Investment Q&A

Q: The globe and mail lists a p/e on loblaw of over 2,000?.. Is is that overvalued? It is one of a few of my winners in my portfolio. Is it time to trim? I like the shoppers acquisition and the expansion of joe fresh but I have watched all my profits in other stocks disappear and wonder if the same will happen to loblaw with that kind of p/e.

Q: Hi,

I own TD, T, Sun, MLF, PBH, CNR, CPR, ZLB, ZUH, GC, and BCI as well as higher growth US names like FB, DIS, SBUX. I'm looking for another canadian dividend payer with some growth (10%? Annually) and wonder if you feel the pipelines are reasonably priced and which you'd recommend?

Or another area/choice? I tend to avoid resources as they are too volatile for me.

Thanks

Q: Loblaw good earnings report. Would you add to get to a 5% full position?

Q: What is your view on Loblaw? So many analysts comment on them as a food chain ignoring the Shopper's acquisition and PC financial.

Q: In comparing my portfolio to your suggested weightings a couple of sectors need to be rebalanced.

The areas where I have the least exposure are:
1. Consumer Disc/ Staples (Total 15%) vs my PF at 5% assuming I have categorized the stocks properly. Current holdings are DHX, AW.un,CGX and ACQ. What would you add to flush out this sector?
2. Telcos (10%) vs my PF at 2%. I do hold T and BCE. Should I just add to these or do have additonal suggestions?

The adjustments will be done over a period of time as much of the new buys will be funded by selling energy stocks where I am sitting at a 21% weighting - even with pullback in this sector. (Another argument for diversification. I thought I was so smart earlier this year with a heavy energy weighting. Live and learn!)

Thanks yet again for you help.

Q: What do you think of all the changes going on at loblaw L? It hit a new high today. I really like loblaw finally and am thinking of adding to my position. I know they need to integrate shoppers but with all the joe fresh stores opening up and the dividend money they keep getting from their choice REIT I see nothing but upside on loblaw. Agree?

Q: Hello Peter,
I sent in a question a couple of weeks ago but didn’t receive a reply… so here goes again:

I was a bit surprised by some of your stock selections for the Income Portfolio, and also by some of the exclusions.

Loblaw, for example (a low margin business with big competition, small yield and only recent dividend increases) made the portfolio while companies in a somewhat similar space like THI, PBH, NWC, HLF, CSW, ADW, BPF (having generally higher yields/better 5 year dividend growth) did not. Can you explain why Loblaw?

If I follow your advice, is there a particular company in the names I mentioned that you feel would be best switched-out to acquire L?
Thank you very much,
Paul

Q: I am considering taking a position in CTC-A, but note that it is not in your portfolio. I also own Loblaws - L - which is not covered. What is your opinion on these two stocks?

Q: Hi team:
playing defense with respect to the risk of china's banking collapse. What would be your suggestions as per sectors and companies that would be least vulnerable to china sharp down turn especially the banking system.
thanks
Yossi

Q: I have been a loyal loblaws shore holder for years. So why when they "spun off" Choice Properties REIT last July I not get any actual shares of the REIT. They units yield over 6% and loblaws controls 80% of the units. I think they made about $4 mill from the IPO. The stock when up on this deal. Can you explain how existing shareholders benefit from this arrangement.

Q: With the lobaws purchase of shoppers drug mart (SC) on track to be officially complete this year, I would like to know if the current share price of either company has already accounted for the takeover or is there some upside potential of either stock.

Thank you.

Q: I'm currently holding Loblaws. It represents about 5% of my portfolio. If was just purchased a few months ago. I'm a long term investor. Do you think it's worth holding for 5 years plus. If not can you recommend another in this sector. I think this is a great site and love the job the staff at I5Reseach are doing. I read this site daily.

Q: Good day Peter....This is an amendment/update to my earlier e-mail question about rebalancing a RRSP portfolio. In the e-mail I mentioned "income with steady growth, and on further thought, what I really would like/am aiming for is steady growth. For me,the income/dividends is/are really a fall out/come along with the stocks. (This especially true for the pipelines over the last five years. But it is getting through to me/sinking in from reading your posts and responses that a balanced portfolio is a better practice than just pipelines, financials and REITS.) In a way, for a non-registered account, I would prefer growth companies but for a RRSP, I'm inclined to me more conservative and by that I label it as steady growth. Thanks for provoking thinking for all this........Tom M

Q: Hi 5i Team,

Just wondering if I could get a quick update on your opinion for the following stocks:

CSS - Contrans
POT - Potash of Sask
L - Loblaws

Q: Please could you elaborate on the Canadian Tire/Shoppers transaction mentioned in your answer to my question (10/Dec/13) on switching out of MRU to something else, eg CTC.

Q: Hi Peter,
Is Loblaw a buy after this major correction?
Thanks
Karl

Q: i really like what Loblaw has been doing recently with the REIT spin-off and planned SDM acquisition. would you buy it at the current price, and you outlook please?

Q: Hi Peter: What impact, if any will the proposed merger of Loblaws and Shoppers Drug have on FCR. Thanks for the great service, as always.

David

Q: Hi, I have read that Choice Properties is expected to close around July 5th, do you know when it is expected to be offered for sale to investors? Thanks.

Q: Loblaws(L-T) has had a great week with the stock increasing over 10% and they also increased the dividend. Their turnaround strategy finally seems to be woking. In your opinon is this a good entry point. Thanks. (Gerry)