Investment Q&A

Q: Hello, I have just read "Why It’s Almost Impossible to be a Passive Investor in Canada" by Ryan, very informative article. I realize that my portfolio is underweight in the industrials sector. Could you suggest 3 or 4 names in Canada and in the US respectively? I am looking for good mid or big cap companies with growing dividend if possible. This is for long term investment. Regards, Gervais

Q: You last commented on RET.A in response to a question in May. Has your position on this company changed at all since then? An article today in the Globe opines that the rising Canadian dollar will improve RET.A's buying power.

Q: Hello Peter, Given the good growth data for Canada recently, it appears interest rates may increase more than originally anticipated. Would this have a positive or negative impact on GSY? With increased growth in Canada, people are more likely to have more money to spend because of jobs etc., but increased rates would make borrowing more expensive. What are your thoughts? Thank you for your great advice always.

Q: Hi 5i Team, Can you please provide analysis on valuation and growth outlook for Laurentian Bank of Canada. Also please comment on US acquisition. Please advise if current valuation presents good buying opportunity. Thank you, Linda

Q: Greetings Peter and team,

Your answers to members' questions are impressively lucid and objective. So, here is another one for you.

Jack Bogle, the father of the hugely successful concept of passive, US index fund investing does not recommend rebalancing in an individually selected asset allocation strategy. "If you want to do it, once a year is probably enough," he has stated.

Taxes and transaction costs diminish the benefits of rebalancing but Canadians have a lot of tax-deferred and tax-free room in their registered portfolios. Further, transaction costs keep coming down so that with trades above $10,000, investors can (almost) ignore them. With a million dollar trade they can do so, absolutely.

So why not rebalance every time that a given imbalance, say 10% develops?

Q: Team:
Aftermarket automotive parts companies (autozone, genuine, o'reilly) have experienced bad performance over the past year.
Should uni select be grouped with these other companies?
Gas cars will be around for years and these stocks have been good performers. Would Uni Select would a good selection?

Thanks

Q: I own PONY shares. I note the company has hedged a portion of its production for 2017/2018. What do you think of this company’s financial position? Has your opinion changed with the loss of a significant LNG development project in Canada? Would you hold or sell at this point? Thank you kindly for your insights.

Q: You have emphasized that it is better to invest in good companies than to try and time the market. However, when considering a new position, I have read that it may not be a good idea to enter a private equity fund near the end of a business cycle. Do you concur with this idea? Why or why not? Thank you kindly for your discussion of this issue.

Q: Hi, Wondering your thoughts on PDH (Premier Diversified Holdings) on the CSE. I have taken a position as a bet on the jockey (CEO-Sanjeev Parsad) and his ability to invest and grow the business over the long term. Also, I like the idea of some exposure to their start-up / venture style investments (E.g. Sequant Re, MyCare Medtech etc). However, in saying that I understand the risks given the balance sheet and illiquidity so just looking for a second opinion on a stock like this in ones portfolio.

Q: What is your long term outlook on oil I read that France and Britain have banned fossil fuels in another 25 years Consumption in the US has not shown any growth because of the fuel efficiency of the newer engines.

Volvo is going to stop producing gasoline engines in another three years

Canada does not seem to want to compete because of our carbon tax position

I almost want to throw in the towel on all my oil positions because I see consumption decreasing and oil supply increasing

Could you let me know your long term thoughts on oil as an investment and your recommendations

Thank you

Paul

Q: Is it advisable for trading STN for WSP at this time?
Thank you.

Q: Could you comment please on the recent quarterly earnings?

Thanks, Bob Rose

Q: I am looking to invest in the American Defence-Military space. Do you have a favourite Company- ETF?

Thanks Valter

Q: Your portfolio review was helpful and appreciated. Am gradually tweaking our savings re diversification. Presently no healthcare. Am mulling a 3 - 5% (of equity) stake. We can do this in either Cdn or US$. The US healthcare sector is our preference. If we use our Cdn$, it appears you favour ZUH? Can you recommend an equivalent etf if we use our US$? I'm also hoping for your thoughts on whether now even the time to take a position in healthcare (given the current confusion down south) or would we be better off just to add this cash to our SPY or XSP. Thanks for your help.

Q: I am wondering what your thoughts are on SBUX today....is the sell off overdone (Down over 7% at time of this question)? Would you see it as a good buying opportunity or a wait and see? Thank you.

Q: Do you think Interpipe can sustain it's dividend?

Q: Hi 5iTeam,

Can you tell me how much stock insiders own and any other insights you may offer on this company?

Thanks

Q: Good morning from the West Coast.
May I have your view for the long term for GPC Thanks

Q: Any thoughts on their earnings report? Looks like a good quarter and demand is picking up. Good buy at these levels?

Q: What are your thoughts on Input Capital? Was thinking of initiating a small position. What is the main risk to this business and what would be the catalyst to move the stock forward?