Investment Q&A

Q: Do you find reasonable to buy the stock now, after this selloff?

Q: to 5i team hello

US stocks:
I am looking to invest 10k in US$ with the following criteria:

-low downside risk
-good div. preferably from Canadian companies
-reasonable sustainable companies
-no banks or telecoms

I own full positions in :
BAC. GE, GM, JPM ,MSFT.

Canadian:
MFCSF - FULL POSITION DOING WELL
WPG.US - 0.5 POSITION
WPTIF.US 0.5 POSITION

1.THINKING OF INCREASING WPG.US OR AND WPTIF, or adding STD.US
2.GETTING SMALL POSITIONS IN BP,RDS.A, CAT
3.might also consider magna MGA:NYSE, as it seems very good value ?
4.WHICH COMPANIES MIGHT YOU RECOMMEND IN LIGHT OF THE ABOVE

Please comment on 1 to 4

thanks as usual
Yossi

Q: I am a retired, conservative, dividend-income investor with a pension, CPP, Insured Annuities and the following securities: AD, AQN, ALA, BCE, BNS, CGX, CJ, FTS, ECI, PBH, RY, TRP, WSP, WCP, WEF, RBC Cdn Equity Inc, Sentry Cdn Income, Sentry REIT, Fisgard Capital, ZLB, XIT.

I am looking to top up my industrial sector holdings. I have WSP, and those contained within AD and Sentry Cdn Income Fund (Progressive, Republic Serv, Transforse, United Parcel, among others).

I am looking for dividend payers and have narrowed it down to DH,MG, TCL.A (filtered using P/E, P/B, P/S, P/CF, Beta, as well as technicals). DH (your rating = B+) looks good due to its FinTech exposure. MG (your rating = B+) is a possible concern due to the car cycle being long in the tooth. TCL.A (not rated) is possibly in an industry that is fading away.

Which would be your top pick for both security of dividend and capital appreciation? Please rank them in order of your preference as well as how they might fit with my other holdings.

Thanks, Steve

Q: Magna and Linamar are down $25,and $33 in one year. Are things that bad? Are they cheap now? Would you think it is time to start buying a 1 percent position in each since they are good companies anti have no idea where the bottom price is or do these prices look close to a bottom?

Q: I hold Husky in an unregistered account. At some point in 2016 I plan to crystallize the capital loss and invest the proceeds in Magna. Would this be an appropriate time to make the switch. HSE has improved some over the last week, whereas MG has remained flat. Is there any reason why that trend might continue?
Thanks
David

Q: Do you think it may be prudent to lighten up on the auto sector in an otherwise balanced portfolio? Given a choice which company would you let go MG or XTC?
Thank you

Q: Peter, I'm looking to invest in one of the three companies above. I won't need to touch the investment for 5 - 10 years, and I would be content with an average annual return of 6 percent (including dividends). Please rank these three in order, based on the combined criteria of capital preservation and the goal of achieving the hoped-for 6% or better. (My portfolio is otherwise diversified.) Thank you.

Q: I checked my Scotia itrade account after reading your answer regarding Canadian companies paying $US dividends. My account states states that MG, OTC, CSU, CXR and BEP.UN are all paying Dividends in $US and then converting it into $CA. I am going to assume that they are charging me for that conversion each time which goes against my strategy to pay as little as possible in fees. What is my best solution to this problem. I do have a US trading account with BMO investorline. Would it be best to buy these stocks in $US to eliminate conversion fees. Any other insights or solutions would be appreciated. Thank you.

Q: Of my Industrial holdings, I currently own WSP, BYD.UN, XTC, and MG. Industrials are about 15% of my portfolio overall, which I think is decent, but am wondering if having BYD.UN, XTC, and MG carries too much exposure in the auto industry. Is there ever such a thing as too little diversity within a section?

Q: How would you rank these 3 industrials given a 2-3 year time period?

Q: Comments on recent quarters from Telus and Magna. thx

Q: Hi, why are the auto parts companies trading at what seem to be very cheap valuation? and which one would you prefer?
Thanks.

Q: Hello, Does MG benefit significantly from the low Canadian dollar in sales of its products to its foreign customers? MG reports on May 5th - any buzz on their earnings? Thanks so much!

Q: Given the pull back on these two do you consider this a decent entry point/ Which would be your preference? Would selling puts on either be a good strategy?

Q: I would like to add to some of my positions. Of the following companies, which ones do you feel could be added to now: atd.b, Efn, Hcg, mg, Esl, sj, Dhx, Tcn, syz.

Thank you

Q: My daughter has started building her TFSA portfolio and does expect to need the money in the forceable future. At present she owns BNS, CCL.B, CSU, ESL, ENB, SJ and T. She can fund the purchase of another company as she continues to build her portfolio. I was thinking Magna might be a good choice but would like your advice on which company might be best at this time, including giving her balance. Thank you for your advice.

Q: Commentary on results? thx

Q: The stock has trended down since August and ask for any background on this. Is this stock you would hold or sell?

Q: I have held exco xtc for a while - have about 35% profit . Thinking of switch to Magna. Make any sense??

Q: Hello Peter and the 5I team

What are signs of a value trap?? Do you have a check list that you can follow? I am wondering if MG could be a value trap. I heard that a good sign of a value trap is a low P/E ratio compared to historic levels ( this may seem like a obvious sign). What things do you look for? I was wondering what your general opinion is on MG and do you feel that the car parts cycle is over or on a decline?

Thanks