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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: KNow this has been a hot topic lately. But the reason for the fall might be a report just issued by Veritas calling DOL a sell.

Here is what they said:
"Canadian equities
Dollarama Inc. (DOL) - $81.70
Need-to-Know Veritas: Sell (PT $79)
Dollarama reported record GPM of 45.9% compared to historical average of 42%-43%, which led to a 35% increase in EBITDA to $154.8 million. Dollarama’s multiple price point strategy is the key driver of its strong SSSG, with average transaction size increasing at 3%-6% for the last several years while traffic increase was a mediocre 1% on average. Management indicated on the conference call that it will introduce new price points of $3.50 and $4.00 in the second half of F2017 and moved to a new metric: % of sales above $1.25 (instead of above $1.00 previously), which signals that the retailer is close to reaching a saturation point at the lowest price levels and needs higher prices to supplement SSSG. Given the company’s reliance on SSSG and growing expectations for ‘beat and raise’ quarters, a saturation point could create notable downside in the name should the company see slower than expected growth growing forward.

Sheldon
Read Answer Asked by Sheldon on December 10, 2015
Q: To a largely great extent, figuring out price action (market action) is not an intellectual exercise as much as it is an emotional one. That aspect of analysis should not be minimized though 5i dismisses this. 5i can't understand the sharp drop in pipeline stocks. Before their rout, the sector had been trading a 1 or 2 --even 3 standard deviations from 10 year Price/CF average and it became a very crowded trade. This sector is a perfect example of a sector being bid up for no reason other than yield and relative safety. It's been a disaster over the last 12-18 months. They are better priced now but the next shoe to drop is in Telecoms. Comment?
Read Answer Asked by Norman on December 10, 2015
Q: Given Dollarama’s recent good quarterly results and the (perhaps unwarranted) stock price reaction, would you consider this as a buying opportunity? Enough to recommend DOL over ATD.B for a new purchase today, or would you stick with ATD.B as your top pick in the consumer space?
Read Answer Asked by Steven on December 10, 2015
Q: Your comments on earnings and guidance please?

Read Answer Asked by Catherine on December 10, 2015
Q: dollarama just pegged their price at $1.25 because of higher inventory costs because of our low dollar.I was thinking maybe a lot of people will think this is not a dollar store any more and sales will drop.
Read Answer Asked by peter on December 10, 2015
Q: Do you believe sustained low energy prices could significantly impact business of renewable energy cos., specifically BEP, RNW, AQN, NPI, BIP.UN per the IEA comments below. How could this play out and which companies would be most vulnerable? Thanks.

The IEA fears that low prices for all fossil fuels, including coal and natural gas, will sideline the renewable energy push in some countries. In the developing world, coal is becoming irresistibly cheap, encouraging the construction of coal-fired generating plants that spew out horrendous amounts of pollutants and greenhouse gases.
“We see the cost of renewables going down, but in a low-oil-price environment, we may well see that some governments may weaken their support for renewable energies or efficiency improvements,” Mr. Birol said. “We have been telling governments that it would be a historical mistake to lessen the support on renewables and efficiency as the price of fossil fuels becomes cheap. Let me be clear: Lower oil prices are a risk for the transformation of energy.”
Read Answer Asked by Gary on December 10, 2015
Q: Thoughts on earnings and the future outlook? Do you feel they will be able to continue double digit growth and showing value despite the ongoing Alberta headwinds... Seems to be priced very attractively vs. NAV and their track record.
Read Answer Asked by Husseinali on December 10, 2015
Q: I've been holding TRP stock for quite a number of years. Looking at long-term chart comparisons of TRP and ENB, it's obvious that ENB has outperformed. Short-term charts, though, are showing that ENB has been dropping considerably more than TRP, so, in a recovery, could one now expect more upside from ENB than from TRP? I'm wondering, namely, whether this presents a good opportunity to trade my TRP for ENB. Thanks!
Read Answer Asked by chris on December 10, 2015
Q: Is Csw.A still a buy? Can you comment on the valuation? Thanks!
Read Answer Asked by Wayne on December 10, 2015
Q: Hi Peter and 5i team,
We have shares of Com dev and we are thinking of selling [ in TFSA ]. Do you still think that MacDonald Dettwiler or another company will make a better offer? Do you have any suggestions for another growth name keeping in mind that we hold the appropriate percentile of large caps and bonds.
thank you for your advice
Read Answer Asked by john on December 10, 2015
Q: What is this reason for the big downturn toay?
Read Answer Asked by Frank on December 09, 2015
Q: The stock price seems to be in free fall on no new company news. Is it just market gyrations, or is something else going on? Thanks as always.
Read Answer Asked by Thomas on December 08, 2015
Q: Can I please get your thoughts on results announced this AM.
Read Answer Asked by Craig on December 08, 2015
Q: I am considering adding to my holdings in the following companies, some of which I'm ahead in, and some behind. I'd appreciate your comments on the prospects of these companies over the next year or two. The percentages of my portfolio they account for are indicated, and I'm reasonably balanced as far as sectors are concerned.

DHX.B (1.5%), DH (2%), GIB.A (3%), DSG (3%), GIL (2%)

Thanks for your always excellent advice. Roland
Read Answer Asked by Roland on December 08, 2015
Q: I'm looking at buying 4-5 stocks in the next couple of weeks that might have a nice bounce in the New Year after tax loss selling. Could you please provide a few names that you think might work out well this year. Thanks.
Read Answer Asked by Peter on December 08, 2015
Q: I donate 50% of my CN holdings to a charity which from the looks of things will get less for them than I'd hoped. My initial plan was to buy back the stocks, but I'm wondering, based on some of your recent comments, if I'd be better off buying CP or perhaps another industrial stock. I own some Stantec and Stella Jones, so I'm not totally undiversified in the sector. Many thanks, and in case this is my last before Christmas question, Merry Christmas to you and yours.
Read Answer Asked by M.S. on December 08, 2015
Q: I am super down on these companies. Of these, should they recover suddenly as an end to tax loss selling ( Dec 23 I believe ) which would be more susceptible to being a
" Dead Cat Bounce" rather than a fundamental recovery. I will need to raise some cash soon to redeploy but don't want to miss on any true recovery. They were in my TFSA so tax loss selling was of no use to me.
Read Answer Asked by Glen on December 07, 2015
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