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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello 5I,

This is a question about Student Transportation (STB). I have read your comments that 'it is not one of your favourites'. However a new report out by National Bank (July 6) highlights the growth opportunity for STB as it moves into asset management (school boards & other 3rd party) part of the bus fleet business. They suggest that fleet management could represent 25% of STB total revenue by 2021. They see payout ratios falling and free cash flows potentially doubling in this 5 year timeframe. Finally National suggests that STB could become a dividend growth story 'in the not to distant future'.

Would this information be a cause for you too rethink your views on STB, take a wait and see stance or are you still not inclined to view the company favourably.

As always. take your opinion very seriously.

Cheers,
Bob Ahearn
Read Answer Asked by Robert on July 25, 2016
Q: Just a comment on CXR. I like your advice to hold on and not take a big loss through panic. How often have we seen a general market panic? Brexit being the most recent example. I see it as a similar thing. The sector is in a panic and CXR seems to be the favorite whipping boy with perhaps influences from a short seller or two.
Anyway having your confirmation to stand pat makes me feel better about my decision to hang on.
Read Answer Asked by David on July 25, 2016
Q: I bought HCG during it's "glory" days, in Oct. 2014, at $51.10. Currently, I've been patiently waiting for the good days to return for the stock price. I have a 40% capital loss. It seems you like the company and the stock. Since it's in my TFSA, I can either wait for a recovery, or take a loss and deploy what's left of my capital elsewhere. What do you see for the stock in the next 1-2 years?
Read Answer Asked by Helen on July 25, 2016
Q: Hi,
My son is taking a break from active stock picking and has gone with this ETF model: VUS(15%), VBU(5%), VCN(22.5%), VAB(5%), VI(22.5%). His investing horizon is very long (10-20 years). Your thoughts on the individual ETFs? How about sector & geographic diversity? Any other concerns?
Thanks!
Read Answer Asked by Gordon on July 25, 2016
Q: XT-N
iShares Exponential Technologies

I am looking for an ETF that follows emerging new technologies. One that seems to fit the bill is iShares Exponential Technologies (XT-N). What do you think of it? Is there another you would like better? Are there any traded in Canada?
Read Answer Asked by David on July 25, 2016
Q: I'm considering a 2.5% investment of my portfolio in TIO Network[TNC]. Is this too much or too little?Since you began covering it last Oct., it has run up from $1.40 to a close of $2.39 yesterday. Is that too expensive for a buy or has it grown enough to offset that price increase?What are its short & long term prospects for growth? As always, your imput is much appreciated.
Read Answer Asked by Dave on July 25, 2016
Q: My question concerns fuel pricing and specifically, profit margins. Prior to ATD.B's last quarter results, concerns were raised about a potential decline in profit margins from gas sales. However, I thought retail gas price margins were quite stable and that it was the underlying price of oil that caused gas prices to gyrate. In fact, I thought retailers were helped by fluctuating oil prices because they are quick to raise prices when oil goes up (thus selling lower priced inventories gas at a higher price) but slow to lower them when oil drops. Is this thesis correct? If I am at least somewhat correct, it would therefore seem that overall sales is not that important a metric for these companies.

How much do gasoline profits contribute to these companies over all profits? Or are in store sales more important?

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on July 25, 2016
Q: Hi, Ceapro Inc has garnered a lot of attention in recent months, with mentions of Nutragena, J&J and Jennifer Anniston. Stock appeared to have settled around $1.75-$1.80, but after Mr Peter Imhof made it one of his top picks on BNN, last week, it has shot up by another 25% in 3 days. Bob Mcwhirter mentioned on BNN that co. has built a new plant and would need to grow its revenue 10X to justify market expectations priced in the stock. Could you please provide some perspective on this co. and comment if it deserves this valuation and is worth starting a small position? Thanks
Read Answer Asked by rajeev on July 25, 2016
Q: While I realize that no one has a crystal ball, do you have any thoughts regarding the possible timing of a possible sale of the company or, if not, a decision not to sell for that matter? I wondered if it might be around the next quarters(August 12 ) results when there may be a better understanding of the impact of Brexit on the company's finances. Or do you think that this might require another quarter or so to sort itself out? Any thoughts on the probability of a sale actually happening? At this time the market seems to be discounting any potential sale!
Read Answer Asked by John on July 25, 2016
Q: I note your recent comments on the risks associated with the present contracts for NIF but my understanding from one of the noted brokerages is that the Co has a "break up" value of somewhere between 3.50 and 5.00, which of course is well ahead of the current pricing and worth a wait for this to be realized. Could you comment please. Thank you.
Read Answer Asked by Mike on July 25, 2016
Q: In numerous answers to investment questions you refer to the Q&A Section. I cannot find this section.
Please tell me how to get there. Thanks
Mike
Read Answer Asked by Michael on July 25, 2016
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