Investment Q&A

Q: Premium Brands (PBH.TO) said Tuesday that the Toronto Stock Exchange has approved its proposed repurchase of up to 1.7 million common shares, representing 5% of public float, starting Nov. 22 until Nov. 21, 2019.

Daily purchases will be limited to 26,256 shares.

Q: Following up on a recent question regarding allocating the appropriate amount of monies to each stock, the amount depending on the size, safety, etc of that security. Would you agree with the current split (full, partial, small):

Full = AD (should be partial), AQN, BCE, BNS, FTS, RY, TRP.
Partial = CGX (could be full?), CSH, NFI, PGH (could be full?), TCL, WSP (could be full?).
Small = WCP.

Thanks...Steve

Q: Is there an update to forward 1 year p/e ratio on these companies? Thanks

Q: Sorry, yet another question on Premium Brands. In your response to Jim today you noted that 5I would consider the management of PBH to be good. In their 2019 Outlook they indicate they are expecting close to $10 per share of adjusted EBITA. Also they expect revenue of $3.7billion. Both seem impressive numbers, if they can be relied on, and the latter is especially so given the current market cap is appx. $2.4billion.

Analysts have reduced their earnings estimates for next year from $5.54 to $4.53 giving a forward PE of 16 which is below the 5 year low PE of 23.

Debt seems on the high side at 1.26 times equity and management have noted they are paying higher interest rates because of the current debt to adjusted EBITDA ratio. However interest coverage seems reasonable at 4.3 and if the EBITDA comes in as they expect there might be some interest rate relief.

In light of this what reasons would you advance for not investing at todays price?
Mike

Q: Hello Peter,

First off, great job on BNN yesterday! Your comments helped reinforce on focusing on the long term and not quarterly results. Just to recap your theme, I have listed the companies with let's say "quarterly miss" , however, with a market over reaction to the downside. Can you add or delete other companies that fit in this category?

Thank-you for being in our investment corner.
Angelo

Q: Hi Guys, my above holdings got wacked lately and was wondering if there is anything going on, from the above list should I sell anything besides WEED, are the institutions selling these companies because they think there is more to the downside? These are long term holdings are all up except for COV and KXS which I just bought before the tumble, not one of my best moves.

Thanks
Chicken Little

Q: Hi,

SHOP has held it's own very well wondering if it would be a good idea to reduce SHOP to small position from full position. And buy SIS, BNS, NFI or PBH..for safety and growth when the markets decide to rebound...Your thoughts and sage advice welcome.
Also I am surprised at SIS sharp drop for a small miss...Should I be taking advantage of this?

Thanks. Shyam

Q: SAP vs PBH.
Which company has the best:
- Management
- Balance sheet
- Dividend growth
- Potential for capital gains
- Current valuationPBH i
- Overall business
Do you have a gut feel which would do better during a recession?

Thanks.
Jim

Q: Good Day,
With these companies taking huge hits lately isn’t this the time to be greedy when others are fearful? Do these companies deserve full positions with a long term outlook?
Thx

Q: Hi,

For a 2 year hold, which would you recommend in order of preference?

Thank you.

Larry

Q: My investment strategy has been 1st to buy good companies. I accept that there will be volatility in the short term but believe that in the long term good companies will perform well. I am retired and this has worked well for me and your advices have helped to direct me to good stocks that I would not have found on my own.
The last 6 weeks have been challenging from an emotional investing standpoint. But I have been through this before and the best action for me has been to stay the course.
Often I like to take some opportunity in this down market and I find I often jump in too early.
I like PBH, hold 2 % and think it would be a good long term hold and am considering topping it up 1%. I hear this “capitulation” term used when a stock has hit the end of its fall. With a specific stock is there a “formula” that defines this capitulation point. If possible can you reference PBH as an example?
Thanks John

Q: of the stocks listed can you please rank in order from 1st to last for adding to at this time as I have some cash to add to these stocks that I currently own.
Thanks

Q: Going forward after checking on cost issues--transportation and etc. and also the Conference Call and other concerns coming out, what are your opinions and facts? Going backwards I feel sorry for the people who had paid $100.00 or more a share, will they have the time to make a recovery?

Q: Add our names for two thumbs up for 5i research! I am suffering like everyone else. But, I realise that I have received good advice from 5i. But, I don't expect you to have a crystal ball. And so the final decisions are ours.

We are wondering whether it is too late to sell Premium Brands for a tax loss. It is already the 14th, which means that we would not be able to buy it back until mid December. I expect much of the tax loss selling would be finished by that time, and , if it ever does turn around, it might be before that date that PBH starts to climb. (I suppose despite all of this we are always optimistic!) So, would it be just better to hold than to book the loss and possibly miss the turnaround, if it comes?
thanks

Q: anything else in the cc to account for the huge miss on EPS and ebitda ??? Thx

Q: In a previous answer today, you said you would be ok start a postion but not adding to it. How do you come with that ? If its under a 1 % of your total portfolio, doesnt that matter? this was a praised stock at $120 and it doesnt seem like much has changed.

Q: Dear sirs,
Aside from previous earnings commentary, would you add to or initiate positions at these levels in Premium Brands?

Thank you,

Q: comments on earnings please.

Q: Hi Peter, Ryan,

We have a few dogs with the downturn but we also cashed in all of our high runners in early October. Your insight is invaluable in our portfolio management strategy and we understand the decision to buy or sell is in our control. On that note, we have been buyers the past two weeks when a stock drops 25%-40% (i.e. KXS today at $67.99). Can you comment on the following opportunities (BYD.UN, WSP, NFI, CCL.B, PBH, SHOP, ENHG) to purchase now with a 3-5 year hold inside RRSP's.
1. Please rank (based on your expertise) the above stocks from best to worst as of today to add to an RRSP.
2. Which of the above, if any, are considered "prime" to purchase today.

Thank you
Jerry and Debbie

Q: I have been accumulating cash in accounts for my 4 grandchildren, ages 2 - 10, and would now like to invest these proceeds. So, for long term holds, with some growth and some stability, what would be your stock recommendations. I have been considering investments such as BAM, SIS, AQN. Am I on the right track with these selections and/or are there others I should consider, such as TD and RY?
Many thanks........Jim