Investment Q&A

Q: Hello,
I am trying to follow your balanced equity portfolio. I have bought the securities that you have rated A, A-, and B+. As I go to B-, I'm wondering why they are included, when you have higher-rated stocks in your overall list. I would guess that they do not fit under the "balanced" criteria, but perhaps when put together (e.g.: an income stock and a growth stock) they would make a balanced combination? I could do this myself, but I like how following your portfolio takes the effort out of sector diversification.

thanks,
Henry

Q: At the moment, the TSX is down 1.06%, supposedly on cheaper oil fears. However, your Balanced portfolio is down almost 2.5%, despite having only one oil related stock - which is up, ironically. Why would this be the case?

Q: Hi 5I Research team, Trying to read PHM' annual report. Some question marks:
On page 6 : " Revenue for the 12 month period ended September 30, 2015 revenue totaled $71.7 million up $50.5 million from the same period in 2014. The increase in revenue for the year w as driven primarily by the acquisitions of Black Bear, Black Bear North, Black Bear NH, West Home Health, Sleep Management and Legacy Oxygen in 2015, and Care Medical in June of 2014. Combined these acquisitions generated approximately $47.2 million revenue in the year from their respective date of acquisition. In addition favorable exchange rates benefited revenue by approximately $4.1 million." : the numbers seem to indicate an organic growth negative? What am I missing?
Bad debt expense= 6 M$ (approx 8% of revenues): versus 5% of revenue the year before: can we expect this to be a recurring expense? Is this a sign of bad management or a necessary bad that comes with the business?
Impairment of goodwill and customer relationships = 10 M$ : Isn't worrying to decrease the valuation of very recent acquisitions (Legacy, West Home, 0891532BC-a related party transaction, RMG and RMC)? Does it mean they overpaid for these acquisitions, bad allocation of acquisition costs or the new management is cleaning-up the balance sheet when starting their reign?
Stock-based compensation = 9 M$: Is it a one-time expense for the work done during the last fiscal year or is it a recurring expense? Written differently: can we expect other expenses for the acquisitions made in that fiscal year or exclusively new ones for future acquisitions?
Can you explain why and to whom the options were issued over the last +2 fiscal years (nearly 47 M! > 10% of shares)? Is it a way to pay the management in place or is it to pay while making new acquisitions and keep new "acquired managers" motivated?
This company seems to have a good strategy. The current year will reveal if operations are in good hands. But, the price paid for some acquisitions, and its accounting generate question marks. Do you agree?
Thank you for your collaboration, Eric (sorry for the lenght)

Q: You last commented on these prefs in Apr. Since then they have declined a lot further and now appear attractive for at least yield. Are you still comfortable with the credit rating of the company in today's environment?
Thanks

Q: With new TFSA money, which stocks in the Growth portfolio would you top up in the current enviroment?

Thanks

Q: Hi Peter,

I'm 32 years old and have $150k in new cash from the recent sale of a business. I'm looking at investing these funds in a variant of your Balanced Equity profile. I'm ok with risk and am wanting a long term investment with a higher upside. Are there are any changes that you would make to the portfolio to match my situation?

Thanks!

Q: What is you opinion of this company?
Thank you.
Lillian

Q: Hi, although I have learned plenty since subscribing to your service about two years ago, iam now realizing that my portfolio consisting of about twlelve total stocks from your portfolio's, majority of which are growth stocks, that my beta is about two at least, Do u think I should rebalance or stay the course in this tough market? I can handle it but it is more difficult than I thought, I won't need the money for about five years, thanks?

Q: What looks cheap in the BE portfolio? Thanks.

Q: 5i Team -

Can you please provide your analysis on Whitecap Resources? What is their debt/cash flow? Can they survive with $30 WTI over the next Year? How does WCP stack up against CPG? Thank You!

Q: Was looking at this utility: TTM PE=16, P/B of .93, low debt/equity of 16%, low ROE of 7% and a P/R of 92%. Price has gone up a lot lately - not sure why as EPS on a Q basis has not been that stellar as indicated by low ROE. I already own FTS as my utility unless you count ENB and TRP: so, I know you like - but, why as it seems to be of less quality as the afore mentioned.

Q: Greetings 5i Team,
I have been patiently (no pun intended) waiting for this company to bounce back after all bumps it went through the past year. As things were looking good at the beginning of the year (due to positive year end results), it has taken another step back recently due to what's been happening to markets around the world. I was wondering if it's a good idea/time to dilute the price of my $0.95 cost/share now. Thank you for your time.

Q: Hi Peter and Gang,

Would you please comment on PLI's clinical developments that are currently on their plates in terms of their nature and their target completion dates.

Thanks.
Harry

Q: Would you consider a rethink on the growth portfolio not only regards the constituent holdings but the whole portfolio as a percentage of the total investment? I ask this in light of the increasing probability of the following economic conditions:
1. The oil price remains depressed for the entire year with the western provinces in recession and the Canadian GDP also contracts for two quarters or more.
2. The steep decline in shale production and the rate increase in the US would have a significant negative impact on the Russell Index IWO which maybe in bear territory?
Assuming that any given individual’s investment in the growth portfolio is according to her risk profile, would you suggest adjustments to the overall portfolio weight (increase or decrease) in proportion to the balanced and income portfolios; and the individual growth stocks for 2016? If you would, then can you please try to indicate exposure to specific sectors/regions/stocks?
Regards.

Q: Good Morning 5i
Could you comment on the forward guidance offered by IT this morning? Thanks.

Q: I know that you have a high regard for PLI. I am wondering if it could be a potential take-over target? I believe I read some time ago that one shareholder had a very large position which I assume could put a damper on take-over activity. Your advice is always so helpful.

Thank you,Peter

Q: in this horrible tape kinaxis is hitting new 52 week highs, it is an expensive stock , i have owned it since 30. dollars, there is no news except so e executive appointments,would you buy more here, i like to overweight when stocks hit 52 week highs especially in a bad tape. dave

Q: I cannot find any reason for KXS's +5.5% rise happening now.

Any input?

Q: Happy New Year Peter. I thoroughly enjoy your service.
I bought EFN in May of 2015. It is about to hit my "25% Mental Trailing Stop" when I have to re-evaluate this stock as to whether or not to sell it at market price. It is currently at 24.4% while my actual loss is 15%. I use Trailing stops to limit my losses. It has worked very well for me. I have an option to raise my "trailing stop" after the evaluation to a higher level. What's your current view of EFN, the good and bad?

Q: With cash available in my TFSA and markets down, what are your top 3 picks for value at this point from each of your portfolios? Thanks!