Investment Q&A

Q: I don’t like to add to my losers but the price drop of SIS makes it tempting. The stock is still an expensive one but do you think the dividend will start to give it some support? I’m concidering bringing this back up to a 2.5% position as I feel there’s lots of growth potential and I have a long time horizon.

Q: Sis recently reported AGM vote results and there were significant witheld votes for the 3 Bourassa members of the board, and highest for Robert. At the same time, performance continues to be good (as you note in recent report update). However, your full report notes key person risk for the Bourassa's. What can you tell us that would explain the withheld votes? Is this a trouble signal?

Q: I have one stock in the oil and gas sector WCP which has shrunk to a .9% position .... I am starting to question whether I need to be in oil or gas at all. Of the following options which would 5I recommend ? Feel free to adjust the percentage level I have chosen to what 5I would recommend instead. There is cash reserves to add. Thanks for your terrific service.
1} sell and increase SIS from 2.6% to 3.2 %
2} Sell but stay in sector and increase to 2.5% in another stock like PXT { or 5I recommendation }
3} Add to WCP to 2.5% level
4} Sell and add to cash reserves until next purchase decision made.
5} Keep WCP the way it is.

Q: I have a general question but I will use SIS to help me as an example. I am trying to learn how to find out what a company's Debt is. I want to be able to calculate the ratio of Debt to Cash Flow. I can find Cash Flow right from the TD Direct Investing website, but how can I find "Debt" to plug into the ratio? Many thanks. Marilyn

Q: Gentlemen, good morning.
On my Ca$ side RESP I have only 3 stocks,
SIS (-28%, 50% of RESP PF / 3.9% totPF)
TSGI (-31%, 25% of RESP PF / 2.16% TotPF) &
NFI (-32%, 25% of RESP PF / 1.3% totPF).
The Can side is about 20% of RESP PF.
I have 20% of Ca$ RESP PF cash to add.
For 5 years min holding, Your thought please
Thanks Regards

Q: list your 3 best growth stocks with little debt eg KXS. and your 3 best growth stocks with high debt eg TSGI. and your 3 best growth stocks with 50 percent or more revenues derived from USA operations. thanks Richard

Q: Hi Folks
is it time to move on or is there still hope. Down 21% since I bought it a year ago. Can you give me a possible replacement if you think it's time to sell.
thanks

Q: Regardless of sector or size of company what would be your preference for a long term hold in a RRSP? Thanks

Q: hi folks:

as a followup to my earlier query on savaria's accounting i would like your further comment

sis employed hedges when it had ZERO debt , claiming it wanted to smooth out earnings variation caused by currency --- in those years this hedging cut profit in half

today they have debt which, along with the hedges, is impairing profit --- revenue is up 55% while operating income rose half that amount and EBITDA, (which is a phoney figure) is even less.

their accounting is unnecessarily complicated which always concerns me

if you look at a big company, like Teck or LNR, the reporting is 'fairly' straight forward

in my opinion these SIS guys try too hard to look better than they are - and are potentially just awaiting the next acquisition to get back to growth

comments?

thanks

Q: Have SIS closes the $14.55 financing?Thought it closed last week,but see no news.Please update.Thanks for u usual great services & views

Q: Hi Peter

every quarter they highlight growing sales and EBITDA, but it never translates to the bottom line

profit is flat

what is wrong with the company, that growth never comes out the bottom line?

also with 59% of revenue from the USA, why does it need to have currency hedges to protect itself from rising material costs priced in US dollars? --that should be a natural hedge

most quarters (except last one) those hedges are a drag on profits

and now they hedge interest rates too !!

thx in advance

Q: Should Savaria shareholders be concerned that in the recent Directors election J-M Bourassa had 30 % votes and S Bourassa 20% votes withheld?

Q: Hi Peter and Company:
I am a growth investor, presently down on above 4 Canadian and 5 US companies.
Should I keep, sell, add or replace e.g. GC with TSGI.
Since US market usually outperforms CAN market I am fine buying all best US growth
companies that you will recommend...…..or mixture of US and CAN companies. Long term hold fine but not required. I will trade as required, i.e. when becoming aware of it. E.g. missed selling MX, where I had an nice gain but no alert to sell and now a significant loss.
Thanks for your advice
KS

Q: Great market response to decent Q($13.60 up .85).How was conference call? Time to add to my 3.5% position($17.28 p/p) Thanks for u usual great services & views

Q: I own all of these in equal weighting (7% each). Down quite a bit on NFI. Just seeing if I should keep it and give it the long term (10 years) to provide a good return or sell because there is a better company to replace it with for a better long term performance at this point. Any other recommendations as I do have some cash side lined at this point (30%).

Q: Own all 3 in TFSA: 400 SIS, 1500 SPB & 1000 BIP.UN (thanks to ECI purchase - ended up with 1500 - sold 500). Sitting on $50K cash in this account. I was thinking of adding 600 SHS of SIS and 500 SHS of SPB ( owned since 2009) which will still leave me with a fair bit of cash to deploy. Comments/suggestions. Not a lot to choose from in TSX group. Large equity portfolios: RRIF, RRSP & Non Registered accounts.

Q: Good Morning Team
I have the above industrials trying to reduce the amount of my positions. Which of the above would you suggest I sell? Also need to increase allocation which would you suggest I add to? Thank you. Heather

Q: comments on the quarter please?

Q: I'm considering cutting a loser to invest in something new that has some growth. SIS, PBH, and TOY have been poor performers for me for a while now and have been dragging down my returns. If I thought the issues were temporary for all 3 of them I would hold and wait it out but I've found each of them has been less than impressive. SIS with the equity raises and mgmt that I'm losing faith in, PBH with a million excuses as to why each quarter has negative surprises (weather, swine flu, minimum wage,etc), and TOY with disappointing numbers that seem to be getting worse with no real catalyst to get back to growth (Toysrus overhang, diminishing sales in their top sellers that are getting stale, no replacement "home run" product to turn things around. These 3 seem to no longer be growth stocks, do you think I should cut any of the three or give them some more time?

Q: I own the above companies with the following corresponding weighting:
2.6%;1.3%;2.2%;2.5%;2.7%;2.2%. I am looking at the possibility of doing some consolidating - what are your thoughts on consolidating? If I consolidate - what 1 or possibly 2 companies would you eliminate and what 1 or 2 companies would you add to?
Use as many of my questions as you need and thanks for your excellent service.
RAM