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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: Hi, Transcontinental Inc was added to Income Portfolio in June, 2018 at $31.58 for 4% position and later beefed up by additional 1% in October. The thesis was a solid dividend yield of 2.50%, high growth expectations based on transformative Coveris acquisition and a low PE multiple. Stock, however, failed to perform as expected and price fell off the cliff within a short period and never recovered since then. Two subsequent quarters have been disappointing and Coveris integration ( acquisition closed May, 2018) is nowhere in sight. Management has also not been able to address the issues and market concerns, effectively. Company legacy business is already declining. Most analysts have cut their estimates and price targets drastically. One analyst also commented that due to these issues, compnay may even lose some contarct renewals and recurring revenues. Even if we are optimistic and Coveris acquisition issues are resolved by end of 2019, it could take another 2 years, before stock goes back to $31.58, in order to just recover our principal.
So, while the stock is trading at a low multiple and company just increased its dividend 4.6%, keeping its tradition, is it worth the wait (and take the risk) or there are better opportunities to use our capital ? We have gone through a similar scenario with TSGI, only worse and in that case even after almost a year and 55% loss, there seems to be little hope. Thank You
Read Answer Asked by rajeev on March 05, 2019
Q: Three stocks, one question. I purchased MedX long ago for pennies and have watched it climb a nickle. Recently purcased Mogo Finance & People Corp. Would sincerely appreciate your review of these stocks and thoughts going forward.... Thanks!

Bruce
Read Answer Asked by Bruce on March 05, 2019
Q: Dear 5i
When i look over the summary page for an ETF at Yahoo finance and Morningstar i see many stats on the ETF including but not limited to 12 month yield and expense ratio .
Firstly is the stated yield on that summary page generally net or gross of the expense ratio ?
Secondly whether its Yahoo finance , Morningstar or the free version of Bloomberg the yields and expense ratio numbers largely vary . Whats your recommendation for which site to use to more accurately reflect the real numbers ?
Thanks
Bill C
Read Answer Asked by Bill on March 05, 2019
Q: Hi Peter
I have a 5% Cash position in my RIF / RRSP not needed for a Year
As both companies had significant drops recently, would this be a good time to add to a half position in each??

Thanks, Peter
Read Answer Asked by Linda on March 05, 2019
Q: At the present time I have a full position in Kinaxis, Constellation Software, and Shopify.
All 3 are in a non registered account. CSU and SHOP have done very well but KXS has been falling over the past year and I was wondering about selling it and buying one of the other 4 that I have listed. I am looking only at growth over the next one to two year time period. My risk tolerance is moderate to high. Which one would you suggest and why. Or would you just stay with Kinasix. Please deduct as many credits as you see fit. Thank you, Ian
Did
Read Answer Asked by Ian on March 05, 2019
Q: At the present I have a full position in SHOP and CSU. I would like to add another full position to my technology sector. Which to the above 5 stocks would you suggest for
growth only for a 1 to 2 year holding. My risk tolerance medium high. Could you please rank them from most growth to lowest growth and your reasons. Please deduct as many credits as you see fit.
Thank you Ian

Read Answer Asked by Ian on March 05, 2019
Q: CJT: I have an unrealized gain of 996%, yes, 996%. I bought it at $7.70 and it's currently at $84.40. Most of your comments are positive about this company, except regarding the debt level. Do you see any issues or concerns to continue holding this stock for years to come? In a case like this massive gain, it is better to take at least some profits?
Read Answer Asked by Helen on March 05, 2019
Q: I am slowly building up my TFSA each year by withdrawing funds from my RRSP.I am 68 and often make 1-3 trades per month,sometimes not trading for months.
In 2017 I had a return of 41%,then lost 17% in 2018.My balance today is about $72,000.Do you think the CRA would treat me as a trader and tax me accordingly.
Read Answer Asked by Allen on March 05, 2019
Q: Hello Peter et al.

Furthermore to my question I asked on this company on Jan 31st after their plans to delist from the TSXV and be only listed on the LSE AIM to save costs I have some other enquires.

I have currently been employing a strategy to consolidate all of my shares into one account - my RRSP account prior to the delisting to limit the impact of the higher brokerage fee of $250 vs. $9.99 currently. I still believe in this company and believe in the long term hold of another 2 to 3 years and I will be rewarded.

However, I have been reading that the LSE AIM is not an exchange that is allowed to be used for RRSPs or TFSAs. Because of this if I hold this stock in my RRSP I will have to pay a monthly penalty of 1% of the capital value of the stock. Are you aware of this or can provide any advice?

I assume I can hold it in a regular stock account and pay no penalty.

Any advice will be appreciated. I plan to also ask my discount brokerage about this as well.

Regards,

Brendan
Read Answer Asked by Brendan on March 05, 2019
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