Investment Q&A

Q: I sold not only HomeCapital but EQB, because Cohodes, our nemesis, is now shorting it as well. Now I'm left with First National. As much as I'd like to think I'm a long-term investor, my gut tells me once retail investors read about the news on alternative lenders this weekend, the stock sell-off will accelerate. Some insiders are also selling, even the CEO of HomeCapital who sold a massive amount of shares at 34.50 right after that buyback announcement? Another insider sold over 400k at 27.50 less than two weeks ago? For me, the last nail in the coffin was Sherry Cooper's interview yesterday on BNN (Dominion Lending). Most surprising, the CEO of First National came on Bloomberg basically saying: "It's bad for us and banks will take 20% of our market". Question: Would you sell First National and replace it with Surge Energy, which is back in an uptrend? Thanks.

Q: I only hold one REIT:REI and I am not too happy with its performance. I was up 15% and now back to 0%. What do you think about a switch to AX to almost double the dividend and (I expect) capital gain when the stock recovers.
What do you think about the future prospects for both?

Thank you.

Q: Good day,

I know that your focus is not the US but the landscape is changing with the election so perhaps you could just be a sounding board. I have a large position in JNJ (for growing yield and broad diversification), a full position in EXE (for yield), and a 3% position in CRH (for growth). JNJ trades at a premium, justly so. I was thinking of swapping these holdings except maybe EXE for CVS, NVO and DHR. DHR is now focused since its spin off of Fortive and has been a long-term outperformer (it is devices and consumables). NVO (drugs) and CVS (broad healthcare) are great growth stocks that are beaten down compared to JNJ and together offer comparable yields. What would be your thoughts?

Thanks!

Derek

Q: Is UNP a hold? All the blabbing about over-valued markets have me wondering if UNP is one to sell. This question is prompted by thoughts including, amongst others: UNP’s moat not particularly wide; economic uncertainties; better values available elsewhere.

Q: This company appears to follow the growth by acquisition model with its most recent acquisition, a US funeral home operator, having been a success based on their sales and earning improvement. It is also trading at all time highs. What is your assessment of this company and if it could be a long-term position, would you look for a lower entry point. I have no position in it at this time though regret not having bought some at $15 when I first came across it.

Q: What are your views on this company ?
What would be good growth alternatives for investing in Mexico ?

Many thanks for your outstanding work,

Jacques

Q: I am thinking of buying a bond for the fixed income portion of my portfolio. It matures in 2027, with a yield over 3% and a high BBB rating. On the purchase page with my online broker there is a "comment" which reads "make whole @ 63.50 until 10/15/26". What in the world does this mean?
Thanks.

Q: Not a Canadian company but do you have any thoughts on this U.S. behemoth?

Q: What are the requirements for a company to notify investors of the release dates for their financial reports? My RBC account states MTY Group is to release results on October 5 but they have not released anything.

Q: What are your thoughts on the prospects for the Mullen Group going forward? Is it's price discounting more problems in the oil sands or does it reflect a much rosier scenario in revenues generated from that part of their business. Thanks so much

Q: At this point in time, what would you say is an opportunity to buy 3 stocks in each of the income and also balanced portfolios? Thanks for your suggestions.....Tom

Q: Hi 5i,

Do you have any data on Aritzia such as EPS, yearly revenue, debt, cash on hand, etc. Since IPO's tend to be very volatile, which means they sometimes go from very expensive to ridiculously cheap. If it does become cheap due to plain old volatility and not because of deteriorating fundamentals, I just might be tempted to buy in!

Q: Do you consider the Mar 2027 bonds to be a decent hold within a diversified bond portfolio?

Q: In the past you were reluctant to recommend Student transportation. Do you think its prospect improved now? How higher oil prices impact earning and distribution?

Thanks

Q: I have to reduce my C. Disc. sector; which one of the above would you let go? Great service! Thanks, Stephen

Q: Everything in the real estate sector seems to be reacting to government changes. At what point do you feel BRE would be a buy? How do you feel about the dividend? Secure or questionable given changes going on currently?

Regards,

Robert

Q: Could you please give me your thoughts on WDAY as an investment for the long term. They are a company that has convinced a lot of employers to use their services over the last few years so their future looks promising to me.

Q: Hi 5i
I don't see any questions about K92 mining, but I have seen it listed a lot in the Globe and Mail as one of the largest daily traders, sometimes the largest loser and sometimes as the largest winner. It just started producing gold. Is there something good here?
Thank you!
Bryan

Q: Hi Guys,
If I think the US PMI data may be peaking in the next few months and we could have a global slowdown for 2017 and looking for a few bearish bets, perhaps a few short trades as well. With China now depending on more exports as well as Japan and with a big chunk of those exports coming to the US we could have the 3 largest economies in the world slowing at the same time. This would weaken the demand for crude oil and I think it could revisit the $20's once again. I'm looking for companies that can quickly get in trouble once again if the economy begins to weaken, I'm thinking Teck and Baytex? Do you agree these names will drop in the above noted scenario ?Any other names you might suggest? Looking for weak balance sheets I suppose with too much debt. Thanks

Q: Hi, I own some of Home Capital's May 2017 and Dec 2018 bonds. Would you continue to hold these or would you sell them? I want my bond portfolio to be as secure and stress free as possible.