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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: AW has kind of dropped from its 30$ in June,is it the general market and how do you feel about it going forward? A good add to holding at this point ?
Read Answer Asked by terrance on September 16, 2015
Q: Hello 5i team

I have invested in BAD in the past and did well, I still own a small position in this company ( I am not concerned with the weighting in my portfolio ). I work in the oil and gas field and I see BAD trucks at my work place, I drive home from work and see BAD trucks working on city Infrastructure projects. I like the idea that they can allocate their trucks away from slower areas (oil and gas sector) and move them to more profitable areas very quickly. I believe they have a good reputation in the field. I like that they build their own trucks and can ramp up assembly of these trucks on a whim. In having control of the construction of these trucks they have slashed the price of the trucks compared to buying them from a middle man dealer (a huge competitive advantage in my opinion) they have also maximized the usability of the truck since they have ultimate control of the product.

I have noticed over the years that large corporations ( In the O&G field and utility sectors) are becoming more focused on safety (probably due to wanting to keep insurance costs minimal) and in these slower times in the oil patch are starting to pinch their pennies harder. I see BAD as the safest, fastest and cheapest way of excavating pipes, cables etc which is just what their customers or potential customers should be wanting. I also see BAD as a excellent take out prospect maybe not today, maybe not tomorrow but some day. As they become more dominant in the north american hydro vac world they should look more attractive to some larger service companies. BAD seems to have a manageable debt load, good ROE and pays a div which hasn't grown but they have been in a aggressive growth phase and I expect after that phase is over that the div will begin to climb.

My question to you is why should a guy not back the truck up on this stock now (sector weighting not begin a concern to me)?? It should be able to easily survive this oil market slow down and come out the other end looking pretty good since it has plenty of business happening in the Infrastructure and utilities areas. What are the potential down falls of this stock?? What is your opinion of the management??

Thanks
Read Answer Asked by Darren on September 16, 2015
Q: Just a comment regarding Dave's question on HCG...
When I have a stock that is overweight in my portfolio (or I have made a nice profit on), I often will write a covered call at a strike price that I am comfortable with. This ensures that I keep my weighting appropriate and removes the "emotion" from the decision to sell. Why not get a premium for selling a stock you had planned on trimming in the first place.

Please publish if you think this would benefit others.

Thanks,
Read Answer Asked by Mark on September 16, 2015
Q: I have a similar (nice) problem to that posted by David. I bought a half position in HCG and saw it go up 15% in a couple of weeks. Tempting though it is to cash out and take my wife out for a good dinner, I still want to purchase the other half position as it was my intention all along (I am a long term invester). I am not trying to "time" the market, but it is 1) a small cap (the other financials I hold are RY, BNS and MFC); and 2) the market is gittery to say the least. So the question is: what is the reason for HCG to rise so fast? Short covering? As always, thanks again. Henry
Read Answer Asked by Henry on September 15, 2015
Q: Considering buying Enbridge here, don't have any energy related stocks currently(except for what's in VCX). Would you suggest adding ENB or adding to MDA already held and down over 25%. Adding would bring it a percentage point or so above equal weight in a 12 stock portfolio, having already averaged down once at around $86(bought at around 96 originally)Thanks.
Read Answer Asked by Josh on September 15, 2015
Q: How do you handle situations where you initiate a position and in less than two weeks it runs up 20%. This happened in Home Capital and I am struggling with the decision on keeping or selling.
There has been much volatility in the markets in general and on this name that it would be hard to see it drop back to the 25-27 range and not have taken profits. I feel my position is not large enough to sell just half and keep half to trade around the name.
Thanks
Read Answer Asked by David on September 15, 2015
Q: Hi Peter,
Any idea why Home capital is surging ahead in the last few days? Thanks
Read Answer Asked by umedali on September 15, 2015
Q: pleas explain the announcement by DHX this morning regarding dual class shares to be treated as single for purpose of early warning reporting and take over bids. Have they been approached? thank you for all your help.
Read Answer Asked by marlene on September 15, 2015
Q: What is it that is ailing BIN? I've wanted to buy it now for some time, yet something keeps holding me back.

Apart from your in-house report, I've read quite a lot on this company, because it seems such a logical, slam-dunk, no-brainer (and many other metaphors to accompany that thought) that it should be doing so much better than it is. Yet, it is trading lower now than in January, and nothing seems to shake it out of its doldrums.

Does it have more competition in the space than we (retail investors) are aware? Is it an organic ailment (no pun intended, given the nature of the industry?) Is it management? Is is just the sluggish market?

I would think even in a sluggish market, we're producing more waste than ever before in history, and consuming at such a rate that it makes cockroaches blush, and yet ...

I'd appreciate a gut-reaction, experienced investor's hunch on what's up with BIN.

Thanks very much, as always.
Read Answer Asked by Sylvia on September 14, 2015
Q: Good morning. I read their report this morning, and the stock has been declining for quite a while. The payout ratio has increased and I am wondering whether to hold it any longer..It is in My Riff and I am below my cost. Could you please give your advice Peter as I value your opinion. Thank you,
Read Answer Asked by Phyllis on September 14, 2015
Q: Any thoughts on Cervus at these levels as a 'bottom fishing' long term hold. Looks pretty cheap here against past growth rates. Think the dividend is safe?
Read Answer Asked by John on September 11, 2015
Q: Any thoughts after listening to the conference call? I believe this was supposed to be there seasonally strong quarter. Does it make sense to lighten up at all.
Read Answer Asked by Andrew on September 11, 2015