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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: With the recent market correction, I have several stocks that are down quite significantly and others that stayed flat or went up a little. This involves that the weightings changed quite a bit for some stocks. I know 5i isn't a big fan of averaging down, but in such context what would be your advice? I have the followings (%loss, weight) :
SIS (-19%, 4%)
PHO(-41%, 1.7%)
KXS(-10%, 3.3%)
NFI(-32%, 2.6%)
PBH(-28%, 3.4%)
TOY(-23%, 2.5%)
MX(-22%, 3.1%)
I currently have 13% cash and would consider reducing it to 7-8%. My sectors are well diversified. Which of the above would be your favorites today for a position increase?

Thank you!
Read Answer Asked by Julien on December 03, 2018
Q: Hi, I am looking for 2-3 stocks which have recently come down, but have strong revenue projection, low debt, and good track record.
I am not looking for Oil & Gas, Pipelines, or Utilities.
Please let me know if CGX, SIS, WEF, QTRH, NFI meet that criteria. If yes, how would you rate these.
If not, please suggest few other names.
Thanks for your help.
Read Answer Asked by Harpinder on December 03, 2018
Q: Ryan and Peter,
I'm looking to buy a company that has good rebound potential once the market turns. SIS AND NFI both seem to be oversold. In your opinion, which one looks like it is poised to impove its share price the most once this market improves. Which other companies, (sector doesn't matter) have excellent rebound potential. Thanks for your advice.

Read Answer Asked by Les on November 29, 2018
Q: Hi 5i,
I am considering small average down purchases of the listed companies but unfortunately cash is limited so can't choose all of them! Could you rate/order them for rebound potential ? Currently MX & TOY are approx 3% each, FSZ 2%,and TSGI/SLF/SIS have been driven lower to approx 1% each.

Thanks
Mike
Read Answer Asked by mike on November 26, 2018
Q: please provide 3 top equities for starting a position today. Ranked from 1 - 3 not considering any other factors.
Thanks.
Read Answer Asked by Jordan on November 23, 2018
Q: I would like to top up these positions and trim them back in the future (12-24months?)

Are there any names on the list I should avoid or expect a longer recovery for?

Always appreciate your wisdom.
Read Answer Asked by David on November 23, 2018
Q: Thank you again for this excellent service. I have a question about Savaria. In their most recent quarterly results, for the 9 months ended September 2018, stock-based compensation is $899K on $12.9M income. If I have done my calculation correctly, the stock-based compensation is about 7% of expenses. I do not know how to find the base salaries for the management (which would presumably further increase the management cost for the firm).
Is this not a lot excessive? Should I be concerned about the "cost" of management and how this cost could dilute shares or profits?
Thank-you
Read Answer Asked by Dale on November 21, 2018
Q: Hello Peter,
Is it time to back up the truck on Savaria? I think the market has over done the downside. Any reason why Andrew Peller is down from its peak? The company seems to be doing well. Please comment on both. Thank you.
Read Answer Asked by umedali on November 21, 2018
Q: I Have held Knight Therapeutics (GUD.TO) in my Granddaughter's trust account for a number of years, but sold today with the jump in price for a small profit. I'M am now looking for a stock in the Health Care sector to replace it, preferably one that pays a dividend.
Would you be comfortable with Savaria (SIS.TO) for a 3-4 year hold? Could you recommend one or two others? Many thanks
Read Answer Asked by Don on November 21, 2018
Q: You were asked a question regarding Savaria's forward PE multiple. Your response was 28 which is the same as the trailing PE multiple. How did you come up with that number? If a 28 multiple is true this stock is trading at a multiple that makes it very vulnerable to further declines despite what has happened in the last few weeks. I would like to know what your expected earnings per share are in each of the next two years please. Also could you identify anything on the horizon based on your analysis or management expectations that could lower or increase this estimate. And how do your numbers compare to management forecasts?
Read Answer Asked by John on November 21, 2018
Q: Hi 5i,

Looking at pulling the trigger on a handful of Canadian stocks that've gotten beaten up lately to round out the Canadian portion of my portfolio.

I love a number of your recommendations. The one I seem to be struggling with the most is Savaria. P/E seems so high, its like it trades as a growth tech stock. In another question you indicated its forward P/E is 28.5 even with the recent correction.

So I guess my question is whether the confidence is still high for this pick? In a world where other Industrials like Magna and Linamar trade at such low multiples, does SIS really deserve the premium?

Thanks!

Ryan
Read Answer Asked by Ryan on November 21, 2018
Q: I need to sell one of these stocks from the Industrial sector for a rebalance. Long term outlook. I need help deciding on which one to cut.
Thank you again.
Read Answer Asked by Derek on November 21, 2018
Q: Is there an update to forward 1 year p/e ratio on these companies? Thanks
Read Answer Asked by Thomas on November 20, 2018
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
Read Answer Asked by Angelo on November 19, 2018
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