Investment Q&A

Q: Hi 5i,

My question is on the reliability of forward earnings. From your comments I gather that you often look at forward earnings when evaluating stocks. My question is how reliable are they in general? Do companies tend to be honest with their guidance or more conservative or do they tend to miss the mark. It's nice to see the forward earnings and forward P/E, but only if you think they are good indicators? yeah?

Thanks! Your service is terrific.

Q: Hi Do you still like Superior Plus (SPB) at current price ($14.25)to add to existing position for income and growth? Thanks

Q: 10:29 AM 7/3/2014

Hi Peter :

Having just read your answer to Doreen July 02 regarding Element Financial EFN you said : "The stock is expensive, but we expect very rapid growth, and would put the management team in our list of Top Ten companies."

So I cannot but ask if you could please list your "Top Ten" Management teams.

Also I, like many others, are eagerly awaiting your Growth Portfolio and maybe trying to anticipate your choices.... any chance at a sneak peek at the list, or some suggestions? Maybe some your Top Ten Management companies will be in the Growth Portfolio.

Always appreciative of your excellent advice.... Paul K.

Q: When speaking about stocks, the terms "buy hold and sell" are commonly used. I think I understand "buy" and "sell" as they seem quite precise but am confused by the term "hold". If a stock is good enough to "hold" in a portfolio why would it not be good enough to "buy"? So. when you or others in the industry use that term, what exactly do you mean?

Thanks for the education and best wishes for a speedy recovery. I hope that the car looks worse than Peter, though.!

Paul F.

Q: Hi Peter,
Did you invite members to meet you some afternoon this summer at a local "watering hole"? I can't recall the date.

Q: Acknowledging my high risk tolerance, I have 90% equities and 10% in Vanguard Canadian Short-Term Corporate Bond Index ETF (VSC) , the 10% portion is what I consider my "safety" and like the dividend payout which I reinvest in equities as it accumaltes.

I'd appreciate your current thoughts on VSC and my stratagy overall, is there a better "safety" play for me?

Q: Hi Peter,

I need US income in the future so i am trying to establish a position but do not follow the US stocks well enough to pick 'a few'. In addition, the US yields are below the Canadian counterparts. Can you recommend a couple of well diversified US ETFs that would generate US income. I pay taxes in the US and Canada so tax considerations are not a big factor for me.

Q: Some companies quote both gaap earnings and non gaap income. Which is best to use in calculating financial performance such as the peg ratio,


Regsrds
ap

Q: Hi Peter and Team, can you recommend one or more ETF's that hold US companies who regularly increase their dividends (a dividend aristocrat etf) Something like CDZ but a US version. Thanks.

Q: SU.to

Peter,

In your view. Do you feel that SU would be trading higher if all the cash used for buyback was returned to shareholders with dividend increase instead?

Many thanks

Q: Peter, I hope you are fully recovered from your mishap with no lasting injuries.
My question relates to the risky DCF (Difference Capital). It's trading at .18 of book value (Google finance) with market cap of $66 million. I can understand that many of DCF holdings are private and am wondering:
1) what is the FMV of these private holdings
2) what is the value of the 28% they hold in BENEV Capital which has a net working capital of $68 million (stock is halted).
What I am getting at is that based on an assumption of reasonable valuation of FMV of the private holding of DCF and market value of its public investments, the stock is undervalued. If you agree with my argument, what then would be a fair discount to Book value if 18% to BV is unreasonably low?

Thanks Peter.

John

Q: Good Morning,

I would appreciate knowing your thoughts on market timing. Specifically what you think about The Dow Theory and the Schannep Timing Indicator.

Q: In response to Edward's question concerning DH and TD Waterhouse trailing P/E. TD does show DH Earnings as 0.78 on the Over View page, however, if you drill down to the Earnings Page, the last 4 qtrs add up to 2.11. Nothing in the reports add up to $0.78. You'll have to ask TD how they arrive at that figure.

Q: HI PETER AND STAFF:
I AM HOLDING SOUTHERN PACIFIC RES. CORP-STP-AND PRESENTLY SHOWING A LARGE LOSS. IS IT WORTHWHILE KEEPING THIS COMPANY OR SHOULD I TAKE MY LOSSES AND SELL?
ALSO, DO YOU KNOW THE CANADIAN COMPANY THAT MAKES THE CHIPS FOR CREDIT CARDS AND/OR THE CREDIT CARD READERS? THE USA IS NOW INTRODUCING CREDIT CARDS WITH CHIPS. PRESUMABLY THERE WILL BE
A LARGE DEMAND AND SUBJECT COMPANY MAY BE DOING WILL.
THANKS FOR YOUR REPLY.
KLAUS SCHMIDT

Q: any update on cxi tks

Q: Thank you for such a great service...I have a u.s. portfolio and it contains FANG,GMCR,ARII,INTC,CLCT,SFL,CSCO,EAT,UTX,EPB,PFE,ATHN,GE,CSGP for one half of the portfolio and RBF1025 for the other half...some of these I have gotten from the questions and answers and some I have owned for a while...could you please look at these and give me your thoughts...this portfolio represents about one third of my total portfolio the rest divided up with your portfolio and the rest in Canadian dividend companies that I have held for quite a while...I am a buy and hold investor with stops in place...thank you

Q: Hi Peter,
Any insight as to why Gluskin Sheff (GS) has been decininig so much lately when the TSX and financial stocks are making new highs.
Thanks
maggie

Q: Hello 5i,
I am holding qst, efn, hwo, and cpg in my TFSA. I am ok with riskier stocks in this portfolio and I'm looking to add to it with either dhx or sgy. I know these are very different stocks but I'd like your opinion on what will provide the most growth long term. Also, while I'm looking to diversify, sgy seems to be at a good entry point and the dividend is added incentive.

Q: Greeting, Peter & Co.
I am pleased to read that Peter should make a good recovery from his accident.
I have been reviewing analyses of Davis & Henderson (DH) from a variety of sources including 5i. In contrast to 5i's positive view of the company, TD Waterhouse shows a trailing 12 month PE of 44.67. Isn't this a bit rich for a moderate growth company?
With appreciation.
Ed

Q: Can you please comment on TKM's news release causing downward action in price. Thanks