Investment Q&A

Q: Some observations:

ACQ is finally stating that they are concentrating on acquiring dealerships in eastern Canada as opposed to western Canada. This is very good I believe. They are to acquire 6 by May? 2016, having acquired 2 Nissan dealerships in Ottawa, Ontario recently, so 4 more to go.

ACQ has stopped being a dividend grower as there has been no growing over the past four quarters. Stopped as in they had been increasing the dividend every 1/4 since they started paying.

I suspect the glory days are over for ACQ in so far as its rapid share price growth and it has become a more "traditional company" slower grower of revenues..., dividend and share price as automobiles will still need to be bought/sold and serviced for years to come. At least until self-driving autos become dominant.

I think it is "reasonably priced" now. It had gotten way ahead of itself when it was, say, $60+.

Stan

Q: Thanks for tweeting out any news on dividend changes. Your recent tweets show:


Black Diamond $BDI lowers #dividend 37.5%.

Supremex $SXP raises #dividend 10%.

Telus $T, in our model portfolio, raises #dividend by 10%


There’s been so many lately and I note a few got missed, however I was wondering if there might be a place on your website for “Dividend Changes”? That way we wouldn’t need to put up with all the unwanted Twitter ads etc.

Thanks.

Q: hi Peter It appears win has reached the floor around the $1.50.
What catalyst do you and your team feel it would take to get it up.
Should one take the loss now and move on or sit on it?
It in all like hood be dead money for a long while.
Appreciate your comments
Regards Stan

Q: HI Folks: If a stronger US dollar is deflationary, what effect does it have on stocks in general and on gold in particular?

Q: Has Russell Metals ever eliminated or reduced their dividend ? And how sustainable is their dividend now ? Thanks.

Q: Hi there

I am a bit puzzled as I hold Western Forest Products WEF which has gone up about 15% in the last week. Yet Acadian Timber, which I also hold, has gone down about 20% since its peak of $21 and it fell in price all this week. I bought in today at 17.40 yet it continued to fall as low as 16.57 later on Friday. It has been falling in price despite a strong earning report last week, a dividend increase and a strong US housing market. Just wondering what am I missing? Wondering if I should be adding more to my position of 2.5 of my portfolio?

Much thanks

Stuart

Q: Would you hold off investing in this till at least oil shows a sign of a sustainable rebound? The jobs report that came out said Alberta lost 11,000 jobs overall in October(but Edmonton gained 3000 net I think) and the Canadian economy overall is not that great (Canada did add like 40,000 jobs but over 30,000 were part time) The Canadian dollar falling really hasn't even impacted exports that greatly and manufacturers from the US still say Canada is not competitive enough to reverse the trend. So would you likely wait till next summer to think about investing? I feel as though they bought their dealerships out West at the top of the market and are now buying dealership out east at a possible top. Also I don't really believe that the VW scandal will have no impact on their 5 dealerships, that has to hurt the brand overall, it doesn't matter if it only effects diesels. Also they missed the lowest of the lowered expectations for this quarter when Auto sales in Canada were fairly strong I thought? There was allot of potential here before, but right now I just see too much risk I think, and can't really decide if I should tie money up that may go nowhere for a year that would be better allocated somewhere else. Anyways, thanks ahead of time for your opinions.

Q: I have been holding this since 4$ a share. I am now feeling like there is an opportunity cost of holding this any longer.

"With our third quarter and year-to-date operating and financial results as the back-drop, we are looking forward to a strong finish to 2015 and towards ensuring AutoCanada being well prepared to face continued challenges in Alberta in fiscal 2016," stated Thomas Orysiuk, President & Chief Executive Officer. "In order to provide us with flexibility to execute on our continuing acquisition strategy and to fund our capital expenditure requirements, while maintaining appropriate operating liquidity, we are in advanced stages of negotiations towards expanding our revolving credit facility. As part of this process, we have amended our banking covenants to align with current industry lending practices. Together with our free cash flow from operations, the expanded revolving credit facility will provide us with the necessary flexibility to meet our capital requirements."

I did not like this and the 10% drop today is saying something although the volume isn't massive. I'm interpreting it as 'sell now and buy it back in 12 months' What do you guys suggest here?

