Investment Q&A

Q: I have about 25K to invest im my TFSA. Please rank the above stock as to growth over next 3 to 5 years.
Much appreciated RAM

Q: I currently hold these stocks in my TFSA. I want to max out my TFSA account for 2017. I have equal positions in all. Would you recommend to add to the exiting stocks or add a new stock(s) like SHOP, TOY, or KXS. Current holding are in the six figures. Thanks for your input.

Q: At the recommendations of 5i I purchased these stocks in April/16 for my TFSA account. I have additional funds of $11000 to add. Would you recommend adding to these positions or purchase other stocks? My return has been in excess of 30% and therefore value 5i opinions. Thanks for your excellent service.

Q: Peter and team:
I hold all equities in your balanced portfolio and a couple from your growth in a portfolio worth about 450K (Thank you). I currently have about 35K to invest and would like to choose one stock from your growth and two from your income to "round things out".
At current valuations and looking at a 10 year plus time frame could you please rank each of the four equities per group. Sector allocation is not a consideration.
Please deduct 2 credits and Thank you as always for a fantastic service.

Phil

Q: A 8% drop in GSY this morning? Is there any news to account for this?

Q: I have owned gsy for several months now and it was on a good upswing. I thought its 3rd quarter results were pretty good and from another question asked I believe you did too. Can you explain the dramatic drop over the last few days? Do you think it will rebound? Is it a lot of profit taking? Or is there something fundamentally wrong and I should sell while i'm still ahead?

Q: Gsy just reported, wondering your thoughts on earnings??

Q: I would like to make my TFSA more growthy. The candidates I have in my TFSA that I am considering replacing with more growthy names are: TD, IPL and WCP. I own these in a non-registered account as well, but since I can’t take advantage of the dividend tax credit in the TFSA I would like to replace them.

The growthy names I have in my TFSA are DHX.B, ESL, and GUD. I think I have enough of these, so I am looking for other suggestions from your growth and model portfolio. I am considering, CXI, TOY, PBH, ZCL (maybe KXS if it pulls back to the mid-50s). I already own SIS, NFI, OTC, CSU in a non-registered account and think I have enough for now.

What growthy (but not overly risky) stocks would you suggest for a TFSA today for a long term hold?

p.s. I have already maxed out my TFSA contributions. With some cash in the TFSA and the sale of shares I may not have enough $ in the TFSA to buy a full lot(s) of the replacement (e.g sell 100 shares of TD @ $58, buy 200 shares of TOY @ $31.50). I would rather not buy an odd lot (e.g 184 shares of TOY) because I don’t have enough cash in the TFSA, and I can’t add any more $ to the TFSA until next year. Should I wait until I can buy the full lot (i.e. the price falls, or I get dividends to increase cash), wait until January when I can add another $5500 to the TFSA, or find another stock where I can buy full lot(s). What is your opinion on buying odd lots, especially with low volume stocks like TOY and CXI?

Q: Starting a new portfolio of higher risk stocks to offset my more strategic long term investments. I have listed several juniors that are either in your Growth Portfolio or have been lately receiving considerable attention. Would appreciate your comments, order of preference & recommandations. Please deduct whatever number of credits you feel appropriate. Thank you.

Q: About Patrick's question on HomeCapital... in case it helps members, I couldn't help but share my experience with investing in GoEasy. It was a wild ride after buying it about a year ago. When the shares hit 17, I sold 1/2. I thought "5i said it's cheap and growing but there must be a problem with the company!". Then, GoEasy, broke-out and shares hit 25.00, a 45% increase from my sell point. It's harder than expected to hold-on to positions that we buy with the *intention* of holding for a long time. However, much more painful than holding a weak stock is to see it recover massively after selling. Since this is not a growth by acquisition story like CXR and VRX, and unlike those, HCG has a 10 years+ history, a non-trader will probably do best by no longer watching the daily ticker/news. Don't do what I did with GoEasy. Wait a year. The 5% buyback should help.

Q: For the most part we (subscribers) seem to ask you questions on the same stocks in some sort of rotation that I have not quite figured out. So it must be time again to ask, what stocks are we not asking about (very frequently perhaps)that we should be considering for our portfolios?

As always, I appreciate your insights - my best performing stocks are generally ideas I've picked up here!

Q: You said on an earlier post that you are surprised GoEasy went up 30% during the late market weakness. I came across a post on StockHouse. I don't know if this information is true but here it is:
"Citi is selling its CitiFinancial operations in Canada: 200 branches for a rumoured price of about $400 million. Teachers' is apparently interested. It is a similar business to GSY, although I think they offer mortages as well as consumer loans. Even so, the 200 locations / $400 MM translates to $2MM per location. GSY with about 180 locations and a market cap of 305MM is about 20% less ($1,680,000 per location). So, on that basis alone, GSY SP may rise toward the CitiFinancial valuation. On top of that, GSY has had a single digit P/E for years and still does even with the recent SP rise. If the market bestows even a modest multiple expansion to 10 or 11X, that would push the SP up as well. It is possible that GSY could hit $25 - $28 based on the CitiFinancial metric and over $30 with multiple expansion."

Q: Does this stock have further upside?
I am undecided whether to sell at a small gain or hold.
I would appreciate your advice.

Q: Any particular reason for the recent strength in GSY other than it appears undervalued . The market has pretty much ignored it for some time. Why now?

Q: I've collected a 5% dividend from Genworth for 2 years now. The stock has rallied to 35 recently, which is a nice move relative to HomeCapital (considering it's also in the canadian mortgage insurance business). It is now sitting below a hard level of resistance. I'm considering switching to GoEasy, which yesterday, finally broke above $20/share (was stuck below for a long time). It seems that there is a lot more momentum in GSY right now. Also, Telfser, who's fund performed the best last year, owns it and recommends it. The dividend isn't as good (2.6%) but I'm looking for (some) capital appreciation. Would you be ok with it?

Q: my question earlier today- thanks

Q: Why does the market seem so apathetic about this company's consistently excellent financial results. I've held the stock over 3 years during which time the EPS has increased about 50%, and yet the stock price is roughly the same. There has also been two dividend increases.

Do you think the company could eventually be taken private if the market will not give the company a fair valuation.

Q: Hi Peter, Ryan, and Team,

GSY is up over 5% today. Have you heard any news to account for this significant uptick?

Your advice, recommendations, and comments are of great value.

Q: What are your thoughts on the goeasy earnings report? Is today's sell off more market sentiment related or more related to the details of the earnings report?

Thanks,

John

Q: How would you rank these companies in terms of growth and risk level? which 2 do you believe offer the best risk/reward potential?