Investment Q&A

Q: Hi Guys,

I own most of the companies covered in the 5i growth portfolio. Just wanted to know if you still like this and if the story remains intact or has gotten better/worse. The app is fantastic and it seems like they've got a nice brand, plenty of users, and growth ahead. However, I'm concerned about the company's ability to become profitable. Do you think these fears are overblown? I'd appreciate your thoughts on this as I'm debating about adding a half position to this in December when tax loss selling has abated.

Thanks,

Elliott

Q: I currently hold ENB IPL and PPL for a total weighting of 8.4% each having a capital loss. I am considering selling IPL outright and reinvesting an other sectors. Am also considering selling either ENB of PPL replacing with TRP. Is this a reasonable strategy and witch of ENB or IPL would you sell. Thanks!!!

Q: Seems cheap - recent earnings look OK? Your opinion, please.

Q: with an interest rate hike in the US seeming more likely in December, is it time to make a move to US financials? I currently have ZUB but would ZBK be the better choice? with an interest rate hike, would this strengthen the US$ and by buying ZBK would it profit from both the move to US financials and a strengthening US$?

What do you think of adding ZBK and keeping ZUB. I'm fairly diversified and this move would increase my weighting in financials overall.

Thanks

Q: I have been following this company for a while, but have not yet purchased. Good thing, as the price keeps dropping. The latest earnings report looked quite good to me. One comment I have heard about the company is that they started share buybacks and a dividend to boost the share price, but that this is actually a negative, because they will need to borrow more money at higher rates to fund its loan growth, which adds to risk. What are your thoughts? Thanks!

Q: I have 1800 shares of WIN which I purchased at 3.00. Would you recommend selling it and buying something like TNC or any other high growth stock.

Q: When would it be time to sell this stock? What is the usual end-game for these type of firms?

Q: Could you please comment their third quarter results released yesterday. Thanks in advance.

Q: Thankfully never a share holder, I'm trying to learn from the Valeant fall out. In doing so I ran across an article discussing the reporting of non-GAAP (general approved accounting principles) results and estimates. Apparently, Valeant does this, amongst others, and there are since cautionary tales...

Can you please give me a Coles notes lesson on non-GAAP data? It seems like they are all the rage, but should not be trusted...

Best.

Q: Please,the expected EPS & REV of CGX,which is reporting Nov.10.Thanks a lot

Q: Before I logged into my account I was reading an article by Ryan about Concordia and half way through it, it said to read the rest or to read articles like this join 5i Research. I am a member so where would I find the rest of this article? I have a 200 shares at higher prices and I was thinking of averaging down to buy at between $38 and $40. Is that a good idea and where would I find the rest of this article on CXR? Thanks for keeping us posted on this situation. Dennis

Q: Some observations:

ACQ is finally stating that they are concentrating on acquiring dealerships in eastern Canada as opposed to western Canada. This is very good I believe. They are to acquire 6 by May? 2016, having acquired 2 Nissan dealerships in Ottawa, Ontario recently, so 4 more to go.

ACQ has stopped being a dividend grower as there has been no growing over the past four quarters. Stopped as in they had been increasing the dividend every 1/4 since they started paying.

I suspect the glory days are over for ACQ in so far as its rapid share price growth and it has become a more "traditional company" slower grower of revenues..., dividend and share price as automobiles will still need to be bought/sold and serviced for years to come. At least until self-driving autos become dominant.

I think it is "reasonably priced" now. It had gotten way ahead of itself when it was, say, $60+.

Stan

Q: Thanks for tweeting out any news on dividend changes. Your recent tweets show:


Black Diamond $BDI lowers #dividend 37.5%.

Supremex $SXP raises #dividend 10%.

Telus $T, in our model portfolio, raises #dividend by 10%


There’s been so many lately and I note a few got missed, however I was wondering if there might be a place on your website for “Dividend Changes”? That way we wouldn’t need to put up with all the unwanted Twitter ads etc.

Thanks.

Q: hi Peter It appears win has reached the floor around the $1.50.
What catalyst do you and your team feel it would take to get it up.
Should one take the loss now and move on or sit on it?
It in all like hood be dead money for a long while.
Appreciate your comments
Regards Stan

Q: HI Folks: If a stronger US dollar is deflationary, what effect does it have on stocks in general and on gold in particular?

Q: Has Russell Metals ever eliminated or reduced their dividend ? And how sustainable is their dividend now ? Thanks.

Q: Hi there

I am a bit puzzled as I hold Western Forest Products WEF which has gone up about 15% in the last week. Yet Acadian Timber, which I also hold, has gone down about 20% since its peak of $21 and it fell in price all this week. I bought in today at 17.40 yet it continued to fall as low as 16.57 later on Friday. It has been falling in price despite a strong earning report last week, a dividend increase and a strong US housing market. Just wondering what am I missing? Wondering if I should be adding more to my position of 2.5 of my portfolio?

Much thanks

Stuart

Q: Would you hold off investing in this till at least oil shows a sign of a sustainable rebound? The jobs report that came out said Alberta lost 11,000 jobs overall in October(but Edmonton gained 3000 net I think) and the Canadian economy overall is not that great (Canada did add like 40,000 jobs but over 30,000 were part time) The Canadian dollar falling really hasn't even impacted exports that greatly and manufacturers from the US still say Canada is not competitive enough to reverse the trend. So would you likely wait till next summer to think about investing? I feel as though they bought their dealerships out West at the top of the market and are now buying dealership out east at a possible top. Also I don't really believe that the VW scandal will have no impact on their 5 dealerships, that has to hurt the brand overall, it doesn't matter if it only effects diesels. Also they missed the lowest of the lowered expectations for this quarter when Auto sales in Canada were fairly strong I thought? There was allot of potential here before, but right now I just see too much risk I think, and can't really decide if I should tie money up that may go nowhere for a year that would be better allocated somewhere else. Anyways, thanks ahead of time for your opinions.

Q: I have been holding this since 4$ a share. I am now feeling like there is an opportunity cost of holding this any longer.

"With our third quarter and year-to-date operating and financial results as the back-drop, we are looking forward to a strong finish to 2015 and towards ensuring AutoCanada being well prepared to face continued challenges in Alberta in fiscal 2016," stated Thomas Orysiuk, President & Chief Executive Officer. "In order to provide us with flexibility to execute on our continuing acquisition strategy and to fund our capital expenditure requirements, while maintaining appropriate operating liquidity, we are in advanced stages of negotiations towards expanding our revolving credit facility. As part of this process, we have amended our banking covenants to align with current industry lending practices. Together with our free cash flow from operations, the expanded revolving credit facility will provide us with the necessary flexibility to meet our capital requirements."

I did not like this and the 10% drop today is saying something although the volume isn't massive. I'm interpreting it as 'sell now and buy it back in 12 months' What do you guys suggest here?

On another note, this cold temperature is getting me and my wife exited about our upcoming CMS/5i cruise!

Thanks and have a great weekend.

Q: Hi 5i, I read Peter's article in Money Saver regarding the call writing strategy. In the article you mentioned some US names that you like...are there any CDN names that fit the criteria set out in the article?