Investment Q&A

Q: Hi Guys,

I was looking to buy a convertible debenture and I came across CJT.DB.D (5.75% interest) trading on the TSX. When I reviewed the prospectus I discovered there was no conversion feature. It was a straight debenture/bond. Why is it trading on the exchange like a stock or convertible bond and not traded like a bond in some banks bond inventory?

What do you think of this as a bond investment?

Thanks
John

Q: Hi guys:
In this correction, companies are so called on sale. Unfortunately retail investors only have so much money to deploy to buy shares. For example I own cargo jet and have done great on the name. Would it be wise to sell the winner and take the cash and add more shares to a savaria , New flyer , ccl , or pbh for example and dollar cost average. Or should I just stay put for my entire portfolio.
Thank you
Mark

Q: Hello there,
I don't want to beat a dead horse here but doesn't GS look pretty tempting here as it drifts toward $10/share.? It hasn't been this low ( other than the last few weeks) since January 2009 during the worst days of the financial crisis . Certainly the world is in a better place now than it was back then? Also approaching a 10% yield which is either highly enticing or highly dangerous?? I haven't figured out which yet? As a very profitable cheap company with a large cash position is this a buy here? I see no insider buying activity at all in the last few months though, what don't they like here? Any thoughts here would be appreciated.
Thank-you

Q: Are we near capitulation yet?

Q: Hello,
which crude oil benchmark does WCP & SGY products fall into?
Do you see any cash flow risk at both these companies due to recent oil downturn?
Thanks,

Q: Hi Peter,
Time for a different type of question in these markets. I enjoyed your recent appearance again on Market Call. Aside from you and Ryan, I don’t watch many others. I am curious though about how you go about formulating your new top picks and the ground rules set out by BNN. You have been on BNN several times this year but they tracked your past picks from October 2017. I assume that is to give your picks one year to perform. Do you use the same process for picking your top picks for BNN as you do in your daily 5i stock assessments or are there differences? I read your new 5i BLOG on tax loss candidates, where you identify many stocks that have been crushed. Many are tax loss candidates but you say you would be reluctant to sell TSGI, PBH and SIS due to the rebound potential in the new year. Would those three, among others with strong rebound potential (KXS), have been considered by you for your BNN Top Picks?
Thanks for the insight.
dave

Q: Just a comment... your system shows a 2019 EPS estimate of $0.72 for Savaria. I think that makes the forward P/E closer to 18 (you said 28 in a q&a today)

Q: Good day gentlemen,
I am attempting to differentiate between the largest Canadian producers on a valuation basis...specifically EV/EBITDA. As 2018 and 2019 will be ramp up years for most of these companies, Can you provide this estimated figure for years 2019 and 2020 for these companies and any others you may have in this sector.

Q: AS per a question August 24 of this year I listed 10 stocks in my TFSA that were sound favorites at the time and i was down and down 7 percent.I have held on due to yours and fund managers advise and am now down 30 percent and am starting to wonder why hold on.I thought the market was close to being done a small correction but starting to feel total capitulation isn't close yet but may happen.High risk tolerance i guess i am not if the correction ends up 50 percent.Will take years to recover.

Q: You were asked a question regarding Savaria's forward PE multiple. Your response was 28 which is the same as the trailing PE multiple. How did you come up with that number? If a 28 multiple is true this stock is trading at a multiple that makes it very vulnerable to further declines despite what has happened in the last few weeks. I would like to know what your expected earnings per share are in each of the next two years please. Also could you identify anything on the horizon based on your analysis or management expectations that could lower or increase this estimate. And how do your numbers compare to management forecasts?

Q: Hi 5i,

Looking at pulling the trigger on a handful of Canadian stocks that've gotten beaten up lately to round out the Canadian portion of my portfolio.

I love a number of your recommendations. The one I seem to be struggling with the most is Savaria. P/E seems so high, its like it trades as a growth tech stock. In another question you indicated its forward P/E is 28.5 even with the recent correction.

So I guess my question is whether the confidence is still high for this pick? In a world where other Industrials like Magna and Linamar trade at such low multiples, does SIS really deserve the premium?

Thanks!

Ryan

Q: Hi guys
I know that you are not a fan of split capital shares, but I have had some success with them. With the oil companies being beaten down so much, I am willing to take a position and wait for a recovery. Are the underling companies solid in this structure. Are there any other vehicles that have a basket of oil companies that you would recommend
Thanks

Q: I need to sell one of these stocks from the Industrial sector for a rebalance. Long term outlook. I need help deciding on which one to cut.
Thank you again.

Q: This stock baffles me. It's down almost 50% in the past 2 months. Its drop is unrelenting. I notice when subscribers ask which stocks you'd suggest 'now' its rarely if ever listed in your response.

Is this one of those that will have to be kept in a portfolio for 5 years just to break even?

What is your outlook here?

Sheldon

Q: Do you think today's bounce is short covering or longs revisiting the stock?
Is this an entry point or would you wait for everything to settle.
Thanks Peter.

Q: I am holding 5% in XSP. VUN AND ZQQ ETF. I am planning to increase to 10% in each. Plus I hold FTEC and SKYY ETF 2% each. Planning to increase to 5%. DO you think there is overlap and is any ETF holding is to high. If it is too high what percentage do you think is appropriate.

Thanks for the great service
Hector

Q: Following up on a recent question regarding allocating the appropriate amount of monies to each stock, the amount depending on the size, safety, etc of that security. Would you agree with the current split (full, partial, small):

Full = AD (should be partial), AQN, BCE, BNS, FTS, RY, TRP.
Partial = CGX (could be full?), CSH, NFI, PGH (could be full?), TCL, WSP (could be full?).
Small = WCP.

Thanks...Steve

Q: Search for Yield
I am looking for sustainable REIT yield - willing to accept some risk, cognizant that interest rates may continue to appreciate. Currently. have the following higher yield stocks: BX, FSZ, FTS, BEP-U, BIP-U, and T. There are no REITS. Would you advise to invest in REITs at this stage, given that many are near year lows? Criteria: Leaders, niche-players [data cetres, gaming]. To give you an idea of my Watchlist, for Canada: BPY-U, SRU-U, CRT-U, AP-U, IIP-U. For US: VICI, WPC, AMT, DLR, EQIX, HASI. Pls advise your top 3-5 list with rationale.

Q: Hello 5i Team, I am having trouble understanding the recent behaviour of preferred shares in general. I would sooner not repeat the loss I took several years ago, and until recently had thought my current set-up was “safer”. However, I am now in danger of heading underwater on all but BCE in the following list. Do you see any “red flags” in these holdings going forward that might signal Sell?
BCE.PR.H (Ser AH)
BPO.PR.N (3.782% CUM 6.5 YRRY)
FFH.PR.G (3.318% CUM 5 YR RT RST)
BEP.PR.K (5% CUM MIN RT RST)

I note that CPD has also been moving down more or less in concert with my individual holdings.

Would appreciate your thoughts/insight here.

Thanks,

Q: Hi Team,
Just wondering if you have any thoughts on the investment quality of CWS, an ETF created by Eddy Elfenbein of Crossing Wall Street. I see it is only around $14M US in size and about two years old. It’s meant to be a mid-cap growth fund with low turnover (5 trades once per year) and has a 0.68% MER. Thank you, Michael