Investment Q&A

Q: CBL has turned into a falling knife. Past commentary suggest that the company may go private. Is going private essentially a forced sale at depressed prices? More specifically, would it have the effect of locking-in current shareholders' losses, or is there any way shareholders can benefit from a post-private recovery? Is it fear of this event that is now driving the price down?

Q: KNow this has been a hot topic lately. But the reason for the fall might be a report just issued by Veritas calling DOL a sell.

Here is what they said:
"Canadian equities
Dollarama Inc. (DOL) - $81.70
Need-to-Know Veritas: Sell (PT $79)
Dollarama reported record GPM of 45.9% compared to historical average of 42%-43%, which led to a 35% increase in EBITDA to $154.8 million. Dollarama’s multiple price point strategy is the key driver of its strong SSSG, with average transaction size increasing at 3%-6% for the last several years while traffic increase was a mediocre 1% on average. Management indicated on the conference call that it will introduce new price points of $3.50 and $4.00 in the second half of F2017 and moved to a new metric: % of sales above $1.25 (instead of above $1.00 previously), which signals that the retailer is close to reaching a saturation point at the lowest price levels and needs higher prices to supplement SSSG. Given the company’s reliance on SSSG and growing expectations for ‘beat and raise’ quarters, a saturation point could create notable downside in the name should the company see slower than expected growth growing forward.

Sheldon

Q: To a largely great extent, figuring out price action (market action) is not an intellectual exercise as much as it is an emotional one. That aspect of analysis should not be minimized though 5i dismisses this. 5i can't understand the sharp drop in pipeline stocks. Before their rout, the sector had been trading a 1 or 2 --even 3 standard deviations from 10 year Price/CF average and it became a very crowded trade. This sector is a perfect example of a sector being bid up for no reason other than yield and relative safety. It's been a disaster over the last 12-18 months. They are better priced now but the next shoe to drop is in Telecoms. Comment?

Q: Can you comment on the recent issue of Royal Bank reset preferred
shares Series BK? Are they a suitable investment in the current
climate or are they in the same boat as other reset prefs? Thanks.
Joe

Q: I have a profit in SYZ and am entertaining using that profit to buy sis- would you endorse a move from syz to sis? If not where would you put it ?

Q: How would you compare TNT.UN and Sot.un ? Both are small comercial reits with high yields and Tnt.un just seems to go down.

Q: Given Dollarama’s recent good quarterly results and the (perhaps unwarranted) stock price reaction, would you consider this as a buying opportunity? Enough to recommend DOL over ATD.B for a new purchase today, or would you stick with ATD.B as your top pick in the consumer space?

Q: I am down 28% and 19% on these 2 stocks.For tax loss selling which one or both would you suggest selling?Or neither.Thanks.

Q: Good morning team, Are we to assume that next report will be good based on their news today? Would this news give you confidence to average down?
Thank you!

Q: Your comments on earnings and guidance please?

Q: dollarama just pegged their price at $1.25 because of higher inventory costs because of our low dollar.I was thinking maybe a lot of people will think this is not a dollar store any more and sales will drop.

Q: Sorry my question got changed to banks but I was asking about Utilities.
I don't own any and was thinking of picking up a large position for year end. What do you think of this idea and the sector over all? What weighting would you give them? How many should I own? Which ones would you recommend? TIA

Q: The latest drop down transaction with tranalta is described as receiving tracking preferred shares in these assets.Therefore are they being rented or owned ? As well if Transalta goes bust what happens to RNW since TA owns 65%.

Q: I understand that there is a large short interest in Enbridge and some analysts are quite negative on the company. It was mentioned on CNBC yesterday with comparisons made to Kinder Morgan.

Q: How do you assess today's earnings reports?

Q: Can in have your thoughts on potash at its current level and what are your projections in then coming 5 years.

Thanks,

Eric

Q: Good Afternoon,

I have a large amount of US$ cash to invest in US denominated securities.

My objective here is to OUTPERFORM the US indices. So far I have been able to accomplish that by buying the Small Dogs of the Dow and I have been achieving my objective. Up 5% this year excluding dividends. However, that only allows me to buy 5 US stocks and therefore I have much US cash.

Can you guys draw upon your vast experience to inform me of any other strategies that have constantly outperformed the indices, or for that matter any US$ based ETF's that have outperformed? I am not looking for individual stock suggestions.

In Canada I already own ZLU and HXS which have outperformed signicantly but in Cdn$.

This is all about outperformance strategies/ETF's which I have had success on, albeit on a limited basis.

Thanks

Sheldon

Q: I don't own any and was thinking of picking up a large position for year end. What do you think of this idea and the sector over all? What weighting would you give them? How many should I own? Which ones would you recommend?

TIA

Q: I have five energy positions, excluding pipelines, that make up 4% in an overall diversified portfolio. Looking at a 3 year chart for CVE, IMO, CNQ, SU….CNQ is down 40% in the last year and half, while CNQ is down 80%. When there is a recovery, it seems from the chart that there might be more upside with CNQ over CVE. Would it be reasonable for me to sell the CVE position for one of the other three, like CNQ? Or from the fundamentals, should I just hold CVE?.....thanks

Q: Have position in both want to consolidate ---which would you keep ---long haul

Thanks ----- Don