On another note, this cold temperature is getting me and my wife exited about our upcoming CMS/5i cruise!

Thanks and have a great weekend.

Q: Hi 5i, I read Peter's article in Money Saver regarding the call writing strategy. In the article you mentioned some US names that you like...are there any CDN names that fit the criteria set out in the article?

Q: Other than the dividend of CEW.A being higher than CEW, what is the difference between these two etf's?
Thanks

Q: I am great fan for both Norm Rothery and Ross Grant whose mentor David Stanley in CMS is my all time favourite writer. They love Dividend paying stocks. How come their selection is not identical? (Recent article in Moneysense and Ross' in CMS) Of course your own Model Income portfolio is very different as well.
Is it due to methodological differences? Would your recommendation to choose one of these portfolios be guided by investor's age, risk tolerance or other factors?
If I am going to pick and choose from all these portfolios what criteria should I employ?
(I know there is some overlap and common denominators in these portfolios)
It will be nice to see an article in CMS comparing VDY/ZDV with say BTSX or Norm's All Star candidates.
Thanks for your great service.

Q: What is the max weighting in any particular stock you would recommend holding before selling.

For myself I hold between ~50-60 different stocks.

Is this too many, and should I get into 30 or 40 positions, or what is the optimum amount of positions.

With this many positions should I get rid of ETF's as I should be diversified enough?

I have smaller than full positions for more risky and growth names, and i have up to 5.5% for stocks such as CSU and CCL.

Is it okay to let these run longer and up to what percentage of a portfolio?

I know you don't know my exact situation but I am looking for some boundaries or rules that I should follow?

For example: Optimum amount of positions for a diversified portfolio, and max weighting in any one stock. If diversified enough would you recommend letting go of ETF's. I hold 6 ETFs each at around 2%.

Thanks, Colin.

Q: Could you please comment on the q3 results? The stock appears to be trading at a significant discount to fmv.

Q: Hi 5i, my question is regarding Tree Island Steel . Yesterday they released Quarterly results and to me they appear stellar. However i would like your opinion. does this continue to be a hold ? Why or why not ? What does this company have to do before you include it into your model portfolio ? thanx norm

Q: Can you please comment on Savaria's recent quarter? Any concerns?

Thank you for all your continued guidance and most recently your recommendation on CDV

Q: I bought $10,000 Canam Convertible Debenture in November, 2011. Since then I have been receiving interest payments interest payments of $312.50 on April 30 and October 31. In October, 2015 I received a call from my broker that the bonds were maturing on October 31, 2015 and I had to decide to receive shares or $10,000 face value by October 23, 2015. I chose shares and received 833 shares on October 28, 2015, with a payment for factional shares and $234.38 interest credited on October 30, 2015. Even though I chose shares I believe I should receive interest right to maturity which would be $312.50. Do you agree the company made a mistake when crediting my account? I phoned my broker and told them that I thought there was a mistake. They gave me Canam Group's investment relations number and said to phone them with my problem. Before I phone I wanted to get your opinion on whether you agree with my calculation.

Thank you.

Q: Is there some reason you haven't posted the monthly portfolios yet it seems to be get later every month.

Q: Is there any historical evidence supporting which day of the week is best for buying stocks and which day for selling stocks? Thanks, Bill

Q: AS PRESIDENT OBAMA SORT OF PROMOTE RENEWABLE ENERGY OVER FOSSIL FUELS,I'M DISAPOINTED BY TODAY BEP HAIR CUT,I'M 72 AND 6% OF MY RETIREMENT PORTFOLIO ACCORDING TO 5I INCOME CRITERIA IS INVESTED WITH THIS SINKING BOAT,NEWERTHELESS HOW YUSTIFY A PE.OF 164,COULD YOU PLEASE EXPLAIN.
THANK YOU TO PETER & TEAM

Q: Thanks for the best advise you giving to your members.

What are your thoughts on MRE results. I only hold 5% Linamar and sold Magna at higher price. Do you prefer MG or MRE or buy both. Is current price ok to buy. Do you know why CDV is trading at below offer price.