Investment Q&A

Q: When I look at the long term (>2000)net asset value of Alimentation Couche Tard, I notice that for the first twelve years the stock gained nothing. It was only towards the end of 2012 that its price soared. Were there some significant changes in the management,company policies or actions at that time that accounted for this? If not, do we expect the next ten years to be more like 2000-2012 or more like 2012-2106?

Q: I have had my eye on these 2 stocks for a while and the current prices look reasonable for a long term entry point. Both have been very acquisitive. From what I can glean from the annual and quarterly presentations CGI is in the process of delevering from their last acquisition and could be setting up for another. ATD is in the process of digesting their latest acquisition too. My question is has either company issued equity to fund some or all of their prior acquisitions? Or have they all used cash/debt?

Q: Hello. I have a 31-year old son who I've been investing on behalf of for the past two years. Since he started earning a regular income, he has loyally saved and invested in his TFSA (up to the maximum allowance) and started to make some contribution to his RRSP as well.

In his TFSA, he has three stocks (TD, AQN, ECI) and other Canadian and US ETFs (VFV, XIU, XEG, ZLB, XQQ, VEF). Now, given the fact that he has some time before retirement, my new plan is to sell ECI, AQN, or possibly BOTH to buy into more growth-oriented stocks. Do you think my new strategy makes sense? Should I sell ECI, AQN or both or none?

In my mind, there are several stocks that fit into a long term growth strategy. These include SIS, PBH, ATD.B, KXS. If you can think of a better one, please let me know. Your advice is very much appreicated. THANK YOU IN ADVANCE.

Q: Hi 5i. Like other fellow members, we too have difficulty deciding when to sell equities which have done well.
We hold Alimentation and CGI Group in our TFSA's, and my wife holds BMO in her RSP, all of these have ~100% gain over our ACB. Their 52wk Hi prices occurred recently (Sep and Nov).
We also hold Stella Jones with a 68% gain, and Parkland Fuel with a 60% gain in our TFSA's. PKI's 52wk Hi was recent (Oct), while SJ's was almost a year ago.
We do not wish to sell any of these equities outright, but are thinking about re-couping some (or all) of our original investment.
Another issue clouding our decision : does a solid dividend (ie BMO and PKI) change the decision ?
Do you have a general rule of thumb to follow ? Could you give us your advice regarding what to do here. Regards. Your advice as always is much appreciated. T.

Q: Recent guest on Market Call said ATD.B is overvalued, "watch out for a fall". Your opinion please. Thanks.

Q: Is there any explanation as to their recent 10% drop in share prices. Last quarter was good, something new come up? Is this a buying opportunity to increase my shares in a diversified portfolio?

Q: Any comments on today's results? Pre-market bid/ask is ~0.5% above last night's closing, so I would take that to mean they beat. Since this was never a 'bond proxy,' do you think it recovers some of its lost ground, or has money simply rotated out of this, and its momentum is therefore done?
Thanks for all your insights.

Q: Hi guys,

Please provide your thoughts on ATD.B latest results.

Thanks,

Jim

Q: Hello:
I have been thinking of adding some ATD.B to my portfolio but have noticed the stock has been down slightly since the Trump win. Is this a bit of nervousness because of
ATD.B holdings in the U.S.?. Is the market wary of Trumps approach to anything not
American. I noticed Trans Alta Renewables & Alqonguin have reacted in a similar manner.
Thanks: Jerry

Q: Which of these two companies has more upside capital appreciation potential over a five year period, thanks?

Q: Hi. My questions are:
1) If there is only one stock you can own, which one would you pick.

2) Between ATD.B and PBH, which stock do you think has the most potential in the long run?

Thanks

Q: Hi, Parkland Fuel stock continues to get pounded every day since its recent earnings release, losing over 10% of its value. It was mentioned as a baby Alimentation Couche Tard. Today, ATD.b stock price also showed considerable weakness. I have just started to wonder if there is a rotation out of these consumer names which have done well in past. And, if so, do you see this trend persisting, since money seems to be moving into banks, industrials and energy/material stocks. I have a small position in ATD.b but just doubled my PKI holding to overweight and feel a little concerned. Thanks for your valued advice.

Q: Hi, I noticed both stocks dropped a lot today. I was wondering why. Time to add more？ Thanks for your comment. T

Q: As a newer subscriber to 5i, i am interested in purchasing your BE portfolio. The above names have had huge run ups and I don't know how to approach them. Which ones are buyable at these levels?
Of the ones you deem buyable, can you comment, for each, as to whether a half position or full position should be taken.
And can you rank these in terms in terms of your preferences at current levels?

Thank you for your excellent service, as always.

KR

Q: Both of these had small pullbacks. Which of these two looks more attractive? Thanks

Q: Hello Peter,
Given the issues with some world banks, I have decided to hold off buying XLF. Do you think i am overly concerned here? Second, Sienna Senior Living is either stable or goes down a bit where as Chartwell continues to grind a bit higher. Any idea? Lastly, ATD.B has pulled back a bit. Do you see this as a good opportunity? Alternatively, i was simply thinking of increasing my weights on Savaria Corp given the results and forward guidance and Knight Therapeutics as it seems like it is becoming a health care fund with great management. Please advise fo your thoughts. Thanks again.

Q: Hi good people,

ATD.B has dipped recently, maing me think this may be a good entry point.

But what is the status of the governance issue (sunset of the super voting shares)? Can this issue hurt the stock in the future?

Thx,
Mike

Q: I am a new subscriber. Why are some of the stocks in the Model Portfolios recommended but no research reports are available on them? i.e. ATD.B

Q: Recently I've sold some non performing stocks as well as stocks that were a very small portion of my portfolio in an effort to concentrate my portfolio on some higher quality, better performing stocks and I've come up with these 6. Wondering if you could rank these based on risk from less risky to most risky. I'm fairly conservative, tend to hold good quality companies for long periods (5-10 years) and I don't like a lot of volatility - I'd rather get a 5% return and sleep at night than a 10% return and stress about it.

Q: I have a question about ATD.B.Was it the increase in debt from the acquisition from Imperial Oil that caused the drop in share price today or profit taking or something I'm unaware of? By the way my portfolio is up more than 52% so far this year, in no small measure, because of your sage advice.Thanks, as always.
Dave