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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: As much as I enjoy your service, there are times when I find your answers provide insufficient depth. I can understand that when you are asked about obscure companies that most of us have never heard of, but I do expect more, perhaps incorrectly, when the question pertains to companies in your portfolios. Case in point on Feb 6 a question asked what you would recommend , GSY or ECN. Your answer without any support was GSY with no rationale for your choice
On Feb 5, ECN held an information session that provided guidance for 2019.
Management are looking at EPS of 23-25 cents . up from about 11 cents in 2018.
Key sub components are looking quite strong:

Kessler's projections imply earnings growth of close to 40% and revenue growth of around 60%.
Triad is guiding for adjusted operating income to grow around 17%
SFC guidance is for adjusted operating income to grow around 25% in 2019. Originations guidance is expected to be up around 36%. Management believes that the business can grow about 20% annually going forward.
Without getting into them there are other numbers that I have not mentioned that also look quite strong..
The company has been in a transitional phase the last couple of years and there will be some potential losses as ECN sells some of its legacy assets. All in all, it would appear that guidance was extremely positive.
So given this outlook what is it about GSY that makes it a better choice?


Read Answer Asked by John on February 07, 2019
Q: Hello 5i,
When using the ETF Sector Balancing Tool for the Bond ETF's I just put in another category of Fixed Income instead of trying to break out Corporate bonds as well as Government bonds. Does this appear to be a correct procedure? Also does it matter if ETF's are International, European, Canadian or US or just use the sectors as if there was no geographical difference?
thank you
Stanley
Read Answer Asked by STANLEY on February 07, 2019
Q: Hello,

Further to NFIs press release that they are doubling buybacks, did they actually do that..Or was that a gimmick to aid stock prices?
On another note I read a Charlie munger quote on risk "Using a stocks volatility as a measure of risk is nots. Risk to us is 1. Risk of permanent loss of capital 2. Risk of inadequate return " . I think this is a very powerful concept. It also made me wonder how for example a stock like TSGI rates in terms of risk based on the above 2 criteria.

Thanks.

Shyam
Read Answer Asked by Shyam on February 07, 2019
Q: My wife and I are 66 years old. We each have a TFSA which we are trying to maximize. These would be the last two accounts we would ever take money out of. Our children are the beneficiaries so these are long term accounts - hopefully! We each have RRSPs and share a non-registered account we use for income. We don't have any fixed income but do have enough cash to last us 3 years. No pensions, but are quite diversified in a number of blue chip stocks.

Between the two of us we have PHO, SIS, TOY, BNS, TSGI. None of which has been very good lately but we are patient. We have enough money for two more positions, and think it would be prudent to add two, more stable, names. OTEX, BOYD, GC ? Suggestions?
THANK YOU !
Read Answer Asked by Bryan on February 07, 2019
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