Investment Q&A

Q: Hi 5i team,
I would like to have your thoughts on the use of leverage when investing (the use of margin in accounts other than TFSA and RRSP). Clearly I am thinking of someone mostly invested in stocks (no bonds). I understand the danger margin call, and opportunity cost of not having cash available to invest after a market correction. On the other hand, I believe there is some seasonality in companies results and in investing (tax loss selling season and January effect, October to April versus May to October), great investment ideas/opportunities are rarely synchronized with selling an investment, leverage has a good impact on return when return on asset is higher then financing cost, financing cost of margin is low.
Do you see other advantages and disadvantages? What % of available margin would you recommend not crossing?
Thank you for your help, Eric

Q: Hi 5i team,
I would like to have your thoughts on ZCL, and an estimation of what would be your rating. Balance sheet is clean (no leverage, little other items on the asset side). Dividend is growing. Past management problems integrating acquisition seems no longer an issue. Insiders bought shares in late November. On the minus side: revenue growth has been variable, profit margins are close to their historical high, exposure to the oil industry.
Has ZCL stock price been hit too hard recently? What P/E multiple or P/CF should it trade at in the current environment? What could be a future catalyst (developing new geographical markets, acquisition)? Where would you classify ZCL: industrial or energy? Should it be a long term investment or a cyclical investment based on the economy? What is your view on this industry, and the position of ZCL in it?
Thank you for your help, Eric

Q: One of the losers. Bought at 24.50 closed at 17.03 Dec. 26th. Will my capital ever come back or should I sell and move the money elsewhere. What happened to trigger the selloff.

Q: Can I get your views on this company at present stock price. Does not want to seem to pull back any. P/E seems high at 48x and P/B is at 18. Is this considered high for small cap?

thanks

Q: Good morning,

I read an article today on some macro investing themes for the long term.
One of the areas mentionned was the scarcity of Canadian farmland and I suppose global farmland combined with a growing middle class population. Can you provide a few long term investment ideas on how to best play this global macro trend. Any ETFS (farmland or agriculture related),specific companies,any other ideas?

Thanks once again for the invaluable service you have provided in 2014 and I would like to wish the entire 5i research team all the best in 2015!

Tom

Q: What do you think of their business model and what catalysts will affect the stock going forward? Do you see it doubling in 2015? Thank you.

Q: Hi 5i: I plan to buy some US transportation stocks, or ETFs. Re ETFs: which of XTN (spdr) and IYT (Ishares) do you prefer?
Thanks again, and have a great year. Roland

Q: I am seriously considering WSP from your Income Portfolio. Aside from the nice dividend, I like the more than five-fold revenue growth since 2008. But, I am concerned that EPS has actually decreased over the last 5 years. With this lack of accretion from previous aquisitions, how can I have confidence that the most recent acquisition will pay off? I am also concerned about the high P/E multiple of 23 times TTM earnings. The forward P/E of 16.8 is not too bad, if they can actually pull it off. I would appreciate your comments and your recommendation.

Thanks,
Hans

Q: Which are the best two picks to buy right now between Home Capital, Enghouse and Easyhome?

Q: Peter and Team,
A quick question re: averaging down. First, we am doing very well with the overall portfolio; Thank you !! BDI is a outlier down 65% from where we bought and is now a minor player for us. With your positive outlook for BDI, is it time to average down ? Is this a typically a prudent strategy ? Many other "experts" frown on this. All the best to you all for a safe rest of the Christmas break and for a really Great 2015. Paul

Q: Is it advisable,& the entry point,to buy these 2 stocks'Appreciate your usual expert views & services.All the Best for 2015

Q: I am interested in getting into the US market for this years TFSA investment and am thinking of a Canadian ETF which would give me US coverage - what would you recommend.

Q: Hello Peter and team,

I am getting ready to make my 2015 TFSA contribution on Jan 2nd, and with some cash in that account I would like to invest in one or two growthy stocks. What are your top 5 suggestions for a TFSA at this time (holding period is 3 years minimum).

Also can you list your top 3 TFSA suggestions in the Information Technology and the Health Care sectors.

Please rank your choices highest to lowest.

Happy New Year,

Paul J.

Q: NAL : TSX. According to yahoo's website. NAL's projected revenue Est for 12/14/14 is 858.04M. It's projected revenue Est for 12/14/2015 is 994.56M. It's Est growth Est for 12/14/14 is 11%, it's Est growth for for 12/14/15 is 30%
It's growth Est for the next five years is 22.5% with a five year PEG of .80
All the numbers look good and it's not more than twice growth. I compared to same numbers to Canadian Oilsands, to my surprise the numbers tell me NAL : TSX is way better. What are your thoughts.

Q: Hello

What is the difference between ATD.A and ATD.B? Why is there a price difference between the two and is purchasing one over the other preferable?

How could I identify what shares with similar tickers but a different suffix are? Another example: CCL.A and CCL.B.

Thanks in advance.

Q: HI, I AM DOWN 11% AND AM WONDERING ABOUT TOPING UP THIS POSITION. WHAT DO YOU THINK?

Q: Hello 5i Team, Wolfe Research in the US have recommended that Target shut down their Canadian operations and concentrate instead on the US market. Should Target leave Canada, which REIT's will be hit the hardest? Happy Holidays to all!

Q: Hi team. Happy holidays. Can I get your opinion on "POT" Potash Corporation.

Thanks!

Q: Hello 5i team

I hold a 4% position and have done quite well seeing a 16% increase while collecting a very nice dividend.

A suit is being brought forward by Credit Unions that failed under the weight of Mortgage-backed Securities they bought from WFC prior to 2009. I have read one article stating WFC remains a buy recommendation with a ratings score of A, and 3 others (including Bernstein) downgrading the bank.

Can you please share any opinion you may have in this matter and what your advice for me moving forward might be - hold or sell.

Thanks for all you do

Gord

Q: Your opinion on CRR.UN.It dropped fr $13.18 on Nov 17 to 12.13 on Dec 12 & now recovered to 12.90.It appears that some stock in the REIT sector had recently gone down due to fear of increased interest rate in 2015.Appreciate your usual excellent views & services.