Investment Q&A

Q: A question that has preplexed me for a long time is how should we, as investors, interpret a recommendation to "hold"? This term is used by virtually everyone in the investing community. And I am not referring here specifically to the target price data recently posted.

It seems to me that everyone should only want to always be owning stocks that are either doing well or they feel have the potential to do well - i.e. a "buy" (at least in their own mind) A "hold" signal to me suggests that the stock is in neutral and the analyst has little conviction as to whether it is a buy or sell. Therefore, shouldn't I only want to own stocks that are just "buys"? Whenever I look at my holdings, I am always asking myself if this is the best stock I can own for the long term because I am interested in overall results 5 years from now keeping sector allocation in mind). I have hung on to AVO, for example, because I still feel that the potential returns are better than anything else I can find in the sector. But I sold BTE because I didn't see a future there. Trading costs shouldn't be part of the answer as it only costs me $5 for each trade.

Appreciate yor insight.

Paul F.

Q: I have a large portfolio of 1.3 Mil in value. They are accross all sectors. I will be adding another 200k shortly. I have no precious metals in my portfolio as I was not comfortable with the volatility. What would you suggest for percentage amount of precious metals and what companies, ETF's
would you suggest. Is holding physical gold less volatile that companies?
If so, is there an ETF that holds physical gold.

Q: I am not looking for a full review. We have the following stocks. Which ones stand out to be dropped and replaced with what?

KXS, CXR, ESL, DH, SYZ, MDA, SIS, CCL.B, GUD, PBH, FR.
PUR, BCI, DRT, FSV, DHX.B, XTC, DSG, WCP, NFI, CSU,
ENB, STN, WSP, BEP.UN, SGY.

Thank you for your great service
PB

Q: I am sure by now 5i must roll its collective eyes at the sight of another CXR question.
I don't own the stock but find it fascinating. Some analysts predict 2017 earnings to be $4-5 per share or even higher. Globeinvestor has their debt to equity at about 3x. My questions are these:
1. what is the major risk that the anticipated earnings don't materialize? gov't intervention? or is there fear that like Valiant there may be some misrepresentation on the books?

2. if debt to capital is 3x, that would mean that there is approx. $60 of debt per share, given a $20 share price. correct?

3. if they are paying an average of 5% interest on their debt, wouldn't interest alone eat most of their earnings? i.e. $3 per share would go just to interest. seems like it would take a very long time to get out of debt.

4. seems like it will be almost impossible for this company to grow by acquisition for a long time, given the environment. almost like a game of musical chairs where the music has stopped for a final time and there is no reason now to own the stock other than value. true?

Thanks for your patience with us as we try to figure this market out.

Cheers
John

Q: my cost on CXR is 23.50 . what would be my downside risk at these levels? I keep hearing about a strategic review. what does this entail and what impact can this have on the stock price?

Q: http://investors.cvshealth.com/~/media/Files/C/CVS-IR-v3/documents/02-aug-2016/2017-standard-formulary-list-of-removals-and-updates.pdf

This may be another part of the reason for the sell-off today. Nilandron appears to have been added to the list of drugs to be removed at CVS for 2017 due to hyperinflation. I'm not sure of the implications as far as the percent of Nilandron historically sold through CVS. I would assume they'd re-negotiate pricing and take a bit of a hit?

Q: Thanks for the bonus report. It is very helpful.

Can you please advise which sector each stock belong too.

Do you have any site where I can find sector information.

Are you planning to create sector information.

SANDVINE CORP
Evertz Technologies Ltd
Savaria Corp
EnerCare Inc
Intertain Group
TRICON CAPITAL GROUP INC
ALTAGAS
Shawcor Ltd
CHARTWELL RETIREMENT RESIDENCES
Sienna Senior Living Inc
Visa


Thanks for the great service

Q: FRU is off 4% today, while energy index(XEG) is only off 2.75%.

Is A BUYING OPPORTUNITY?. iF not at what price would it be?

Q: Where can you get company bond information, quotes, etc.?

Q: Peter & Team, as to the question from Dennis today, the company needs to begin reporting organic growth in Covis and AMCO, preferably be summarized product category. We cannot wait until they cycle up against these acquisitions by end of year to see comparables; we need to know if things are better or worse from when they bought these products. And we need to know it August 12th when they report the quarter.

Reporting against target EBITDA of $610 to $640 million and Net Debt/EBITDA of 5.5x is not cutting it (obviously).

If management won't disclose product growth prior to acquisition date or if there is no constant currency growth, would that not be 5i's cue to cut and run?

Thank you.

Q: Husky has been nasty. Big drop, cut its dividend and seems to be wallowing. Is there any hope for it or should I bite the bullet, sell at a big loss, and look to invest in something more hopeful? It's in a registered account, so I can't claim the loss.

Q: Seeing all of the questions about the big drop today and having purchased at higher levels i agree that it's a really frustrating stock. However, i read today that Taylor Asset Management (David Taylor of Dynamic fund fame) and Davis Rea (John O'Connell) actually added to their positions at the end of Q2. They seem to be looking at the fundamentals without emotion and see the value in the company

Q: Hi, Attached is a press release from Today. Do you think it is expected to benefit Sylogist, in a material way? Thanks

"Sylogist Signs Global Agreement for Public Sector with Microsoft" 16:14 EDT Tuesday, August 02, 2016
CALGARY, ALBERTA--(Marketwired - Aug. 2, 2016)

Sylogist Ltd. (TSX VENTURE:SYZ) ("Sylogist" or the "Company"), through its Serenic Software operating division, is pleased to announce that it has amended its Solution Provider Agreement, providing a long term, worldwide commitment, with Microsoft Corporation. The new agreement addresses the large opportunity emerging in the public sector ERP marketplace, with particular emphasis on the North American mid-markets.

Q: Could you comment on their latest financial results.

Q: AW.UN trading at/close 52 week high, do you feel it's a fair valuation at this level, or should I wait for a pullback?

Q: Your comments on the proposed split announced today. Thanks

Q: Hi, could you please post the street estimates for Kinaxis and Savaria. Thanks

Q: What the heck is going on with CXR?? It has tanked again today down over 16%!
Was there any News in particular that came out this morning? what is the specific reason for such a huge sell off today? I'm weary of the losses I have incurred on this position as it continues on its downtrend amidst the short sellers. I'm down over 50% and think I should throw in the towel....your thoughts on my thoughts of selling? Is there any glimmer of hope for this company in the near term?

Q: Good morning,
I own BCE preferred shares BCI-INC-CUM RED 1ST PR-AA. The value has dropped in half since my purchase. I understand these can be redeemed in 2017 for $25.
If BCE decides not to redeem the shares and extends the security can they change(reduce!) the rate of return which is currently 3.5%?

Q: With the very hot summer some energy companys will likely show good results providing for the increase in cooling demand. Which would benefit the most. Altagas is my only energy related stock 3% of portfolio