Investment Q&A

Q: There are two companies in your model portfolio ( SJ and KXS) that are being taken out behind the wood shed and being thrashed severely. Can you offer any reasons for this? Are there any possible concerns regarding the companies that we should be aware of and should we continue to hold the shares. Stella Jones is of particular concern with its downward spiral and down around 5% this morning.

Q: Hi Peter, just curious why Knight would do a bought deal for a relatively low amount ($75M) vs their total available cash. Is this because they thought when the stock hit $10 that it was a great price ? Thank you, Paul

Q: Knight is hitting new highs. I woukd like to add to my position bringing it to 6 percent of my portfolio. If they buy pieces of valeant or endo I woukd imagine the street would consider a net positive for the stock. Your thoughts please.

Q: I am having trouble looking at the balance sheet and figuring it out. On the face of it does not look strong in my opinion. What am I missing. Thanks:)

Q: I am trying to quantify my risk if 10 year treasury rates go back to the "normal" levels of 10 years ago (i.e. 4.5% to 5%). Would you be able to provide a reference to a source of dividend yields for the above stocks at that time? Would this be a good indicator of price risk for these stocks?

Thanks

Q: Hello, Please suggest a least risky ETf for some income in lieu of keeping cash. This would be a most conservative position to earn some income instead of keeping cash and earning nothing. This is a RESP with Questrade for my 16 year old child. I had liquidated some positions so total 40% is in cash. Thanks.

Q: What is your opinion of Integra Gold (ICG)?

Thank you.

Paul

Q: What can you tell us about Urbanfund Corp, the CEO, inside ownership, etc, many thanks in advance.

Q: Has been some months since the last..the only query on this stock...your thoughts please....

Q: Walmart is the only retailer in my diversified stock portfolio and is part of my Consumer Staples sector allocation. Much of my portfolio is invested in dividend aristocrats like Walmart, as I am retired and need the dividends. However, the media has done a pretty good job of scaring the heck out of me by saying that Amazon will out-compete Walmart (and everyone else in retail for that matter). I am concerned that future profit growth will be a challenge as WMT is investing heavily in e-commerce. However, WMT is ranked 5 stars by CFRA (formerly S&P) and should benefit from US economic growth under the new administration, so should I stick with it? Or should I switch to a more technology-proof consumer staples company like Colgate Palmolive?

Q: Hello. I have a 31-year old son who I've been investing on behalf of for the past two years. Since he started earning a regular income, he has loyally saved and invested in his TFSA (up to the maximum allowance) and started to make some contribution to his RRSP as well.

In his TFSA, he has three stocks (TD, AQN, ECI) and other Canadian and US ETFs (VFV, XIU, XEG, ZLB, XQQ, VEF). Now, given the fact that he has some time before retirement, my new plan is to sell ECI, AQN, or possibly BOTH to buy into more growth-oriented stocks. Do you think my new strategy makes sense? Should I sell ECI, AQN or both or none?

In my mind, there are several stocks that fit into a long term growth strategy. These include SIS, PBH, ATD.B, KXS. If you can think of a better one, please let me know. Your advice is very much appreicated. THANK YOU IN ADVANCE.

Q: I have ridden many stocks up and down over the last few years. I know you shouldn't sell unless something changes at a company but I am also tired of seeing profits slip away. I have 110% gain in PBH (but it was a half position to start with). What would you recommend? Thanks!

Q: Hi 5i. Like other fellow members, we too have difficulty deciding when to sell equities which have done well.
We hold Alimentation and CGI Group in our TFSA's, and my wife holds BMO in her RSP, all of these have ~100% gain over our ACB. Their 52wk Hi prices occurred recently (Sep and Nov).
We also hold Stella Jones with a 68% gain, and Parkland Fuel with a 60% gain in our TFSA's. PKI's 52wk Hi was recent (Oct), while SJ's was almost a year ago.
We do not wish to sell any of these equities outright, but are thinking about re-couping some (or all) of our original investment.
Another issue clouding our decision : does a solid dividend (ie BMO and PKI) change the decision ?
Do you have a general rule of thumb to follow ? Could you give us your advice regarding what to do here. Regards. Your advice as always is much appreciated. T.

Q: Just a quick take on your opinion of this.

Q: Both CSU and ATD.B are down from their usual value. Is that surprising ?

Q: I would like your thoughts on whether it is a good time to buy REITs given the pull back in some recently. I am looking at AD, HOT and HR so could I get you opinion on these or others that would be a good buy now.
Thanks.

Q: Reko generated 19MM in cash in the most recent fiscal year ending July'16.
They just delivered another profitable quarter along with their FIRST ever dividend of 20 cents as a special dividend. With a hard book value of 6.61 and working capital of 3.15 per share and virtually debt free how would you assess the investment potential of the company?

Q: Good day to Pete and Ryan,

A few questions:

1. Does SIS SYZ and ET offer dividend reinvestment plans? I can't seem to find anything on this, so I am assuming not. However, could you please confirm on this?
2. If you had a 10-20 year timeframe, what would be your top pick of these three for a buy and hold strategy?
3. Sylogist vs. Evertz - which one do you prefer?

Thanks guys!

Aaron

Q: I am trying to do some tax loss selling. I am down 13 percent-ish on both ECN and EFN. Do you think these companies are worth holding for long term? How much free cash flow they generate? If interest rate goes up will they be affected? What kind of ROE they have, are they better than canadian banks? Do you think is it better to hold canadian banks instead?

Q: I did not sell it when you advised. Now I am down 80 percent on it. It is in my registered account, so no tax advantage. Do you think it is worth holding if I can, for 5 years? Or should I just run with what I have left. Do you think will this be profitable or will get bought by someone in future(3 years)? Will they need to borrow money next year to survive?