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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: Just a comment on gaps: according to A.J. Monte of The Market Guys 80% of these get filled back in eventually so if you're bullish on AVO a reasonable target (to recoup some losses?) might be $25 where it gapped down from to $22 in May. $25 is also where the 200 day moving average is currently so it's not an unreasonable destination to look for. First though would be to break up over resistance at $17.50.
Read Answer Asked by Jeff on October 08, 2014
Q: CIBC report-there are some very good & welcomed positives beyond the reduction of the TP fr $40 to $25.Rating is SECTOR OUTPERFORM.Sales force growth ends as focus turns to bottom line is the headline.It is on track to meet revenue target & any shortfall can be made up by a accretive acquisition(s)with the $150m cash in hand($3 per share).The material drop over the past week is primarily due to investors lowering earnings expectations as well as the negative headline news. As I write,it is trading @ $14(up 0.45.3.2%)
Read Answer Asked by Peter on October 08, 2014
Q: With the pasting in the markets, I am looking to raise some cash to purchase some higher yielding stocks such as BTE, COS etc when they appear to be reach the bottom. Accordingly I am thinking of selling DH and MIC. Both of done nicely for me but for the most part I see limited capital appreciation opportunity with them. See anything wrong with this thought process?
Read Answer Asked by Mark on October 08, 2014
Q: With the recent downturn in the markets, it seems there is a buying opportunity. I've had each of my adult children open a TFSA with $5500 in it. What investments would you recommend if:
A) the objective was growth without taking on too much risk for the next 5 years;
or
B) the objective is to maximize the value at the end of 5 years even though there's a medium amount of risk.

I believe they will be adding $5500/yr

Thank you for all you do!
Read Answer Asked by Brenda on October 08, 2014
Q: Hi Folks:

Do you have some favorites in the oil/gas midstream companies....I have held Gibson in the past and currently own Interpipe, Trimac and Parkland Fuel. I think this is as good a sector as the actual producers?
Thanks again
brian
Read Answer Asked by Brian on October 08, 2014
Q: Watching the market drop daily and many of my "paper gains" evaporate I wonder if a few STOPS would not have been appropriate? I stay away from STOPS to avoid being stopped out in a "flash" crash.

Still sitting on the same stock I owned a month or two ago. Nothing has really changed for those companies except some panic in the markets and the price of crude oil has dropped. Fall is generally the point in the year when the price of crude oil drops and this year is no different.
Read Answer Asked by Ronald on October 08, 2014
Q: I am interested in buying your model portfolio but don't know if it is still all recommended i.e.css. thanks. vic
Read Answer Asked by Linda & Vic on October 08, 2014
Q: I'm about ready to throw in the towel on this one, having kept my shares until now to make the point to both CSS and TFI management that I was opposed to the TFI buy-out. With little chance of an alternative bid, I might as well tender. If I do, is the settlement immediate or do those who tender have to wait until the overall deal is consummated?
Thank you and kind regards,
Read Answer Asked by Geoffrey on October 08, 2014
Q: Article in the Globe saying that Contrans may noy pay it's next divy with a major shareholder livid over this news. How is this possible? Do you still recommend holding and what is your "best guess" as to the outcome? Thank You
Read Answer Asked by Ronald on October 08, 2014
Q: Hi Peter,

Congratulations on the money you raised this summer with your ride! I've been watching the pipelines correct over the last 3 weeks. I sold my pipeline holdings on the way since I thought they became quite expensive. I'm now looking at getting back into ALA, IPL, PPL AND KEY, but the P/E multiples are still around 30x forward earnings. How do we know what earnings multiple to attach to a particular sector of the market and is this a good time to re-enter the pipelines?

Thanks,
Jason
Read Answer Asked by Jason on October 08, 2014
Q: Anyone interested in charts should read “Technical Analysis of Stock Trends” by Edwards and Magee. The yearly chart of AVO is classic example and a good study for the student of Edwards and Magee’s work. I use to think of reading charts was right up there with witchcraft, however, it is really a study of investor’s reaction to the market.

A couple of noteworthy points on AVO’s yearly chart:
First is the Island formed with the Gap Up in Nov. of 2013 and then the Gap Down in May of 2014. A Bearish signal.
Second is the Ascending Triangle formed from the Gap Down in May to the first week in August. Instead of breaking to the upside, the stock Gap Down once again. A Bearish signal.
The stock did not hold the 18.00-17.50 support level and now we are seeing fear.

I entered this stock after the sell off with the CFO leaving. I had a full position by the time stock broke out ascending triangle to the downside. Once the stock broke out of the $18.00 range I was down over 20% and finally got out at $15.00 for a 30% loss. Sorry if I have sinned, but I’ve had to many long term holds over my investing career.

Al
Read Answer Asked by Alvyn on October 08, 2014
Q: Just for information CIBC downgraded AVO to $25 from $40 which is one reason for the drop. The second reason is that apparently they are facing competition from China as pointed out by a BNN guest this morning. The third reason is that I bought the stock at $17 a few days back which is one the biggest reason for the drop as whenever I buy people should start selling.
Read Answer Asked by Imtiaz on October 08, 2014
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