Investment Q&A

Q: Sorry, yet another question on Premium Brands. In your response to Jim today you noted that 5I would consider the management of PBH to be good. In their 2019 Outlook they indicate they are expecting close to $10 per share of adjusted EBITA. Also they expect revenue of $3.7billion. Both seem impressive numbers, if they can be relied on, and the latter is especially so given the current market cap is appx. $2.4billion.

Analysts have reduced their earnings estimates for next year from $5.54 to $4.53 giving a forward PE of 16 which is below the 5 year low PE of 23.

Debt seems on the high side at 1.26 times equity and management have noted they are paying higher interest rates because of the current debt to adjusted EBITDA ratio. However interest coverage seems reasonable at 4.3 and if the EBITDA comes in as they expect there might be some interest rate relief.

In light of this what reasons would you advance for not investing at todays price?
Mike

Q: What are your thoughts on NEO at the current price, having dropped after missing one quarter even though they have been beating estimates in prior quarters?

Q: I am about to sell ARX for a tax loss. Which is a better buy at the moment for the longer term hold?

Q: I asked a question after watching closing 10 nins of Peter on market call.
on listening to the full program later many of my questions were adRessed. so please ignore the question.
Appreciate cooments on the outlook for
DOO ,ZZZ,TCL.A AND MG

Q: Hi 5I - I need some materials exposure and was looking at MX and CCL. Which one would you prefer for a 4-5% weighting or should I add both at say 3% each? Thanks, Neil

Q: With a dividend of over 8% now, what are your thoughts on a new position? It sounds like production is well established, and there are rumblings of newly discovered reserves .

Q: With the sell off and energy taking a beating there must be some under valued stocks out there with low debt , good cash flow but caught up in the negative herd mentality. Any recommendations?

Q: Can you give me some general comments about the company and more specifically comment on the dividend in terms of safety given their recent proposed acquisitions? Thank You

Q: I currently have my 2 kids (2 and 4 years old) RESP's invested in TD's eseries funds (CDN, US, INT). The fees the last time I checked are 0.33, 0.35, 0.50 respectively. I chose e-series because of the low fees. I manage my own portfolio and don't want to manage stocks in 2 RESP's as well so I want to stick with Index funds or etf's for simplicity. I am wondering it if would save me enough money in fee's to change from the e-series funds to Vanguard etf's of the same category (CDN, US, INT) due to the lower fees. The Vanguard etf's range from around 0.05% mgmt fee and 0.06% MER for the CDN. Since the RESP's have many more years to maturity should I make the move to ETF's since they are about 1/3rd of the price or are we talking about pennies in the long run since the fees for both are already really low? Has performance been better in either?

Thanks,

Q: In addition to diversified RSP, RIF, TFSA accounts, I have a small Trading account that I use for 'nice to have' rather than 'need to have'.
I have sold Photon and Reliq recently for tax loss and have 22% in cash which I would like to redeploy. In this account I am willing to take higher than average risk.
Current holdings are COV 9% (with small loss), TSGI 43% and SYZ 26% (both with good profit). Your suggestions for one or two stocks that you think have higher than average growth potential in the coming year would be appreciated.
Re your recent update reports - good timing with so much going on and I liked the format
Thanks as always.

Q: Hi everyone!
Just bought cybr.b and find it strange that BMO investorline classifies it under "Fixed Income"?
Was wondering if anyone else holds this ETF in another discount broker and under which asset class it is classified.

Thanks to all

Q: Peter,thanks for positive view on TFII in reply to my Q on BNN. As per G&M today,Industrial Alliance upgraded it to a Strong Buy with a $60 target price,Also,CM upgraded BB to outperform,US$14 tp & downgraded PBH to neutal, $82 tp,average tp $98.70

Q: Greetings, I have not asked a question for a while now (2 years?); here it goes. This seems like a good time to deploy some of my cash held in my TFSA. Can you suggest a stock similar to KXS in potential? Maybe GUD, PHO? Thanks as ever.
Henry

Q: I know you have recommended growth stocks in a tfsa account
For tax reasons, what about fixed
Income portion in the tfsa and
Dividend and growth in a investment account for the same reason. I review the previous questions and couldn’t find anything
Thanks for the help
Sam

Q: Hi Team, Sorry if asking again (asked on Friday) In the Consumer Staples, I hold PBH and will be adding some more and ATD.B. Would like to add a U.S. name, WMT or EL. Which would offer some growth in a volatile market? Total exposure to space would be about 12%Thank-you in advance. Sam

Q: Can you please comment on RPD. Would you recommend to sell?

Q: Greetings,
Falling sword or a possible future potential ?
At what price range is the running actual business worth more than share price?
At what point would you say it has become worth a "punt"?
Cheers

Q: As a retired person I am always looking for high yield investments.
So I look at something like HHL from Harvest. It holds 20 equal weighted mainly US healthcare stocks. A solid sector with good long term demographics. I see their current yield on what they are paying out is 8.67% - all capital gains - great! But I see the average dividend yield on the stocks held is only 1.96%. How can that be? Seems it’s done using covered calls Not sure how that works but sounds like it creates added risk. What if the covered call $ generated isn’t enough to meet their intended distribution? Where does the extra $ go if covered call exceeds the distribution.

So I investigate the industry a little more and I see words like- total return swap based, inverse, currency hedged, low/ high volatility, fund of funds, proprietary methodology, 2x returns etc., and I start to wonder what’s going on?

Then I remember the term “ flow through shares” of some time ago and say to myself “ it’s déjà vu all over again.

Derek

Q: I have followed your research and recommendations for a couple of years and have enjoyed the ride. I began with a liquidity of 'say $500k' so to speak. I invested approx half over a short period of time and kept the residual in cash. At my current age of 69, and having developed a distinct aversion to loss, I felt comfortable in maintaining this significant liquidity position. Now, with the markets in turmoil, rather than selling into the market, I am tempted to 'average down' and let go of the cash position I've maintained. I will not be in need of this 'fund' for at least 5 years or so. Would you recommend that I take this posture of buying more of what I have (which includes most of the companies you have in your balanced equity p/f), and if so, which stocks in particular would you recommend I add to.
Thanks,
cj

Q: Please comment on recent numbers, I am puzzled by share price lack of performance??