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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: Could you please comment on Richards Packaging earnings. Do the results and the management commentary provide any indication, if the challenges faced with Revenue ( Healthcare mostly) are nearing an end ? Or, is it time to move on and find better income/growth opportunities ? Thanks

Read Answer Asked by rajeev on May 09, 2023

Q: Hi, Richards Packaging stock has been a disappointment for past 2 years. It is down over 50%, from the high of $84 made 2-3 years ago and still keeps drifting lower. Dividend has not grown for many years and the only reason yield shows at 3.5%, as stock price has declined so much. Based on your past comments and considering this stock potential, primarily income, is it worth holding on or move to better options. Also, do you foresee any recovery in the stock price, in 2023, based on company's financials, further integration of the healthcare company, acquired a few years ago and in the backdrop of a slowing economy ? Thanks

Read Answer Asked by rajeev on January 19, 2023

Q: Can you provide a 'buy' list for a person wanting to deploy $200,000 (inside RRSP) with the goal of creating 5% or more sustained cash flow - as well as growing the original capital to keep up with inflatiion? We do not have company pensions - this would serve to supplement our government pensions.
Thinking, 20 stocks across all sectors @ $10,000 each (or 5%)
Also could you include 10 growth stocks (inside TFSA) for a total of $250,000 - gotta have some fun ;)
Many Thanks

Read Answer Asked by Jan on October 07, 2022

Q: Hi, I noted that you decided to sell full position in TCL.a from 5i portfolios, after owning for several years. CCL.b is still held in the Balanced 5i Portfolio, with a full position. We sold our CCL.b and TCL.a positions many years ago and switched to RPI.un. The move served us well initially but for past 12-18 months, Richards Packaging unit price has continued to decline precipitously and is near all time lows. It appears that COVID period growth has fizzled and it might take much longer for the company to digest the large Clarion Medical acquisition and the resultant debt load. Company has also guided lower for past few quarters. Although they have been paying dividend 0.11 monthly for many years, but market seems to be expecting declining growth for a while. I am wondering if you notice signs that RPI is heading into a similar direction as TCL.a. Recession fears certainly are not helping. Would it be prudent to not be mesmerized with the 3% dividend and move on, so funds could be available for better Income/Growth opportunities ? Thank You

Read Answer Asked by rajeev on September 19, 2022

Q: I will have to raise cash by December 30th for a mandatory RIF withdrawal. I will sell from this group of stocks. I assume it is better to retain the stocks with the highest growth potential. So in what order would you sell?

Thanks for all you folks do. You keep me a confident DIY investor... especially during troubled times.


Read Answer Asked by David on July 29, 2022

Q: Hi, These two companies, which are leaders in the packaging industry ,and enjoy a positive view with 5i, have seen their share prices perform quite differently. Over a 5 years period, RPI has outperformed CCL.b significantly, but during past 12 months and more recently, CCL stock has shown signs of steady comeback, while RPI price continues to languish at 50% below its peak of $85, reached in Oct, 2020. We are aware that two companies operate in different segments of packaging sector and while CCL has a larger geographical reach, RPI's operates in North America, primarily. We used to own CCL.b few years ago, but sold our position and replaced with RPI units, about 3-4 years ago. Could you make a comparison of the two companies, with respect to their size, leverage/debt, business/growth prospects, insider ownership, current valuation and risk to assess, how they compare/rank on these metrics and the reasoning. Also today if you own them, what will be the objective - Income or Growth or Both for each. Thank You

Read Answer Asked by rajeev on July 12, 2022

Q: Hi, Richards Packaging stock has been weak for several months and price decline has not abated, despite relatively decent results, recently. Could you assign the reasons for negative sentiment. Based on your last assessment, valuation seems to have come to down to a reasonable level, but stock does not show any traction. Is it worth holding for income - 2.75% dividend yield, or you see further downside risk (price) ? We are retired, with a large holding, about 6.5%, even after price deterioration, with an ACB of about $40. Thanks

Read Answer Asked by rajeev on March 30, 2022

Q: RPI and LWRK are both long-term holds for me, and have done well - particularly RPI (+500%) in spite of the recent slide. However, these were bought in part for their dividends, which have decreased on a percentage basis with the stock price gains. Both have also been rather weak lately, and I can easily get significantly higher dividends with other stocks. I am looking at selling one this year, and the other next year.

Could you comment on which has the least likelihood of a rebound, and should go first.

A further issue is that both are in a taxable account, and the sale of either will result in the complete clawback of OAS due to the capital gains. I have no offsetting loses at the moment. Any suggestions on how to handle this?


Read Answer Asked by grant on November 23, 2021