Investment Q&A

Q: I lived through the BreEX scam and promotion. Kind of watched the GXI Guestlogix episodes. Now watching PHM.So many companies are well promoted and pushed. The analysts are not infallible and listen to the company lines. If it makes sense, we take a look.
My question is simple. PHM has a business. Management is changing. Is it a viable, potentially good company that can survive and prosper? Or is it likely to end up like GXI.
My take on BreEx was that it was totally dishonest. GXI was incompetence by management. How about PHN looking forward 2 -5 years.

Q: I recently took my remaining profit from AYA (for a total return of 170% - thanks 5i!) and am looking to reinvest that money in my TFSA.

I currently own BNS, CGX, CSU, ENB, STN and T and was wondering if you had any favourites you would add to this mix.

Q: I have about $5000, market value of BAD in a TFSA would it be better to sell and use the proceeds to buy SIS or something more likely to increase in the shorter term, or just hang in. The current loss is 20%. Thanks.

Q: In your reply to Andrew (today April 8) you mentioned considering replacing CNR with SIS. Just curious why in that SIS is thinly traded and is at a all time high today. I have been burned by several small cap stocks lately (eg. PHM) and want to learn from my mistakes (i.e. stop buying small caps at their highs). I have owned CNR for some time and it has been good to me. I like SIS but with its large upward movement recently do you think the risk level has increased significantly? Thanks.

Q: Hi team, I've held Exco for a year and am just a smudge above water with it... I wonder if you have any sense of its future upside? The dividend alone is not enough to keep me in the game... Your thoughts? Thanks! Kate

Q: Hi guys, I have both ADW.A and ADW.B (not sure why -- mistake on my part?) The stock has done very well but today, ADW.B is down 10.5% while ADW.A continues to trickle up as usual. Can you tell me why there would be such a difference? Thanks!

Q: Hi Peter and Team,

Is there anything new regarding GS? It's been very volatile lately and is down over 6% at the present time. Is the ongoing dispute involving the founders still in play?

Thanks as always for your timely advice and keeping us on an even keel.

Q: Thanks for your prompt reply and comments regarding my previous PHM post. I love this site.
To clarify what I should have said in ending: "the downside is thirty cents which brings the stock to zero, or a 100% decline, while the upside remains to be seen but has potential for multiples of the present thirty cent price".
OK, the moratorium begins now:).
Thanks.

Q: Until now Keith Richards at ValueTrend was the only technician posting regular blogs about the TSX. There's a new kid on the block, for those interested in charts (Taylor Dart):
http://setyourstop.ca/tsx-turnaround-possible-weighing-daily-weekly-charts-direction/

Q: Does 5I know much about cgy.I understand it is relatively small with a markrt cap. of only 145m.and technology based.What is your assesessment on management and their growth prospects? surprisingly pays a nice dividend of over 5%. Is this company a possible investment?
Cheers
Cal

Q: It is, of course, audacious to disagree with you considering your enviable success record and experience but I can't come to terms with your defensive posture regarding the fair and detailed member question concerning the rise and subsequent fall in PHM's share price. PHM revenues were $70M in 2015 and guided to about $130M this year - lower than originally expected. How many other companies in your universe would you eliminate from your portfolio if this was the case? I think you are being influenced by the stigma rather than the fundamentals and have no reason to be defensive about dropping this company. First, no stock picker is perfect and second, who could have anticipated the avalanche that has consumed this company?
PHM is strictly a noise story. Period. The two new bosses have hunkered down and not made themselves available to combat the negativity this stock is experiencing. Good for them. Results should be the only barometer.
Every guest on BNN, except Ryan, has slammed the stock. The call-in show host inevitably pipes in , unsolicited, to add the medicare reduction while never adding a positive comment about a company that has had only one revenue reduction quarter in it's entire history. Inevitably, as soon as a caller asks about PHM, within a nanosecond, hundreds of thousands of shares appear on the sell side as short sellers stalk this company, taking advantage of the stream of undefended comments. At the end of the trading day, hundreds of trades transpire within the last few moments. There is a concentrated effort, taking advantage of this hysteria, to drive the share price into oblivion.
I was glad you dropped PHM and I wish BNN would declare a temporary moratorium on questions. Give them a year and we will see a company whose share price reflects the fundamentals rather than the noise. I am joining my suggestion by refraining from commenting again on this stock for 12 months. It's just time to let the company emerge from the cloud and see if they can prove their worth to investors. The downside is now thirty cents. What is the true value of a $130M revenue generating company? We'll see and good luck to fellow patient investors who see value in what is really a great idea - servicing seniors as their health declines.

Q: Hi Peter /group what is going on with Lumber stocks the last couple of days especially since lumber futures are up over the last couple of months. What do you see going fwd from here. When does the seasonality window close? Thanks for the great service

Q: How would you compare AAR.UN,DIR.UN and Smu.un going forward as industrial reits.

Q: I own SGY and is currently down 50% (ouch, yes!). The PR of yesterday to me is a mix signal. You cut dividends and sell assets and yet you maintain the capital spending level without reductions? Why sell asset on one hand and add more assets on the other hand (through capital spending)? Any reason that I should hold on or should I just throw in the towel (and take my tax losses)?

Your insight is much appreciated.

Q: Hi Guys: I have a 2% position in oil - PXT and RRX - I am looking to bring it up to 5%. I am debating adding to the PXT or RRX positions or begin a new position in FRU which would be held in a registered account. The account has to be convert into a RIF by December so the FRU dividend would be useful. Thank you for you advice.

Tom S.

Q: Morning,

Auto parts companies in a bit of a tailspin. Any reason to close a long term position in Linamar? What do you expect from this stock over the next quarter, year?

Thanks!

Q: In response to Paul's question below regarding an iPad app I have been using Real-Time Stock Tracker by W. Tang for a few years now. It is an excellent source of information and well worth the cost.

mobile app mobile app April 07, 2016 (asked by paul)
Question: I am about to purchase my first I-Pad. Does 5-I have a mobile app that I will be able to use?

Thanks

Paul
5i Research Answer:
Our site is mostly mobile friendly, and we have a Google Play app, but not an Apple app.

Q: What are your thoughts of using HUV as a hedge in a down looking market. How would you decide what percentage of portoflio to use and how long to keep it.
Thanks and happy Friday

Q: What is your opinion on Take-Two Interactive? Is this just another "flavour of the month" in the gaming software space, or does it have real "game" in its own right?
Thanks, as always, for your help and insight. Is it worth a longish-term hold?

Q: I am 30 years old and have built a sector diversified portfolio of around 25 names from the TSX worth approx 200k. I also have a pension invested conservatively in bonds/mutual funds worth approx 100k. I would like to invest all additional cash for the next few years in 3 or 4 ETF's to diversify out of Canada instead of adding to my Canadian portfolio. Do you see any major flaws in my theory? also could you suggest 2 or 3 ETF's to start out with. My thoughts were: VOO, VEA, and IJR. Thanks