Investment Q&A

Q: Good morning

Can I have your thoughts/analysis on Mad Catz as a possible investment (projected earning growth/debt etc.)? Are they any stocks you would recommend in this sector)

This stock is behaving very well technically.

Thanks again!

Q: It seems every time ESL gets back to around $55, insiders unload a sizeable amount of stock. Does this suggest they see limited upside to the stock?

Q: There is a nice bounce underway in the mining sector. What do you think is the cause? And if you were to pick one or two companies in the non-precious metals space (by which I mean not primarily precious metals) what would it/they be. Thank-you again.

Q: I bought this stock at $42 in July and it's currently at $31. I don't mind holding a losing stock if it has potential and I'm looking at a longer holding period of 7 - 12 years. Do you think this company has value for that period of time and should I hold? Is there too much competition for its market and if so how do you think it would fare? If you were to switch to another U.S. Company in the tech sector for that time frame could you give me 2 or 3 names you think would do well over time?

Q: What are your thoughts on Wajax? Is it worth holding for the dividend or does the risk of further downward slide outweigh the benefit of the dividend. My book value is about $46 a share.

Joe

Q: With Suncor attempting to entice exhausted shareholders with a 0.25 SU share exchange offer, COS loyalists are fortunate to have an influential shareholder in Seymour Schulich.

Schulich was quoted in saying:
“I ain’t selling at that price,” he said of Monday’s bid, adding that he believes Canadian Oil Sands is worth $20 per share. “If they succeed, I’ll go to court to get a valuation.”

My question is what options do COS shareholders have if SU were to be successful in this takeover chicanery? Could someone like Schulich order an independent valuation and let a judge decide what is fair for shareholders?

Here is link to article:
http://business.financialpost.com/news/energy/suncor-energy-incs-4-3b-hostile-bid-for-canadian-oil-sands-ridiculous-seymour-schulich

Q: Re the ETF question, another company making money on ETF's is Blackrock, which has the ubiquitous i-shares in Canada as well as in the US.

Q: Sector rotation today with oil having an outsized move to the upside and many high quality non-commodity related stocks (CSU, CCL.B, CTC.A, DOL, GIL, L, T, MG, etc etc) with an outsized move to the downside?

I'm thinking of adding another oil company to join WCP as my only oil holdings (currently WCP is less than 2% of the portfolio). What dividend paying name would be on the top of your list today (small cap, large cap, doesn't matter) for a long term hold.

In your opinion, would your #1 ranked oil name be more attractive, from a valuation perspective (assuming a $45 floor for oil) than your current #1 ranked pipeline?

Thanks.

John

Q: In his recent article on etf investing Cullen Roche's closing comment is: "making markets in index funds is hugely profitable". I wonder if there are companies specializing in this area that you could name that would be worth researching. Also, of course, do you agree that they have potential for a profitable investment.
Many thanks
Mike

Q: Hi team, please give me your opinion on the below allocations for both Consumer Discretionary and Staples stocks (this is about a 10-15 year time frame and part of a $200,000 portfolio):

Consumer Discretionary (13% of Portfolio)
ACQ.TO, BYD.UN, CGX.TO, DH.TO, ECI.TO, GC.TO, IT.TO, KBL.TO, MG.TO, MRE.TO, PEO.V

Consumer Staples (12% of Portfolio)
ADW.A, ATD.B, CSW.A, DOL.TO, L.TO, SAP.TO, TPK.TO

Any stocks to take out of these lists or perhaps add to?

Q: For sector allocation, I have the following:

Consumer Cyclical 27.21%
Consumer Defensive 11.67%
Energy 9.10%
Financials 10.07%
Healthcare 8.0%
Industrials 11.97%
Tech 21.98%

Is this too high in cyclicals, wherein I hold Boyd, Disney, CCL Industries and Starbucks, in roughly equal weightings.

If so, which sector should I rebalance into, to optimize what's happening in the market right now?

I'm working with all 5I-approved companies, so the worry is not about individual stocks, but the sectors as a whole.

Thanks as always.

(And thanks to Geoff for correcting my "dyslexic moment" yesterday on Concordia. Obviously, my morning coffee had not kicked in. Very red-faced member, here. : )

Q: In view of the decline in share price, would this be a good time to add to MG or, because of the TPP, is it best to take a wait and see approach.

Q: I currently don't have any exposure to the healthcare sector. Would you please make a couple of recommendations.
Thank you

Q: Can BIP.UN as listed on the TSX be held in a TFSA without any tax implications ? Joe

Q: Bill Carrigan on Market Call maintained that there was a rotation from Health Care etc. to hard assets--energy in particular. Even though I can't see much of a future for energy or gold, the stocks still seem to be acting like there is a rotation to them while health care and IT are underperforming.
Do you have any observations?

Bryon in Elmira

Q: Hi 5i,

There are a couple of things I don't understand about this recent rally.

It seems to me that it is due to the US potentially slowing down, and hence delaying interest rate increases. If this is true, are we to expect this rally to end soon (since a slower US economy must eventually be bad for stocks) or does this rally have legs?

Also, if the rally is based on delaying interest rate increases why are companies like SunLife rallying. I thought these companies were going to benefit from rate increases so the current environment should be negative for them?

Any help you can give me to clear up my confusion would be appreciated.


Thanks,

Q: ABT announced a substantial issuer bid to purchase CAD$50 million in value of its common shares for cancellation. The offer is being conducted as a “modified Dutch auction” with a price range from C$7.75 to C$9.00. The offer expires on Oct 20th 2015 (extended from Oct 5th).

The stock closed today at C$7.47. Why would the stock be trading below the minimum auction price? Do you view this as an arbitrage opportunity to purchase the stock in the open market and then tender the shares for auction?

Q: What are your thoughts on MarketSmart GIC's? And what would be a good alternative?
Thank you in advance for your thoughts.
Janice

Q: I have just over 1% of my portfolio in a total of 3 pref. issues and would like to get up to 5% to take advantage of rate reset prices. Considering to add to TA.PR.H or buy ENB.pf.G or EMA.pr.F. What issue would you prefer or if you have another idea that would be helpful.

Q: In the October portfolio there is a positive 36.4% return in 2015 for SYZ. I think this is incorrect and the return for 2015 should be a negative value.