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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: Hello 5i
Have allowed MAW150 to become a heavy weighting in Portfolio.
Are you able to comment on potential sources for its lack of performance through 2016? I am a little surprised to be down on the year.
A recent article on MAWER indicated they have likely run out of good investment ideas and their previous choices have run out of juice.(Top award winners in Mutual Funds regressing to moderate performance)

Would you just let them do what they are paid to do (MER= 1.74%) or would you choose to reduce (MAW150: 74% International allocation-Oct 31) by shifting capital to US oriented ETF - XMC?

Portfolio Geographic allocation for International vs USA are about equal currently.

If something else comes to mind as you consider this questions please feel free to add.

Thanks
Dave


Read Answer Asked by Dave on December 20, 2016
Q: Hi there

Best of the holidays to you and staff in the office. I have really enjoyed being a member the last 3 years, learned a whole lot, adjusted my investing approach accordingly, and thus become a much more effective investor.

Wondering about Park Lawn. I own a part position now and am looking to increase my stake somewhat. Just wondering if you could give a breakdown on its valuation. Do you see good value there or would you wait for a lower entry point?

Much thanks
Stuart
Read Answer Asked by Stuart on December 19, 2016
Q: Hi 5i,
Sorry to go back to one where you have recently given your assessment but I am confused about CZO. Fabrice Taylor's recent Globe article says the stock is 'quoted at a measly 15 times trailing earnings'. He notes that for the last 9 months sales are up over 50% while operating income tripled, and 70% margins with guidance for 20-25% sales growth. He may not use the word cheap but that seems to be the implication. My online broker site pegs it at a P/E of 16.2 after the post-Fabrice article pop. You describe CZO as very promotional with an expensive $3M in sales for the most recent quarter on a $131M market cap. Annualizing the quarterly sales (not foolproof) would give a market cap to sales ratio of about 11. Throw in the high margins and can you get to the indicated P/E? Could you spend a few more words reconciling all this please and maybe on what is the most significant number to watch going forward in this particular case? Thanks!
Read Answer Asked by Lance on December 19, 2016