Investment Q&A

Q: I like AVO's growth but am concerned about AVO's lower reported operating cash flow vs. earnings. In the first nine months of 2015 the company reported $22M of earnings but only $9M of operating cash flow. The difference is due to spending on inventory, which the company is presumably doing to support future growth. However, the Days In Inventory ratio indicates it's taking AVO longer to sell its inventory than it used to. In your experience, is lower reported cash flow vs. earnings a cause for concern for investors? Also, do you think this could be a red flag that AVO is channel stuffing into its integrator network? I'm deciding whether to add a small position (1-2%) in AVO because of its growth potential and what appears to be an attractive valuation on P/E. Thanks

Q: Hello 5i,
Please comment on Magna earnings and outlook.
Thanks.

Q: Thoughts on recent earnings. I noticed the automotive division is doing well but the rubber compounding is showing some weakness if i'm correct.
Still a 5i favourite?
Thanks guys

Q: looks like magna is going to get kicked again today. I was going to add but probablly should wait ?

Q: YTD price is down approx. 30%, fwd PE is 9.7 and yld is 7.3%. Any reason other than cycle and retiring CEO. I like this company and sector long term. Is it screaming buy?

Q: Hi Team,
I've owned AVO for about 18 months. After what seemed like decent numbers this quarter the stock dropped yet again (a stock the market hates). Do you think I would be better off re-deploying my AVO capital into any or all of GUD (Knight) and/or IT (Intertain) and/or DRT (Dirt Environmental)? I own 1/2 positions in all three. I now have about a 1/4 position in AVO.
Thank you.
Michael

Q: Hi, would appreciate your comments on CCL earnings released this morning, please. Looks like a strong beat on all counts !!! Is it prudent to add at current levels ? Thanks

Q: Hi 5i,

What are your current thoughts on BEP.un? What is your preference between BIN and BEP?

Thanks!

Q: Could I please have your thoughts on which of CU or BEP.UN would be the best hold over the next 5 years.

Thank you

David

Q: Hi,

Can you comment Q3 result. Do you see positive catalyst in the near term? Value stock or value trap?

Thank you

Q: I currently have no exposure to the health care sector in my portfolio. I'm looking for companies that pay a bit of a dividend which is sustainable and have the ability to provide some steady capital appreciation. I realize that American stocks are not your expertise, but keeping my criteria in mind and watching what's going on with Canadian health care, I would appreciate your opinion on three American companies. Gilead, JNJ, and Walgreens.
Looking to the future, which of these companies has the best prospects? (keeping capital gain and dividend growth in mind)
Which 2 Canadian companies who you add to diversify my health care holdings?
Thanks for your guidance.

Q: What is your estimate of Goldcorp. for the next two years

Q: Would you consider entry into WSP Global in the current $47.00 range reasonable given the potential increase for government infrastructure spending?

Q: Ok, I'm one of those "dummies" who decided on, Aug 5/15, was a great time to take advantage of the drop and purchase a chunk of HLF at $20 (and in a RSP account!) Things aren't turning out what I wished for, with HLF closing today at $11.38 more than a 40% drop, and especially for such a short time. I have about 8 years until retirement, and am in 500 shares. Should I lighten, or hold and hope for the best (which often doesn't work out --- especially with WIN!!!)
Thanks!

Q: Good Morning Team,

I'm thinking of switching some money out of my current financial holdings into FSZ but am not sure if it's a good idea. What I mean is that, while the yield is much better with FSZ, its PE is more or less on a par with the big banks. At present, I have HCG 4.4%, TD 3.3% & RY 1.9%.
I would appreciate your thoughts.
As always, thank you very much.

Q: Hi, would you buy CCL.B before they report tomorrow? Your comment on Shopify's earnings report..thanx

Q: to my previous question, please add the 2.71 Div as another strength and charge for another question. Thanks......

Q: I bought half a position today @ $1.84 for the following reason. They have a lot of cash, patents, experience and are divesting what experience tells them to drop. If WIN were a private company with an IPO today, I suspect it would trade north of $5.00. What do you think? (before I buy the other half!) Thanks for the ongoing support.

Q: Sorry another question on wilan. Skippen says that the dividend will be cut but does not exclude possibility of special dividends.
Would his strategy be to drive the share price down so the company can buy more shares at a cheap price and then collect a special dividend on more shares they would own. Is that a strategy that companies have used in the past? Is it a possibility they would do that or even ethical?

Q: Hi 5i My local lumber yard suggested I put my lumber order in as soon as possible as they are expecting an increase in pricing. They have been told from a supplier that demand from the U.S. is increasing and price increases will follow. My question is ADN has been going down the last few weeks but ADN has just increased its dividend, as boots on the ground would you take this as an opportunity to buy into ADN. Thx Gerry