Investment Q&A

Q: Hello Peter & Co,
I sold KBL in early 2014 for $40 and watched it muddle along for quite a while; in a matter of a few months it moved up to around $50.
It is now way in overbought territory (upper limits of RSI) and with an ROE of around 15% and forward P/E ratio of between 25 and 30 (depending on the data source), the ratio profitability/PE being much lower than 1 (0.5 to 0.6).
Is it too early (or maybe too late) to get back in?
By the way; I own most of your holdings in the Model Portfolio, but because I do not invest in Smoking and Gambling related stocks my returns are slightly lower but still quite respectable. It takes all kinds of people to make a market, right?
Thanks,
Antoine
Antoine

Q: I was all set to sell my ECI holdings because I thought the company was just for income with little in the way of growth prospects. Given today's results should I be reassessing my commitment to this company?

Thank you.

Paul F.

Q: Nice to see some significant insider buying on the open market last week along with some exercising of options.

Q: I would like to add one position in my RRSP and would like you to rank in order of preference Cineplex, Home Capital Group, A and W Royal Income Fund. I have read your reports and I know you like them all but would appreciate your input in making this decision. It's for a 10 year hold. 5i is AWESOME! Thanks

Q: Hi Peter.
What is wrong with WIN? Essentially no debt, huge amount of cash on hand (+100 million) and they just increased their dividend (yield above 6%). What am I missing? Should I buy more in my TFSA? Thanks.

Q: Do you think the weakness in MacDonald Dettwiler (MDA) recently could have anything to do with the US Homeland Security funding uncertainty?

I have here 2015 eps estimates at $6.36 giving MDA a p/e of just over 15, which looks pretty attractive to me considering eps growth is supposed to be well over 10% a year for the next few years, at least.

Q: acq down over 3 on no apparent news, would you buy more in here, i have a decent position but the risk does not bother me. dave

Q: Hi Team
Could you give me your assessment of CUS. Is there any hope of a recovery in the next year? I am down over 60% and am thinking it is time to move on. Yield?
Thanks for the great service.

Q: Good afternoon 5i team. An insightful article in the Globe & Mail yesterday suggests that NPI may be using unusual accounting to calculate its dividend payout ratio. Got the gist of the article, which may be the reason for the stock price dropping over 2% today, though the accounting discussion is a wee bit technical for me.
Could you help with this? Does the point of the article seem valid, or are NPI's arguments against the third party opinion reasonable?
Thanks as always.

Q: Hi 5i Team,
I wondered if you could comment on why Peter has chosen EXCO as a buy at this time. He obviously feels that auto sales will continue to grow for a while yet, is this the main reason?
Thanks.

Q: CBC will air investigation of EH loan procedures and it appears to be very unflattering, if last nite's National teaser is any indication (loan rates at 57% annualized); stock is off today; short-term or long-term impact?

Q: Hi Team

can you help me understand the ebb and flow of the market sectors.

the one that intrigues me lately is the insurance and financials

1. in the insurance sector there seems to be a year to date downturn for SLF, yet not for GWO OR IFC. WHY is this, is there any real "science" / economic "fundamentals" to this?

2. as for the big 6 in banks, they seem to move in the same general direction yet by slightly bigger swings for some, i.e. CM and CWB, is there any rationale behind this ?

Q: I purchased SYZ in December 2013 at $7.18. Despite a nice little run-up in the stock over the past year, it seems we're right back where we started 14 months ago. I am wondering if there is any compelling reason to continue to hold? With a sluggish economy in the west, I cannot foresee much demand for its services/software at this time and am wondering if that is what is being reflected now in the price. Who would be SYZ's competitors, and how are they faring? Is there another company within that space that might fare better under present conditions? Thanks.

Q: What is your opinion on Morguard? Looking at it as a possible real estate investment.

Q: A stock split is not a taxable event, What about stock dividend? Would it means that I will be taxed on certain amount representing half of the value of stock at the time of declaration?

Q: H
i Peter What is your thoughts on BIN results bought after I trimmed a position on rpi.un so far I lost 5% of my capital .The market did not think much of the results .
Are you still higb on this stock?
Stam

Q: Hello 5i. Just wondering if you have a thesis for the apparent weakening in Enbridge's stock price. The recent Q4 update seemed OK at a quick glance. Thanks as always for the great advice.

Q: Magna's announcement of a 2 for 1 stock split, indicated that the 2 for 1 stock split would be implemented by way of a stock dividend. I understand the concept of a 2 for 1 stock split, but what does implemented by way of a stock dividend mean. Thanks for you explanation.

Q: Good afternoon, at today's stock price is this not a mega opportunity ?

Q: Looks very good to me, surprised the market is not reacting
Fourth-Quarter Highlights
•Adjusted basic earnings per share(3) of $1.51, up 26.9%,
basic earnings per share of $1.33, up 129.3%
•13.4% operating income margin(1), up 0.5% year-over-year
•CCL Label organic sales growth of 5.9%
•Board approves 25% increase to first quarter 2015 dividend. Annual dividend is $1.50 per class B share for 2015 compared to $1.00 at March 2014


Adjusted basic earnings per share(3) of $6.53, up 47.4%,
basic earnings per share of $6.31, up 107.6%
•Avery delivers $109 million operating income(1)
•CCL Label delivers 6.5% organic sales growth and 21.0% EBITDA margin(2)
•Free cash flow(5) $264 million, 122% earnings conversion
•20% return on equity(6) hurdle reached for the first time