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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: Is now is a good time to average down on TSGI, either in general or for my specific case? I.E. is the likelihood of a turn-around for TSGI good enough to invest a little more at a time of high pessimism for this stock (buy low)?

Context for my case:
o I hold TSGI in my RSP,
o it is currently 1.1% of all our portfolios (which are up 20.7% YTD),
o it is down 56% since I bought in July 2018,
o I don't need the money from TSGI for a few years (I'm under 60).

Thanks.

Here is the summary of the 5i report from June of 2018:
"It is hard to not be impressed by what TSGI has accomplished. Over just five years, the company has grown from a market-cap of $500 million to $7.2 billion. While it has been a messy story, this is another case of a great Canadian company that no one ever talks about. Even if TSGI is trading at a premium to peers (we do not think it is materially more expensive), the valuation is cheap with respect to the growth and cash flow the company has. Meanwhile, we think the SBG purchase has a lot of potential over the long-term but this of course could lead to a few mixed quarters as costs related to the purchase work their way through results. We are upgrading TSGI one notch to ‘A-’."
Read Answer Asked by Robert on August 13, 2019
Q: You had recommend these stocks back in March when I had asked for some growth names for 2-3 year old. Unfortunately I did not pull the trigger and Both stocks have run up a fair bit. Is this still a good entry point or perhaps wait for a general market correction for go easy and BOYD. Also thoughts on Spinmaster to initiate a position. Thx
Read Answer Asked by Aleem on August 13, 2019
Q: Hi 5I,

After listening to the call today, it appears that the lowered forecast is due to the capex spending in the US in order to ramp up their business in PA, NJ and 2/4 other jurisdictions would this not be considered a reasonable expenditure to open up a nascent marketplace such as the US?

Do you view the call any differently, and has the business fundamentals changed that much to warrant the beating in the stock. If anything, I am looking at taking another bite at this low valuation.

Your thoughts?
Read Answer Asked by Kelly on August 13, 2019
Q: Hi Peter,
For what its worth Scotiabank has a "Sector Outperform" rating on NFI. The yield sits at 6.2%, the Globe thinks the stock is a poor investment and 5i seems to be ambivalent too with, I suppose, a rating downgrade pending. Insiders seem to have cashed out so management is looking all too human so to speak. We bought the stock in 2014 and were once up 400%, took some capital gains in 2018 (used up some of our accumulated capital losses) and now are up only 100%. I'm a basic buy and hold investor so I'm thinking of hanging in there for another quarter or so. Please let me know if I am insane!
Thanks,
Jim
Read Answer Asked by James on August 09, 2019
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