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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: I would like your take, if possible, on the recent Globe interview (https://www.theglobeandmail.com/business/article-star-ceo-of-stella-jones-looks-back-as-he-moves-forward/) Brian McManus, the outgoing CEO of SJ gave on the future of the company. He spoke of the company having a long runway but my take was he went on to state that of the three main areas that they are in - railway ties, poles and treated lumber - only poles really seemed to have much growth. They control the market in ties but that sector isn't growing and he felt expanding lumber into the US seems a bit of a crapshoot (my words).

Are you able to comment on where you see the growth prospects for the company? It would seem to me that they will have to branch out into new areas and while they have a seasoned, long-serving team in place expansion into new avenues is not risk-free. I have been a long-time holder of SJ stock and while I am not concerned with the share price plummeting, I am wondering if there is any growth left. Or do we give the remaining team (and the soon to be named incoming CEO) the benefit of the doubt for now?

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on August 09, 2019
Q: What do you think of averaging down on a small position (less than 1% of our portfolio) of PHO over the next few weeks. Our current Average Cost is $1.61. I'm OK waiting a few years for improvement in their sales volumes. I would think some key question are "Does PHO have an advantage over competitors and can their technology be applied to additional industries beyond semiconductor production?" Their sales are down dramatically, but their margins and cash holdings seem OK.

Thanks.
Read Answer Asked by Robert on August 08, 2019
Q: Can you explain why the price has dropped over the last 3 months, Profit taking after the last quarter? has trading volume increased?
Read Answer Asked by fwb181 on August 08, 2019
Q: Hi 5i
According to the Portfolio Analytics, I should be reducing my exposure to consumer cyclical stocks from 15% down to 10% of my overall portfolio, and I agree I should reduce 3-5%. I currently have MG-3%, CCL.B-4.5%, BYD.UN-4.5%, GIL-2% and the big laggard TSGI-only 1% of my portfolio now.
I'm considering selling TSGI (50% loss) as I'm getting fed up with it, in addition to one of either GIL or MG. What is your opinion on this approach, and would you sell GIL or MG at this time? I'd also like to hear if you would advise a different approach to reducing my exposure. Thanks very much!
Read Answer Asked by Lois on August 07, 2019
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