Investment Q&A

Q: Understanding that nothing is ever a sure thing given that risk exists, at what price does CSU become too compelling to not buy if you don't currently have a position. It seems to have broken it's upward trend line which concerns me and I'm wondering if you can confirm that technical assumption and then give an opinion on whether or not to disregard and buy anyway.

Thanks!

Q: Hi, Besides profit taking, being a possibility after a nice run up, do you see any other reason for relentless selling seen in this great company for past 2/3 weeks. Now down to $1280 from the recent high of $1441. Even the valuation appears to have come to down a lot, to very reasonable level ? Thank You

Q: Hello again
We are hearing news that shop could be bought out. Is this real or just rumors?
How far do you think this stock can go for a long term hold. We are in very early, sold a little and are holding pure profit. Sure hope it stays a canadian company.
thanks as always
ken and cindy

Q: i see you use the phrase “need to own”, so in your opinion what are 5 need to own stocks.
does goeasy fit the bill, i am sure you will say csu.
i know you hate the oil space but there has to be one you like, maybe parex.
i never understood need to own, that phrase only works as long as nothing company specific changes.
dave

Q: TCL seems to be dropping a lot going into earnings and/or the news regarding the publisac issues in Montreal - it looks like a civic subcommittee has recommended banning this flyer distribution system though it is not a done deal (from what I have gathered). My question is: does TCL break out the revenue for Publisac? How material is this if it happens? Or is it more a case of yet another negative news item for a company that has been dealing with too many for too long.

Q: I have a question about PVF.UN I was considering BAM for purchase but came across PVF and am thinking that this may be a good alternative. Maybe safer and has much bigger dividend and better track record. I would appreciate your thoughts. Thx James

Q: Hello

I sold some MX stock for tax loss purposes. I would like to know if you still consider the company as a reliable one and if you recommend buying back the stock in the hope that it will do better in 2020.
What drives the price of methanol? Is the price down due to China/ Us trade war or it is because of China and Canada tension? Is the stock tied to oil demand and price?
Do you see the price moving in an upward trend in 2020 with their 6 year gas supply deal with Chile operations?
Based on your analysis, what is your overall view on MX?

Thanks

Q: Thank you for posting the model portfolios. I had to comment. Sometimes customers will complain about a stock pick or two, such as COV or, more recently, NFI. But with the income portfolio up 15%, growth up almost 31% and balanced up more than 20% this year, I really do not know what they are complaining about. Keep up the good work.

Q: Noticed that NFI is in the balanced portfolio and also in the Income one. Also the return has been very negative (-28%). However, it has a good dividend and a LTM plan behind the production of electric buses. Analysts at TDWaterhouse do no like it . In the last 5 months it seems that its price is making a base. Do you think that a contrarian approach could work here?, How would you rate its management ?, would it be worth to buy and hold the stock for 5 years ?, what is its biggest risk to make it underperfom ?, How safe is the dividend ?, Does it have a high debt ratio ?
thanks

Q: Hi. If I wanted to reduce the number stocks in your suggested balanced portfolio from 24 to 15 stocks, what should be the core 15 stocks? Thanks.

Q: Everything about NFI says it should be taken out behind the barn and shot. I can't think of a single reason to keep it because:
a) the momentum is horrible
b) the fundamentals are not good
c) there are many amazing stocks with better stories and momentum

The only reason I can imagine to keep it is for a potential bounce once tax loss selling abates. My question is why/how it can be justified to keep this in a portfolio in an environment with better opportunities elsewhere? Can you give me the case to hold vs the points above?

Q: I would like to buy in an RESP account 2 stocks for a child born in 2019
Can u suggest 3 stocks in order of preference with reasonable valuation
Thanks

Q: I have held these stocks for several years. I hold them in both a RRSP and TFSA accounts. Both stocks are about 6% of my overall portfolios. Reluctant to trim back. Should I continue to let them run or 6% too high ?

Q: Is there a financial benefit to cashing in on an option (46 on dec 20) before the expiry of the option or should I just let the brokerage take the cash out and assign the shares to my margin account on expiry?

Q: I bought shopify around 305 usd and it has gone up 25% now. So do you think it will continue to rise up to the new year or has it already reached its highest point.
Thanks

Q: Hi 5i,

Any reason for CSU to be dropping these last number of days and today in particular?
Thanks
Chris

Q: I thought DOL had recently bot into a Brazilian outfit which promised significant growth potentially replacing or supplementing a possible slower NA profile. Yet there is no mention of this acquisition or its potential(?) benefits. Can you add some clarity please. Thank you.

Q: Would you have or have access to y/e expected rev & cash flow numbers . Is there anything expected that would bring the stock value up.

Thanks

Q: I liked your response to Bill on Shopify. You have considerable experience in portfolio management and probably with M&A activities too. This is a two part question.
You have been in situations where you got nervous with a 15% position in a single stock and assume it was not something like Nortel. I would appreciate if you could share with us how you handled it and what was the outcome; without giving specifics if you do not want to.
Secondly, everything has a price even if there are different metrics used for different businesses/sectors. There would be a price which even Lutke would find hard to resist. Retirement would not be a factor but for most retaiil investors it would be so. So at what price point however outlandish, would you advise to pack it in.
As always, i appreciate what you have to say.

Q: Hello 5i,

Which one of those two companies do you prefer as a long-term growth story and why?

Thank you