Investment Q&A

Q: Hello! I've been a member of your website since April this year. Investing has become much less difficult and less stressful because I know there is a place to ask if I have questions. Because of your good investment knowledge, my portfolio is doing ahead of the TSX index. THANK YOU VERY VERY MUCH.

I have a question to ask you. I am planning to allot 10% of my fixed income investment to high yield bonds. I am planning to hold these bonds till maturity but I don’t prefer maturity beyond 2019. I found some information in TD about the topic: https://www.tdsecurities.com/tds/pdfs/High_Yield.pdf

In your opinion, which company has the best credit rating and has the strongest balance sheet that can withstand the recession and can pay the interest on time? Companies in the oil sector are having a difficult time right now so I should avoid them, right? Please pick two or three companies for me.

In my opinion, it seems like AGT might be a good choice? I am not sure. I leave it to your professional advice. Thanks again.

Q: Peter, I own CXI, HCG, BNS with each representing approx. 5% of my portfolio. I am considering selling one and buying BAM.A; do you think this would make sense and if so, which one would you sell? I am also looking at selling my 2.5% position in TOU and replacing with either ENB or BEP.UN.

Thanks, Stephen

Q: Hi Guys,
I am interested in your take on AYA, PHM and SCR.
What are your thoughts on the respective companies and would you be recommending buying at the current share price levels?

Thank you for your feedback

Q: We've seen that GUD's share price has not been significantly affected despite the market sell-off in the past couple months and the recent sell-off/scare in healthcare. GUD's significant cash position is likely playing a part in this regard acting as a safety net in its valuation.

Are there any other similar early-growth companies out there that have significant cash positions or financial strength that would not be easy targets for a market sell-off?

Q: Hey Guys, these three are my "dogs" right now, fortunately, I have a small position in each, less than 1% of my portfolio. Would you keep all three and wait for the recovery or sell two and double down on the other one or sell all three. Time frame 3-5 years.

thanks,

jim

Q: Been a happy shareholder of Dollarama. If one looks at the chart, it's like the late-summer correction didn't even phase it.

There's always talk of increased competition from the dollar stores from the US (Family Dollar, Dollar Tree, Dollar General). Just how much of a threat is this to Dollarama's moat? And if US dollar stores are not a threat, what is their main risk?

Q: Hi guys,
I'd like to get your take on the effect of the TPP agreement on Linamar's future. I'm still a bit under water with it and wonder if I should get out now, before it starts to slide in response to the ratification? Thanks for all you do!

Q: Pembina is up around 4% with decent volume this morning. Any reason for this?

Q: How do you think the TTP agreement will affect MG and LNR? Are they a sell or hold?

Thanks, really enjoy your service!

Q: Peter, with new governments seemingly trying to get rid of coal,how will that effect generators such as Northland Power or Capital power? One better than the other? Any other generators that will be effected? Thanks Ken

Q: Hi 5i team,
I was fortunate enough to have sold some of my winners earlier this year in my cash account, so need to take some of the losers off the table. I'm pretty sure I'll sell AHF and CHW (I've been disappointed with these for quite some time).
I'd like your advice as to which of these should go (please list the ones you feel strongly about not keeping first). Choices are: ACQ, AVO, CXI, DHX.B, FCU, IT, MDA, SYZ, TD and TOU. Also, do you think I "should" pick up any of these at a later time?
Thanks for the amazing service!

Q: May I have your thoughts on Algoma? The stock has been weak recently possibly due to general market weakness or possibly due to problems with the delivery of latest self-unloaders. I know the company puts you to sleep but if you wouldn't mind unloading on the unloaders I would appreciate it.
Thanks

Q: Can you compare expected earnings growth rates between IT and AYA for me? And compare their valuations? Thank you.

Q: Hello Peter,
these three have the same chart pattern, the 40 DMA moved below the 9 and 20 DMAs, sign of buy! Do you agree? How will they respond to an eventual Bank of Canada interest increase?
Many thanks, J.A.P. Burlington

Q: In general, how many stocks are necessary to be adequately diversified? I know that your model portfolios have 20 positions each, but if I owned fewer stocks, it would make if possible to monitor each positiion in more depth. I would appreciate your thoughts.
Thanks,

Q: In the FP dated Sep 25,a Joe Chidley wrote about the Black Ducks i.e.Fear trades in reaction to mini-events.2 good examples this week.1)H Clinton's pledge to control drug price gouging.This resulted in the Nasdaq biotech index drop of 7%,& VRX declined more than 10% on Tuesday.2)Volkswagen's cheating on emissions control tests,& the impact was Ford & Gm decline of 2.8% & 2% respectively on tuesday. Neither events change the fundamentals in the subject 2 sectors.The arrival of a black duck can herald opportunity. You are correct in your prediction that the recovery from the Aug 24 decline will be a W,& not a V.Note that on Sep 28,the S&P 500 successfully retested the Aug 24 low.On Oct 2 a retest again, & the biggest reversal to the upside in 4 months on volume which is higher than the average volume for the previous 20 sessions. Please advise the situation now;It is on a uptrend now?Is it time to take advantage of egregious pricing?Please provide some names. As always apperciate Your usual great services & opinions.Looking forward to seeing You on BNN on Oct 13

Q: Thoughts on the public bickering between mr glassman and mr boland? With the large decline in cbl since it's ipo, is it something you would invest in?

Thanks

Robert

Q: With these choppy markets, what do you think of Corbys as a place to wait it out. Also, do you think the dividend at 7.6% is sustainable?
GUY

Q: I have been looking at this company for some time. It seems awfully cheap, and is growing nicely. Mr. Glassman appears to have lots of expertise in the area. I realize there are far to many stocks for 5i to research, but my question is if this is a stock that you would ever consider covering, or are there some fundamental underlying issues that would exclude it from your consideration (similar to your reluctance to recommend resource stocks?) Are there any major issues that give you pause? What do you see as the main risks with this company?

As always, thank you for your help.

Q: How is IT impacted by AYA's New Jersey news? Agreed that the real prize for AYA is the rest of the USA and they are lobbying California. I like IT because they are in regulated markets in Europe (UK, Sweden, Spain). Does IT plan to expand into the USA too? Could you please briefly compare IT and AYA from a business and investment perspective. Do you think that AYA may buy IT once it brings debt down? Based on forward P/E IT looks very interesting and insiders have been buying in the $11 range.