Investment Q&A

Q: EFX is going up nicely! Is it too late to Buy? Thanks, Austin

Q: I'm interested in Profit Margin. In layman terms "what does it mean"? Is it the same as Net Margin (TD Webbroker shows Profit Margin, other sites show Net Margin)? Would using a minimum profit margin of 10% or above safely allow for negative events to the balance sheet? Why would I want to invest in companies with low TTM profit margins such as PBH(3.64%), BEP.UN(1.36%), PKI(.97%) etc? Why do companies such as TCN(329.69%), BPF.UN(85.67%) and AW.UN(66.55%) have such high profit margins? Should I consider a 5yr average? Thanks

Q: This is a comment to Ian's question regarding the 1K investment for his son. I was just thinking that 13 stocks for a 1K portfolio is likely working against him.At $7 per trade (avg),he would be paying $91 in fees and starting his portfolio down 9-10%.I would think holding 3 to 4 top picks and building out your portfolio as you add more money would be more efficient.If i'm over stepping feel free to not post. This was only meant as constructive criticism.

Q: Between CNR and CP, which one do you recommend today and going forward in the Trump era, and reasons as to your preference.
Does it make sense to own both Telus and BCE?
Thank you,

Q: Can you presently name three Canadian large cap companies you like long term that you can say are cheap right now? Thanks, Bill

Q: I have a number of CBL shares and have received a must respond letter from my online brokerage. The offer is for CBL shares at $16.50 but the current price is above $18. The literature is slightly confusing in that it implies unless I tender the shares I might miss this opportunity and generally the company may become private. The tone is my shares would then be worthless. Can you comment? I really have no intention of surrendering my shares for below what the stock trades at currently. Thanks so much. Dave T.

Q: Could you please comment on the latest quarter results from UNS.
Apparently consumers are hanging on to the vehicles longer and longer each year. Based on the latest data it is almost up to 12 years. If not UNS do you have any other preferred names in the replacement auto parts market which would be a better place to initiate a position.
Thanks

Q: Hi All!

My son put 1K into each of the following names 18 months ago and we are wondering if there are any names we should exit? Perhaps you could identify any possible additions if you have a few sells. The names are as follows:AYA, ATD.B, BAM.A, GIB.A, CXI, DHX.B, DSG, XTC, GWO, GUD, SYZ, SJ, WCN. Thank you!

Q: hi.. Took a tax loss of considerable and need to reinvest 12,000. where would you go and when. no energy as loaded.. Thax in advance, Cliff

Q: Hi, I would appreciate a current update on these two funds.Also will they benefit much from government investment in Canada and the U.S.? Do their distributions seem secure? Thank you, Bob

Q: Hi Peter, I'm wondering about your latest insight on CJT? I've had it since the income trust days which is great. I don't ever plan to sell CJT. I realize their barriers to entry are massive but they have negative income. How is that possible? But they have positive CFO, their assets are growing more than doubling from last year but it looks like their debt is engulfing its equity. I find that SHOP, although totally different sector of course has the same scenarios but has a lower debt/equity ratio. What do you think and is it a concern for both companies? How should I evaluate these companies better because I view them as good companies still because of their competitive edge. Thanks.

Q: Good morning...I have $100,000 to utilize in margin account...the interest rate is 6.9%...I am looking at the current market and not sure which way to go...ideally growth with dividend to partial cover interest but just a thought...no financial concerns or tax issues just would like to work my account a bit harder...currently have the majority of stocks you cover except new ones like TOY...any suggestions would be appreciated....Thanks

Q: May I have your assessment of WCN. Is it priced for perfection at the current price (close to 52 week US high) ?

Thanks, Tim

Q: Colliers has been in a free fall. What's wrong with the company?

Q: Wanted to thank Peter and the 5i team for persistently reminding readers that the weed sector is high risk and should be avoided by investors. Looks like most of the suspects in the sector are now down 50% from their highs with no support in sight. Anyone subscribing 5i's service has paid for their subscription 100 times over by avoiding these devastating losses while existing weed shareholders are in panic mode. Well done, 5i, you are worth your weight in gold and platinum.

Q: Hi Ryan + Group Presently I am over invested in WFP @$2:10 the thought was that the softwood lumber agreement risk was built in. Clearly now @$1:80- $1:90 range I would say it was not. My question is when I sell it (not if but when) what sectors / specific stock would you recommend Presently the market value is approx $200,000 . Thanks for your valued service

Q: May I have your opinion on HWD as a long-term investment given today's trade investigation and, more generally, future business prospects in the US in light of the recent election?

Ted

Q: Re: Bank exchange fees when investing in U.S. securities, funds, ETF’s.

It is good to see 5I is involved in Financial Literacy Month. I think a valid contribution to your Members could be as follows:

I believe there is a (hopefully small) percentage of Canadian investors of U.S. traded securities that are purchasing and selling within their Cdn. dollar investment account. (As you know, even at par, buying a US security in a Cdn account will cost approx. 2% in bank exchange fees, and selling that security will cost another 2%).
I also believe that these self-directed investors are unaware that most banks will set up a USD investment account, registered or unregistered, for them at no charge allowing any trading and dividends to transact within that account avoiding the bank exchange fee on each transaction. Of course there will be that fee on the initial transfer of funds into that account, (but not if U.S. securities are transferred from the Cdn to the U.S. account).

I recall that Questrade was once advertising on BNN that they had an account to avoid these fees, but it really wasn’t an effective message.

Are you aware of any good method to purchase U.S. dollars at better rates than banks will offer?

Thank you!

Q: I have about 20% of my total portfolio in U.S. equities. Do you see that amount as reasonable or in lieu of stronger growth predicted in the US should I consider putting any new money into the US instead of Canada.
Would you have any favourite ways to play, for example much is being said about regional us banks, have things gone too far too fast to get in now. Your valuable opinion would be much appreciated.

Q: In response to a recent question, you mentioned BIP.UN as one of your favourite companies for both income and growth. Can you list a few others, please, with reasons?

Ted