Investment Q&A

Q: I was reading some information about Avigilon (AVO) a few days ago. Apparently, Veritas suggests some issues that could affect AVO are channel stuffing (something to do with collaboration between AVO and its channel intermediaries) and early revenue recognition. Veritas also was concerned about uncommon auditor review practices. As a consequence to its review they are suggesting caution. It seems to me that these are probably consequences of a fast growing company rather than something I should be particularly concerned about; however, the frequency I get burnt by trusting my instincts is too high so wished to get your valued opinion. Thank you

Q: Newcomer to 5i after seeing you on BNN. Searched but couldn't find anything on Neptune Technologies (NTB:CA). Alex Ruus was "banging the table" on this one a couple of months ago on BNN, but said the good news would come in the back half of this year. It's since gone from around $2.90 to $2.30 a share. Any thoughts on this turn around story?

Q: Hi

What are your thoughts on TOS, company name TSO3 and it's product and viability over the next 12months? I bought sometime ago at $2, should I sell or do you see some life in this company?

Thx,
Frank

Q: Your opinion on phx at this time would be appreciated.

Q: With the big drop in HNL (Horizon North) and relatively smaller drop in BDI (Black Diamond), which stock would you pick for the the most capital gain potential (in the next 1-2 years) and why.
Would you buy at todays prices or wait until the dust settles on these stocks. Thanks!

Q: Hi Peter and team,
Quick thoughts on Credit Acceptance Corp, CAAC.US

Q: What do you think of CBIZ (CBZ.US). Thanks.

Q: Hi Peter and team,
Quick thoughts on Female Health Company? FHCO.US

Q: Hi Peter and team,
Quick thoughts on Amtrust Financial Services, AFSI.US

Q: I own MBO formerly LXV. You commented on the stock last November. This stock has done badly. At .075 is there any hope for this company? Thanks.

Q: Hello Peter,

Regarding the question I ask (August 01) concerning portfolio diversification, allocation and types of accounts for tax efficiency. Thank you for your answer and also for Lance’s comments (August 04) may I say I find this most informative and educational in helping me in my investment decisions. Ronald

Q: Hello 5i team,

Questor (QST) down 33% over the last month. Do you consider the current price a good entry point? or should one wait until price stabilizes? I have a long term position in mind.
(Understood that it is a high risk holding.)

Thank-You.

Q: Hi Peter,
I initially accepted the investment risk associated with acquiring Questor, but it has been in a downward spiral since and now find myself down 20% since I bought it. If it were not for the eco-conscious potential associated with Questor`s product offering, I would typically move on; could I have your opinion towards the potential upside to this stock? If I stay put, should I be taking advantage of the current price and increase my position, or would you hold off and wait for a rebounding indication of strength. For what it`s worth, BMO have tagged a support price of $.40 ( scary). Can you enlighten me Peter?
Thank you kindly for all you and your team have done for neophyte investors such as myself.
Rick

Q: Hi there. I am reviewing my current holdings and I'd appreciate your comments on Lyondell Basell (LYB-N) in terms of the current stock valuation and on the company's prospects going forward. I've had the stock for about a year. Would this be a long term hold or more of a cyclical? Thanks.

Q: peter & Co.
May I please have your analysis and opinion on Romarco Resources (R on the TSX)?
With appreciation.
Ed

Q: would it be possible to allow a user to see 10 pages of questions at a time rather than only one page? In other words allow 10 times the questions to be on 1 page?

This makes it easier if you have an iPhone because because you don't have to say next page as often.

Thanks,
Ken

Q: Hi 5i: A comment on Ronald’s question (Aug 1) about spreading holdings across more than one account (RSP, TFSA, Taxable). I took his issue to be that, given the amount of his total investments, two 5% equity positions would max out his TFSA capacity, resulting in his betting his potential for TFSA tax benefits on only two higher growth (and quite possibly higher risk) equities. I suffered through a period where a similar concentration that did not work out as desired seriously hamstrung my ability to grow my TFSA. Back in the first couple of years of TFSAs, when the accumulated contributions were $5k or $10k, this concentration for equity holdings was only really avoidable through an ETF or mutual fund. But now that one’s total contributions may be as high as $31k, and one may have grown from that with some years of investment returns, TFSA account balances can be large enough to warrant treatment as mini-portfolios and in my view many of the regular principles regarding diversification and stability should be applied. I agree with your general suggestion that the TFSA accounts be weighted toward higher growth companies because if you can get some of the high growth benefit in a tax free form it is great. Probably even better than no tax bill is the accomplishment of increasing your total allowable tax free investment space, which would otherwise be severely restricted by the annual contribution limits. However, by the same token, the value of that tax free investment space makes the TFSA the worst place to suffer a significant loss. So I would say have some high growth potential in your TFSA but also have some relatively stable reliable stuff in there that will preserve your ability to salvage the account and recover in the event that one of the high growth vehicles doesn’t work out. That probably means you don’t concentrate your TFSA in just two positions (at least, it wouldn’t fit most people’s investment profiles to be that concentrated). Particularly now that an equity transaction costs most do-it-yourselfers $10 or less, you are not costing yourself much in fees to have some diversity in TFSA positions starting in the 3 to 5 thousand dollar range. And you are not costing yourself much in extra fees to have some of the same holding in different types of accounts in order to have a stabilizing or growth effect on each of them. Thanks!

Q: Hi 5i team,

Could I please get your recent thoughts on PTA (Petroamerica) subsequent to the acquisition of Suroco?

Much appreciated in advance,

Jon

Q: Hi,Peter

Your thoughts on CRR.US quarterly report why it dropped so
much? is it a sell or hold ? Also for TSL.UN is it a long term
hold? thanks a lot

Selina

Q: Hello Peter and Ryan,

This is a question regarding diversification and stock allocating strategy according to different types of accounts for income tax efficiency.
From what I have read I understand in the case of a portfolio consisting of 3 accounts: RRSP, TFSA and non registered account it’s advisable for income tax efficiency to have the following strategy : high growth stocks in the TFSA account, foreign stocks in the RRSP account and dividend paying stocks in the non registered account.
In my case my RRSP has done very well and spreading a 20 stocks portfolio across the 3 accounts RRSP, TFSA and non registered account in even 5 % positions only puts 2 stocks in the fully loaded TFSA account.
Although this will generate extra trading fees I’m thinking of moving the stocks around into the right accounts and also spreading half positions 2.5 % of same stock into TFSA and RRSP in order to get more then 2 stocks in the fully loaded TFSA account for growth, diversification and tax efficiency.
Please let me now this strategy makes sense for the long term and if so which 4 to 5 stocks do you recommend from the 5I Model Portfolio or other 5I stocks that have better valuations for a TFSA account?
Thanks for a great No Conflict service and helping in achieve great returns. Ronald