Investment Q&A

Q: Hi 5i,

What is your take on Gluskin Sheff's earnings?

With the stock down over 5% today, do you view this as a more attractive buying opportunity, or would you wait till the markets stabilize?

Thanks

Q: I'm thinking of adding bank exposure, during this correction. Are the U.S banks more appealing to buy than the Cdn banks ?

Q: What is going on with Gold stocks? The Gold price is closer to its 52 week high while the XGD is trading at a 52 week low. One of them has got to give?

Q: Would you consider this correction a good entry point for dollarama?

Q: despite the downturn in the market, this stock has shown some positive momentum bouncing off pretty much a 52 week low Is this a buying sign? your thoughts please?

Q: Hi 5i
Any thoughts or words of wisdom on this merger (far outside your focus is understood) would be much appreciated.
Specifically, cineworld will be ramping up leverage for this deal. Would this make you nervous? I have a position in cineworld and am in the midst of a rights issue.

Thanks for any comment provided
Mike

Q: Hi 5i
Not so much a question as a request for reassurance about the volatility of the previous week. I've been picking up additional shares of cgnx (and others across both US / Canada ) and could do with hearing that I haven't missed obvious signs that the world is ending !

I've taken for granted the volatility-free markets we've had for some time but remember past panics where I watched without participating in, with hindsight, so called bargains.

Thanks
Mike

Q: I looked through the PTE questions, and I believe the questions I am asking have not been asked (yet). Specifically, there are two questions I have regarding PTE, that of insider selling and the Innohome partnership.

In mid-September 2017, one significant insider sold 875,000 shares, of a total position (as reported by SEDI) of 2.2 Million shares, or about 40%. How do you view such a large disposition by a significant insider, who obviously has a better line of sight to "future prospects" than outside investors ? I generally do not view insiders selling as inherently negative (if it occurs in smaller tranches), as I can understand that they too want to realize some value now & again. However, such a large disposition occurring before the UL858 regulation comes into play leaves me wondering.

In regards to the Innohome partnership, what are your thoughts as to how this is working (on an economic basis) for PTE ? My understanding is that PTE is selling the Innohome product via their distribution channels with HD, Wilmar, & Staples. This sounds to me like PTE has opened up the North American market for Innohome. I have not heard of any press releases suggesting that PTE products are being sold abroad (in Europe), which begs the question as to how PTE might be compensated for doing this. Do you have any thoughts as to how PTE might be benefitting from this ?

Q: I contributed to my wife's Spousal RRSP for several years, She is now working, can she now make contributions to this account or does she have to open a new RRSP?
Thank you
Cec

Q: Greetings from the West Coast .
What your view of this company please
Thanks
Rick

Q: Can you please update your opinion of Yamana? Thank you very much

Q: which would you choose, I hold financials no telcos but am concerned about rising rates? would the bank be a better choice?

Q: Are you able to comment on BX, particularly the business they're in. I understand they're US and that's not really your focus but you may still be able to provide an opinion.

Q: Hi, Dollarama was added to your Growth portfolio recently with full position. The stock was quiet for several weeks but took off recently to $169 (+10% since added). I bought a few shares at $158, during recent decline. However, with the market jitters (coupled with Desjardins downgrade citing valuation) specially over past two days, tested the lows of last quarterly release. Valuation seems to be still expensive. What's your take for short/long term ? For now, it's a tiny 1% position for me. Should I take advantage of the pull back and add or just liquidate ? Thanks

Q: Hi. Most utilities have taken a sharp hit over past 2 weeks, due to mounting concerns about their valuation, in the rising interest rates scenario. I guess, this could present an opportunity for long term income seeker investors. However, if rates continue to rise, these companies could also be subject to revaluation due to lower multiples, thus, being solely income vehicles with little or no potential for capital appreciation. I would like to allocate my capital to companies where there is growth and some income generation ( and dividend growth potential).
I have ENB, KWH.un and ECI in my portfolio. Enbridge has been out of favour for past year due to concerns about high debt and questions about sustaining/supporting its dividend growth. But, still there seems to be some growth potential. Crius management recently indicated their preference to reallocate their cash flow to growth and pay down debts rather continue to increase dividends. Enercare still seems to enjoy consistent cash flow but not sure where growth will come from.

With this view, I have done a bit of capital reallocation and reduced my KWH.un and ECI position to less than 2%, over past few days and started to deploy towards solid companies with higher growth potential, like, SJ, CSU, AFN etc.

What are your thoughts about this strategy ? Thanks

Q: The new Vanguard offering looks good but the market capitalization is tiny. At what level would you advise investing? Thanks.

Q: Hi, we started investing in Constellation Software, 4-5 years ago and stock has done phenominally well. Over time, we have trimmed the position by half, but still it is about 10% of our portfolio. This company continues to please investors with consistent growth thro' strategic acquisitions and smartly integrating in its model. Acceco Solutions acquisition for $250 mln was quite impressive. I ( and most shareholders) have developed enormous respect for Mark Leonard, as we learn more and more about his capital allocation strategies and management style as. ( Not to mention his decision to cut his salary to Zero ).

I continue to believe that CSU is tremendous value even at current levels and there is temptation to add more shares to our portfolio (specially with last 2 days pullback).
There does not seem to be many similar investment opportunities in Technology sector in Canadian markets. Would appreciate your thoughts. Thanks

Q: Questor Technology is hitting new highs again. Is it time to reinstate QST in your growth model portfolio given its market cap and analyst coverage?

Q: Is the newest member of your team, Barkha Rani, on twitter and/or social media so that we can follow her insights there?
Thanks.

Q: I would like to get your thoughts on the latest news that Amazon is looking at the possibility of doing their own shipping and how this may affect Fedex. Should I continue to hold onto my Fedex shares (down slightly) or is this a good time to move on to something else? Maybe Amazon given that they are currently down?
Thanks!