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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: I recently purchased shares of Magna on the idea that the sector is simply oversold and given a 5 year time horizon is as close to a sure thing as there is in the markets. When I look at the US markets in particular there are a lot of still beaten down sectors. Automotives is one of them. In Canada I am having greater trouble finding these kinds of bargains, while in the US there are chemicals companies, consumer discretionary companies, oil refiners and even banking which are very cheap and all of which could make some very nice moves akin to the one made in the materials sector these last few months. Do you see any of these unloved sectors here in Canada and/or which of them either here or in the U.S. would you currently favour. Thank-you as always for your answer.
Read Answer Asked by Alex on July 15, 2016
Q: Can you give your opinion on the following micro cap stocks and which ones would you think have the highest potential and which ones should I weed out of my portfolio. Thanks

DBO
TLK (Frankly Inc)
IWG
LTE
SEV
AT
NLN
Read Answer Asked by Imtiaz on July 15, 2016
Q: Could you please provide your top 5 picks from within the 5i watchlist that have committed to share buybacks.

Thanks for your excellent service!
Read Answer Asked by dan on July 15, 2016
Q: I would be thankful for some substantive updated comment on Cummins, CMI.us . Financial sites give mixed opinions, including for example: “no growth; low ROE ; PEG is too high.... &c” . I have CMI , 2% of folio, in non-tax registered accounts Loss in CMI has been reduced. Rsing tide thing. Is CMI now competitive in its industry? Is it a technology leader (if you know)? Is CMI at least keeping up with new tech. and developments in its core products?

CMI pays an attractive dividend, which is hot button now that the resident 2 year old has lungs that allow her to scream loud enough to wake neighborhood. CMI is part of the group meant to pay much of her future education. CMI’s trailing dividend is around 3.4 % . Notwithstanding that good dividend, my ‘Lessons Learned’ file reminds me that being enamored with high dividends can be unwise. I am the idiot who hung on to tons and tons Nortel, AGF, and Och-Ziff (OZM.us). My stupidity prompts me therefore to seek your objective opinion.
Read Answer Asked by Adam on July 15, 2016
Q: I realize that Oi (the Brasilian telecom) is far outside your area of specialisation, but wonder if you can explain how a company that has commenced bankruptcy proceedings can show an aggressively-rising stock price. Is it even conceivable that, post-proceedings, shareholders could come out ahead? If so, in what sense could this be true of bankruptcies in general?
Read Answer Asked by John on July 15, 2016
Q: I have owned both companies for a couple of years and am down about 50% on SGY and 80% BTE. Combined, they are less than 5% of my portfolio. My question is whether I should just ride these out and wait (hope) for higher oil prices with these names or is it wiser to sell and replace them with a "better" name. I am thinking of VET, partially because of the dividend. I can't decide if the better strategy is to stay with my current holdings as I think they could provide more potential growth or if the risk is too high for their continued existence and a switch to a more stable company is warranted. I would like to keep whatever money this represents in energy.

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on July 15, 2016
Q: Considering a sell on both DH & MIC. DH for the obvious reasons that you have previously commented on as well as I've owned it for several years & enjoy a reasonable gain. RBC Research however as of July 12/16 rates it Outperform with a target of $48?? As to MIC, I am at a break even & have some concerns re: the uncertainty of their US parent as well as the Real Estate market in Canada. These are both in a reasonably diversified RIF. Looking at AD, ECI & FSZ & would appreciate your opinion on these as well as suggestions on others. Thank you.
Read Answer Asked by Robert on July 15, 2016
Q: I currently have 15% in the industrial sector, made up of
ATS, BOS, CJT, DRT, XTC, KBR, LNR, WSP
All positions are under 2% with the exceptions of WSP at 3.1% and CJT at 4.5%.
I am thinking it might be wise to trim CJT (perhaps to 2.5% ?)and either replace with one of my other holdings or add a new one (NFI?)

Your thoughts & recommendations would be most appreciated, including any change suggestions for my other equity holdings in this sector.
Read Answer Asked by Alexandra on July 15, 2016
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