Investment Q&A

Q: Peter & Team. Would you take a 40%+ profit on NFI following the jump today on news of the acquisition of MCI? I must say this looks like a stunning deal for NFI. In its own back yard (Winnipeg), MCI is complementary, immediately accretive and at 6X EBITDA, cheap - and a nice dividend increase too!!. But the low ROI in NFI has also been less attractive on what I regards as the Tesla of the commuter bus industry. Would you sell on this good news?

Q: Hi
I hold AFN, mainly for income, but I'm down 35% on it.
I have a 1.4% position.
What metrics do you consider when you look at a company like this one?

I also own POT (down 30%) and AGU (flat).
Those have a 2% weighting each.

Am I too exposed to this sector? Would you trim or remove anything?

Thanks

Q: With all the market craziness out there and the huge share price drops on missed earnings, regardless if the stock is cheap or not, I was thinking of using some of my CDV (Com Dev) proceeds to buy a name like Andrew Peller (ADW.A). Low beta, 5% - 10% growing eps, decent and growing dividend, reasonable valuation, sounds pretty good to me. Are there any red flags in the story that I am not aware of (regulatory issues, unfavourable debt?).

What are the potential holes in Andrew Peller that can hinder share price growth?

Lastly, any news on when ADW.A will announce earnings? The best I can come up with is before November 30

Thanks again.

John

Q: The retro fit bonanza is not going to happen after all according to this am. earnings release. Please comment on this as well as the earnings.

Thank you

Q: Hello 5i
My portfolio is imbalanced and i have been thinking
about bringing it back into balance. The imbalance is due
at least partly because i wanted to go heavy on comsumer
products, as i don't have much in fixed income. I know, of
course, that consumer staples are not a substitute for
fixed income. But, i thought they would bring some
stability.
The breakdown is as follows:
consumer staples 25%
financials 16%
Industiral 14%
energy 5%
telecom 6%
materials 11%
information tech 11%
Utilities 7%
health 3% (Note: I am moving out of healthcare stocks for an eft)
intrntl etfs 6%

I am thinking about bringing this back into line
and also getting some more fixed income.

The real problem with this is that I will have some fairly large
capital gains to pay. A nice problem to have, I suppose. But, I
was wondering whether since many of these stocks are in what
are generally considered very safe sectors, s, it is worth taking the tax hit
to rebalance? I realise, of course,
to rebalance? I realise, of course,
that it is difficult to comment since
you don't know the individual case. But, i would none
the less, appreciate any suggestions.
thanks for the great service, cl

Q: I read your article on the US covered call strategy and I new that there were etf's using that strategy. In looking at the various etf's I was disappointed in the performance over the 3-4 years they have existed. Is this the typical result?
Thanks

Q: would you hold comdev into the close march 31 or thereabouts, is it worth it for maybe 50 more cents and that 50 cents would come in shares of exact earth 5.25 for my comdev shares and the rest in exact shares and regulatory risk etc etc yes or no. dave

Q: I'm looking for percentage allocation by sector with,of course, a bias on the best growth opportunities. Could yoy provide this?
Thanks

Q: i would appreciate your comments on CRP's recently announced quarterly results.

Thanks!

Q: Which of the Brookfield spinoffs (Infrastructure, Renewable Energy, or Property) would you feel would provide the best growth over the very long term, buy-and-forget-it portfolio (10+ years)? Would property be the least attractive because of where we are in the interest rate cycle and fears of some kind of property bubble in major canadian cities? Thanks.

Q: It seems the value being given to Exact Earth in the proposed spin-out is roughly $125 million. Does this value seem reasonable given current market sentiment towards small cap growth stocks? CDV at $6 seems to implie a much lower valuation for Exact Earth. Would you expect the price to rise as we approach closing in first quarter 2016?

Q: I have taken the overall diversified portfolio and allocated each stock into one of three portfolios - income, balanced and growth....with the weightings being about 20%, 65% and 15%, respectively.
When it comes to rebalancing, do I consider the percentage for a specific stock relative to the overall portfolio or to the specific portfolio?.......Tom

Q: Trying to figure out what's up with Chorus. So many positives:

- low beta
- solid ROE of around 20%
- low payout ratio around 34%
- forward PE of 7
- high yield yet appears to be very supportable
- security with the Air Canada contract renewed out to 2020

And yet the stock price is off .60 in the last three months. Am I missing a negative? I know the Q3 results are this coming Friday.

Thanks!







- forward PE of 7
- security with Air Canada contract out to 2020
- very high yet sustainable dividend

And yet the stock price is off .60 in the last three months. Is there a negative that I am missing. I know the Q3 results are this Friday.

Thanks!

Q: On Friday evening, I took in BNN…first time is many months. Bill Carrigan, a technical analyst was the guest. For auto makers, like MG and LNR, my take is he said auto sales hit a record hit last quarter and there is a topping, and from looking at the trading pattern and applying Elliot wave theory, there is a major correction, downturn, long down leg in the cycle for this sector. (Egad, i hold MG and other related stocks in this sector.) My question is do i monitor this trend and if so sell, or do i hold (because the companies are sound businesses in keeping with 5iR approach to investing)? The reason for asking this is….is this an example of trading investment style as compared with the philosophy of 5iR?…..Thanks for the clarification…..Tom

Q: Thanks for tweeting out any news on dividend changes. Your recent tweets show:


Black Diamond $BDI lowers #dividend 37.5%.

Supremex $SXP raises #dividend 10%.

Telus $T, in our model portfolio, raises #dividend by 10%


There’s been so many lately and I note a few got missed, however I was wondering if there might be a place on your website for “Dividend Changes”? That way we wouldn’t need to put up with all the unwanted Twitter ads etc.

Thanks.

Q: HI Folks: If a stronger US dollar is deflationary, what effect does it have on stocks in general and on gold in particular?

Q: Has Russell Metals ever eliminated or reduced their dividend ? And how sustainable is their dividend now ? Thanks.

Q: Hi 5i, I read Peter's article in Money Saver regarding the call writing strategy. In the article you mentioned some US names that you like...are there any CDN names that fit the criteria set out in the article?

Q: What is the max weighting in any particular stock you would recommend holding before selling.

For myself I hold between ~50-60 different stocks.

Is this too many, and should I get into 30 or 40 positions, or what is the optimum amount of positions.

With this many positions should I get rid of ETF's as I should be diversified enough?

I have smaller than full positions for more risky and growth names, and i have up to 5.5% for stocks such as CSU and CCL.

Is it okay to let these run longer and up to what percentage of a portfolio?

I know you don't know my exact situation but I am looking for some boundaries or rules that I should follow?

For example: Optimum amount of positions for a diversified portfolio, and max weighting in any one stock. If diversified enough would you recommend letting go of ETF's. I hold 6 ETFs each at around 2%.

Thanks, Colin.

Q: Could you please comment on the q3 results? The stock appears to be trading at a significant discount to fmv.