Investment Q&A

Q: WFT, SJ, OSB and LNR all seem to be getting hammered today - and I have searched and I don't see any bad news about any of these. Is this due to concerns over NAFTA - or is it something else?

Q: Is it now a good time to invest in MG or LNR？Which one would you pick and please explain. Thanks

Q: Hello Peter,
Is it correct to say that the time to buy cyclical stocks are around the peak of the cycle? Where do you see the auto sector in the cycle and would you recommend adding to stocks such as LNR/MG/XTC?
Also, if you heard the CEO on the conference call or BNN; is the intent to diversify into Agricultural equipment sector a show of bravado w.r.t nafta or is it a sign of full steam ahead ?
Regards

Q: What are your thoughts on LNR earings?
I currently hold 2% - Should I buy more, Sell or hold.

Thanks for the great service

Q: Please rank the above stocks based on how well you think they will do in 2018. 2017 was good for them.
Thanks.
Paul

Q: Auto stocks seem to have been on the roll. Is this sector OK to invest in? Which stock do you prefer;
MG or LNR

Thanks

Q: Hello Peter and 5i team,
I have done very well with Linamar and was thinking that it might be wise to switch to Magna at this time. It seems that Magna has a bigger global footprint and a better chance of participating in the electric car movement, especially over seas. Linamar appears more focused on non electric vehicles .
I would greatly appreciate your opinion, thanks

Q: Please comment on the XTC results. Would you still hold it? I also have MG and LNR. equal weight, all represent 9% of my portfolio. Making money on all. Should I make any changes here? Looking for growth.
Thank You for excellent service.

Q: LNR.TO is reaching 52 week highs. What are your thoughts on this company? Thanks.

Q: All of these companies had large drops in value today(Friday)on large volumes. CSU down 1.5% and ECI down 2.5% on very large volume at the day's end. Can you explain this end of day activity? Is it a buying opportunity?
Perhaps a separate question, both LNR and MG took big hits today (Friday), both on large volumes - any ideas as to what caused this? Buying opportunity?

Q: Have been patient waiting for these companies to recover. What is your opinion? Should I sell and move on. Thank you.

Q: Good morning 5i team,

I’m considering moving on from Linamar and CGI group in search of better growth prospects. I still like both companies, and believe they still have a good outlook, however, after holding each for some time I’ve been growing restless with the share prices seemingly stuck in the mud. Perhaps I’m just being impatient, but I cant help but wonder if these holdings are dead money. At least for the next year or two anyway.

I’m considering switching out Linamar for either New Flyer Industries, or Premium Brands Holdings, and CGI for either Kinaxis or Celestica.

Could you please give your opinion on whether it’s worth being patient with LNR/GIB.A, or a good idea to move on? And if moving on is recommended, would you consider the alternatives I’ve mentioned as good replacements with growth for the next 1-2 years in mind?

As always, thank you for your excellent insight and advice.
Tristan.

Q: Hi 5i team, just read your recent report on XTC. How can you explain the higher multiples for XTC versus the three others: growth is currently favored by the market over size, value and more diversification? What would you expect the stabilized P/E to be over the long run for them? Higher and lower for which of these? Thank you, Eric

Q: Hi 5i,
This is my first time asking a question, and just wanted to say what a great service you provide!

My question is regarding Linamar, I've been holding this company for a few years now and have been riding the rollercoaster waiting for the stock to turn. The company is obviously at a great deal of political risk, but despite that continues to produce good numbers. I'm hoping you could comment on the companies prospects for the next 2 -3 years(assuming minimal trade disruption from the US), and could you please comment on the LNR's recent quarterly results?

Thank you, Tristan.

Q: Good Morning I was listening to the Linamar conference call and the results are very impressive, in fact, the dividend was increased by 20%. The share price dropped over 2% this morning which is surprising. May I have your impressions?
Would MG (PE 7.4) or XCO (PE 10) be more advantageous vs LNR (PE 7.5)?
Thank you
Marty

Q: I currently own LNR in a non-rrsp account for a 2% holding. I don't have any cash in this account to buy MG but do have cash in my RRSP account to buy MG for 2% weight. Would you recommend this or just buy more LNR to bring it up to 4% weight.

Q: Hello Peter and Ryan,
Without knowing my portfolio details, I know it is hard to give advice. However, I do have a diversified portfolio and am looking to add a long term growth stock and a dividend paying stock without using my cash. I have to sell a stock and replace with another. I constantly hear good things about Spin Master. I was thinking of selling Alterra Power corp and Brookfield Business Partners and use proceeds to buy Spin Master. Does this switch make sense? Kinder morgan (aside from protests) has had good news with government approval and potential sale of their assets. However, the stock is not moving which is surprising. Is it worth holding or replace with ENB and TRP to get some growth and dividends. Lastly, Magna and Linamar have had good gains. Time to sell or let them run? Please let me know. Thanks again

Q: Hi did I miss news on the auto sector? These stocks are up a lot suddenly. We're they just oversold or is there some data regarding "peak auto"? If so, then this strength could spread to XTC and PIH?

Q: I have MG and LNR in my investment account. They are down 5% and 30%. I need to shift over some funds to my TFSA in January. Which would you sell?

Thanks

Q: Hi,

Why is MRE trading at only 5 or 6 times earnings, a lot lower than
MG and LNR (Which, themselves, are reasonably valued).

If MRE a higher risk/reward buy than MG or LNR?

Thanks,
IF