Investment Q&A

Q: I have a relatively conservative portfolio with gold, bond and low risk ETF and stock elements. I want to add a little bit higher risk, higher reward portions to it. Can you rank the above four companies?

Q: I would like to know what the Management and employees have been doing other than collect salaries for the past 5 years, other than a few small acquisitions and filings with the authorities it seems to me that they do not deserve much compensation. I can't see them "working" 50+ hours a week looking at investments day in and day out year after year. What have they been doing? Goodman raised a ton of money at $10.50 or $11.00. I would like to see Goodman and his management team paid a salary of $1 per annum (just as Steve Jobs did) and be paid with stock options, not at the current value but at $10.50 or $11.00. I have put my faith in this guy but like a lot of shareholders I think its time to move on from Goodman and his underperforming company. Goodman's talk of an overnight success for my grandchildren does not give me much comfort. I was hoping for more of a shake up yesterday and was disappointed it did not occur. The fact that his Dad owns a company that competes with Knight was something new that I did not know when I purchased GUD shares.

Q: My question is about keeping a defined benefit pension with a former employer or transferring to a LIRA to invest in index funds/market etf's. I keep hearing that the plan is great (PSPP Gov plan) and that I should leave the money in there because you are paid for life at retirement. But I'm trying to wrap my head around why it is considered so good. From my point of view I see my 75K sitting in this plan year after year not growing. Supposedly it accounts for inflation (not sure if only when I start claiming or now that i've left plan), but they say around 1.5% adjustment. I still have minimum 20 working years left. In my mind it seems like a no brainer, I transfer to a LIRA invest is 3 market index funds predominantly US, then CDN, and a little International. If I achieve a 6% return I have 240K after 20 years vs 75K. Yes there will be ups and downs but over 20 years I should do pretty well. Am I missing something? Why would someone stick with the pension that doesn't grow or barely grows, just for safety at the cost of much bigger returns?

Q: Please comment earnings. Thanks.

Q: Hello 5i,
I’ve held Toy for a few years. When Toysrus hit last year many of us wrote in expressing concerns about the impact on the company questioning the growth prospects for spinmaster. It seems that management underestimated the impact because it keeps coming up in conference calls. As much as I’d rather not ask this question: should we question the skill of management to manage through this shift in landscape?

I held on to Ebix. Can you comment on earnings and offer an opinion in relative risk between it and CRM( on watch list but no position yet). For a long term hold which would be a better hold throug a market correction?

I’m underwater on sq and want to average down. Should I wait for a better opportunity to bring weighting to 2%? I know 5i is not thrilled at timing questions but how do tech stocks perform over the summer?

Please deduct three questions.
Thank you.

Q: Is it time to bail on NFI or are the worst of the operating issues behind them? I have owned it since 2015 and saw the shares rise from $17 to $60 a year ago, only to half the amount today.
The Q1 results are not encouraging. Operating cash flow is a deficit of $7 million, earnings were down 46% or 56% adjusted. Gross profit margins declined Q/Q by 240 bps to just 16%. There have been substantial investments in new products (with learning curve troubles), a new zero emission bus, facility upgrades, a new parts facility (with start up problems and cost overruns), IT harmonization project, oh and they lost the Setra distribution rights in the motor coach division.

Concerningly, on capital allocation, they have increased the dividend with lower earnings and have a substantial debt funded share buy back. Annual interest is now about $25 million. This looks like brave policy unless the business really is about to turn the corner and shares return towards their $60 level.

What do you think?

Q: I have decided to only keep a few stocks and follow the Growth ETF Portfolio. Of the 10 stocks I have mentioned above 9 are listed in your BE Portfolio with the exception SHOP. All have done very well for me SHOP up 568%, CCL,B up 180% ,SIS up 159%,MG up 112% and the rest all up between 11 and 42%.So my question is do I keep them all? Sell some ? Any suggestions appreciated.Paul

Q: EIF was purchased two years ago at $35.69 with a dividend - now it is $36.03 - what do you see for the future of this stock - should I add more, hold or sell.
Thanks for your advice.

