Investment Q&A

Q: I own shares of ECI and need your help in evaluating their year end report released after hours today and the acquisition also announced today. I have a 4% position and thinking of taking it to a 6% position. Would you?

Q: In my travels I notice that some rail companies are going to a cement railroad tie. Is that something we should worry about for SJ? And why would wood or cement be better?

Thanks, Jean

Q: Big drop today.Just giving back some of the recent gain? Or are you aware of another reason?

Q: Do you know of any reason this stock has been dropping steadily for the past few weeks, with the drop accelerating since the earnings release? I was up a bit but now down 20%. Should I sell or hold on for a recovery?

Q: Oil is up and ACQ is on a tear. Has ACQ gotten ahead of itself? My cost base is $30.44. Should I hang on or should I sell? ACQ is less than 2% of holdings

Q: I wonder if you would explain the corporate structure of this company. I am shareholder and done very well but still don't really understand the structure. Its complicated to me anyway.

Q: Really appreciate your endorsement of BNS & the other big 5 can.banks & calming influence.So much negativety & fear mongering leading up to their 1st Q reports stated Feb 3 & ended Mar 1 with BNS,that it was unnerving.Moodys on BNN stated in a severe stress scenario ,can banks may even need to cut dividend or issue more shares to raise money.As far as I can recollect the big 6 have never cut dividend.Moodys & the other rating agencies endorsed the sub prime pakages buy US banks in the 2007-2008 financial crisis.John Aiken of Barclays Capital cut the target price of the big 6 by 20%.After graduation,he workrd for National Bank,then Dundee & since 2009 for Barclays,ranked 3123/3730 analysts & rated 1/5 with 1 being the weakest.4 of big 6 increased div(CM,TD,BNS & RY) & 4 beat convincingly( CM is the best--$2.55 eps beat $2.41 expected) & 2 were pretty closed.BNS had the biggest appreciation after release--up 5.97% @ close Mar 1.Re my Q on Feb 19,the big 6 are amongst the strongest & safest banks in the world CM leads in T1 capital @ 10.6 & BNS @ 10.1.Big 6 performed better than the US banks

Q: Would you consider the current price per share @ 238.57 a reasonable entry point or wit for pull back??

Q: I hold small positions in both. Do they overlap too much? Should I keep both or sell one and increase the other?

Many thanks

Q: I read your report on this company and questions and answer and you mentioned that this stock need to be kept for 5 years or more. With the stock being down so much from my purchase price and in my TFSA is it not better to just sell and look for another stock with more potential. It is a 7% weight.
Thanks
Dolores

Q: I think you still have SYZ in your growth portfolio. Do you intend to keep it there for the immediate future?? ( yes or no) - thanks.

Q: It is hard to get financial ratios etc., I guess because it does not issue shares & perhaps it's corp. structure. Also, must be thinly traded: hard to get in and out without paying/getting price you want. I was thinking of buying for my non-registered account. Is it a safe long-term investment - I see they just incr. payout by 27%. I am retired - ergo, no more big fat pay checks to replenish any poor investment decisions. Oh, would this co. be a target for a co. like CCL for example?

Your comments would be appreciated.

JP

Q: Hello. Nice performance by Ryan on BNN last night !! I am trying to gain a better understanding of the noise around Checkpoint merger. I had a chance to glance thro' the letter sent by North Star Partners (3.9% shareholder)to Checkpoint Board, deploring their decision on the basis that agreed price grossly underestimates company's intrinsic value. North Star has a history of sending out letters to Checkpoint board in past questioning other decisions, since they became a shareholder. This time they have also asked for 3 board seats. To me it only sounds like a ploy to extract more money to cover their own losses over years. Checkpoint stock has languished for years (from $20 in 2010 to $5.80 in 2015). also no material growth in revenue over years. It's only in 2016, stock gained 65% in value ( could be merger rumors ??). Purchase price of $10.15 is a premium of about 30% from last close, which sounds like the norm. What are the remedies Checkpoint board has to deal with this situation? What are the options with CCL ? What could be possible obstacles to this merger considering the fact that this merger is "definitive" and has been approved by board of both companies? What is the likely impact on CCL share price in near term ? Thanks for your great insight, as always.

Q: can you comment on recent moves in badger shares?

do you think it is moving in anticipation of earnings soon or all the infrastructure spending talk in canada and usa?

in my opinion, this stock is under followed and under appreciated by investors, everywhere i go i see vac trucks and badger has such a great record of solid ROE and ROA and profitability

Q: Hello Peter
The Negative comment yesterday on BEP.UN was from Ross Healy who rated it as "Don't Buy", and said [quoted from Stockchase.com]:
"This one is a difficult call to make. The fair market value is at or below where it is trading. The balance sheet strength is not what he would like to see. He would not be drawn to this one and he would not recommend it. It does not have the supportive earnings he would like to see."

Your comments appreciated as I hold a large position in it and have been quite pleased with the performance and income
Thanks....... Paul K

Q: Can you comment on Winpak and also the latest filing?

Q: what is your view of the stock price and action after their recent announced acquisition?
the valuation remains high but is it worth buying at this price?

Q: AYA was halted twice today but I can't find any news? Thank you

Q: Big jump in price today, would you know why?

Q: I have heard some mildly negative comments about one of my holdings, BEP.UN, recently. Is there an alternative that you would recommend in this sector?
With appreciation.