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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: Hi Team
For my spouse’s RRSP
Between Glaxosmithkline (GSK) and Bayer AG (BAYRY) which is the better investment to accompany Royal Phillips NV. (PHG)
Within a household is it ok to own similar securities between partners and accounts or is it more prudent to hold different companies for maximum diversification and some downturn protection. I own JNJ, NVO and GUD.
Thank-you in advance, Sam
Read Answer Asked by sam on January 16, 2018
Q: Hi team - Happy New Year!
I'm interested in investing in the bioplastics sector because I'm thinking alternatives to plastics that are made out of natural ingredients and plants that are completely compostable and just as effective (if not more) and durable, and similar in cost, as many conventional plastics that are made out of petrochemicals, will be a growing industry (already growing rapidly in the EU).
I have found a publicly listed company on the Venture in GDNP that's a microcap and they make many bioplastic products. Can you tell me your thoughts on this company. I know its not profitable, but revenues have been increasing and they're predicting they will increase by 50% this year. I'm fully aware of how speculative such a small company like this is, but as a highly speculative play where it would make up a small position in a growth portfolio, what do you guys think? And do they have any major competitors or dominant players already in this industry that I'm not aware of? And if so, would you recommend purchasing one of these major companies (assuming they're publicly listed) instead of GDNP?
Hope you're having a great weekend!
Cheers,
Read Answer Asked by Jason on January 16, 2018
Q: Hi there,

I am contemplating buying into Black Diamond (BDI). Since June it has been trundling upward making higher lows on what seems to be a nice recovery. It seemed to have two points of resistance, one at about 2.50 and one at 2.82 according to my charting program and has burst through each moving to 3.02 on higher volume. So if it's clear that I like the technical side of the chart I'm wondering if you can tell me if you feel that fundamentals support a buy? I'm hoping recent momentum and the volume surge suggest a nice continued bounce toward 52 week high.
Read Answer Asked by Tim on January 16, 2018
Q: Andrew McCreath had a banker on his Friday show that made a good case for buy outs coming this year in US banking industry just not the very large banks. The large banks would not be allowed to merge/takeover more banks because of regulatory concerns.
Could you meanttion some of the stronger mid size US banks that would be good candidates for take over and their related dividend as he mentioned that big dividend increases are on the way.
Mike
Read Answer Asked by Mike on January 16, 2018
Q: Hello 5i team, Walter Capital and management are taking ERG private. While this offer allows shareholders an exit, it seems like a lowball offer (growth will be renewed as they are starting to roll store into superclinics in Quebec, operations have been mostly but marginally profitable over the last few years, cash is about 10¢ per share), and management negotiated to keep their job and shares. (#1) No liquidity in the stock market => low offer?
Even if I think the probability of a competing bid is close to zero, (#2) I would like your opinion on the probability of a competing bid. As ERG is a micro cap and management do not sell (and stays), and the closing ability of the buyer is very good. The deal has been announced few days ago, , and the special meeting of shareholders will be held in the first quarter (after the circular will be mailed). (#2) From the press release, what month (April?) do you think it could close? I am trying to determine whether to hold until closing or sell immediately. 1/2 ¢ = 1,7% return over 4 months? Even if 5i Research is providing great investment ideas, I am in no hurry to reinvest the cash, as I have been building firepower (reducing leverage) during the past year (RDM, TNC, PJC, AF) in order to prepare for a future market wide buying opportunity.
Thank you for your collaboration, Eric
Read Answer Asked by Eric on January 16, 2018
Q: I have long watched CGI Group as an investment based on the advice of Jason Donville on BNN. He was always hyping to ROE being so high and seemed to have good results until he disappeared from the air in the wake of the Valeant and Concordia falls. CGI Group though seems to get lots of "Top Pick" calls on the shows but hasn't really done much. The RSI is down in the 30 range and I'm wondering if company fundamentals combined with the shares being oversold make this a good "trade" or a good opportunity to buy and hold?
Read Answer Asked by Tim on January 16, 2018
Q: Could you give me your view on Victoria Gold. Gold has moved up but this stock is not moving with it.
Thanks John
Read Answer Asked by John on January 16, 2018
Q: Preliminary financial results announced today. Any surprises or insights? If others are in the process of asking similar question...don't waste your time on answering my email too.

Cheers, Stephen S
Read Answer Asked by Stephen on January 16, 2018
Q: Looking to add two of these names to my TFSA. Which two do you think offers the best growth over a 5-7 year period?
Thanks
Read Answer Asked by Curtis on January 16, 2018
Q: Seems like a barrage of questions on Cineplex, in a week, but will ask, anyway. What is its current/ forward PE and is the present valuation justified (even after the steep decline) ? Do you expect Cineplex to continue to generate strong cash flow to pay down its very high debt load ( $600 mln ? ) and support 4.5 - 5% dividend ? How are the results of Cineplex capital investments in new initiatives like Rec rooms and VIP Cinemas ? Cineplex was removed/sold from 5iPortfolios, last year, in what looks like a smart move. But added back to Income portfolio, after some time, at a much lower price ($36.50, I think). With the recent drop in price, do you still have conviction that it's a good income stock to own and would you add ? Also, any change to A- Rating, with all recent developments and outlook ? Thanks
Read Answer Asked by rajeev on January 16, 2018
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