Investment Q&A

Q: I am trying to balance out my portfolio sector weightings and am having trouble classifying where these 3 companies should go. I have all 3 of them as "Manufacturing and/or Industrial" whereas you have BOS and MG as "Consumer Cyclicals" and BDI as "Energy". Can it be argued that these are Industrials or should I just stick with your sector classifications?

Q: Hello Gentleman

I presently hold a half position in MG in my cash account. While recognizing it is a good holding, it seems to be rather flat of late. I am considering selling MG and replacing it with BYD.UN.

I am a conservative investor with a well-balanced portfolio. Your thoughts please.

Thanks.

Q: Do the financials, notions of economies of scale and competition, street talk, etc lead you folks to believe that Magna may have any appetite to takeover/merge with Linamar?

Q: Can you tell me does Canada have any listed companies that make components , modules or parts for hybrid / electric vehicles? Are any of them invest-able yet in your opinion? Thanks!

Q: Would the possible strike by Unifor workers in Canada affect the stock price?

Q: Hi Guys,

Please compare Genuine Parts Co. in the U.S. to Magna. 10 year hold.

thanks,

Jim

Q: I'm up nicely with MG, but there's some press about 'peak auto' having been in 2015. If there's a nascent economic recovery in the US, why would we not expect continued strong auto sales? What does this bode for MG?

Thanks as always.

Q: Hi, I am a value investor and note that Auto parts makers are trading at historically low multiples even though earnings growth appears intact. Can I have your favorite of MG, LNR and MRE with respect to the best 18 month to 3 year return.

Q: Hello Peter and Co.
On your guidance I have unloaded CXR. I hold MG and DH, 2 stocks that have had bad years but I still feel are solid companies. I am thinking of adding to these as their valuations seem pretty good right now and I have done well in the past adding to good companies when they're down a bit. What do you think? cheers

Q: Good Morning
Magna and Exco make up about 9% of my registered account. I would like to add New Flyer based on your comments. Would you endorse a switch from XTC to NFI? Do you see NFI as auto related? I am concerned with my sector exposure.

Thank you

Q: In the past I have just held a few stocks (PHM was one of them) but am now planning to take a much larger position in the Canadian market and would very much welcome your opinion, comments and suggestions on the list of stocks I have chosen. They were chosen largely based on their current price and the apparent opportunity for capital gain. What do you think.

Bob

Q: Good Morning Peter, Ryan, and Team,
One of my accounts mirrors the Balanced Equity Portfolio very closely and has nicely chugged higher over time. (Thank you for that) I took a half position in NFI after it was added to the Balanced Equity Portfolio. The only company missing completely from my account is Magna (MG-TSX). My question is
because I have limited cash (just at present) should I add to New Flyer to make it a full position or initiate a position in
Magna ??? Magna looks very cheap after coming way down post Brexit but New Flyer looks very good from a momentum prospective. Thank you as always for your sage advice. DL

Q: Have some monies sitting on sidelines. Can you name me a cheap (excluding energy) sector if any and a couple of recommendations? Thank you. Bill

Q: Thank you 5i for your excellent service!!!

I have divided up my portfolio into thirds.
One third is a diverse group of ETFs.
One third is cash and a group fluid group of stocks made up primarily from stocks you recommend. SJ, CCL, SIS, KXS... etc.
One third is made up of the seven stocks listed above. Do you have any concerns about any of these being a long term hold. I know Magna is cyclical but is that a concern?
Cheers,
Bryan

Q: I recently purchased shares of Magna on the idea that the sector is simply oversold and given a 5 year time horizon is as close to a sure thing as there is in the markets. When I look at the US markets in particular there are a lot of still beaten down sectors. Automotives is one of them. In Canada I am having greater trouble finding these kinds of bargains, while in the US there are chemicals companies, consumer discretionary companies, oil refiners and even banking which are very cheap and all of which could make some very nice moves akin to the one made in the materials sector these last few months. Do you see any of these unloved sectors here in Canada and/or which of them either here or in the U.S. would you currently favour. Thank-you as always for your answer.

Q: Hello Peter
I am currently down about 30% on MG which is 5% of my portfolio.
I hold 60% of MG in unregistered account & 40% of MG in my TFSA acct.
My concern is would it be wise to sell it now and buy instead NFI or SIS and if so which one would you prefer first NFI or SIS, which one has more "growth" left.

Thanks for great service!

Andrew

Q: I'm considering buying this stock on valuation basis and growth potential. In your answer to a question regarding this company, you also mentioned its 7x pe as cheap. But a principle of buying cyclical stock is when its pe is high compare to historical level because it maybe in trough earnings period. So how should we handle this conflict perspectives?

Many thanks!

Q: I am surprised that there has not been a question about the 15%+ slide by Magna shares in the last 10 days. So here goes! In your view, is this slide solely due to the flight to safety post Brexit or are there other factors in MG being hit particularly hard in this period?

Q: How would you rank these stocks based on expected total return on a 1-2 yr time horizon and why? Thanks.

Q: You have mentioned Magna a couple of times recently. Would it make sense to buy a call for (maybe) Jan. 2018 @ $48 for $5.00? Any guess for a target 1 - 2 years out?