Investment Q&A

Q: To this point in time LMN has been a solid performer in my TFSA. Recent results and some of your comments have "cooled" my expectations going forward.

Do you have 2 CDN and 2 US stocks for a TFSA 3 year plus hold that you feel will substantially outperform LMN.

Thanjs,

Terry

Q: I have a general question and am using CN Rail and CGI as examples.

These 2 companies have an average annual sales growth of less than 5% per year over the course of the last decade and their EPS is higher. In the last 5 years the average EPS growth has been in the double digits and their average sales growth less than 5%. I know they buy back shares every year but this can not account for such a large variance. I know they try to be more careful with expenses but you can’t cut expenses forever. You would normally think that EPS follows Sales (to some extent over the years). I know you like these companies and have a few questions.
1. Any idea what is behind the variance between sales and EPS. (Mid to low single digit sales growth and double-digit EPS growth.)
2. Considering such a variance, if average sales growth remains under 5% can these companies continue to compound our return in the double digits over time. Why would they continue to be good long term investments?
3. Anything else that may be worthwhile sharing.

Thanks.

Q: I see that you sold 100% of your position in BRP in your model Growth Portfolio in October. I recognize that it is a cyclical company and having a rough patch right now, but in the past it has managed well through its cycles an prospered. I believe it is a quality company and I'm wondering why you sold it rather than riding it out with them? Thanks very much.

Q: Peter and His Wonder Team
It looks like they just made a good acquisition. In the past it was a $68.00 stock now trading at $15.00. Please give your assessment and does it look like a reasonable buy? Thanks as always for your help!

Q: Please give initial comments on Shopify's quarter; thanks

Q: How would you rank the above listed companies today for a long term hold?

Q: What would be your favourite 3 Canadian tech stocks that have consistent growth potential.

Thanks Tom

Q: Looking at both UBER and ISRG. Please rate them for both growth and risk on a scale of 1-10 (10 being high) and indicate your favourite of the two if purchased today with reasons why. Thank you.

Q: Hi,
I am curious as to your thoughts on this company - seems to have had blow out earnings - is this something you think should be on our radar? Or just a start up flash in the pan?
Many thanks for all your hard work!

Q: Good Morning
I’m planning on lightening up my technology weighting, specifically AI related stocks. Can you suggest a couple of US companies that are showing good momentum?
Thank you

Q: Hello. I'm in my late forties and looking for the best investments for growth with not too high of a risk over 10+ years. would you be able to tell me you best five picks in this category?

Q: Thoughts on te quarter?

Thanks

Dave

Q: Regarding LMN’s latest quarter, how do metrics compare with the early days of CSU and TOI around free cash flow and organic growth since these were the weak spots. Did CSU or TOI experience these same drops or weaknesses and how did they turn it around?
Thanks!

Q: Retired with a longterm (10+ years) investing horizon and a solid pension. My TFSA is primarily growth and all Canadian with some US exposure (WSP, PRL). I’ve got some $US I want to put to work in my new unregistered $US account. I realize you don’t want to get personal but if it were your money and you were looking to start a new US based portfolio with solid companies a bit on the growthy side what 6-8 companies would you consider?
Thanks so much.

Q: I own WELL and am still up in a non-registered account. Would you consider a sell and switch to VHI for better future growth?

Q: You were not very happy with LMN latest results. The stock has jumped and I was thinking of selling some shares. I own CSU, TOI, DSG, NVDA, KXS, Could I have some ideas on a stable growth name or do I add to a stock I already own.

Q: Can I get an updated view of FLUT? I am admittedly not a fan of sports betting ads all over TV, but can’t seem to shake they are likely making a lot of money.

Q: As a follow up to my previous question on OTEX, I would also ask that you comment on analysts downgrades related to OTEX moving towards organic growth and away from growth by acquisition. Isn’t this simply a function of its low stock price relative to earnings and cash flow? If a growth-by acquisition company like CSU bought OTEX then it would be immediately accretive to earnings because CSU trading at a high PE multiple. The same analysts would applaud CSU for its ability to grow by acquisition and call the stock a buy. I am not saying that CSU is a bad company, far from it, but I am wondering if analysts would better serve investors by focusing more on the organic growth of a company and not on what it might acquire in the future.

Q: By my calculations, OTEX is trading at 8X forward earnings and 10% FCF yield. At current price it has a 3.5% dividend yield. According to TD Cowen's analysis the stock could see a 33% return over the next 12 months if it meets the low end of its forecast. So why are all the buy side analysts downgrading the stock or maintaining their hold rating? Isn’t it time to buy when there's blood on the street and you feel sick in your stomach? Has anything changed in its business fundamentals?

Q: I'm looking to close a gap in my non-registered portfolio in the Industrial Sector. I'm not too concerned about industry. I'm looking for some reasonably priced options that you guys like that have good growth potential, but also pay a (growing) dividend. My intention is a long-term buy and hold. Would you please recommend your top 3 Cdn and top 3 US "likes" and rank order purchase preference from 1 to 6 (with 1 being your top pick) and any rationale for your choices that you think might be helpful to my decision making process. Thank you and thanks (yet) again for your excellent service.