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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: Good evening! I will be liquidity (100% cash) one of my accounts $350,000....20 stocks...most covered by 5i...AYA, ACQ,AVO,MG, CSU,MDA,T, VRX, ESL...I will be doing so prior to Dec 24...I know timing is impossible...but looking for guidance or suggestions on selling off portfolio over the next 5 weeks.

Thanks
Matt
Read Answer Asked by Matthew on November 18, 2014
Q: I hold HLF in TFSA (approx 15% position). It is down 2% from purchase. I am considering replacing HLF with CCL.B based on your latest report. I am emphasizing growth in my TFSA. Your opinion re this idea ?
Thanks
Read Answer Asked by Terrance on November 17, 2014
Q: Mark me down as stupid, but I have no idea what is going on with STN. All I can figure out from their news release as stated on their website and from the entries here is that I'm getting their standard dividend of 0.185 per share and I'm under water by over 49%. Could you please elucidate?
Read Answer Asked by Fred on November 17, 2014
Q: Just observation.Over the last 2 quarters,noticed 2 stocks,SJ & CGX(both in the Model Portfolio) appreciated after missing Revenue &/or EPS estimates.Both reached 52 week high,SJ on Nov 14,& CGX on Nov 13. On 8/20,V Hirsh on Market Call stated that she loves SJ which has great management.Last Q was a little weaker as the cost of treated wood rose.Next Q also might not be fantastic.But growth for the next 2 years is fantastic.Also grow by tuck in acquistion. CGX's Ceo,Jacob appeared on BNN immediately after earnings release & went through the details-beat all metrics except for the poor 2014 summer movie slate,but expect 2015's to be better. Thanks
Read Answer Asked by Peter on November 17, 2014
Q: Question about averaging down or buying on major dips.

I have seen the comments "we don't like averaging down" on a number of occasions.

If I consider a stock like AHF, which I believe you liked when you prepared your report on this company and still like today, what would be wrong with averaging down (assuming we keep our stock weights somewhat in balance and possibly increase our exposure a little bit).

The way I read your Q&A to AHF is:
- The fundamentals have not really changed. In fact, they are possibly better. The focus is on higher margin business.
- The dividend (7%) is secure with good cash flow. (This is a great dividend which we can collect while we wait for the stock to go higher. Not many companies pay 7%.)

As a result:
- If we buy the stock at this price, our risk is greatly reduced. The stock is selling at 70% the price it was recommended at and your opinion of the company has not changed. It is like going to the store and buying stuff on special.
- If the stock goes back to the price it was at when recommended ($1.22), that is 42% upside. If we assume it takes 2 years to do so, that would be a 21% annualized gain, plus about a 7% dividend per year for an annualized gain of 28%. And this assumes the price only goes back to the price it was initially recommended at for purchase.

If averaging down is not a good thing, when fundamentals are same if not better, and our risk of financial loss is lower (as preservation of capital is paramount) and the dividend is exceptional... Then as some people would say, is it not time to back up the truck, is it not the time to be greedy when others are fearful...

And if it is not a good purchase at time price, then should we not get rid of it and move on.

Your valued opinion is greatly appreciated. I've learnt a lot.

Thank You.
Read Answer Asked by Walter on November 16, 2014
Q: I am a retired Dividend-Income investor and need to bump up my asset allocation in the Industrial-Tech sector.

I have narrowed it down to WSP and ET from your Income portfolio. ET looks good but seems fairly illiquid. WSP appears to have better metrics than ET (P/BV, P/Sales, upside based on Globefund summaries), but the beta is a little higher. Additionally, RBC has WSP as overvalued.

I like to give a stock time to run and have a healthy dividend. What are your thought on buying WSP vs ET at this time?

Thanks for your great service.
Steve
Read Answer Asked by Stephen on November 14, 2014
Q: This is more of a comment than a question, although I would be interested in knowing what drove the action yesterday - extremely unusual for any stock. It started with a huge gap down, no doubt in response to their earnings. Then, wow! It took off with volumes 5 times the 100 day MA. My first response was, as other correspondents, to sell. But the four analysts available on the Scotia iTrade website are all on the positive side, agreeing with you at 5i. And since I am not a trader but an investor, I am holding on. Something positive seems to be in the works.
Read Answer Asked by Fred on November 14, 2014
Q: Hi team, your thoughts on KBL's recent results. Please ignore this if already asked. Thanks!
Read Answer Asked by Hussein on November 14, 2014
Q: Hi 5i Team
Referring to my question of November 13th... should I invest in TMA, QST or increase DHX or SGY or another higher dividend paying but low share valued stock to diversify sectors?
Thanks for your guidance.
K
Read Answer Asked by Kathy on November 14, 2014
Q: Hello 5i team

Long term holder... have been reading comments in the forum but have not had the opportunity to see anything accounting for the 9% drop in share value since 60 days ago. Obviously the market correction probably accounts for some of that... anything else going on? Does the upcoming split have something do with this?

Thanks for all you do

Gord
Read Answer Asked by Gord on November 14, 2014
Q: I should've waited a day to ask about EQI Could you give me some colour on their latest results?

TIA
Read Answer Asked by Gerald on November 14, 2014
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