Investment Q&A

Q: Hello Peter and Team,

I've been looking at WPK for a while and I quite like it. If I already have a full position (~6%) in CCL, do you think adding to a similar company like WPK is a good idea? Or will the two companies perform similarly? Am I better off holding just one?

Thanks,

Jordan

Q: Hi 5i - for those of us who didn't buy CSU (on the way up), do you think the price today is a good entry point long term, or would you wait (due to the current market volatility) and try to pick up cheaper? Thanks, Neil

Q: I already hold a very small position of CSU in my TFSA that I purchased back in the $370 range (makes up 1% of my total portfolio). Technology is one of the sectors I want to increase my weighting in (7% currently, looking to go to 10%). Other Tech names held are GOOGL, ESL, AAPL, AVO, SYZ. I would add to GOOGL but paying +40% in USD at this point doesn't make it so compelling. So with it's recent pullback I'm looking at adding CSU. Can I have your straight up thoughts on adding CSU here? Thanks

Q: Could you please discuss the purpose of holding gold or gold stock(s) in a total portfolio? Is it best in a registered or unregistered account? And what would be your recommended weighting for a total portfolio? Thanks!

Q: The stock is 19.40. Even if it seems 'on sale' considering recency history (last year), when oil was last at this level, the stock went as low as 8.50. Was it purely a crisis of confidence? Or, did vacancy rates increase quite a bit? Even though the yield of 6.5% looks good, the 30% exposition to Alberta is bound to show increasing vacancy rates over the the next 2 years. The chart also doesn't show much support from here. What do you think? Waiting for a few weeks shouldn't hurt right?

Q: I received this message today and wonder if you can explain its meaning more fully please. I hold the stock and debentures. Thank you.


Constellation Software Inc. Announces Rating Assignment by Fitch
Jan 06, 2016 01:44 pm | Scott Denneny

Toronto, Ontario – January 6, 2016 – Constellation Software Inc. (TSX:CSU) announced today that Fitch Ratings has assigned the Company a long-term issuer default rating of `BBB-´with a Stable Rating Outlook. Fitch’s assigned rating and outlook for the Company does not reflect any credit risk from the Total Specific Solutions (TSS) entities, other than obligations related to the TSS minority owner’s put options.

Fitch has also assigned individual ratings to the Company’s unsecured subordinated floating rate debentures, Series 1, and $300 million revolving credit facility as follows:

Unsecured subordinated floating rate debentures, series 1 `BBB-´
Revolving credit facility `BBB´
About Constellation Software Inc.

Q: Could I have your opinion of FSV please. I notice it has been downgraded a day or so ago by a broker but the particular brokerage may have their own agenda I would like your independent opinion. Thank you for your on-going service. Don.

Q: Happy New Year to you all .

I own both Magna and LNR ,I bought Magna at 60$ should I take my loss and move on?
Your thoughts on LNR.

Thanks for your advice.

Q: What is the significance of their "early warning report?" is this still a reasonable steady eddy income stock, or should I be looking elsewhere? Thanks, and happy new year.

Q: Would you buy AHF and LSG at this point in time ? Thanx Robbie

Q: Thank you for the ESL recommendation. I bought it in the mid $40's and it is now just above $70. What do you think of the valuation at the moment? I am thinking of selling half of my position, thoughts?

Q: Good morning, I've trimmed back a bit on CCL as it's weighting was getting a bit high. Do you have a recommendation for something to add in the same sector?

Q: I was looking to initiate a position in BOS but was surprised to learn it is considered a consumer stock, apparently because of its sales to the auto industry. I also own Magna and am concerned that I may be overweighting in the auto sector. How important is the auto sector to BOS and if I was to own just one of these stocks, would it be MG because of its size?

Apprecitate your insight.

Paul F.

Q: What is your opinion about this company?
Would you consider it a buy and is dividend sustainable?

Q: The macro seems to be very good for TCN in the US, and yet the shares continue to drift lower, roughly 30% off from 52 week high. Am I missing something or does TCN look very attractive at this price?

Thanks

Robert

Q: I purchased Progressive Waste to get a dividend paying company that would be able to take advantage of the weak Canadian dollar. Since that time they have had some weak earnings and now are looking at possibly selling the company. With the bump in price I am now even on the name. Should I sell part or all of my position seeing as how my investment thesis doesn't seem to be playing out how I expected. Or would you wait and see how this plays out?

Q: In a response to a prior comment on this stock you mention how SJ anticipated "the upswing in the spending cycle" I guess for poles and ties. Your April report forecasts a 1 year Revenue growth of 10.4% vs 5 year growth of 25% p.a. and a more recent (Nov.) TD report of forecast 18% growth for 2016, which I can assume is partly extraordinary FX gains to date and partly acquisition based since Apr. What I wonder about is just how cyclical is this business and what a decline in the spending cycle of utilities and railroads might look like. TD forecasts only 7% YOY Revenue growth of 2017 vs 2016 but does not take into account any M&A activity. When was the last downturn in this business and how long did it last? I note they grew EPS in 2008/9 but were a much smaller outfit then. Thanks, J.

Q: Thoughts on currency hedging these days?

http://canadiancouchpotato.com/2015/02/04/stepping-back-from-the-hedge/

"McCreath sees the supply of oil as being the key determinant as to whether the Canadian loonie hits US$0.65, taking stocks down with it, or a perceived recovery of oil prices into 2017 enables Canada to outperform." Your thoughts and to What CDN companies do you like most that are US currency friendly? I will find it even harder to invest in good US stocks for 2016 (i.e. Disney, Costco, Monster Bev etc) since we'll lose out on the currency rate this year.

Q: Happy new year Peter and Ryan,

Looking to add a non cyclical consumer goods and was hoping to find it in your growth portfolio. Did i miss it as I couldn t find one.

Thank you and I look forward to your guidance through these troubled waters.

Q: 20 million shares shorted when you combine nasdaq shorts and tsx shorts out of a possible 96 million trading shares. time to run maybe another IT attack coming.