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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: Hi 5i,
Sorry to go back to one where you have recently given your assessment but I am confused about CZO. Fabrice Taylor's recent Globe article says the stock is 'quoted at a measly 15 times trailing earnings'. He notes that for the last 9 months sales are up over 50% while operating income tripled, and 70% margins with guidance for 20-25% sales growth. He may not use the word cheap but that seems to be the implication. My online broker site pegs it at a P/E of 16.2 after the post-Fabrice article pop. You describe CZO as very promotional with an expensive $3M in sales for the most recent quarter on a $131M market cap. Annualizing the quarterly sales (not foolproof) would give a market cap to sales ratio of about 11. Throw in the high margins and can you get to the indicated P/E? Could you spend a few more words reconciling all this please and maybe on what is the most significant number to watch going forward in this particular case? Thanks!
Read Answer Asked by Lance on December 19, 2016
Q: Both MDA and PLI have reached new 52 week lows. You have always considered MDA to be a solid company and have given it an "A" rating. Given the current situation, would you consider that things have substantially changed with the MDA outlook or is this actually a buying opportunity?
I also have the same question for PLI, but someone else has already mentioned about the Seeking Alpha comments. Which leads me to ask your opinion of the quality of comments, generally on Seeking Alpha. Weren't they also beating up certain stocks for short selling?
Read Answer Asked by Brenda on December 19, 2016
Q: Of the four I would like to sell one. Which one?
Greetings Peter.
Read Answer Asked by peter on December 19, 2016
Q: Hi Guys, I currently hold all the Balanced Equity Portfolio stocks in my TFSA with approximately the same weightings, which represents my ~20% Canadian equity exposure. How would you recommend investing the addition $5,500 in January? (Would bolster up a couple of holdings be reasonable, if so which ones, or hold it in cash until there is other activity in the portfolio?)

Thank you for such a great performing portfolio!
Read Answer Asked by Ryan on December 19, 2016
Q: Hi Peter and gang,
A few days ago, in a response to a question regarding MDA,
5iResearch indicated that the P/E ratio for MDA was 11X. But according to TD Waterhouse's site, MDA's P/E ratio as of yesterday was 21.5X based on an EPS of $3.07. Just wondering why there was such a big different between the two P/Es given that MDA's price did not move significantly either way over the last week or so. Thanks.
Read Answer Asked by Harry on December 16, 2016
Q: Hi, I have roughly about 120k in a resp for my two children who are 14 and 12. I went to cash before election unfortunately in hindsight as it was 75% index funds and 25 percent bond funds. Going forward, as there are 4 years remaining before university I want to remain somewhat defensive but still have growth as I believe the markets will continue higher over the next couple years as The big Fed day is over, and markets remain resilient. I was thinking about zwb,Zwu for defence and income...7% yield, at 30 k each. Zsp for us market and currency exposure at 30k. mg and gud at 15 k each for some growth. Am I being to aggressive at 5 years away from university? Do you recommend any changes to this approach? Thanks for your opinion and advice and Merry Christmas!
Read Answer Asked by Sheldon on December 16, 2016