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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: Good Morning!
Thank you for keeping me calm while I rode through the September dip. I could hardly believe that I kept my head and bought Magna when it was down! I sold some gold at a loss to make the purchase, but I'm almost back up to where I started in August.

Magna is dropping slightly after a quick dip and recovery this week. I am trying to figure out the fluctuation and the drop. As a learning investor I need some help to understand this November 10th news release: "TSX Accepts Notice of Intention to Make Normal Course Issuer Bid".

Is Magna issuing new shares or buying back shares?
What do you predict for Magna going forward? I think I saw that the projected share price for next year is $150.00.

Gail
Read Answer Asked by Gail on November 14, 2014
Q: I have some money set aside and would like to take advantage of the pullback and buy 2 industrial stocks and 2 consumer stocks. I already own BGI.UN and DH, and the rest of my portfolio is well balanced in other sectors. I am looking at a long term hold with a view of overall return combining growth and div.
I'm looking at the following stocks in Consumer: SJR.B, BCE, T, PJC.A and ATB.B
And the following in Industrial: WTE, CAE, CNR, MG and AC.B
Could you suggest 2 in each sector (or suggest another stock that may be preferable to my choices) and let me know the basics of the choice?
Thanks so much, Kim
Read Answer Asked by Kim on October 16, 2014
Q: re:MG Magna

Hello 5i Team

Magna is one of those names I have been kicking myself for not getting into back in mid Feb when I began watching it. Now, as I continue watching, reviews coming in appear to be mixed which for me is a little confusing.

Everyone agrees it is a well run company, it appears to be trading at around 10 times earnings, and auto sales should improve over the coming years considering the age of the fleet and the slowly improving economy. my questions are...

1) is there a reason you know of that explains the significant drop today?

2) at the present price, how do the metrics look?

3) would you recommend buying now, or holding tight?

As usual, Thanks for all you do, it is always appreciated!!!

Gord
Read Answer Asked by Gord on September 22, 2014
Q: A Sept. 09 2014 report from Veritas is recommending a Sell of Magna (MG) suggesting that their returns are going to be disappointing over the next 3 years. What are your thoughts on MG? I have owned for about 9 months, and was hoping to hold onto it for about another year or so. Do you think it is a stock that is still worth holding onto? It is about 2.5% of my portfolio. Thanks.
Read Answer Asked by Brian on September 10, 2014
Q: I have always been leery of investing in the auto industry because of its cyclicality. However, you have been quite positive on three companies - Magna, Linamar and AutoCanada.

I have a two part question. Which do you prefer between Magna and Linamar and secondly, if I purchased one of those companies, should I expect it to react similarly to changing economic conditions as ACQ would (ignoring any company specific issues)?

Thanks and hope the training is going well.

Paul F.
Read Answer Asked by Paul on July 15, 2014
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