine as follows:

1. Globe investor shows forward PE at a very reasonable 16.3. Do you concur?

2. The stock has been trading in a range between 530 and 600 for the past three months. CSU has been a massive win for me but has shot up to 13% of my portfolio which I know is too high. It's probably time to abandon the "let winers run" approach and take some money off the table but the real question is this: knowing that a share split is not in the cards per the CEO, and with a tiny yield, have we had our fun? i.e. Do you see a scenario where the stock retests 600 let alone surpasses it?

Thanks as always for your insight.

Q: Can you explain what is "wrong" with this issue (very low and falling price) and why it is, or is not, a reasonable buy for income. I know it will reset at around 4 1/2% at present interest rate scenarios in 2019, but looks pretty good overall with a current yield of ~9.7%. Thanks.

Q: I have a well diversified portfolio of 33% global funds, 33% canadian dividend payers and 33% 5i's growth portfolio. I'm 40 years old and I just inherited an amount equivalent to 25% of my portfolio that I would like to invest. I am thinking about adding either BIP.UN or the Venator long/short fund. I don't need the money for twenty years. Which of these would be better? Thanks.

Q: Hello, after several days of decline, stock closed at $169.13 on Oct/9. Technical indicators show stock in OVERSOLD territory with RSI at 14. On July 31, when co. released Q2 results, stock opened at $170.13 and traded as high as $195, just 2 weeks ago. There is a lot to like in this co. due to its consistent performance, solid growth prospects and large insider as well as institutional ownership. I have a decent position in the co. and looking for your advice if it's safe to accumulate more stock at current levels or wait until Nov/5 for Q3 results. In recent past, I have noted that stock has a tendency to shoot up after quarterly releases. Also could you also comment if recent price correction could be as a result of a weak US$ (Higher US$ has provided tailwind to co results) and market concerns about a possible softer Q3 due to lower (?)back to school sales in Avery division and global growth? Thanks for your great work.

Q: Not sure if this was sent earlier.Add some comments to 5I great responses to concerns about NA.Some statistics by Thomson/Reuters o Oct 8: 1) BMO 2)BNS 3)CM 4)NA 5)RY 6) TD ROE: 1)12.06% 2)13.96% 3)19.24% 4)17.1% 5)18.59% 6)13.75% Dividend Yield: 1)4.3% 2)4.5% 3)4.5% 4)4.9% 5)4.1% 6)3.8% Estimated 2016 P/E: 1)10.7 2)10.3 3)10.5 4)8.8 5)10.9 6)11.4 1yr/5yr Return: 1)-8.2%/+28.2% 2)-12.3/=11.2 3)-1.3/+31 4)-17.6/+29.4 5)-8.1/+35.8 6)-1.1/+43.1 As per BNN re Tier 1 capital 1)9.7 2)10.3 3)10.3 4)9.8 5)9.41 5)9.96 CM is the only North America bank to appear in the World's 20 strongest banks since computed(think in 2011),currently ranked # 18.All our big 6 banks are in the top 50 safest Banks in the World.Our banks operate in an oligopoly environment & the big 6 each takes turn to be top performer.The financial sector is closely supervised by SOFI,an arm of the Federal Gov'T.Recenly many guests on BNN have been positive & recommend the big 6 mainly due to high dividend,historically low P/E & decent returns over time.I am a senior & they are my "sleep at night stocks" in addition to 5I Balanced Equity Port. Thanks

Q: Hi 5i

I have $10,000 to invest for my daughter's RRSP portfolio. She already holds BMO, BNS, TD and BEP.UN What investments do you recommend to round out the portfolio?

Thanks, Henk

Q: Hello 5i
Looking for some help with financial statements. Calians balance sheet shows a decrease of 344k in shares outstanding in the last 5 years. The cash flow statement shows that 9160k shares were bought back during the same period. Is this correct and how would the difference be justified? If I'm reading the statements correctly I only see about 7000k shares outstanding. Thanks for all you do.
Les

Q: HI Folks: Is owning PHS.U a good/safer way to "own" silver or would buying silver bars and rounds be better and, would this be a good time to buy PHS.U or should I wait until after the CEF.A and the SBT deals are complete?

Q: In my Scotiabank brokerage account the news section tells me some firm in the US "Rosen" I believe wants to sue someone for causing the short selling on Nobilis and the losses by ordinary shareholders. They want me to sign up and they will be working on a contingency fee. What do you think about that?

Thanks,
Charlie

Q: Is there a symbol to track "Options Adjusted Spread".

Q: I read with great interest your Post article re selling covered calls. A number of the holdings in the 5i portfolios are optionable.

However, question to you is wouldn't you miss a great opportunity if for instance you owned Amaya recently and sold a call on it, and missed most of its latest run up as a result of being called away.

I can see selling covered calls on some of the issues like BCE or IGM but isn't it risky losing out on a big upside move on some of the more volatile stocks?

Please advise.

Q: For your readers:

The New Jersey DGE posted a 95 page due diligence report regarding Amaya's approval in New Jersey:

http://www.nj.gov/oag/ge/2015news/REPORTAMAYAOAG_100915v1_redacted.pdf

There's also a section regarding the AMF investigation on pg. 54 ("Investigation by Canadian Securities Regulators Relating to the PokerStars")

Q: Any idea why CSU is dropping like a rock? I've looked at three, five and even ten year charts on this stock, and it's never had a downward move as swift and far as this week.

Q: CSU seems to be very weak when compared to the TSX. I know there hasn't been any material news on this, but can you give us some perspective if this still remains a good stock to hold or even buy at these levels?

Q: Can you please confirm that Air Boss Of America is a Canadian domiciled company paying eligible dividends? Just want to confirm before initiating a position. Thank-you.

Q: You may have read an article posted on Seekingalpha regarding Nobilis. It is basically an all out attack on the co. (in my opinion). Is this an orchestrated short attack, or is there merit to some of the alleged issues? The author has stated they are short NHC so there is that. Earnings are due next month I believe.

Q: what happened to nobilis today

Q: Peter & Team, NHC is down 25% and was twice circuit breaker halted today. Would you care to comment on a Seeking Alpha piece attached? I can find no other news.

http://seekingalpha.com/article/3561556-nobilis-about-to-fall-from-nobility-part-i-65-percent-downside?app=1&auth_param=cnfd0:1b1fjrl:a319bf57fbddf7c8bc89b0fac7269511

Thank you.

Q: Nobilis is the latest healthcare stock to take a swoon. An article on Seeking Alpha is probably to blame:

http://seekingalpha.com/article/3561556-nobilis-about-to-fall-from-nobility-part-i-65-percent-downside

Would you continue to hold?
Thanks.

Q: Could I get some assistance comparing the debt of Clearwater's latest acquisition, MacDuff Shellfish, to High Liner's.

My back of the napkin calculation, currency conversions and all, have:

- HLF's market cap being 2.34x the size of Macduff's
- HLF's sales being nearly 11x Macduff's
- and HLF's ebitda being 5x greater than Macduff's

If I could get some assistance comparing MacDuff's and HLF's debt I would appreciate it. I'm not sure its possible since Macduff was a privately held company but if you have any insights comparing the two debt levels it would help a lot in my research.

Thanks and have a wonderful thanksgiving weekend, everyone.

John