Investment Q&A

Q: There was a news article about Magna and the German anti trust authority visiting their plant in Germany. Is this anything to be concerned about.

Q: Don Walker of Magna was a very enlightening interview on Headline yesterday (archived here: http://watch.bnn.ca/#clip1006513). I have a half position in Magna from $44 US and based on what he outlined for the company such as unlimited upside sales potential I'll look for an opportunity to up my position. What concerns me is his acknowledgment that his is a cyclical industry and I've been stung before holding this stock too long. Do you see the current upcycle continuing for at least 12 months and if you were adding to the position today would you buy on NYSE or TSX? There's slightly better liquidity in U.S. and dividend is U.S.$

Thanks, J.

Q: Peter & Co.,

I'm curious to hear your opinion on today's G&M article entitled "Time to book profits in Magna, other auto parts makers: analyst"

http://www.theglobeandmail.com/globe-investor/inside-the-market/hjkh/article14213639/#dashboard/follows/

Basically, Martin Roberge of Canaccord Genuity argues that the rise in oil prices and interest rates has reduced the affordability of autos, and at 12X forward earnings these companies will have a hard time maintaining momentum. He also referances the technical breakdown in US homebuilders as cause for concern in the sector.

I own both Magna and Martinrea as part of a relatively balanced portfolio... should one listen to Martin and "book profits and cut positions"?

Thanks!

Q: Hello Peter and hard working 5i Team;
I would like to know your current thoughts on Winpack? I missed a good entry point when the stock was stalled a while ago. Would you consider the stock cheap at the current level?
Can you also comment on what criteria, or metrics, would indicate a cheap stock even though it is at a high level after a long runup? eg: Magna
Thanks in advance.

Q: Hi Peter,
Looking for a home for my Novus proceeds. BNK has recently broken out technically with next upside target of $4.30-$4.50 or would you stay safe and buy Magna with a likley target of $100? I know they are in different sectors and different market cap. Thanks.

Q: What would be your number one play in the automotive industry? Short and Long term
Thanks

Q: I just sold MG with a nice profit, despite its recent drops. Is it time to buy Martinrea?

Q: Peter and Team,

I am working on bringing my portforlio much more in-line with the 5i Model Portfolio.

I have no other exposure to the auto sector and am 31 so I don't have a real need for dividend income yet. Should I be taking a 5% position in Magna or a 5% position in Autocanada or would I be better off doing 2.5% in each. Total portfolio is approximately $100K.

Q: Hello Peter and Team,
I’m looking at adding 3 to 4 positions in the tech and industrial sector to my portfolio this is for the long term. Been waiting for a while to buy CSU, SYZ, MG and MDA and these stocks have been doing very well what would be a reasonable entry point or should I be looking at other stocks.
Great advise on AYA, BAD, CGX, STN and THI.
Thank you, Ronald

Q: Hi Peter:
Magna takes a big jump today to $ 85; one fund manager recently on BNN talk show suggests a model price of about $90; would you
agree or it is getting abit expensive ?

I made some gains and is considering taking 50% off the table soon
thanks

Q: Hi Peter and 5i team. I hear a lot of positive outlook for the auto industry parts suppliers Magna and Martinrae. Does this also translate to suppliers Automodular (AM) and Pacific Insight Electronics (PIH)? Are they in a position to take advantage of the rebound as Magna and Martinrae have? Thanks,

Q: I own both T and RCI-B. I am thinking of selling RCI-B and buy MG. Your thought?

Thanks

Q: I have held BBD-B for a long time and I am finally breaking even. Is now a good time to sell? If so, could you suggest another manufacturer that you like?

Q: What does Magna's 'Automatic Share Purchase Plan' mean to the ordinary investor?

http://www.theglobeandmail.com/globe-investor/news-sources/?date=+20130628&archive=cnw&slug=C4361#dashboard/follows/

It seems like they are trying to mitigate any downside risk by creating a support level for their share price (ie. buy it back if they value gets too cheap), is that the gist of it?

I have been debating Magna vs. Martinrea for a couple of months now. Magna seems safer but due for a small correction, Martinrea seems to have more upside potential, what would you buy today and what would you estimate for a holding period? My profile = not afraid of riskier plays if the appreciation potential justifies the additional risk, I can hold a stock for 12 months to 12 years, thanks team!

Q: Magna: I know you are not a trader, but as oil increases (and understanding the recent run up in Magna's price) would you take some profit and see if there was a pullback and re enter?

Q: Hi Peter, I would like to increase my exposure to the auto sector. Would you choose MG or MRE, which I own, or another one? Is now a good time to invest in these companies?

Q: Hi Peter and team. We're really liking your advise.
We are up nicely on Magna [MG], and we're tempted to take a profit. In your opinion do you think Magna has more room to go up. We understand the car sales in Europe were down last month. Will this have an impact on profits.
Thanks again

Q: Good Evening 5i
I have had a nice run with JP Morgan (30%) and wonder if you see more upside with the American Banks.? I was considering initiating exposure to the auto sector by way of Magna or AutoCanada and wondered what your viewpoint was on selling JP or lightening my position in either Horizon or Western One. Or should I just hold the course.

Thank you

Q: What would you be buying now (sector and or stocks that are atttractive)?;
or would you sit tight for a while longer (acknowledging that one cannot time the market)?

Thank you.

Q: Magna (MG-T) keeps on pushing higher. Is the valuation getting stretched? Would you commit new money at this price point? Best, Don