Investment Q&A

Q: My portfolio is light on industrials as I only own wsp and sis. What else could I add? I'm not comfortable with nfi as I find it expensive. What are 4 or 5 names that you like in the industrial sector. Would a rail company be a good idea as I beleive they fall under industrials.

Q: Hello,

I have a diversified portfolio across all sectors. I recently sold most of my big losers like CXR and PHM etc. I'm now left with the following three losers: MG, ECN/EFN and AD.

I just don't know what to do with these. I'm down about 25% in each. I regret not selling CXR once it was down 25% and instead took a 75% loss and don't want to be in that position again. Should I sell any of these? MG seems to be the best company of the three, but it hasn't recovered this year like other stocks (at least not from where I bought) and now with Trump in there are a lot of fears about the auto sector, and I'm worried it will keep going downhill as NAFTA discussions begin. Anyways, I'm interested in what you think I should do with these three companies.

Q: Why was Magna so severely punished today?

Q: I am another grieving DH shareholder trying to decide a course of action.I expect that DH will be dead money for some time.At the present time LNR and MG have performed well on various metrics and are trading at low P/E ratios.What is your opinion on selling DH and buying MG or LNR at this time? DH is held in my RRSP. Thanks. Joe

Q: I need to add two full positions in the Industrial Sector to my portfolio. What would you recommend?
Thanks for a great service!

Q: Your thoughts on quarterly report?

Q: Please share your thoughts on the earnings release and forward guidance for OTC, ITC & MG.

Thanks
FJ

Q: I am a retired, conservative, dividend-income investor and receive a pension, CPP and annuities. I own AD, ALA, AQN, BNS, BCE, CJ, CGX, ECI, FTS, PBH, RY, TRP, WCP, WEF, WSP, XIT, ZLB, RBC Cdn Equity Inc, Sentry Cdn Income and Sentry REIT.

I am almost fully invested with roughly 5% cash to top up my holdings, mostly in the industrial and consumer sectors and maybe a little in the financial sector. I have filtered it down to 4 candidates: ABT, KBL, MG and SLF.

Question 1 = are there any "red flags" within my current holdings that I should consider selling?

Q 2 = are there other candidates, besides the 4 that I have selected, that I should consider buying, that would compliment my current holdings?

Q 3 = are there any liquidity issues (ABT, KBL)? I think I have selected ok candidates.

Q 4 = Depending on the candidate, should I wait for the tax-loss season to wind down?

I am, for the most part, a buy-and-hold investor.

Thanks for your help,
Steve

Q: Hi 5i - I'm up about 20% on BPF.UN (with a 7% yield) - 5% position in my portfolio. I'm contemplating selling and investing the proceeds in MG. Over a 5 year time frame, I would need MG's share price to go up considerably to offset the yield that I would be giving up. Would you make this switch? Thanks, Neil

Q: How does fall in GBP effect Magna International. It looks like Europe sales are increasing quarter over quarter.. will upcoming quarter hurt the numbers because of fall in GBP? Even though they're hedging? First 2 Quarters - average of 1.42-43.. 3rd Quarter looks to be below 1.3. Or will it be delayed?

Q: why the drop today???

Q: Hi 5i Research team, I just read your recent report on Magna. What would be the impact on Magna revenues and profitability (eps), if tomorrow there were only electric cars produced worldwide? According to you, if the S&P/TSX is trading at a 17x forward eps, at what p/e multiple should Magna trade? Is Magna a stock we buy, put in a drawer and look at a few years later? On a long term basis, in which company (Magna, Linamar, Martinerea, Exco) would you be more comfortable investing in and then leaving for a deserted island for 5 years? Thank you, Eric

Q: Linamar and Magna are both up about 3% today.Is there an explanation for this? I hold both and am not complaining. Joe

Q: I am looking at my Cons. Disc and my Industrial sectors. I consider MG and BYD.un to be a hybrid between these two sectors, but I am not sure that you would agree. I have full positions in AYA, MG and BYD.UN and half positions in KBL and NFI, having recently sold WSP. I have 3% cash to deploy and I am thinking of adding a pure C. Disc. stock. Would you agree with this and what stocks would you recommend I look at? Thanks for such a great service! I have signed on for my 4th year.

Q: HI Peter. Thanks for your great service. My question today is I am going to sell RBF 1340 formerly PHN bond. I would like to replace it with stocks that consistently and regularly increase their dividend for the past 5,10 ++ years. They would be inside a rrsp fund. I have a company pension and receive cpp and oas. Please suggest 5 to 6 stocks. Thanks Frank

Q: Recently, there has been much in the news about improved Canada-China relations, and the Liberal government pursuing a free trade deal with China. As it appears that more business opportunities are on the horizon (e.g., SNC-Lavelin, Canada Pension Plan Investment Board), what Canadian ETFs or specific stocks I should be considering?

Q: Self driving cars appear to be in our future. Which companies are involved in developing the control systems for such vehicles? If we believe in the concept, are there stocks that you would recommend? I assume Magna (which you seem to like) will certainly be involved in general parts supply. Do you know if they are involved in the controls as well.

Thanks for all you do.

Q: I have owned UNS for a while in my TFSA, and could realize a nice profit. After reading the report on MG , which has a PE about half of UNS, and paying about twice the dividend, I am considering swapping. Holding for the long term in the TFSA . Good strategy or not?

Q: I have been looking at MG for awhile and was wondering why the stock has fallen over the past 1.5 years? The dividend payout has risen over the past 4 years and they have very low dept. The returns on asset, equity, and capital are also consistently high over the past 5 years.

Is this simply investors being tired or is there something else, and would it be a good time to enter?

Thank You,
Andrew

Q: I am trying to balance out my portfolio sector weightings and am having trouble classifying where these 3 companies should go. I have all 3 of them as "Manufacturing and/or Industrial" whereas you have BOS and MG as "Consumer Cyclicals" and BDI as "Energy". Can it be argued that these are Industrials or should I just stick with your sector classifications?