Investment Q&A

Q: Top up my quarter position in SIS or start new quarter position in TSGI? 5+ year hold

Q: Can I have your comments on BNS's earnings and announcements this morning? At first glance it doesn't seem likely to be well received. Would this be a time to switch into a better performing bank or add to the one that is underperforming? Could you suggest which US bank and which Canadian bank you would switch to? (no problem if this is a multi credit question).

Q: Hi Peter,

I am trying to understand CSU's high P/E ratio which I see as 55-60P/E from one site to another. Please help me understand:
Q1 2018 = $8.50 EPS
Q2 2018 = $7.42 EPS
Q3 2018 = $8.95 EPS
Q4 2018 = $9.54 EPS (projected)
Total for the year = approximately $34.41. Current price is $912; therefore $912/34.41 = 26.5 P/E rather than the 55-60?

Q: tsgi deal with eldorado seems to be an excellent deal, with only a million shares issued on a share count of 270 million, its peanuts yet stock is down, why. dave

Q: What do think of tsgi now? Is it time to buy full position at current price? Thanks always

Q: I would appreciate your comments regarding the TSGI press release issued this morning -"The Stars Group and Eldorado Resorts Enter Agreement for Online Betting and Gaming Market Access".

Thank you, Peter

Q: How will the close of The GM plant in Oshawa affect Magna ? Is it just redirecting parts supply to another plant or is it a real cost / slash of revenues ?
Paul

Q: Toy is looking like another TSGI. The stock has been on a steady downward slope since July, now down around 30% give or take. On the basis of projections for 2019 the shares are trading at about 21 times projected earnings. Sales are expected to increase by about 7% in 2019, with earnings growing at around 10%. What is a reasonable multiple that the shares should be trading at? Unless there is something on the horizon that will increase growth, a 21 times earnings multiple seems too high for the expected sales and earnings growth. Something closer to 10 times would seem more appropriate. And if so, there is a lot more hurt to come by continuing to hold the shares. Is there anything that I am missing? Why do you think that the current price is justified? Why should shareholders continue to own the shares? And why this continued weakness heading into the Christmas season?

Q: What would you think of adding to SPB today?
At june 2016 low any reason for the drop ?
Payout is low but no div increases in 4 years.
Thanks!

Q: I have room for one of these in my TFSA. Which one would you pick for best rebound when all this madness in the market goes away over the next 12 months? Thanks
Derek

Q: Hi 5i,
I am considering small average down purchases of the listed companies but unfortunately cash is limited so can't choose all of them! Could you rate/order them for rebound potential ? Currently MX & TOY are approx 3% each, FSZ 2%,and TSGI/SLF/SIS have been driven lower to approx 1% each.

Thanks
Mike

Q: Can you please explain how Methanex results correlate to the price for oil and/or gas.
And if there is a relationship how concerned should MX investors be with what is happening with the price of oil.

Q: Hello 5i team,
Since its inception, your balanced equity portfolio has generated something like 16% compound return pa; it has beaten the other "advisors" hands down and I enjoyed the ride. Congratulations!
Of the 6 major banks, BNS is the worst performer with a 5-year return of 7% compared to TD 47%, RY 35%, BMO 33%, NA 30% and CIBC 24%; and yet BNS is perennially in your BE portfolio. Why?
Thanks,
Antoine

Q: DOO's earnings are fast approaching. This earnings season I have adopted a policy of buying puts shortly before earnings announcements. Just did that on SIS.

I don't have a good feel for DOO. What is their rate of exceeding or missing estimates?

Given what has been happening to the stock over past number of months, do you think a long put on DOO prior to earnings has a better than 50% chance of success?

Thanks for your opinion

Sheldon

Q: Hi there, in the past, I’ve taken your balanced equity portfolio and have tweaked and adjusted here and there. I suppose it may be human nature to try and personalize things but I’ve become tired of altering it here and there as it’s become time consuming. I am now thinking to simplify and just try and follow your portfolio as close to a T as possible. This way I can just follow your buy, sell and rebalancing as you make adjustments. If I take this route, will mimicking your balanced equity portfolio give me a fully diversified portfolio? Thanks!

Q: I had let PHO shares rise substantially, trimmed close to the high which made me feel smart, then watched them go all the way down to current levels, which makes me question how smart I am. In hindsight it was no secret of a slow down in the sector spending, even in a good market likely the shares would have dropped substantially. Regarding spending cycles, historically is there any pattern time wise?

Q: I would like to top up these positions and trim them back in the future (12-24months?)

Are there any names on the list I should avoid or expect a longer recovery for?

Always appreciate your wisdom.

Q: Hi 5i
I thought I understood the DRIP or cash distribution concept but I've just received a cash distribution equaling 25% of the expected amount. On Oct 10th, Crius announced 4th Qtr distribution amounts of 0.0697. Then on the 24th announce the initiation of the DRIP.
As I am not eligible for the DRIP (currently resident outside of Canada), I expected 0.0697 per unit but have received 0.017425 (25%). This is a surprise to me - I'll need to discuss this with the broker but just wanted to clarify that there wasn't a cut or some other reason triggering additional foreign withholding tax (or ???)
Is this cash distribution amount an issue with my expectation ? Is this something you could clarify for me ?

Thanks
Mike

Q: Tsgi has been up nicely for a couple of days now with no reason, Is it time to buy full position of tsgi? Thanks always

Q: I ve been looking for a way to invest in the rise in popularity of car shares like zip car or car2go.

I haven’t found any pure plays but was thinking BYD may see a benefit from this trend. I feel like these vehicles must see lots of bumps and dings during their life in the city and users caring less about them than their personal vehicle. I would assume car share companies would prefer to work with larger auto body companies like Boyd for these repairs.

I’m curious to hear your thoughts on this and if you have any other ideas on how to invest in this trend.

Thanks!