Investment Q&A

Q: Hi there,

If one were buying NFI and TSGI today - would you add equal weight into both positions, or would you be adding a larger position to TSGI over NFI? In other words, if the combined weighting was 7% between the 2 names, would you do 3.5 in each, 4/3, etc? My investing goal would be to achieve higher growth but still maintain diversification between the two holdings.

Thanks!

Q: Strikes me mgt placed own interests above those of shareholders in violation of fiduciary obligation. Your thoughts please? How does an invester protect themself from this practice, especially in the small Canadian market?

Q: Follow balanced equity portfolio and rebalancing. I do not have the 6 companies above. Please rank them in the order I should add. Any I should wait on to purchase for a price adjustment?
T as always Steve

Q: Hi. Starting from the end of May, Whitecap has dropped substantially (-17%) from its high. Is there a reason for this declline? Do you think it's the right time to step in? Please comment. Thanks always

Q: I own a half position in Enbridge. Would this be a good time to top up?

Q: Hi team,

Would you by now (Monday at 3:45 pm) with the 4% drop in price or would you wait until after financing deal price is out?

Thanks for your prompt response!

Q: If the price of TSGI continues to drop ,say to $35 US is it likely that the stock for sale will be priced below that figure?

Q: I have always considered RRX to be good value and getting better as the price has declined from the $11 range in late 2016 to just over $6 last week. So I can understand why Baytex would want to pick it up. But I don't understand why RRX management would want to sell - essentially at the bottom of the market, and at a time when oil prices seem to be rising. Is there some other consideration these sellers are getting ? Can you explain the rationale ?

Q: Hello 5i. From a portfolio perspective, coud you give me guidelines on what would be a full position depending on the company size/profile. For example, would a full position be the same for COV, PBH and ENB? Thanks to your great recommendations, I have COV at 5%, PBH at 7% and in both case am wondering when it is time to trim. Thanks!

Q: Morning, Have held this company for a few years, slight loss over this period. Given the small dividend, lack lustre performance, do you still see this as worthy of patience? Looking long term, prefer a balance between dividend/growth potential. Other suggestions with better future? Thanks, Lavern

Q: I bought a half position on Friday. My bad luck, and with this public offering announcement I am down close to 5% today (Monday). Should I be looking to add now or later when they state the price, hold or bail.
Thanks

Q: The company looks good and valuation seems reasonable given growth prospects. I've seen your positive comments on it.
However, why are they not paying dividend?
Given recent news regarding Toys R Urs Im wondering if its a low margin business that is purely a volume play. Or is it too dependent on high capex and inventories which lock up cash flows for long periods. Two questions on this
1) What are the net profit margins like in this sector and specifically for Spin master
2) Does Spin Master make good free cash flows and is the FCF growth really good looking back historically? How do you see the future given their international spread
3) Why is the company not paying dividend if it has a stable business with reasonable growth? Is it because of focus on growth over rewarding shareholders?

Q: Hi 5i - WSP has been on a great run the last few years! I trimmed it back to 4% recently and wondered what your opinion of the company is (at $75)? Thanks, Neil

Q: Could you please comment on TSGI's press release announcing a proposed public offering of common shares?

Thank you, Peter

Q: Hi folks. New Flyer is a position I took last November and as a result I am down significantly. That said, I have been reading your responses to questions asked in which you stated in part; "we would not view NFI as an outright sell at this time. " This statement could indicate that it maybe a sell and you are not sure yet? Also I am wondering if the course issuer bid NFI announced on 11 June maybe in response to or in anticipation of, a further decline in the stock price?
Thanks All

Q: Hi 5i, my portfolio is marching along nicely thanks to your advice. I am questioning holding onto NFI. I am on par and have owned it for about 8 months. Because of exposure to tariffs, I'm wondering if it will stagnate and if a switch to PBH, one of your stock recommendations that I do not yet hold, might have more growth possibility in the coming year(s). Your thoughts are appreciated. Thanks!

Q: Over the years I've adjusted my portfolio so that it's almost identical to the balanced portfolio. So I own SJ as of now. I see that you recently sold it and AIF but have only purchased TSGI. Will you be adding another new stock soon to replace SJ? Thanks for all of your expertise. Cheers
ANdy

Q: I know you like COV and it has been rocketing up. I am wary about buying in now that it's at an all time high after such tear. Should I step in today?

Q: Follow-up comment to the question asked by Cameron on CSU ever having been approached for a takeover.

Suggest reading the old annual President Letters for some very interesting CSU history.

Several years ago, when the shares were around $50, some large shareholders were unhappy with the stock valuation so the board of CSU tried to sell the company. They were unsuccessful. The sale process itself resulted in a rise in share price and liquidity for investors who were looking to get out. The board found the process to be very time consuming and distracting and were glad to put it behind them and go back to growing the business. Stock is up 20 fold since then.

Lets hope the business can continue for several more years before the last chapter is written.

Q: Has CSU ever been approached for a takeover? 5i (and others) obviously think very highly of them...why have they not been picked up by a bigger player in all their years of excellence?

What are you opinions on a takeover - who could do it and would they?