Investment Q&A

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!

Q: Please comment on $SAP for a long term hold, thanks Valter

Q: We have sold cottage and have 600,000$ to invest. Looking for 12 safe(!!!) or safest dividend paying stocks with an understanding that stocks can go down but good companies usually come back.
Thanks
Jean

Q: Hi I have some money that I want to park for a few years in a couple of stocks that are considered conservative. I am thinking of ALA and Chemtrade. They both seem reasonably priced. I will be reinvesting the dividends. Are these good choices and can you recommend a couple of others? I have considered SLF but it sure moves quickly based on interest rate news or rumours. Thanks, Bill.

Q: Hi 5i - I own the following stocks (in a diversified portfolio) and Im looking to top them up to a full 5% position. At todays prices (for a long term hold) which ones would you top up first? Thanks, Neil

Telus - 3%
BNS - 2.5%
SIS - 2.3%
PKI - 2.1%
KXS - 1.2%
SJ - 1.1%
NFI - 1.1%

Q: Why is there is there such a big gap about your thinking and the market for this company
I am getting worried

Q: Can you comment from a total return perspective which of the above three seems most attractive at Nov 15th levels??

Q: Just released quarter looks terrific - you comments?

Q: Hi Peter,
Any idea why Brookfield Infrastructure partners is going down? I was thinking of taking a full position of 5 % rather than diversifying with Stantec etc. Also, what is the reason for stocks such as Hudbay Minerals and Agrium to continue to go up and is this sustainable? I have noticed the canadian banks and insurance especially TD Bank and Manulife have gone up alot lately. Do you think it is time to trim them as they look over bought. Lastly, can you comment on why Ceapro and B2Gold are taking a hit. The big prediction was gold was going to go much higher after Trump, but all of a sudden, gold continues to experience declines. Thanks very much.