Investment Q&A

Q: I have been holding to hardwood distribution for almost 5 years now and i'm off 24 %. Should I continue too old to it ? I was thinking about selling it and buy New Flyer industries with the dividend at 6% now. If you have a better suggestion for another company, fell free to suggest ! Thanks

Q: I looked at Morningside Quant Reports Thompson Reuters Reports and other stats on the above stocks and found the following:
TSGI. 16% Discount Undervalued. PEG .47 Moderate Buy/Buy ratings from 6 analysts

NFI. 26% Discount Undervalued 9X P/E Moderate Buy/Buy Rating 6.2% Yield , 4 analysts

COV. 47% Discount Undervalued. 0 analysts

MX. Significantly Undervalued 7.5 P/E., PEG .11 Moderate Buy/ Hold Rating, 4.34% Yield, 9 Analysts.

SU. 21% Discount, Significantly Undervalued 10.5 P/E, 7.24 PEG, Moderate Buy/Buy Rating 4.44% Yield 15 Analysts

PHO. 35% Discount, Undervalued. 15.2 P/E, Strong Buy/Buy Rating, 3 analysts.

What value do you place on Quantitative Reports as compared to other analyses? How useful are they? Are the above stocks overdone on the downside primarily due to recent global markets uncertainty or because of their own performance. The above stocks seem to have been severely re-evaluated. The idea of exiting a falling position is to eventually replace it with a position with better upside and less risk which seems to be the challenging bit. Your comments and opinions please.

Clarence

Q: I read with great concern in this weekend's National Post, David Rosenberg's article entitled "10 Reasons to take risk off the table right now". He makes ten legitimate reasons to do so. I would appreciate 5I's opinion of the article and his supporting logic. My high risk equities are WEF, NFI, TSGI, MX, COV and VET.
Carl.

Q: In reference to my last question you made a couple of suggestions. I parted ways with CHR and NFI. You also suggested that I lacked diversification in some areas. I have accumulated cash since my last question to be deployed at an appropriate time. I have listed again the stocks in which I am currently invested in. Percentage allocation in each was listed in my last question. I have wonder if you maintain an investment profile of your clients. Doing so would enable you to provide more appropriate advice and/or suggestions. It would negate the need for clients to keep repeating investment objectives. Thanks

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

Q: Hi team, you have no change in holdings in both the Income and the Balanced model portfolio of July. NFI and WEF are among the holdings. Do they still have a place there? These two stocks have decreased by almost 50% in value over the last 12 months. What is your rationale for keeping them in the portfolios? Thanks, Gervais

Q: NFI continues to disappoint and have lost nearly 40% in my TFSA. The share is continuously sliding for the last many days. Should I hold or book loss in the counter? Do you see any ray of hope for price recovery? Thanks

Q: Hi,

Quick thoughts on these companies. I'm doing some clean up and these positions are under 1% in my portfolio. Which ones would you continue to hold, add to or just sell? Can you please rank. I have a diversified portfolio. Thanks!

Q: How do you feel about adding to New Flyer at these levels.

Q: Hi 5i,

I hold both NFI and COV in a cash account. I am looking at purchasing both at 2% position in my TFSA and then selling them both for a tax loss. Your opinion?

Bonus question-based on the ruffled feathers, would you consider doing a review of the various portfolios performance with commentary at set periods?

Thx

Q: If based on 5i previous report insiders owned 12% of the company and if insiders now own less than 3% could this have something to do with the stock weakness? Thx

Q: Do you agree with Gordon Pape’s opinion of NFI?
https://www.theglobeandmail.com/investing/markets/inside-the-market/article-despite-an-attractive-yield-investors-should-steer-clear-of-this/
We sold some shares last year at a substantial profit but kept some which is currently around a 3% weighting and we are still up over 100%. I wonder if we should be selling the rest? The company is still profitable but the future profitability seems to be opaque. Mr. Pape comments on the drop in new orders (firm and options). Just wondering if he is spinning the numbers? Has there been a big decline in firm orders excluding options and any idea historically how solid an option to purchase a bus become an actual purchase? When a buyer places an option to purchase a bus does this cost the purchaser any money? If there is no cost to purchase an option to buy a bus then it would seem to be a pretty weak number since the buyer doesn’t have “skin in the game” so to speak.
Any thoughts you have would be appreciated.
Jim

Q: Good morning...I am a 68 year old retail investor that has all of my expenses covered with dividend paying stocks....in my rif I hold nfi and toy both down about the same...I am thinking of selling and trading the two of them for arx and mx as these sectors are down and also these two stocks have large dividends.. would you change them now or hold the original two...also I hold vet in the energy sector and although down like the dividend

Q: On July 22 you stated that NFI is listed as Consumer Cyclical...are you sure? When I check the TSX website I can’t find Consumer Cyclical stocks. There are Consumer Discretionary stocks but NFI is not listed as one. To the best of my knowledge there is no heading using the word Cyclical. Of course we understand Material and Energy stocks are cyclical. Consumer Discretionary stocks would seem to have the potential to be cyclical since the consumer could elect not to purchase. Peter in the past has warned us that NFI is a cyclical company but maybe he could clarify what makes it so. I suppose in times of high unemployment people could stop taking the bus to work. Large buses are used by the tourist industry to transport visitors so I guess that could be a cyclical use too. Any other uses? With the retirement of us Baby Boomers we seem to be traveling more (speaking for myself) then when we were working and that seems to be a fairly strong trend which should be good for another 10 to 15 years. This trend should help a company like NFI don’t you think?
Jim

Q: I have about 20% cash in my TFSA. Other holdings are AQN, MSI, BPY, ENB and CGX. Would like to deploy about half the cash into one of AFN, NFI, CGY or FSZ. What would your pick be?

Q: Further to my prior question about allocating stocks to multiple sectors, how would you assign the following? I know this is 'not a science', but I think it will give me a better idea of my sector distribution.
TCL.A Cons Disc:Industrial
CCL.B Cons Disc:Industrial
NFI Cons Disc:Industrial
MG Cons Disc:Industrial
LNR Cons Disc:Industrial
TFII Cons Disc:Industrial
EIF Industrial:Financial
AQN Utilities:Energy
EMA Utilities:Energy
MX Mining:Energy
T Telecom:Healthcare
PSK Mining:Financial
TRI Financial:Cons Disc

If you think that other sectors should be included here, please add them.
Thanks again, and please deduct questions as you see fit.

Q: Is there a reason to hold these? Performance is just unacceptable.

THX

Q: This is a follow up to a question Chris asked on July 17, 2019. He asked about industrial companies, and included NFI and TCL.A. You did not correct him. Would you consider these to be industrials?

Q: What is the nature of the competition that NFI faces in NA? Is there a competitor that is ramping up in the US?

Q: Hi Peter, Ryan, and Team,
NFI is on a real downward spiral lately, and the current yield is 5.368%. It's held in my wife's TFSA, and it's hard to see the almost daily declines, some quite steep, e.g. on July 16. It's down almost 50% now, and am wondering if we should keep it or sell it. I wouldn't add to it at this time. What are your views?
Thanks in advance.