Investment Q&A

Q: Trying to figure out if I should hold waiting for the turn around or buy something like

Q: Trying to decide if I should hold onto AD or buy something like LAS.A instead. More interested in growth than income. Any comments appreciated.

Q: Hello,
In your response to a question about tax loss selling you mentioned that you've noticed some strange trading in some stocks this week. Just wondering if you see any good long-term companies that have been "kicked to the curb" recently due to tax loss selling. Air Boss seems to be one that is consistently making new lows in what seems like a daily basis and Black Diamond Group has plummeted since reporting disappointing results a few weeks ago (you have a B- rating on BDI as of Jan 2015). Any names fit the bill as tax loss victims?
Many thanks,
Kent

Q: Peter and His Wonder Team
You and your Team are good at answering impossible questions so I have another one for you. Firstly, you have a well diversified portfolio consisting of 23 stocks which is performing very well. All factors considered ...if you had to pick one of these for best value for either a short term trade or a 3-5 year period which would it be?
Thanks for your opinion which always provides another valuable dimension in dealing with Mr.Market!
Respectfully...
Dr.Ernest Rivait

Q: Good Morning,

Several of the Marijuana growing IPOS are showing tremendous gains recently with the legalization across CA, and prospectively within Canada. I wanted your take on the future of that industry. Are we looking at a dot com type buy out situation as the BW or PM get into the game with existing infrastructure or so you foresee a fizzles end to hype. Would you join the party, if so where?

Thanks,

Eric

Q: If you own the stock should you sell at the recent price ($5.18) or is there any point in waiting for a higher value ? Is there any reason the regulators will not approve the buy-out by the U.S. parent ?

Q: Plse deduct the number of questions that you feel is fair. We have been long suffering shareholders of the listed companys in our RRSPs which would you suggest to continue to hold and which ones would you suggest selling? Thks

Q: Thank you for your very quick answer to my inquiry of todays date - 11/16/16. However, relevant to your suggestions, we also own RY, SLF, BCE & PBH in other cash accounts. Still looking for other suggestions. Thank you.

Q: I took a flyer on both CGC & APH yesterday & immediately covered with stops on both to protect any downside. Today I was (on paper) up significantly on both, however the automatic market control system placed 3 separate Stop Trade Orders on CGC throughout the day & 2 separate stops on APH. Unfortunately, I lost on both. Perhaps it might be beneficial to advise members of the Catch 22 that can result.

Q: Being a retired accountant I can't help but feeling compelled to add my two cents on the question raised on goodwill.

Goodwill is simply the difference between the purchase price and the net book value of a company acquired. Say, if Co. A buys Co. B for $12 million and Co. B has a net book value ("NBV") of $10 million, then Co. A will report a goodwill of $2 million in its books. It's that simple.

You can call it an accounting plug if you like and that's not far from what it actually is. As to whether goodwill is good or bad, that really depends on each acquisition.

Using the same example, the $2 million goodwill is considered "good" if Co. B's actual assets are worth more than the $12 million paid for by Co. A. However, if the same assets of Co. B are actually worth less than the $10 million NBV, then that $2 million goodwill is really not an asset. That is the reason why so many acquirer companies have goodwill write-offs a few year after initial acquisition - when the true value of the company they acquired becomes crystalized. Hope that helps.

Q: these marijuana stocks have gone nuts-- a complete bubble. aphria a venture stock traded between 7.79 and 5.40 this morning, now 6.90. i sold all of mine around 7.10.
then traded it a few more times between 5.75 and 6.75.
it is insanity. i am completely out now. comments. dave

Q: What caused the triggering of the "Stop Trading Order" this morning at about 1042 AM? Thank you.

Q: In which way is EXE cheaper then SIA ???

Q: We are retired & reasonably comfortable. I have cleaned out several non-performing stocks in a RIF & now hold a full position in the following: FTS, AQN, EIF, KXS, ENG, & IPL.
With surplus cash of approx. $200K, I would appreciate your recommendation to round out this grouping. Thank you.

Q: I have LNR, MGA, MG, EFN, DH, ITP companies in my 5i portfolio. Do you dislike any of these investments?

Q: Hi Peter: I am 81 years. Am considering buying Fidelity Tax-smart withdrawal program. This fund invests 70% S&P/Capped 60 Index and 30% S&P 500 Index. If you can recommend the fund would a 50% to 75% investment of my funds be reasonable? Should I buy on my TD trading account or buy direct from a Fidelity rep? Would I receive the same net income either way? Thanking you for your valuable opinion. Ron Noble

Q: My question concerns asset allocation. I understand how rising interest rates can affect utilities that have a lot of debt or low oil prices affect energy companies but I am less clear why other sectors should be declining in what is being generally viewed as an improving economy. For example, why are consumer staple stocks declining in an atmosphere where economic growth is expected? Does sector rotation fully explain this?

In the same allocation vein, my one weighting anomaly is in industrials, where I have a 25% weighting. I hold EIF, MMM,ECI, HEI (a US airplane parts manufacturer), STN and SIS in fairly equal proportions. Most models suggest this sector should be at most a 20% weighting but when I look at the list I see companies in different industries and businesses and I wonder what a water heater rental company and an engineering company have in common. Am I being too slavish to an asset allocation model or is there something that ties these companies together that I am overlooking?

Appreciate your insight.

Paul F.

Q: With Trump at the controls, would this not be a good time to pick up some Shawcor?

Q: Your thoughts on their earnings - seems like a pretty cheap stock when looking at FFO. Thank you.

Q: I have a question about Onex. The stock price has been increasing recently and I wondered the reason for this rise. What do you think of adding to my shares here?
Thank you 5i for a great job!