Investment Q&A

Q: I am a recent member of 5iResearch - have followed you guys for a long time and have had a lot of good ideas from you - I own Cineplex and notice you have an A- rating on the company - with the recent downturn do you still support this rating?? one of your main concerns was valuation - current prices look more interesting?

Q: On Aug 25 an early warning report was filed to the issue of ADW.B. Can you comment on this. Strikes me as quite bullish.

Q: I am considering moving IPL out of my TFSA account and replacing it with either ZCL or ZZZ. At present I do not have any other energy related stocks in my TFSA but, I do have 3 consumer stocks, ADW.A,ECI & TOY. Your opinion please.
Thanks
Roy

Q: CGX.TO is $35, do you think it's a good time to buy. Or stay away. Do you think market is set to go down now?

Q: Exco technologies continues to make 52 weeks lows down 45% since 2015. Canadian insider reports pretty heavy insider trading in the recent early summer pop up. Should that be concerning?

Is there a good reason to hold this and how does it current p/e compare to its historic average. Dividend of 3.3% is also very high; what does that represent of payout ratio?

Thanks

Q: Hi 5i Team:
I've held L for the better part of 3 years now. It seems range bound between $60 - $70. Sometimes going over $70 and then having a pullback. With Amazon entering/disrupting the grocery business. I would like your opinion if you think switching Loblaw's for Premium Brands would be appropriate. Same sector, same dividend and PBH probably better growth and dividend prospects.

Q: Mr. Hodson, this is still about GUD. Considering your recent report, the rating of A- granted, its recent value of $8.31, I hope it goes well, which is not the case currently. Do you still have confidence in it ?

Q: As a new member of 5i Research, I first want to thank you for the service you provide. Fantastic.

I am reviewing the Canadian portion of my RRSP, sector by sector. I have a balanced approach and 15+ years ahead of me before transferring to a RRIF.

I find myself a bit underweight and concentrated in Healthcare, owing only NHW.UN (4% of Canadian portfolio). I was thinking of switching half into CSH.UN for diversification within the Real Estate/Healthcare space, then add a 3% position in GUD for more growth. What are your thoughts?

Note: The US portion of my RRSP, which is half the size of my Canadian portfolio, is invested in Mutual funds with Healthcare/Big Pharma representing about 16% of my US holdings. So my strategy would bring Healthcare to 10% overall in my RRSP.

Thx.

Q: What's a good replacement for CGX?

Thanks,
Robert

Q: It seems to me that Cineplex should be valued more on cash flow, like a pipeline or a REIT, because of all the buildings it owns. For 2016, it claimed $106 million in depreciation, which of course lowered reported earnings by that amount. According to TD, 2018 FCF is estimated to be $3.46, making the stock actually somewhat cheap. Thoughts?

Q: Sorry, another on CGX. I'm curious about their dividend payout ratio please?

Thanks!
Rod C.

Q: Hi Peter and Team,
Some analysts still think CGX is expensive after over 30% share price drop. At what share price range CGX is reasonably priced based on current earning and outlook.

Thanks

Q: Would you admit that Avigilon is a much safer/ better investment now than about a year ago, and what would be the biggest risk going forward, thanks?

Q: Can I please get your opinion of SIS' newest acquisition.

Thanks

Dave

Q: SIS has sharply declined from its peak of $17.55 in late May.It is priced to perfection. After miss of expected EPS the last 2 Qs(May by 0.01 & Aug 0.05(0.07 vs 0.12 expected),investors are very unforgiving in this climate(eg geopolitical,Trump,seasonally weak period-mid July to mid Oct,talks of big correction & high valuation) despite 2 good US earnings period & slow & steady growth in economy.Look at similar negative impact on KXS & CGX.On the flip side,see PBH & SHOP.SIS was top pick of 5I on 3/3/16 @ $5.85 & 5/16/16 @ $7.99.I am now looking for an entry point,so please advise what is the catalyst(s) for a turnaround.Thanks for u normal great views & services.

Q: Hello 5i,
If I am looking at starting a position in SIS when it starts showing positive "price momentum", what are the 3 -5 primary factors that you consider to determine "price momentum" and also could you please quantify the parameters that you prefer (for example, if one of your factors is RSI, do you favour 14 or another value)?

Q: Big volume on SIS today of 666,000 shares. Daily volume is around 30,000 period July 27th to August 10th period. Good sign to me as a holder of SIS is that Investors Purchased 666,000 shares. What are your thoughts as to whom may be buying. RAK.

Q: Could we get more insight into the selling of SIS, the shares are down on heavy volume today, who is getting out and why?

Q: I purchased cgx late July and subsequently lost 25%. You mentioned that they need to diversify so that their earnings are not so tied to the box office. In reading their results,it seems that they now have more assets in "other" entertainment venues. Given their previous track record,would you advise holding for a year and how did you view their continuing foray into other venues and what do you see in the future for price appreciation? Thanx.

Q: How come SIS sucks lately? positive quarter and the stock seems to be in free fall! -26% to date!