Investment Q&A

Q: Hi there,

I currently own a slightly modified version of the Balanced Equity Portfolio (MG/XTC, SLF/GSY, BNS/ZZZ and ENB/BLX). In addition I also own SHOP, ZCL and PHO. In your opinion, do these 3 names from the Growth Portfolio represent your best ideas or would you substitute any of them at this time? I know SHOP had been one of your top ideas when it was trading at a much lower price - does it still remain as one of your top ideas with the recent run up in price?

Also, I noticed Peter had selected BOYD as a top pick when he was last on Market Call. I was curious to know if this is somewhat of an indirect play on the auto sector and if I should swap XTC for BOYD at this time?

Thanks for your excellent service and advice!

Q: Hello 5i,
I've held finning for a long time and recently sold it and wish to replace with byd.un.
I think I read that byd.un raised financing in may 2017. Does that mean it will NOT need to raise more to close its' recent purchase?
If byd does need more financing:
Who would do this deal? Who did the financing for byd in the past?
Where would you expect the share price to adjust on the announcement of such a deal (provide a typical range or 5is best guess based on past deals)
Would more debt suppress the share price for the next 12 months?
In a volitile market would byd bonds be worth holding ?
Many thanks

Q: ATD.B has been flat for some time. I have a very substantial profit in this stock and it occupies 6.5% of my RRSP. I am considering a partial sell of ATD.B and a small buy of CCL.B, DOL, or BYD.UN. Is this a reasonable tactic or should I avoid chasing these 'hot" winners and be a little more patient? Joe

Q: I have been following A&W and Boyd for years and years.
I finally bought A&W recently. Now I would like to switch
the A&W for Boyd. I have more stocks than i really need ,
and not enough spare cash to hold meaningful positions in both. I think that I would prefer the growth that
Boyd might offer over the income from A&W,since although
the position is 2% , the income really isn't meaningful


Would his switch be a reasonable one ?

Thanks in advance for considering this question.

Q: My industrials currently consist of SIS@4.3%. BIP@ 3.8% and ZCL@3.5%. Each month i have the ability to contribute about 1% of portfolio value. I would like to add to my industrial section. Any suggestions or changes to holdings? Probably happy with three stocks but could add another. Hold about 33 stocks in my balanced portfolio.

Q: I was considering switching out of Magna and into BOYD. Do you see this as worthwhile or more like unnecessary tinkering. Just curious on your thoughts.
Thank you

Q: Apologies... following up on Marty's question early today... I too have been holding CXI for some time and am not sure you answered his question when he asked should he continue to hold CXI;

"Is there evidence that their efforts are now finally gaining traction and would you recommend that I continue to hold?"


Or was it implied because you like BYD.UN to sell CXI and buy Boyd?

Thanks for all you do!

Gord

Q: Hello
A learning question. When a company does not have analyst coverage but the share price continues to go up who is buying the shares retail investors or smaller investment firms? Reason for the question is yesterday when Peter was on Market Call he mentioned Boyd has done well even though there are no analyst covering it but it is up over several hundred percent.

Q: Always great to see you on BNN Peter. It always peaks my interest when you select a top pick that is not in any one of your model portfolios. Can you explain a bit your rationale for selecting Boyd Group Income Fund as a top pick and why it doesn’t have a place in any of the model portfolios. Thanks.

Q: Good Day 5i
First of all I just wanted to commend Peter on another informative appearance on BNN. As testament to your following your top picks of PHO and GUD shot up the instant you mentioned them on air.
My question is would you please comment on the latest quarter of CXI? Is there evidence that their efforts are now finally gaining traction and would you recommend that I continue to hold. I was contemplating a switch back into BYD.UN as I had sold out of my position way too early and of course noted it was one of your top picks today.

Q: You gave a fairly muted, albeit positive, response to a question on today's purchase announcement. You also said BYD will be issuing $47 million in equity at ~$88 or ~534,000 shares.

As I write this the SP is up about 11% to 99.84. Your comments please.

Q: Your take please on the large acquistion announced today and your forecast as to its overall impact on earnings and stock price.

Sheldon

Q: Hi, could you please provide your comments on today's news of the large acquisition by Boyd Group. Boyd has been growing in US lately. This is a major expansion in Canadian market, Ontario. How is it different than the US, where insurance companies like to mostly deal with established repair chains like Boyd ? Do you see possible equity issue, near term ? Thanks

Q: Hi 5i, can you please advise me if TOROMONT INDUSTRIES (TIH) is a good company to own for the next 3-5 years? This company had appreciation over 100% in the last 5 years and had an approximate gain of 25% in the last 12 months. With the price being around 9% below its most recent high, would you think that it would be a good time for an initial purchase? or can you suggest another company you would recommend in this sector, Thank you for all your help!

Q: Hi, Could you please share quarterly estimates for KWH.un (AFCFO per share and EBITDA) and Revenue, Adj EBITDA and Adj EPS for ECI,TOY and BYD.un. Thanks

Q: Based on available historical data, the above have compounded earnings > 10%. I intend to put these good companies into a RRIF to boost the return of a mostly bond/gic content.

In your opinion would you regard each of the above as a good company that should be able to provide a relatively stable future annual return of 8% to 10% with the exception of a market meltdown. Looking for some reassurance regarding the picks. Thank you.

Q: I would like to add to my Industrial Sector holdings. What would be your top 3 recommendations for growth?

Q: Dear 5i, I've read some good questions lately on REITs and return of capital, dividends, business income, and the adjusted cost base for these securities.
I just wanted to follow up and ask if my understanding of the different tax treatments is correct.
1. RRSP: all monies paid to the RRSP is basically exempt and no need to keep track of ROC, dividends, etc.
2. TFSA same as RRSP
3. Cash Account, monies paid to the account must be kept track of and the ACB will be reduced each time ROC is paid back to the investor.
Please confirm this means over a very long period of time the ACB could be reduced to zero or even negative? Is the ROC, Box 42 on a T3, the only amount I have to keep track of?
and another question, on BYD.UN, Why is BYD.UN allowed to operate under .UN status and in your opinion will they eventually be required to convert to a Corp.?

Q: Hello Peter and team, MDA is taking a hit today, almost 4% drop. Are there any reasons for this? I have a full position in MDA, should I switch to something else? If yes, what would it be (in the industrial sector)? Regards, Gervais

Q: I have held this stock for close to three years. It has been a good performer so I am sitting on some significant capital gains. It did miss some numbers last quarter and has recently dropped. What is your outlook for this stock and likelihood of returning to better growth.