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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: Saputo has shown downward momentum since Trump's inauguration. Supposing this risk were overblown, then one would expect the stock price to be 'cheap', but the current price is pretty-much what the long-term trend-line would predict. Put another way: if the price is only now touching the trend-line, does that imply that the Trump factor isn't fully baked-in yet - which, in turn, suggests further declines?
Read Answer Asked by John on July 11, 2017
Q: I need to increase my holdings of Consumer staples. Please rank the following in order of your preference when the main focus is dividend growth with secondary goal of capital appreciation.
ATD, L, MRU, SAP, WN, EMP.A, MFI, BCB, PBH, PJC.A

I can be patient in the timing of my purchases. Do you think this is a good time in the economic cycle tp purchase this sector?

Many Thanks

Paul
Read Answer Asked by paul on July 10, 2017
Q: Hi I want to increase my position in Consumer Stocks by about $40,000 to be balanced and defensive plus receive some dividend income, currently hold Conagra ($20K); Lamb Weston ($8K);Magna ($18K); Mondelez $18K);Rogers Sugar ($21K); and Saputo ($25K).
Are there some better choices out there I can buy, your ideas appreciated, thanks!
Read Answer Asked by Kim on June 21, 2017
Q: Saputo earnings were 0.42 cents per share. Can you tell me what the expectations were and what the is the new current P/E ratio? Google Finance doesn't seem to adjust the P/E ratio according the recent earnings. Do you think Metro would be a good switch? Seems like Saputo is starting a downtrend whereas Loblaws and Metro are in uptrends? I'm not looking for confirmation, but rather for flaws in my observations.
Read Answer Asked by Matt on June 02, 2017
Q: Saputo has been very weak as of late,m with the dairy disputes stock has lost approx 7 percent in the past few trading days alone. What do you think of the situation? Would you step in? Or would you let the waters settle first (as in not catching a falling knife).

Many thanks

Karim
Read Answer Asked by Karim on April 20, 2017
Q: <I>December 03, 2015 (asked by Desmond)

Question: I would like your opinion on Saputo, would it be a buy at this time. Thanks for all the great information this year.

5i Research Answer:
Saputo is not overly exciting, but in this market that is not a bad thing. Good earnings growth is expected over the next two years, but it does have a fairly weak record of meeting estimates. Its business is fairly secure and its balance sheet is 'OK'. It is buying back stock, and at 21X earnings is a bit expensive. Over the past 15 years the stock is up nearly 10-fold, and we would be comfortable with a long term position.</I>



I have to mostly disagree with your response to Desmond regarding SAP. Or at least the tone I extracted from your response.

How could SAP not be anything but exciting if a person is looking to make money? Unless they "play" stocks for excitement as in gambling and look only at short term fun.

If SAP has been almost a 10 bagger in 15 years that is a 16.5%/annum return plus a constant growing dividend. An original investment of say, $100,000 would now be approx. $1,000,000. A profit of $900,000! Most people and retail investors would love to have that big a profit both $ wise and % wise as most never produce that in a life time.

I am an investor who does not care if a company meets estimates! So what? Who cares other than the media? Without insider information is not an estimate just that? An estimate, a guess?What matters is the question, "Is the company growing itself, revenue and free cashflow...properly and in a sustainable way?"

I find SAP to be exciting in the short term because I can sleep at night knowing I do not have to monitor it daily/weekly and it should continue to make me money as I sleep with a growing dividend income stream for my future retirement days. Just like CNR, ENB, BNS....

Have a great day.

Stan
Read Answer Asked by Stan (1) on December 04, 2015
Q: The Trans-Pacific Partnership(TPP) will reduce or eliminate barriers on a range of canadian exports,inclyding machines,canola,beef & pork,minerals,forestry products & seafood.It will also allow more foreign dairy into canada & expose workers to cheaper foreign labour. Please advise if TPP will have any material impact on stocks,especially in 5I portfolios.If has,please provide some names that are adversely impacted & some names that are fovourablly affected.Appreciate your usual great advices & services.
Read Answer Asked by Peter on October 13, 2015
Q: Hi guys. Was there anything in the previous Saputo's earning report that may lead one to suspect future earnings contraction?

I have 22% in what I consider the "consumer" portion of my portfolio made up of names like atd.b, gil, emp.a, l, hlf, dol and the only stinker of the group, SAP, with 2.3% position. Going forward, do you think SAP is the type of company you can slowly allocate a 5% position at current valuations?

Thanks, again.

John
Read Answer Asked by john on July 11, 2015
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