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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: Following up on my question last month on whether CAE would benefit from additional training requirements for pilots following the two crashes of Boeing 737 Max 8, it looks like Canada has stepped up with the following news late yesterday from our Transport Minister Marc Garneau. Do you know who might compete with CAE for any outsourced training and how CAE is viewed in the aerospace training industry?
Transport Minister Marc Garneau says airlines hoping to fly the Boeing 737 Max 8 in Canadian airspace must first train their pilots using a flight simulator.
The call goes further than recommendations from U.S. regulators as training procedures for the grounded plane come under continued scrutiny following two deadly crashes.
“Simulators are the very best way, from a training point of view, to go over exactly what could happen in a real way and to react properly to it,” Garneau said.
“It's part of it - the software fixes...and the training itself, which in my mind requires simulation time,” he said at an event in Montreal Wednesday.
Garneau's comments highlight the potential hurdles to landing on a common set of standards and getting the Max 8 back into the air.
Read Answer Asked by Gordon on April 22, 2019
Q: I own all of the stocks in the Balanced and Income portfolios across my RRSP, TFSA and RESPs with the exception of those listed above. Based on current valuations and 3-5 year prospects, which one would you choose to put a recent RRSP contribution to work?
Read Answer Asked by Chris on March 14, 2019
Q: In a previous question about ALC you noted that while ALC was not poorly managed there were better companies out there without liquidity issues. I presume you would include CAE as one of those better companies. I bought ALC, post split, (about 5 years ago) and it hasn't done much - I am essentially flat. I have certainly considered selling it but never "pulled the trigger". Unlike yourself I am not really a stock analyst but it seems to me they have been caught up in Trumpian tariff headwinds, weak iron ore prices (a few years ago) and replacing high operating cost (outdated) ships. To some extent the share price also seems to mirror the historical weakness of the Canadian Market versus the strength in the US Market. So far in 2019 the TSX seems to be performing better and the CAD appears to be gaining slightly on the USD. ALC appear to be having trouble replacing their ships as on at least 2 occasions the shipyards have defaulted on the boats. ALC got their money back but the replacement schedule must have been impacted. So, as usual, I am sitting on the fence. My questions...
1) Do you consider CAE to be a much better company that ALC?
2) While both companies are classified Industrial, ALC is more of a classic cyclical Industrial than CAE. In other words do you think ALC should do better if commodities show some strength or the USD shows some weakness?
3) We own 3,900 shares of ALC or about one days average trading volume. Would you have any recommendations about how to sell the shares keeping haircuts to a minimum? Does offering 500 shares at "the bid" at 10 AM make any sense to you? We wouldn't offer the next 500 shares until the first 500 shares were sold. The spread is about 20 cents per share.
Please deduct as may credits as you see fit.
Thanks,
Jim
Read Answer Asked by James on February 25, 2019
Q: Two part question, deduct as necessary. Canadian Portfolio slightly tilted towards growth and not needing funds for long time. Looking to add one Industrial name to compliment WSP and PEO (if considered an industrial). Was thinking maybe NFI but would be interested in any other suggestions.

Also looking to add a tech name to compliment KXS, and OTEX. Having a hard time finding something different that could be a core holding for long term, only criteria would be that i am not interested in PHO.
Read Answer Asked by justin on February 20, 2019
Q: I read somewhere that the world airlines will need 100,000 new pilots in future years . China is a factor with so many Chinese travelling. Do you like CAE. Flight Simulators Any others?

Also Baby Boombers aging and taking Cruises. Who benefits the most here ? . Do you like this industry ?
RAK
Read Answer Asked by bob on January 14, 2019
Q: Hi Gang,
Have some cash available and would like to know your thoughts on the above, looking buy 3 or 4 of the above.

Thanks
Anthony
Read Answer Asked by Anthony on January 14, 2019
Q: Greetings 5i Team.
We are adjusting our accounts and looking to place 6% of our equity allocation in the Cdn ‘industrials’ category. If you were to choose among the listed securities, which names would you prefer for each of a one, two, three, and four name selection?
Thankyou
Sam
Read Answer Asked by Steve on January 14, 2019
Q: My daughter’s Investment acct and TFSA are reasonably balanced. TFSA holdings and returns are below. TFSA value is $88,247.

Stock Value Return Portfolio
Percentage
Bank of NS 11,228 5.83% 2.43%
Dollarama 9,741 -37.44% 2.11%
Element Capital 9,660 -9.56% 2.09%
Knight Therapau 12,304 -3.93% 2.67%
Parkland 14,136 119.37% 3.06%
Transcontinental 5,790 -39.08% 1.26%
Savaria 13,060 68.90% 2.83%
Spin Master 11,517 1.09% 2.50%

I’m thinking of splitting the 2019 $6000 contribution between TCL.A and SIS. Second choice is add a new stock such as CAE. Any thoughts? Many thanks.

Read Answer Asked by Robert on January 03, 2019
Q: I need to sell one of these stocks from the Industrial sector for a rebalance. Long term outlook. I need help deciding on which one to cut.
Thank you again.
Read Answer Asked by Derek on November 21, 2018
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