Investment Q&A

Q: Hello team again,

I have been reading on this one and the question now is: In the long-term, what is the likely outcome? Is this company going to survive? I am sure no one knows but based on your experience what is the best course of action now if you bought in at 1.15? Would you average down if you were a long term investor and wouldn't mind sitting idle for the next 5 years?

So to make it easier for you: In your gut, do you feel this company back to $1.15 in five years or down to $0.15? And if the former is true how long would you wait to average down if at all?

Thank you very much indeed!

Q: Hello team,

I have a question which may turn to a suggestion. You have just released a report on this company, which is generally positive for a long-term investor. I wanted to ask what you know about the management of this company. Have you seen them? What do you think of them? How much skin do they have in the game?

And with that, what do you think of having a section on Management in your coverage report? Like who they are? what is their background, past experience, education, etc? Have you met them or not and what is your overall impression of them? I think a section of this kind would add more value to your coverage report. I don't think I am the only one who believes more often than not it is the management that makes or breaks a company. I don't want to invest in a company which you (5i) do not have a good impression of. And if you put this information in the report, members would not have to email you and ask you the same.

Thank you as always 5i.

Q: Following up on a question you had earlier today from Dennis, where and when are portfolio changes published ?

Q: Hello,

It is my understanding that you had planned to review this company over the weekend and evaluate whether it would remain in your growth portfolio. Any feedback regarding your findings would be greatly appreciated. Thanks.

Frank

Q: Good Morning 5i
Please provide your comments on NYX/Openbet deal? Thanks.

Q: Having reviewed a few small companies that I have been following for a long time it appears that there is a turnaround in a number of different resources. Would you consider any of these or maybe others in similar areas as "buyable".
Thank you for your hard work, Peter

Q: Hi Peter and Staff
This isnt really a question on a stock(s) but on approach. I was waiting like a lot of people for todays portfolio changes. There were a lot of deletions and not many additions and a build up of cash which I am not used to hearing as advice from you. Other than AYY and PMH ,a lot of deletions were not due to being upset at the stock.....If I sold what you sold, and do not believe in keeping cash,how long will it be until you uncover new gems for us to use the cash or should I just hold off selling some of your deletions/reductions until we know?
Thanks for all you do
Dennis

Q: I'm concerned with the exuberant rebound in the markets since the sell off in Jan./Feb. despite earnings estimates falling (e.g. S&P earnings estimates falling but S&P rising). Might it be prudent to insure against a sell off with e.g. SH, RWM, and PSQ? I wonder what the "smart" money is doing right now? I appreciate your opinion. Thanks.

Q: If a young person 26 years old wanted to start a DRIP which stock would you recommend for this?

Thanks
Dolores

Q: In 2013-2014 you could feel the animal spirits. Many stocks where hitting new highs and smallcaps were going up. Then we got the oil crash and the party was over. But then, it got nasty: the short attacks. Some were based on little facts, but many gave us reason to second guess putting more than two paychecks on companies like AYA, AVO, WIN, PHM, VRX, IT, CRX, etc. For example, a post about Intertain and its CEO stepping down: http://calvinayre.com/2016/02/22/business/intertain-ceo-quitting-following-committee-report/. In 2014, reading your answers, I was under the impression that Intertain was a simple business, cheap and safe other than its debt. However, now I see a company that was milking shareholders with its compensation plan. Suddenly, I see a reason for the cheap valuation of this previously big performer: the management is questionable. Question 1: Are you surprised by the number of companies with 'question marks' and those where the management negatively surprised us, relative to previous years in your career? Is the lack of growth tempting management teams to do illegal/riskier/unfriendly moves? Question 2: Are you surprised by how much stocks pullback these days, such as the 40% pullback of IT and ESL?

Q: I see oil slipping some what in value. I personal don't see anything that is going to push the price up. ($35.00 - $45.00). So I don't understand the bullish effect on the Canadian Dollar. I would appreciate your option & what the general consensus is. The reason I am asking this is I have U.S. dollars that I was thinking of transferring into cnd. dollars. So my next question is, Do you think the Ontario & Federal budget will send the dollar down in value. Do you know when their
budgets are due.

Q: Your opinion on the above please (CYB, ELD, MSL)

Q: The company's shares have risen considerably over the last several months, is there any reason for this.

Thank you, Brian

Q: Hi, what would your top four or five choices for the best free cas flow, thanks?

Q: I would like to add a REIT to my portfolio and of the 3 that I have considered: MST.UN, MRG.UN and IIP.UN I am leaning towards MST.UN based on growths in dividend yield and share price. Do you support my pick? Or you have reasons to believe that one of the other two are in fact better choices.

Your help is much appreciated.

Q: I am relatively new at handling my own portfolio and am cautious by nature.
My Peller shares are up 60% since I bought them and I have seen no media coverage
which would explain this. Would you think this might be a good time to take my profit, or are you aware of any reason I might want to hang on?

Q: Re; my question what is the stock market : As I lay awake in the wee small hours, it came to me that the stock market is a record of sales of stocks listed by and sold through that market, a tally, so to speak, and weight in the market means what percentage of the stocks in that list we collectively hold of any particular stock or class of stocks. Hoping this is less clueless than my question! ( Chose whether or not you think there's any point in publishing)

Prior question.: I was made rudely aware that I don't know something I assume everyone else does. What exactly does market weight mean? Who "holds" the stock market holdings and where and how are they held? I guess the question is what, exactly IS the market? Sorry for what is probably a lame question.

Q: I bought about a 2% position a month ago at around $24, intending to buy more but never did, as it kept climbing (not a bad thing, of course). What is your opinion of their announcement a couple days ago, and if there should be any effect on the stock price? How sustainable is the dividend? My original plan was to have about a 3-3.5% position; would you suggest increasing to this level at current prices (this stock is held mainly for income)?

Q: I am 66 and only have blue chip Canadian dividend stocks for my self created pension [non-sheltered]. What do you think about getting into annuities [ out of stocks, gradually ] every 5 years? Annuities have a most high ROC this year. I understand the ROC rules change next year. I have no fixed income investments at all. Thanks.

Paul

Q: Can I have your opinion on DR? The basics seem reasonable but it is a very small company, so I'm thinking of a half position just to get a toe in.