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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: In a recent report by Veritas they feel LNR has significantly more upside than MG.

I currently own MG do you think it is worth selling and substitute LNR. Here are Veritas's comments:

Linamar (LNR) - $69.41 – Veritas: Buy (PT $97); RBC CM: Sector Perform (PT $91)
Magna International (MG) - $62.34 – Veritas: Buy (PT $62.70); RBC CM: Outperform (PT $68)
The company now warns that the current emission issue could impact roughly 11 million vehicles (some models from 2009- 2015). In prior recall related events (i.e. GM, Hyundai, and Toyota), the ultimate loss of market share was largely short-term in nature. As a result, Vertias suspects that the fallout of VW’s emissions-gate could be short lived, with VW losing less than 25% of its U.S. sales. Between Linamar and Magna, the auto-parts supplier we cover, Linamar has less exposure to VW. In 2014, VW was not among LNR’s top four customers (suggesting VW contributes less than 7% of LNR revenue); in case of Magna, VW contributed roughly 11% of MGA’s 2014 revenues. Between Linamar and Magna, Linamar has less exposure to VW. Thus, for anyone who is looking to invest in a mid-cap autoparts supplier, Veritas recommends buying LNR. That said, given the diversified customer base Magna has, Veritas believe that the impact of VW event will be minimal, as VW lost business will be picked by other OEMs.
Read Answer Asked by Sheldon on September 24, 2015
Q: I am thinking of switching some funds within my portfolio healthcare allocation by selling PFE to purchase GUD based on the many positive statements that you have made about Knight and the recent 5i report on the company. I find GUD an interesting company but difficult to value relative to PFE. Income is not required from the holding, and invested funds are not required for 5 years plus. Do you believe that there is enough upside to GUD to offset realized capital gain taxes on a PFE sale, loss of the PFE dividend stream, possible additional future currency gains on PFE, and additional capital gains potential on PFE as they improve their operations further? In other words, are you confident enough in Knights upside potential that you would make the switch in your portfolio if you currently held PFE?

Thanks!
Read Answer Asked by WAYNE on September 24, 2015
Q: I asked a question last week and have not recieved an answer. Was the question too involved?
Read Answer Asked by David on September 23, 2015
Q: I have a half position in Agrium my sole agriculture stock should I add to it with the recent drop or go with afn. I am retired, conservative income stocks primarily. Thanks for your incite.
Read Answer Asked by Tom on September 23, 2015
Q: Can you comment on the real return of this fund ? I note that Google Finance indicates a yield of 3.9%, but the iShares website shows a Total Return for 1 year of 2.76%. Also, some commentators think you have to look at total return to maturity, since the price of some of the bonds in the fund may be higher than face value, so when the bonds mature, you have a built-in capital loss which reduces your net returns. What accounts for the decline in price of this ETF over the past year (from 19.75 to 19.25) and do you think declines are likely to continue ?
Read Answer Asked by Don on September 23, 2015
Q: I have a small position in ACQ,and it is down considerably, I am thinking of switching out of ACQ and buying BYD.UN for more positive growth. Is this a good idea?
Read Answer Asked by Shirley on September 23, 2015
Q: I'm a little confused? I noticed in the Summary portfolio there are stocks that are not in any of the other portfolio's and visa-versa... I would like to copy (buy) all the stocks you have recommended for a blended portfolio; do you recommend that I include buying the stocks in the summary that are not listed in the other Portfolio Models?? Thanks
Read Answer Asked by Pat on September 23, 2015
Q: I do not yet own magna.should I wait for the VW dust to settle or is mg on sale now in lieu of the drop in share price

Thx
Read Answer Asked by blake on September 23, 2015
Q: What, if any, is Exco's exposure to Volkswagen? Thanks.
Read Answer Asked by Robert on September 23, 2015
Q: Good Evening
Emerson Electric has dropped almost 30% this year. Much more than the US indexes. Is there a company specific reason for the drop?
Is it a good strategy to average down at the current price?
I will appreciate your comments with respect to holding, selling or averaging down?
Read Answer Asked by Terry on September 23, 2015
Q: Hi Peter and associates, Considering the market downturn I am planning to deploy 25% of my portfolio(which is in cash) during next month. Can you please give me your top 3 Canadian(does CXR qualify?) and top 2 US name(does PCLN qualify?) considering a 10 year hold? I own all the stocks from your growth portfolio and can tolerate high investment risk.
Read Answer Asked by Sridip on September 23, 2015
Q: Looks like a solid long term company. Any comments would be greatly appreciated.

Thx
Read Answer Asked by blake on September 23, 2015
Q: What is your opinion on this company.Also is the dividend safe?Seems a little high.Thank You.
Read Answer Asked by glenn on September 23, 2015
Q: Hi Peter and team,

Can you get me an overview on the company. Is the dividend is safe. Is the revenue growing and is it a good time to buy. I am looking for income for long term like 5-10 years. Thanks

Norwood
Read Answer Asked by Norwood on September 23, 2015
Q: I have a fairly large amount of US cash which I need to pay for renovations in Maui in 8 months. I have it sitting in RBC Investment Savings Account series A. Is there anything you might suggest which has a higher yield but still has the option for me to cash out next Spring. Please keep up the great work.
Read Answer Asked by Mike on September 23, 2015
Q: What do you guys think about kinaxis? I know it has a strong balance sheet and no debt. However, is this one of those stocks that are "always expensive"? I am not sure how fragmented the supply management business is and if kinaxis can benefit from it. Are the profit margins good?
Thanks guys keep up the great work!!
Read Answer Asked by Marie on September 23, 2015
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