Investment Q&A

Q: Hello Peter,

Quick follow-up to your answer regarding BDI. Given the recent pull back, do you consider it a buying opportunity on the dip? Do you usually add to a position if you have a gain? I am up 50% on BDI with a 5% weighting so I am a bit indecisive.

Thanks for the fabulous service! My portfolio has really turned the corner since I have applied your teachings and focused on the companies covered by 5i!

Regards,
Angelo

Q: Hi Peter & Ryan,

Can I have your quick take away on MDA's quarterly #'s?

Thanks,

J.

Q: Re: Model Portfolios
I'm interested in establishing a portfolio based on your models but as I did not buy the stocks on day 1 when they were created, I'm wondering if there is an optimum time to begin buying in an attempt to recreate and track the existing model portfolios in the current time frame. If I were to simply buy the listed stocks in the models today, I would be faced with the following concerns:
1) in the case of stocks that are rising and have appreciated significantly - have I missed the best part of any gains on these stocks already?
2) in the case of stocks that have not fared as well as expected in the model portfolio - have things changed to the point where you may be considering dropping a particular stock and replacing it with something else?
As the selections for the model portfolios were made some number of months ago, would you recommend establishing a complete new portfolio based on your models immediately and completely on any given start date, or is there some other criteria that you would use for building a portfolio from start?
Thank you.

Q: Balanced Portfolio?
You currently have a model Equity Portfolio and a model Income Portfolio. From subscriber's questions, it appears that at some point you will be adding a Growth Portfolio.
Would it be in the realm of possibility to add a "Balanced Portfolio" as well. This would not necessarily need to be a brand new researched portfolio started from scratch but rather a portfolio constructed from stocks selected by you from your existing Equity/Income/Growth Portfolios and just maintained in a separate listing.
With 20 stocks in your Equity Portfolio and another 19 in your Income Portfolio and potentially another approximately 20 more in a future Growth Portfolio, I would find it difficult to manage a portfolio with this many holdings. I would find it extremely helpful as I'm sure other subscribers would who seek diversification not only in different sectors but also between equity, income & growth, and be able to maintain them in one all-encompassed portfolio.
Thank you.

Q: On july 29 your comment to john about stella jones - you said there are supply issues - can you please explain what the supply issues are? Are they having trouble getting the wood to make the r/r ties and poles ? Or are they having trouble getting the product to the customer?
thanks-ed

Q: Hi, what's your assessment of MDA earnings released today? Share price has been declining almost everyday for past 2 weeks. Do you expect it to stabilize after earnings or move lower? Thanks

Q: What are your thoughts on the long term prospects for S and FM? I currently own Sherritt and was wondering if it would be a good idea to sell it and buy First Quantum instead - all things being equal.

Thanks and keep up the good work!

Q: can you tell me if there has been any insider buying of TBE in advance of their reporting scheduled for med August? Thanks

Q: re CGX

Have announced they will release 2nd 1/4 earnings Aug 6. Do you have any idea what we can expect?

Thanks for all you do

Gord

Q: Hi guys........syz really taking it in the chin today but I cannot find any news releases on it......any idea?

Q: Hi Peter, you articulate well your reasons why 5I does not issue target prices, and I agree with same and it makes perfect sense. I note brokers are normally "behind the curve" when setting or revising target prices. Usually it occurs right after earnings. If there is a big earnings beat, miraculously the target price is revised down, and conversely if it is an earnings miss then they revise down often. When target prices are set without reference to recent quarterly earnings, aren't they set using some valuations method, ie. price/forward earnings, price/book, price/affo etc. I don't buy or sell based on target prices, however is there not some limited value in them in that at least it allows one to examine the price based on a valuation method, and at least pay attention to the stock. And as to a potential purchase, if a stock is at its target price(s) should I not at least confirm there is no obvious reason why the stock cannot go up from there? I do keep in mind your advice that generally if nothing has changed fundamentally there is usually no reason to sell. Thanks for the great advice 5i provides. Bill Y.

Q: If you follow FNHC in the US, it just reported excellent results and yet the stock is dropping like a rock - what is it the market doesn't like?
THanks,
Murray

Q: a comment

You can post this in the forum if you like Peter and team...

First off, enjoyed your session on Market Call. Very well done.

More importantly, what I really took from it was the consistent 5i message which has now repeatedly (we must drive you nuts) mentioned the philosophy of not using any kind of "target pricing" expectation/strategy. Ironic for me personally, considering just yesterday I asked where you thought Amaya might end up. I will be doing my very best moving forward to not ask about target prices although I admit, it will be tough.

I appreciate more than you will know the lessons you consistently emphasize - faith in metrics, long term investing, and not trying to invest/divest based on target pricing and/or timing the market. All things every once in a while I am guilty of not observing.

Have patience with me 5i team. I will try and do better.

Thanks for all you do

Gord

Q: CJ-t Cardinal Energy
I bought CJ in April and it has moved up steadily.
Now there is news of an acquisition, equity financing, and
dividend increase.

I'm considering buying more. Your advice, please.

Q: Peter,
I know it is repetitive on my side and repetitive on your side..
but, tell me even this type of information is not even make you blink?
''Corporations are now the single largest buying source for U.S. stocks – authorizing buybacks of their own stocks to the tune of $754.8 billion in 2013 alone.

And it’s a long-term trend. According to Birinyi Associates, for calendar years 2006 through 2013, corporations authorized $4.14 trillion in buybacks of their own publicly traded stock in the U.S. — raising the question, just what kind of a bull market is this?

JPMorgan Chase, the largest U.S. bank by assets, has turned share buybacks into an art form, buying back a whopping $17,945,000,000 of shares from 2010 through 2013. In just the calendar year of 2011, JPMorgan spent a stunning $8,827,000,000 on stock buybacks''.

There is debt attached to that, it is not gone! 4 trillions buyback!!
To me this is madness in proportion of the 2000 and 2009 madness.. So ''they'' think they can get away with it this time.. Of course attached to that is the explosion of derivative (http://www.advisorperspectives.com/dshort/updates/NYSE-Margin-Debt-and-the-SPX.php?utm_source=Triggermail&utm_medium=email&utm_term=Markets%20Chart%20Of%20The%20Day&utm_campaign=Moneygame_COTD_072914) leverage but everybody is on the same side of the trades as usual. Give me a serious black swan and you still do not worry?

Thank you for having again the patience to explain the reasons why you are so little worried.
CDJ

Q: BDI - should we be concerned with the press release and decline?

Q: Hi Team, does CGX look "interesting" at these levels. I took a small position already, time to add? Thanks.

Q: Can You call Zargon's (ZAR) latest report?The share price dropped following the news. I would appreciate your comments. Thanks for all your help.

Q: I read this morning that CGI was able to generate 1.1 billion of cash flow, surprising analysts positively. They reduced their debt by 500 million. Earnings per share met expectations. Valuation is at 16.5x trailing earnings. Now that the debt and cash flow concerns are gone, it seems to be the perfect time to buy. What do you think about earnings?

Q: Hi Peter and Team, regarding Mandalay, MND, any further thoughts or updates since your last response in March on MND? Thanks!