Investment Q&A

Q: Hi, Parkland Fuel stock continues to get pounded every day since its recent earnings release, losing over 10% of its value. It was mentioned as a baby Alimentation Couche Tard. Today, ATD.b stock price also showed considerable weakness. I have just started to wonder if there is a rotation out of these consumer names which have done well in past. And, if so, do you see this trend persisting, since money seems to be moving into banks, industrials and energy/material stocks. I have a small position in ATD.b but just doubled my PKI holding to overweight and feel a little concerned. Thanks for your valued advice.

Q: Earnings fails on all of these. Do you think they'll be treading water/going down until the next quarter?

Q: Hi, Parkland Fuel stock tumbled at the open on Friday and closed 4.4% lower. I own it from before and was happy to add to my position on this drop. PKI has been in your portfolios for a while and was also a Top Pick recently. Is there something in the quarterly results which needs to be worried about ? After the CST brands acquisition, stock has just gone straight up and Friday was the first serious correction. Would appreciate your thoughts.

Q: Hi, could you please comment on Parkland Fuel results. Thanks

Q: As a newer subscriber to 5i, i am interested in purchasing your BE portfolio. The above names have had huge run ups and I don't know how to approach them. Which ones are buyable at these levels?
Of the ones you deem buyable, can you comment, for each, as to whether a half position or full position should be taken.
And can you rank these in terms in terms of your preferences at current levels?

Thank you for your excellent service, as always.

KR

Q: I'm a late 20s investor looking to augment my company group retirement rrsp (invested in MF's - Index/Mawer) with individual stocks. My goal is to add positions until I'm close to the Balanced Equity portfolio.
At this time, which of the above (or another if there is a better option that I haven't listed) would be a good idea to start with? Thanks in advance.

Q: Hi, Peter & Co. I am looking for some companies that I might add to my elderly sister's portfolio during the tax-loss selling period. She is looking for some dividends, some growth and reasonable stability. Her portfolio has a lot of cash. She currently owns:
DH
Genworth
Northwest Healthcare
A&W
Brookfield Renewable
High Arctic Energy(long-term position,slight loss)
Canacol Energy (small, profitable position)
Would you please give me 2 or 3 names in your selected sectors that I can monitor for opportune purchases?
With appreciation for your great service.
Ed

Q: Hi , can you please provide the estimates for Revenue, EBITDA and EPS for the quarterly release, next week. Thanks

Q: Parkland announced a $300 million Senior Notes Offering which will be used to fund a portion of the CST assets. The announcement said that it has entered into an underwriting agreement to sell, pursuant to a private placement, $300 million aggregate principal amount of 5.75% senior unsecured notes due September 16, 2024. The offering is expected to close on September 16, 2016.
After issue, do notes trade like an equity stock? If not, please explain "notes".
What is your opinion of this offering? Would it be a good holding in an RRSP which must soon convert to a RRIF.
Thank you.
Nadine

Q: Do you think Parkland with eventually be reclassified to consumer staples similar to couche-tard if they keep purchasing convenience stores? Would they have to divest their distribution business in order for this to happen?

Thanks,
Jason

Q: Hi there,

I saw Parkland Fuel had a great gap up today. At this price level would you comfortable starting a 5% position or would you wait for a pullback - and if so, at what price do would you consider starting a position?

Thanks!

Q: I don't understand the relationship between atd.b, parkland fuel and cts. Why was Psrkland up 18 per cent? Do they own cts? Is Parkland worth keeping? I own it.

Q: Is it time to sell?

Q: Would you add to positions in either of these companies after today's news and the subsequent rises, or wait?

Q: Would you comsider trimming PKI if today's movement causes it's weighting in the BE portfolio to increase fairly significantly?

Q: How does this recent deal in purchasing Assets affect PKIs outlook? Will it tilt the valuation metric towards a growth by acquisition model? I am thinking of the valuation as compared to ATD. The deal looks sizeable to PKI.

Q: What happening with Parkland . Big jump this morning

Q: I own both of these in my TFSA. I think of them as different because ATD is international with a focus on gas sales while PKI is Canadian and has propane distribution along with its gas. However, given your comments on BNN last night, should I consider them more as similar companies and combine my investments when calculating my portfolio exposure?

Appreciate your insight.

Paul F.

Q: Hi Peter and 5i Team.

I have one account (representing about 20% of my overall portfolio) where I hold only the Balanced Equity Portfolio. KXS is pushing 7% of this account, so I was thinking of trimming it back to about 5%. All other positions in the account are at about 4% to 5%, except HCG, NFI, and PKI, each at about 2%.

Do you think I should top up one of the half-positions, keep some cash handy for future purchases, or leave well enough alone and keep KXS at 7%? (Note: I also own smaller positions in KXS in a couple of TFSA accounts.)

Thanks,

Scott

Q: My question concerns fuel pricing and specifically, profit margins. Prior to ATD.B's last quarter results, concerns were raised about a potential decline in profit margins from gas sales. However, I thought retail gas price margins were quite stable and that it was the underlying price of oil that caused gas prices to gyrate. In fact, I thought retailers were helped by fluctuating oil prices because they are quick to raise prices when oil goes up (thus selling lower priced inventories gas at a higher price) but slow to lower them when oil drops. Is this thesis correct? If I am at least somewhat correct, it would therefore seem that overall sales is not that important a metric for these companies.

How much do gasoline profits contribute to these companies over all profits? Or are in store sales more important?

Appreciate your insight.

Paul F.