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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: Hi, Transcontinental Ltd was recommended by some Portfolio Managers in the past, and has been on my watch list for some time. But it was Ryan's recommendation on BNN, last week that caught my attention. Although, company slowly started to divest of its printing/media assets over past 2 years and was making small acquisitions in packaging industry, but it was the Coveris purchase in April this year, which made most analysts to take note resulting in the stock earning a few upgrades. However, it looks like that brokerages are still not fully convinced of the true potential of this company although packaging should be close to 50% of company's business, post this acquisition.
Is this the debt level or the execution risk or the Management's capability and expertise or any other factors, in your view, which still has Bay street on the sidelines?
Identifying companies with huge inherent/untapped value and growth potential, at early stages has rewarded investors generously, in past. There are several examples in 5i portfolios, a few being, CSU, PBH and BYD.un. Do you see such signs with TCL.a ?

We own most of Bal Portfolio companies including CCL.b and RPI.un in packaging sector and are interested to add Transcontinental for above reasons (and more importantly, the fact that you like it). Would a 3% position be reasonable and is it prudent to buy a part position at current prices and wait for June 7 results (or 5i full report) for the balance ?

Thank You for your valued advice.
Read Answer Asked by rajeev on May 28, 2018
Q: I have ccl.b at 3% of PF. Would you add a like amount of tcl.a or initiate a position in atd.b? Conservative investor, balanced PF.
Thank you.
Read Answer Asked by Geoffrey on May 25, 2018
Q: Morning 5I Team,
I was curious to ask what your opinions were about Cascades. The company is currently undervalued P/B, however the only issue is it's debt load. I really like how they own a majority stake in an Italian packaging company, which could grow significantly with the rise of online shopping in Europe.
If not, could you give any recommendations in this similar industry? (Boring and under the radar)
Thank you,
Read Answer Asked by Massimo on April 30, 2018
Q: Which packaging manufacturer has the best ability to transition away from plastics into recycled and/or paper based packaging? As TCL reinvents itself as a flexible packaging producer (Coveris acquisition) do you see this, or have you heard this discussed by management?
Read Answer Asked by Michael on April 20, 2018
Q: In an attempt to incorporate more value stocks into my portfolio, can you please suggest your favorite companies (excluding utilities and financials) that adhere (or come close to) Greenblatt's formula for selecting value stocks (ie. high earnings yield and strong ROC)?

Thanks.
Read Answer Asked by Graham on April 13, 2018
Q: Suggestions for value stocks, any industry, and under 2 billion market cap? Thanks.
Read Answer Asked by Tyler on December 19, 2017
Q: I hold cash in my accounts. I would like your view on the companies addressed in this question.
Is it a good timing to initiate a position, what are their growth and safety prospects. Could you rate the above in order of priority.
I value as always your opinion.
Raouf
Read Answer Asked by Raoul on October 24, 2017
Q: Howdy! The Kiki Delaney chapter in "Market Masters" has inspired me to invest more in Quebec-based equities. I already have BCE, CAE, CNR & GUD. Please rank the top 3 in this list (or other Quebec-based equities that I didn't list) to add right now purely on long-term (3-5 yrs) appreciation (value + dividends).
Thank you,
David L
Read Answer Asked by David on October 17, 2017
Q: Hi, This company has been mentioned a few times on BNN. This company has recently been shedding its non core and non profitable printing/media business and made a few acquisitions in packaging industry.Company also pays a good dividend. In your last post, it was mentioned as a value stock. What are your current views on TCL.a? Do you believe that management's new strategy to diversify into packaging business will pay off and it makes a good candidate to add to my packaging stocks portfolio ? Thanks
Read Answer Asked by rajeev on May 24, 2017
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