Investment Q&A

Q: Your thoughts on the large drop in rail traffic and how it might effect SJ and future revenue.

Q: Portfolio weighting a aside. For a young investor if you were topping up two of these, which two would you choose? Cheers

Q: I have a small amount in gold and silver and much not else in the materials sector, please give me help by providing a couple of names in this area that would be most suitable for a conservative portfolio.
I would also like your opinion on these two ETFs; ZWU and ZWE.
Thank you again.
Audrey

Q: Hello, I have some stocks that I am planning to buy in the future. They are SJ, CSU, BYD.UN, SIS, NFI, KXS, RRX, PEY. Could you please rank these stocks from the safest to the riskiest? In your opinion, do you recommend these stocks for a long term hold? Also, which one in the list do you think has the most potential? Thank you.

Q: Hi, Could you please comment on Stella-Jones earnings and its outlook. Thanks

Q: Is this a good time to get onto the basic materials sector? if so, which companies would you recommend?

Q: Yesterday Royal Bank restated a $57 target price & a outperform rating.On the technical side,IE,discount brokerage arm of CIBC stated as follows: Resistance $51.13,Medium term target $53-54.5 & long term target $60-63. Is this a good entry point?Thanks for your usual great services & opinions.

Q: Disappointed with the market initial reaction(It was $51.51 early yesterday) 2 notes: Today TD Bank increased its target price to $57 from $51 & rated a BUY.On 2/25 V Hirsch,who closely follows SJ for many years,interviewed management 1/2 weeks prior to 2/25.Management advised that it was starting to get major orders to replace poles,which is @ the end of its life.Apparently CNR is expediating replacement of railway ties.Hirsch rated it as a BUY for 2/3 years

Q: Hi Peter, Ryan,
wondering why SJ is dropping so sharply yesterday an today? Thought the news release was good!
Thkx, Steve

Q: Hi, Could you please comment on SJ results released this morning? FX appears to have a major positive impact. How does the growth look in constant currency situation? Any comments on ties and poles performance ? Thanks

Q: Further to the concrete rail ties comment, in my travels (North Shore, Georgian Bay) I've noticed when a wooden pole needs to be replaced, hydro technicians install a pole made from a resin-like material. These new poles come in stackable pieces that enable the height of the pole to be adjusted according to the terrain. On seeing these, my thoughts were no more hydro poles full of giant woodpecker holes and are these new poles a threat to Stella Jones?

Q: On BNN 2/25,guest V Hirsch said that SJ,whose business is utility poles & railway ties,has great management.SJ is starting to get major orders to replace poles as its average live is coming to an end.CNR stated that it is expediting replacement of railway ties because of slower volume when it is easier to do it. 5I,any other news & is it reporting on. March 14.Appreciate your normal great services & views.

Q: I appreciated Ryan's take on stocks that can benefit on the low Canadian dollar in your recent blog. Of the ones mentionned, I was wondering which would be the best buy at the moment, not considering the rest of one's asset distribution? I notice, for instance, that Blackcome has gone up quite a bit over the past year, while the others have fallen. I like the idea of something as solid as railway ties. I guess they will always be needed. But, maybe one of the others is a better buy at the moment.

As i say, asset mix is not a consideration at the moment. Also, in profiting from the American dividends, is it possible to get the dividends in US dollars straight out, or do the brokerages all convert them to Canadian?
thanks

Q: In response to Rajeev's concern about the drop of SJ from $54 high to $41.50 over 4 weeks on Jan 25,5I recommend to BUY.Today it closed @ $45.18,up $3.32. Today,Laurentian Bank,BNS & TD set target price of $56.50,$50 & $51 respectively & RY upgrades it to outperform. 5I appreciate your recommendation,great views & services

Q: Your expert opinion on SJ's announcement this morning to acquire Kisatchie,& its impact.Appreciate your normal great services & views

Q: PLease advise when SJ is reporting.Expected EPS of .45 & Rev.$362.05m--are these correct.Appreciate your usual great services & views.

Q: I have a decent holding in this co. and read your recent comments on Stella-Jones. There appears to be no logical explanation to sharp drop in stock price from a high of $54 to a low of $41.50 within a span of 4 weeks. Even on market up days, stock's advance is fairly muted. I feel that 20% decline could not be entirely market related. My suspicion is that market is punishing the stock due its association with railways. What percentage of its business is from railway ties? Utility polls business should be stable ? Is there a large short interest ? How is its valuation on current and forward basis? Do you believe it's an excellent time to add at current levels? Thanks

Q: The stock is down 17% YTD incl. 6% drop today. Any explanations why? There seems to be no news... SJ is one of the few companies that benefits from low CAD dollar, so I am surprised it is dropping so much.

Q: What are two Canadian stocks that would benefit from our very low Canadian dollar.

Thanks

Q: Good Morning 5i,

I have been holding of Stella Jones for a while now and I am up 35% and not overweight in my portfolio. Since Stella Jones makes Ties for the railroad track and that CP and CN are down as well, is there any correlation between the three operations? If not why SJ is Down?

Tahnks Paul

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