Q: Would you consider Newell Brands a buy at these levels or is it a value trap?

Q: What did you tXP earnings? Looks like they are successfully moving into the packaging business....what is their payout ratio?
Thanks

Q: The Ag sector seems to be somewhat out of favour possibly due to Chinese trade actions. Between AFN and NTR, which company offers the best combination of risk / reward for a long term hold?

Q: what are your thoughts on conv debs as fixed income. The yields are
quite attractive but some consider them equity like. "they are not
bonds and will get hurt in a recession" What are the risks and are they
legitimately fixed income ? Companies like AG Growth, CargoJet, etc.

Q: Hi team,

What do you think of Colliers recent investment in Harrison Street? When I see the words 'transformational" in a headline, it gets my attention. ;)
What will it add to the top and bottom line...if anything?
It has dropped around 10% in the last few months and is about 25% off its highs.
Time to step in for a 1/3 position?

Cheers,
Steve

Q: According to analytics I am underweight in communication services. I currently own TELUS. Please suggest a few names to look at here.

I am overweight in Financial Services. I currently own: BNS,ZEB,GSY,GWO,HSBC,SLF. Please suggest some names to take away here.

Thank you

Q: on may 10 i got a google e-mail alert from peter hodson 5i
------------------------------------------
don't buy on the dip--not even a single analyst is recommending canadas worst performinng tech ............
What is the name of this stock?
thanx, ed

Q: Hi. Im currently overweight in consumer cyclicals and looking to diversify by adding some utilities and tele comm. Recommendations in those sectors? Some growth would be great but ultimately want good companies with strong fundamentals. Buying to hold long term.

Q: Hello, here are questions related to a Non-Registed portfolio only. Please deduct credits as required.
1) How are capital gains on US stocks taxed?
2) I want to buy Google. Should I use the GOOGL symbol or the GOOG symbol? Does that make any difference in the context of a Non-Registed portfolio?
3) What are the advantage(s) of having a covered call ETF such as ZWU in a diversified portfolio? Regards, Gervais

Q: comments please on the latest quarter and the stock seems to be doing better YTD ? Thx

Q: ENB had decent results,but market response was muted.Any reason? & is this a good time to start a position? KXS missed on eps,but beat on many metrics.Initially it jumped to $82.14 then closed much lower @ $74.62. Any reason? Is it ok to start a position here?

Q: Peter, please:
I have a portfolio of dividend paying stocks (50% cdn, 25% us, 25% Int'l, built steadily over nearly 30yrs of middle and now upper middle class paychecks, using synthetic drips for the last half of that time up to now. I had always planned to keep dripping until my company pension kicks in. I will be eligible for an excellent full company pension in 5-6yrs. I could theoretically quit my extremely stressful job now but have been determined all along to hang in, currently for the last 5-6yrs now left. I have a situation now where I am finding my tax burden extremely onerous to say the least. I'm digging deep into my line of credit each april to pay revcan. In my situation would you remove the drip program that I have established. I'm extremely reluctant to do so since dripping has contributed in a big way to my success over the years, because it has forced me to utilize my regular paycheck to pay revcan and buy stocks while additional shares accumulate thru drips. However, gradually, and most notably this year the tax bite has become very nearly unmanageable even with my line of credit to access to pay revcan. Your valued thoughts please. Would you remove the drips and use dividend cash along with paycheques to help pay taxes from here on out. I have an accountant and I've been told there is nothing further to be done to lessen the tax bite due to my salary and dividends. //Also, at what point would you endorse walking away from a pension and taking a one time payout instead, and living off dividends . The point of my starting investing years ago was to become financially independent. Fast forward a few decades later, my portfolio looks incredible on paper but I'm stressed each tax season over finding funds to pay tax and also unsure if quitting my job would lessen my tax bite (I realize earned income is treated differently than investment income) along with my stress level. If I had to do things over I would have invested in cdn div stocks to the point where one pays no tax, and walked away from work years ago.