Investment Q&A

Q: Happy New year Why are the big swings happening in pbh .No big volumes' however
Stan

Q: Happy holidays to staff and members.

Would it ever make sense for pbh to purchase gcl? Does the ownership structure of gcl make that a possibility? Gcl has such a low market cap but has significant revenue, I wonder if pbh would be able to ring value out of the company?

Regards,

Robert

Q: I have the listed companies in my TFSA($60k). I haven't been too concerned with portfolio weightings due to the portfolio size and have let the winners run. As a result close to 50% of the portfolio is held in just 2 stocks (CCL.B and CRH) I have nice gains in the others except DBOX and SYLOGIST which are both flat and I have considered switching out. Two questions I have are 1. Do you think it is a prudent strategy to stay this course or would you rebalance keeping in mind these weightings are not that out of whack when you consider my other portfolios? 2. What name(s) would you consider adding to this mix for my 2017 contribution of $5500.

Thank you and Merry Christmas to the entire 5i staff for your outstanding service.

Q: Your response to Brian on Dec 15 included the following comment: "if you own 85% of your portfolio in high dividend stocks, then this is more of a concern".

I am a retired, conservative, dividend-income investor, with a pension, CPP, annuities, the above listed stocks and 3 income producing MFs (RBC Cdn Equity Income, Sentry Cdn Income, Sentry Global REIT).

I fit the 85% easily. I believe my portfolio is diversified by sector and by security. I also believe the securities have, for the most part, sustainable and growing dividends. I am a "buy-and-hold investor with reasonable tolerance for volatility.

Your comments and concerns please, along with any recommended improvements. Thanks...Steve

Q: A follow up question on PBH if I may. I'm not questioning the value in PBH so much as I'm trying to understand how to interpret the numbers I see on the Globe's stock quote page. From 2012 to 2016, revenue has increased from 960 to 1,485 million, but net income was 15 mil in 2012 vs 12 million today, and diluted normalized EPS plus dividend was 2.10 in 2012 vs 2.14 today. I'm just wondering what I'm missing in the bottom line results that would justify a tripling of the stock price over the same period if the acquisitions aren't hitting the bottom line. I'm quite new to this and am just seeking to understand.

Q: There have been a number of questions about tax loss selling. I am concerned with the opposite. There are some stocks up 50-75-100% this year, and who people/organizations might want to sell early in the new year in order to postpone paying taxes for another year. Would it make sense to sell something like that, say PBH now, in anticipation of selling in the new year, and transfer the money to a company like CSU which hasn't really done much this year? PBH might be picked up again after selling is done, if it happens.

Q: Greetings 5i, I'm wondering what is so attractive about a company like PBH. I don't understand some of the more exotic metrics, but if I look at basics like net income, earnings per share, etc, PBH doesn't look to be building shareholder value as it gets bigger. Is the attraction a bet that they will eventually somehow wring more value out of their acquisitions through organic growth?

Q: Since Trump's victory markets have reached new highs including the financials on both sides of the border.Note that 5I has been relatively quiet.Yet many stocks including the aforementioned but not limited to,have fallen quite a lot(some more than others.The primary reason could be rotation to other sectors.If co. specific,please advise.Please advise if it is time to start buying them,& if possible list them according to your preference.Appreciate your usual great advices & services

Q: Hi Peter A lot of concerns over PBH the recent downward pressure is the result of on analyst's downgrade for reasons he only knows .
By selling into this crap only exacerbates this issue .
The company is preforming well and expansion is on target and is raising cash through debenture offering at a great rate and as a investor I believe this is the best form of debt ,in a worst case is exchangeable for shares.
As members of 5i we are fortunate to have this private forum to share thoughts
Stan

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: I have ridden many stocks up and down over the last few years. I know you shouldn't sell unless something changes at a company but I am also tired of seeing profits slip away. I have 110% gain in PBH (but it was a half position to start with). What would you recommend? Thanks!

Q: Peter, these are stocks that I believe you have recently suggested for growth. Some have had decent pullbacks in price. Can you please rank these, based on today's prices, for purposes of long-term capital and income gains in a TFSA. And, if you have an alternative current favourite to add, please add it to the rankings. Thank you!

Q: HI,( Merry Christmas to you and yours !)

I've owned this stock since 2009 so I don't mind a little volatily, as I feel this company and the CEO are eventually going to be recognized as one of the premier entrepeneurial companies in Canada. Today there wasquite a turnaround on Premium Brands price, however the acquistitions seem to me to be right in line with their plans and are a good fit. Have any thoughts on the drop and the acquisitions?

Slainte,

Q: PBH has been rising nicely, with good earnings. I bought some this morning, and it took a DIVE this afternoon :(

Can you tell me why? As a short-term trader, should I get out quick?

Thank you!

Q: I currently own Loblaw (L), ADW.A, and ECI in the Consumer sector. I would like to add PBH to give me two holdings in each of Consumer Staples and Consumer Discretionary, but I suspect CTC.A is a'safer' pick. So I am debating between the improved diversification by taking PBH versus the 'safer' choice of CTC.A. Which should I add? I am looking for steady dividend growth with holdings that might hold up better in down/bear markets. Thanks as always.

Q: Please rank these four stocks in order of preference for buying today. Thank you, Barrie

Q: I would like to add these companies to my portfolio.
They seem expensive, but I assume over the long term you are good with any of them at these levels.

In what order would add these. Is one of them better value at this point?

I have some tiny positions in XTC, BB, BOS, and was planning on selling these. I also have a 1% position in DHX. Should I just get rid of these tiny positions and consolidate into one or two of the names above.

Cheers.

Q: Could you please explain why Spin Master's Q3 earnings have been higher than the aggregate of the other quarters combined? Would you anticipate this to change in Q12017 with several new products coming online for the holidays? I'm not very comfortable investing in companies like TOY, PBH and PKI due to valuation so do you think that starting with small positions in each and adding to the winners makes sense?

Q: I'm considering buying some GILD.My portfolio is all CDN stocks so it should benefit from some diversification and I feel US stocks may gain some strength under Trump.Obviously GILD is very cheap which reminds me a little of Concordia when I bought what I thought was an undervalued health care stock only to watch it nose dive.I also noticed a few reputable investment firms loading up over the last 2 months.My other choice was to buy PBH which is a great company but very expensive.What are your thoughts on a very cheap GILD which adds some diversification vs a fairly expensive PBH which is currently performing much better? I find i'm more of a GARP than a value investor but I appreciate getting a great stock on sale.

Q: Hi I have some money that I want to park for a few years in a couple of stocks that are considered conservative. I am thinking of ALA and Chemtrade. They both seem reasonably priced. I will be reinvesting the dividends. Are these good choices and can you recommend a couple of others? I have considered SLF but it sure moves quickly based on interest rate news or rumours. Thanks, Bill.