Investment Q&A

Q: What are thoughts and expectations on these two for next 3-5 years.are they going to be alright with Trump tariffs or should I look at something else like MTY or Dollarama

Q: Hi, I'm looking to add another stock in the "Materials and Energy" category in which I already hold Methanex, Parkland and Chemtrade all at about 1%. I'm not keen on a pure energy (i.e no oil, Nat Gas or pipeline) play but have been watching the three mentioned stocks. Of these three, which would you prefer today and would you add any? Long term holder.

Thx.

Q: I want to make sure that I am not overrating SJ. I try to buy quality companies and I have owned this one for several years because of the many positives you and other analysts have given it. One of those positives was management and with a new CEO and the selling out by Stella Jones International I am wondering if management may have regressed.

The latest results seemed solid in that guidance was maintained while sales and margins increased. I am thinking that it is the decrease in profit is what is weighing on the stock. Management says that the decrease is due to the transitioning of a Class 1 railroad company from a treating services only contract to a full service "black-tie" program and they go on further to say that they bought untreated ties from the Class 1 company and once they treated these ties they didn't make as much money due to higher costs. If I remember correctly, this is the same problem they said they had last quarter.

First, do you know what this program is all about? It seems to me that the Class 1 company is moving to a full-service on-going type of contract rather than a bare-bones contract to contract scenario. Ongoing regular revenues are usually better for a supplier so why is this one costing them money? Short-term pain for long-term gain? Or a management snafu?

The second drag is operating costs in the US southeast. Again, did management make a mistake or is this just one of the integration hiccups that come with takeovers? So I am back to my earlier comment about whether management is not what it once was or are these just growing pains. SJ has always been a lumpy stock mover and should I just view it as being out of the limelight for the time being with better things to come?

Appreciate your insight.

Paul F.

Q: Hi,
Please provide your opinion on SJ latest results.

Q: Is it time to start a position on SJ at the offering price of $40.63? Txs for u usual great advices & services

Q: How will the sale of shares by Stella Jones International in a private placement impact SJ going forward if at all?

Q: This offering looks like a great buying opportunity to me. Why would Stella International sell their shares at such a large discount? The sneak peek at earnings looks good to me... do you agree?

Q: The secondary offering today is at a large discount. Do you know why? Will the share price move all the way to $40.63 in the short-term?

How do the preliminary numbers for Q2 issued today looks for SJ?

Thanks.

Q: Hi, I am trying to reduce/consolidate number of stocks in my portfolio and also raise some cash. Except SJ (1.5%), all others mentioned here currently have < 1% position. I am holding YGR and BDI for Energy exposure, as my only other holdings in the sector are ENB (3.5%) and PKI (1.7%). I also like the momentum and prospects, based recent developments and your comments on COV and waiting for an opportunity to add on a pullback. RHT, VB and DOL were purchased in small quantities, at the time of addition to 5i potfolios. I also like SJ, and think, market is not assigning it proper valuation at this time. So, I am considering selling RHT, VB and DOL and use some cash to add to SJ. What is your opinion ? Do you believe, there are any near term catalysts for these 3 companies to hold on for now or it should be fine to liquidate. Thanks

Q: SJ stock continues to go sideways despite what appears to be positive news. CN has been announcing a series of planned capital improvements over the past month or two. Yesterday, they outlined plans for Ontario, including the installation of 380,000 new railway ties. New housing starts are up and I believe SJ has operations in both the US and Canada so tariff fears shouldn't be that strong.

I am wondering why this and other such announcements would not be reflected in the share price of SJ as it is a major supplier of ties (I am assuming that 380k is a lot of ties, maybe it isn't). When CN released the last results they mentioned increased spending and the new CEO seems to have ramped things up as well, so it this old news and already reflected in SJs price?

Appreciate your insight.

Paul F.

Q: I try to keep my portfolio close to your balanced portfolio. In this mix what would you replace SJ with?
ATD.B - BCE - BNS - BYD.UN - CCL.B - CNR - CSU - DOL - GC - GSY - KXS - MG - MX - NFI - PBH - PHO - PPL - SHOP - SIS - SJ - TD - TSGI - TOY - WSP

Q: I note that in June you sold your entire position in SJ from the Balanced Portfolio. I hold SJ. Was your rationale for selling due to a problem with SJ or because you required cash to add TSGI?

Thank you

Michael

Q: I know you folks remain generally positive regarding the markets but assuming NAFTA does get killed, what stocks in the Income and Balanced Portfolios are at the greatest risk. Thanks as always.

Q: With MX and CCL already owned in a materials allocation, and having just sold Stella Jones, would you add TECK or WEF? Thank-you.

Q: Hi Peter and Team,

I have a 3% position in Telus and a 5% position in Stella Jones and 5% in cash. I am looking to sell my positions in both. Can you suggest sector equivalents to those stocks, or do you recommend staying in those positions?

Thanks again for all your hard work.

Marvin

Q: Over the years I've adjusted my portfolio so that it's almost identical to the balanced portfolio. So I own SJ as of now. I see that you recently sold it and AIF but have only purchased TSGI. Will you be adding another new stock soon to replace SJ? Thanks for all of your expertise. Cheers
ANdy

Q: Peter and Team:

I am a long term investor and understand your thoughts on market timing and political influences.
Having said that, which companies in your balanced portfolio stand the most to loose if we get into a protracted trade dispute with Donald and his gang.

Thanks

Phil

Q: Hi, I am trying to raise some cash and reallocate for buying a new position ( TCL.a).
Most of my holdings have done well ( many same as Balanced and a few from Growth 5i Portfolios) with moderate to sizable gains since inception with the exception of above names ( Negative YTD Only). I like the prospects of some of them with portfolio weights TOY (3.5%), SIS (3.5%)and SJ (2%).
BCE and ENB are fairly old holdings with 3.5% weight each and have not been acting well for a while. Over past few months, I have sold all KWH.un and most of ECI
( reduced to 0.75% weight), due to rising rates and other company specific concerns. DOL (1.25% weight).
Will it be reasonable to eliminate ECI and DOL (small positions) and/or reduce BCE/ENB ( BCE more due to muted growth prospects and ENB due to its high debt and pipeline sector concerns).

Thank you for your valued advice.

Q: I just established a position with this name for 3 to 5 year hold. Please give me your opinion on this company?

Thanks.

Q: Hi,
I currently do not have a lot of exposure to the materials sector (my % is at 6% versus my target of 8%). Other than owning CCL, my only exposure is thru the broad based ETF's I own.
I would like your suggestion regarding what would be your top companies in this sector at present time (3 to 4). I am more of a growth at a reasonable price investor and prefer owning companies that either pay a dividend or are buying back shares.
Thanks for your help.
Dan