Investment Q&A

Q: What do you think of pur results?
Would you buy this one or prefer HEO?
Or would you recommend another stock in the water-infrastructure business?

Q: hello 5i,
I am also one who has been frightened a bit by Prem Watsa's remarks. In my case, however, I think it is healthy, as it has convinced me to dial back my equity exposure. I hate the idea of bonds because they pay so little. But, I also hate the idea of a possible ten or twenty years of a bad market.

So, I am going to trim positions and buy bonds. I wonder if you could make some suggestions. I notice that you have vcsh in your portfolio, along with xhy. I also notice that you often mentionCBO and xbb. it would seem to me that xsb might be a better choice because it is shorter term, no?

So, the question is what would be a good choice currently, on the bond side in Canada. GIC's would also be ok. Also, for American bond funds denominated in U.S. dollars? We would be talking about several hundred thousand dollars.
thanks Claire

Q: Bird reported mixed results for its latest quarter, and the market doesn't seem to like it ... down over 7%. Could I please have your thoughts on the company? Thanks.

Q: How bad was the miss? What do you think of the stock in the short to medium term? Will this be dead money for a while, as I presume WSP will be?

Q: For my TFSA I would like to buy a conservative stock with a decent yield and some growth. I have BCE, SLF, TD. Would you please suggest a few names that I could consider. Thank You

Q: Peter/Ryan -do you know approx when Brookfield spins off its business unit?

Q: Could you name 3 companies you would buy today, regardless of the sector allocation and the risk

Q: what do you think of there latest earnings, and looking forward how do you feel about it?

Q: Hi 5i: I am down a little more than 20% in each of BOS, DRT, KXS and MAL. AS far as I can determine, there is nothing fundamentally wrong with these companies so I am planning to hang on. What would you advise? Are there any I should sell?

Q: Hello Peter,
I’m looking to build up the higher quality part of my portfolio. I’d like to add a few reasonably stable, well-managed companies that pay at least a 2% dividend and that have a decent likelihood of longer-term modest growth.
Based on today’s markets and prices, can you please suggest 6 good Canadian candidates (including one REIT), and 4 US choices (or international if traded on our or the major US exchanges).
Please do not include banks or oil & gas, which are already well-represented, nor the following which are also currently held: BAM, FTS, T, HCG, BCE, or ENB. And could you agree with KBL being one of the 6 Canadian options? Thanks! James

Q: Peter; I thought this was very interesting - particularly the performance number. Publish if you wish .RodThere are interesting items from a JP Morgan report on concentrated stock ownership called The Agony and the Ecstasy: Since 1980, 320 of the S&P 500 companies have been deleted for business distress reasons, 40 percent of all stocks have suffered a permanent 70 percent plus decline from their peak value, the median stock in the Russell 3000 index was down 54 percent, and two thirds of all stocks underperformed versus the Russell 3000 Index and for 40 percent, their absolute returns were negative. Those are tough statistics. Further, according to S&P Dow Jones Indices, and reported by Barron’s, just 18 percent of large-cap managers have outperformed the S&P 500 over the past 10 years.

Q: Hi 5i,

I stumbled on Presm Watsa thoughts about retirement in today's Globe and Mail. Basically, he is close to see a new 1929 global crash happening rather sooner than later, with 2 ulterior decades of losses and tears. Quote follows:

In the past few years, Mr. Watsa has been troubled by a disconnect he sees between stock markets and the underlying economic instability of countries around the world, as well as the implication that deflationary conditions could have on markets. Fairfax cranked up the hedges on its equity portfolio to 100 per cent this year from 88 per cent at the end of 2015 – that’s how concerned management is about a possible financial storm.

For older investors, there might not be time to recover from the damage. Mr. Watsa’s worry is that a market downturn could mimic the stock market crash of 1929, where it took more than two decades for the Dow Jones to reach precrisis levels. And unlike the 2008 financial crisis, Mr. Watsa said, central banks are now mostly out of ammunition. “We just want to make sure people realize there are risks.”

As he is now 100% hedged (which is what, more exactly), for us, small investors, there is something similar that we could envision? Maybe to put all our money in Fairfax, and live happily ever after?!

Thanks as always for all you do for us.

Q: What date does Clearwater Seafoods CLR report?

Q: I am losing a lot on a multi year holding in Husky. I could use the capital loss deduction. What would be advantageous to buy to replace it and keep my exposure to recovering sector. Or go somewhere else altogether? Dividend or not. Absolute return is the goal.
Thank you.

Q: I have $ 5500 in cash in my TFSA. I currently hold AW-UN plus GIC's in my TFSA. What would you suggest for the $ 5500 in cash, I may need the money in 6 years.

Shirley

Q: You don't appear too keen on AC. Several Other research reports suggest the stock is a buy and that the target is $16+. So, I bought some at $7.35 It has come up a bit. I plan to hold as long as oil stays reasonably low. Any thoughts, and thanks, Subrata

Q: Good Morning Peter,
I have $8000 of Advantex Marketing Senior SEC non-convertible debentures RSTD 05/01/2014 Coupon 12% maturing 30 Sep 2016 left over from my former advisor in my RRSP. Any thoughts on what if anything I should do with these ? What will likely happen when they mature ? Thank you. Only post if there's value to anyone else.

Q: Phil asked a question about Transforce. It has been a disappointing hold for me as well, at least in terms of share price. Phil may wish to know that the Globe reported on March 4 that the CEO recently purchased just under $1.3M worth of shares personally. I believe this is something separate from the company's dutch auction purchase of shares. For me I am holding another year at least.
Good luck to Phil whatever he decides.

Q: Please comment on their results out today. Do you think the downdraft in the stock will continue and did CIBC predict the $8 price correctly

Q: I see you like this company over EMP.A which reported bad earnings due to write-off of goodwill from their safeway purchase & sales down in Western Canada due to low oil - I think this is just an excuse - the reason is probably poor integration - people need to eat! It seems to me that from a long-term perspective ( I am an investor not a trader ) EMP.a might present a better opportunity than ATD because: PEG ratio 1, PE to ROE is 1 - pay a dollar for a dollar of earnings, growth through acquisition with its inherent risk & virtually no dividend - I have a problem buying a stock that does not pay at least 3% with a history of increasing.
This situation reminds me of L when they had issues which brought their stock down- finally got their logistics system on track - stock steady increase over last three years.
Comments please.