Investment Q&A

Q: Hello Peter & Co,
You have added Air Boss (tonight's top pick) to your growth portfolio at the end of June ($22.30) when the price was way into overbought territory. I would have waited for a pull back (perhaps wrongly); what was the thought process that made you decide to buy at that time at that price?
Thanks
Antoine

Q: Last week, on BNN, David Cockfield was asked about West Fraser. Part of his answer, he said that he is looking at some forest stocks, and then quickly mentioned that he wouldn't say which ones because he doesn't want competition. What does that mean? Is it that portfolio managers need time to accumulate a stock they like, and so, don't want to attract buyers during this accumulation phase? If that's the case, do you think it may often be that guests on TV pretend to like a company less than they really do? I'd love it if one day you wrote a blog about techniques/tricks people on Baystreet sometimes use (stock recommendations, price targets, motivations behind BNN appearances, articles, newsletters). I feel it could help us small investors stay the course and hold stocks longer.

Q: "Free" Portfolio Reviews:
Kudos to you for drawing a line in the sand today with a couple of questions and, in essence, saying, "Enuf is Enuf" and declining to answer questions that amounted to portfolio reviews. But you still provided polite, helpful information.
A class act all the way!
I am sure many of us wouldn't mind asking similar questions. But out of respect for the parameters you have made clear time and time again ... and appreciation for the wonderful work you do for 5i customers, we try a little harder to stay inbounds.

Publish if you consider this suitable feedback on your much appreciated services.

Q: DRT missed Rev($52.87m less than $54.57m expected) & EPS(-0.02 vs 0.03).It seems that some investors smell it as it dropped 0.37 after up 0.21 the previous trading day.It was the top pick of B.Campbell#2 & J Huang in July/15.This 2nd Q earnings was expected to be not as strong as Q 1,but 3rd & 4th Q are expected to be fairly strong.Epectation of huge upside going forward. Peter,your expert opinion please.You look good on BNN today & of course your views on all the questions are great.Appreciate your usual great services & advices.

Q: Hi Peter, thanks for your good comments of PHM on BNN this evening. Indeed, it answered a few questions of mine regarding future acquisitions and financing. You have advised members to do nothing. Now my question is at what point investors can buy additional shares to average down? I normally don't like to average down. However, there is nothing wrong with Its fundamental. Should investors use average down strategy to take advantage of declined price? I see it has great value under a dollar. What's the fair value do you think PHM should be priced at considers its fundamental only? Thank you!

Q: What is your opinion of selling puts underneath the stock - I was thinking of october 27 or 28 puts (the premiums are quite high given the recent volatility) - as I would get either the premium or the stock at a much cheaper price? This assumes, of course, that the company remains solid. If I find out anything that is fundamentally wrong, I would buy back the puts quickly and take the loss, but the loss would be much less than would be the case by owning the stock outright. I am very aware of margin issues and use it in this easy very judiciously.

Q: Please comment on their results. Thanks

Q: Read the latest report with great interest as it explained the operations of the company to me. It was a revelation to me that there is an argument that could be made that dealerships should be somewhat recession proof given that when new car sales decline, used sales and repairs should increase which shold maintain profitablility That does not seem to have happened with this company.

Given that repairs and financing activities are the most profitable area, is iss possible that ACQ has not proven adept at increasing this side of the business in a way that is better than most? It is one thing to acquire a dealership but it would seem to that the real signs of effective management are the synergies that develop due to the growth. I am thinking of a company like BOYD in this situation which has grown very well.

Are you able to break out how much profit each of their segments contributes? To me, these are the valuable metrics and profits have increased but I am left wondering why the stock has been hit so heavily. Is it because investors really don't understand the business model or is there an expectation that the profits from other lines be growing even more? I do appreciate new sales is a good "headline" number and those sales contribute to earnings but repairs should be a very solid profit gerneator.

Thanks for you insight.

Paul F.

Q: Peter, I just watched you on MCT and this is why I am so fortunate and happy I joined 5I. Your answers show a depth of knowledge and foresight that few others can match.
Thanks Again Gord

Q: Is Celestica in an overbought status? Is it time to sell half or more of a position in CLS?

Q: Do we see this stock as a buy at this stage?

Q: My husband and I are 65 and 60.
Total investment – 25% Canadian, 25% US & global, 50% fixed income.

These are the stocks we have accumulated the past two years. Some of them are at a loss and some of them are not. I still have 26% cash sitting in the account. Please help me to make decision to SELL(don't mind), to BUY or to KEEP. Please comment.

Cash - 25%
ETF – ZLB(22%), XIU(3.2%)
Consumer( Cyclical and non-cyclical) – 26.9% includes HBC(4.7%), MG(8%), XSR(4.1%), ECI(6.8%), EMP.A(3.31%)
Financial - 14.66% includes CF(1.88%), EFN(7.08%), HCG(3.6%), TD(2.1%)
Utility – 11% - NPI(3.6%), AQN(7.4%)
Technology – 10.5% includes OTC(6.7%), WIN(3.8%)
Industrial – 9.81% includes DH(5.8%), BIN(4.01%)
Health Care – PHM(1.2%)
Basic Material – WEF(0.7%)
Energy – 3.87% includes ERF+PGF+ATH

THANK YOU

Q: I have been patiently watching this company go down over the last year more than other financial stocks. I hold this stock in several accounts and think that perhaps I should sell in those short term accounts (resp) and only hold it in my resp which has a longer time frame. Or is it just dead money and I should move to another stock.
Thank you for your insight.
Maggie

Q: Would you be kind enough to comment on my current allocation below. Does it make sense to sell some of my dogs in my overweight sectors and start to chip away at sectors where I have smaller allocations? If yes, could you give a few sector and company suggestions to buy? Please comment on my Cdn/US allocation as well and do I have too much cash. I have 25 stocks in my portfolio, spread across TFSA, RRSP, LIF, 20+ yrs before I need to access any of this money.

Consumer Discr - 7.6; Consumer Staples - 6.3; Energy - 3.1; Tech - 32.1; Matls - 1.7; Industrials - 3.1; Healthcare - 11.1; Financials - 19.6; cash - 15.5

Cdn - 56.3
US - 43.7

Thanks!

Q: What do you think of the kegs earnings and how feel about this company for income and growth.

Q: Hi Peter,
What do you think about flextronics prospects over the next 1-2 years. Thank you.
Tulio

Q: I've been looking to add some high growth, low beta U.S. stocks to my portfolio. Some stocks that I screened are TYL, MANH, ABMD and VASC. Given their valuations, do you think these stocks look buyable?

Q: Good morning 5i,
What are your thoughts on switching CF for HCG?

Q: I was reading the companies Q2 MD&A and noticed that the dividend payout ratio is noted at 35% of FFO for the first six months of 2015 (excluding the impact of DRIP). The dividend was cut to $0.10/share a while ago. Is a dividend cut a concern, as it looks like they have it covered from FFO? Or is the main concern with BTE the debt level? I noticed the debt is not due until 2021 which seems like they have a bit of a buffer to wait on higher oil prices. Just trying to figure out if the drop in share price is company specific or more the fact that the whole sector is getting hammered. Thanks

Q: Hello Team
Trying to decided on which is the best and safest reit.I realize they are low risk.But if we go into a recession which would perform better.Thank You