Investment Q&A

Q: Sanderson farms (SAFM.us) has been taking a beating for about 2 months, and stocks shorted ,as percentage of float, are sky high. It is hard to see why. (For some bizarre reason, our hospital doesn’t supply Bloomberg terminals in the OR.)

In early December SAFM was selected for the “stock superstar portfolio ” suggested by AAII.com, a service that is generally diligent. AAII selected SAFM when it was trading at US$95 ; its price today is $75. I am tempted to add to my modest position.

I have flipped through various analysts’ reports and found nothing alarming. Most biz reports on SAFM tend to be positive. SAFM is a domestic US entity and is not hostage to Forex fluctuations. Health professional colleagues of mine are not aware of any public health issue or any regulatory problem at this company. I don’t know why there would be so many shorts on this beleaguered little company. If you are able to unravel this mystery and enlighten 5i members , we would be very thankful.

I see no valid reason for such a sharp price decline. But then nothing is obvious to an oblivious one like me.

Q: Which one of these technology stocks do you feel has the greater opportunity for capital appreciation over the next 3 -6 month period. Could not decide so I chose to purchase shares in both ... Thank you for your valued opinion.

Q: Dear Sirs,

Looking for your thoughts on Primero - it recently came to market with a 5 year US pay debenture(5.75%)and subsequently has traded down from the $5.80 area, where the debenture has begun trading in the low 90's. Any reason for the steep decline and do the debentures represent value at these levels?

With thanks,
B

Q: I would appreciate your opinion on BAM.A - is it too expensive to buy now?

With thanks.

Q: Is the Royal downgrade justified

Q: Hi,
I'm considering adding Descartes to my portfolio but it seems quite expensive relative to its growth prospects. Please advise on the following:
1. Key forward metrics per Bloomberg.
2. Why you think it's a good purchase today?
3. Are there any comparable companies you prefer and how do they compare from a valuation perspective?
4. What portfolio weight would you feel comfortable with in DSG?
Thanks.

Q: Hi, Just wondering on your current thoughts on TCK.B and FCX and would you stick with them? Thanks!

Q: What is your outlook for Canadian bank stocks for this year? Tx

Q: Taro just reported yesterday. Can you tell me why you think the stock is down today. Should I be concerned about political risk in Israel?

Q: Hello Peter and team,

I own CGR and it has done well. What is your current view on this etf and it's holdings? Would you prefer a different etf or individual company for real estate exposure?

Q: Hi Peter and Team

I am a 70 year old retiree and currently have 90 percent of my savings in Equities and 10 percent in cash. I am concerned that I should have some fixed income for safety in event of a significant market pullback. Can you recommend either a bond etf or bond mutual fund that would offer some protection and a modest return. What percentage would you recommend.

Ray

Q: I have spent a lot of time over the last 25 years learning about technical analysis and have actively traded many individual stocks and commodities based on how I interpret the charts for them. I have been reading about sector rotation at different times of the economic cycle and seasonal trading. My question is:
What ETF's traded on the Canadian exchanges would you suggest for the following sectors. I know that we should invest outside of Canada but I have always traded Canadian. Thanks for your answer. I really enjoy the site.
Consumer Discretion
Consumer Staples
Energy
Financials
Health
Income Trusts
Industrials
Information Technology
Materials
Telecommunications
Utilities
Can you please offer any other suggestions to help me break down the larger sectors into more focused ones. I am just introducing myself to ETF trading and want to have a good starting point.
All the best.
Ron

Q: what do you think of aw's latest earnings.

Q: How do we track companies through history when companies merge, change their names or perform any other activity that causes them to change their ticker symbol? Is there a public data source that tracks this information?

Q: Do you know of an ETF that tracks the TSX Venture 50?

Q: Hi All!! I have a small holding of Barrick gold...I have watched it slip and slide downward. As a long term prospect, would it be worth my while to trade it in for Goldcorp. This is my only gold holding. Cheers and thanks, Tamara

Q: Hi 5i team,

To start an TFSA account with$10,000, what would you suggest to do? buy an eft or pick stocks, please suggest some names for long term holding with low risk. Thanks. Lin

Q: I purchased this for my RRSP last June at a cost of $9.00 on the recommendation from a guest pick on BNN, well before I became a member of 5I. It represents 2% currently of my RRSP, however I do have other holdings cpg,ipl,cnq,wcp.
I have reviewed your comments today, on bxe, and with Orange capital at 14.7% and Seth A. at 11.38% or in excess of 26% between the two, I am wondering if I should seriously consider doubling down to average my cost.
What are your thoughts and or suggestions.
Thanks and you have an awesome service.
On a side bar wish I could "star" some of your comments for later review

Q: Since the major banks are in s&p 500 is there a point to hold both Zue and Zub

Q: Do you think current price is a good entry point for MTY food?

Also in your last report you mentioned that Our biggest concern are lagging SSS growth numbers. Can you elaborate it bit more?

Thanks!