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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: Follow-up to Matthieu's question:
My layman's understanding of the car dealerships has always been that they make relatively little profit on actual car sales but rather on follow-up service and repairs. If that is the case, it would seem to me that any "temporary" (e.g. < 2 years)reduction in Alberta car sales should not have a drastic effect on dealership profitability. Consequently, I do not understand why ACQ stock is being hammered so severely in the current environment. On the contrary, it now seems to be a good buying opportunity.

I would appreciate your comments. Thanks!
Read Answer Asked by Gregory on January 07, 2015
Q: What is the criteria for choosing a stock for a DRIP portfolio ? Assuming the company I consider has a 5i Research report, What attributes should I be looking for (low debt, clear growth plans etc. )

Thanks!
Read Answer Asked by Alon on January 07, 2015
Q: Would you consider this fair value or expensive?...looking at it for the
Risky part of the portfolio...
Thank you
Glen
Read Answer Asked by Glen on January 07, 2015
Q: In the Dec 2014 model portfolio results, the last column "Current Allocation" does not reflect the information in the Notes section (e.g. AYA is shown as 7.5%, but the Notes say it was reduced to 5%). Shouldn't the "Current Allocation" column reflect the changes that were made to the portfolio on Dec 31st?

In the Sep 2014 model portfolio you do reflect the changes identified in the Notes (i.e add WCP and FM) in the list of stocks showing their weighting.

Shouldn't the reports be consistent in reflecting or not reflecting what changes were made as identified in the Notes section?

Paul J.

p.s. It is not necessary to keep this private. Publish if you feel others would benefit from the answer.
Read Answer Asked by Paul on January 07, 2015
Q: In your opinion, what five Canadian oil companies will survive the downturn in oil prices. Thanks
Read Answer Asked by Michel on January 07, 2015
Q: I want to feel comfortable with my holdings when interest rates eventually begin to rise. Could you simply categorize the following industries into one of three categories. 1) Greatly affected negatively. 2) Affected moderately negatively 3) Not much effect 4) Will affect positively.

Financial - Banks, Insurance, Investment co's

Utilities - Gas/electrical , Pipelines, telcos

Manufacturing ( includes technology )

Consumer - Durables & discretion

Resources - Gold + Materials + Oil & gas.

Pref shares

Any general comments also welcome.

Many thanks

Paul C
Read Answer Asked by paul on January 07, 2015
Q: I own Genworth Financial (GNW.US) in TFSA account, and it reported very poor earning last quarter and its cash reserve has been down unexpected significantly. Genworth is scheduled to report in February, and I am afraid it will be another disappointing quarter. Since I can't claim it as capital loss, do you think I should cut my loss to move on other companies or wait for its turn around? I like Starbucks and Michael Kors quite a lot; however, Starbucks valuation is very high, and Michael Kors has just been downgraded by Credit Suisse today.Does it make sense for me to switch from Genworth to Starbucks or Michael Kors at this time? Thanks for your great tips always!
Read Answer Asked by Rebecca on January 07, 2015
Q: Congr for great results--29.3%(after 34.1% in 2013),which beat 10.4% for TSX Note you reduced weighting in AYA & used proceeds to add to WCP,BDI & FN.Why not BNS,which together with CM & NA were 3 of the most battered big 6 can.banks the last month.Repotedly,some funds in US was selling can banks today & lately.Thanks for your usual great advices & services.Peter,welcome back from your vacation.
Read Answer Asked by Peter on January 07, 2015
Q: Bill Gross and his successor at Pimco are talking deflation and that many asset classes will suffer. It sounds scary. What are your thoughts? Thank you.
Read Answer Asked by Francis on January 07, 2015
Q: How can I find out how long are those accormodation contracts? Can customers terminate the contracts in 2015? Thx
Read Answer Asked by Shawn on January 07, 2015
Q: Would you add to HCG at today's prices? It appears to be dragged down along with other financials like the banks right now.

With regard to HCG, I am also trying to connect the dots on a couple of the guidelines that you have provided over the last couple of years, namely buy on upside strength and (generally) do not add to a losing position. Again, generally sell a stock when it drops 8-10%. I apologize if I am takinng anything out of context, but I am trying to make sense out this market. Case in point I have owned HCG for a couple of years, saw it drop and then recently start to reverse. So I added to my position on Monday and saw it drop 5% today! Ouch.

Hold and wait for a better time to buy or buy more now? (I am sure selling would not be a wise option for a quality company like HCG)

Thanks for helping me sort this out.

Read Answer Asked by Donald on January 07, 2015
Q: Hello 5i,
Do you have any idea what's happening with Trinity? The last couple of days have been disastrous. The stock dropped 8% on no news...? What are your thoughts on this stock considering 2-3 years horizon? Buy, sell, or hold?
Thanks.
Read Answer Asked by Michael on January 06, 2015
Q: Happy new year! I was hopping to get your opinion on BXE as oil prices continue to be going lower. Whether it would be a buy, sell or hold? If the sector recovers, will this name be possibly still around? Thanks.Lin
Read Answer Asked by Lin on January 06, 2015
Q: REITS on both sides of the border have been performing well lately.Can you offer an explanation for this performance and would it be advantageous to allocate funds to this sector at this time. Thanks. Joe
Read Answer Asked by Joseph on January 06, 2015
Q: I like the theme of seniors' care for the long term. I have a small position (<3%) of CSH.UN in my TFSA and it has done well over the last couple of years. Would you add to this or sell it and replace it with a different name in the same space. (I also have a bit of KMP and some D.Un in non-registered accounts, in case other REIT holdings might influence your comments.)

Thanks for your help - I've been with you since almost the beginning and I love your service!
Read Answer Asked by David on January 06, 2015
Q: Hi Guys,

Could I get your opinion on GH at this time. I realize the price of oil has an affect on every stock in the world but has it affected GH more than it should?

You last did a report on GH in Sept 2013. Don't you think every company should be reviewed at least 1 time in the year? If you can't do this then may I suggest you are following too many stocks for the manpower you have and therefore should cut down you stock list. A second alternative would be to stop answering so many repetitive questions from members.

Thanks
John
Read Answer Asked by John on January 06, 2015
Q: td has been slapped pretty hard in the last few days, is this an entry point? I am looking to generate long term income. I am very interested in any suggestions you might have for stable income generation....THANKS
Read Answer Asked by Joseph on January 06, 2015
Q: I have been watching this company with a view of share purchase because I think that animal feed is a pretty high need product and not a lot of competition. I worry that the stock trades very little, i.e. quite illiquid. Is illiquity something to be very concerned about, and if so why?. What is 5i's view of the company especially in difficult times which seems to be what is ahead of us. Thanks so much
Read Answer Asked by Phyllis on January 06, 2015
Q: The gold sector is rallying hard for the last couple of days. Can you offer any comment why, and also AR seems to be outperforming the rest of the gold sector, any idea why?

Happy New Year
Darcy
Read Answer Asked by Darcy on January 06, 2015
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