Investment Q&A

Q: I am a little confused on the ACB Share Price for Magna in your recent report on the Balanced Portfolio. It states a price of $55.72 with a total return of 9.1%. I was wondering if the stock split has been factored in to this assessment. Please keep up the excellent work.

Q: What's happening with Magna? The stock has been in steady day-by-day decline for the past 2 weeks and lost 10%. I am surprised that the sale of interiors unit has such effect on the stock... US economy is booming and people are buying new cars, I'd expect MG to do well in such environment...? Is your rating/views of MG still unchanged since your report 2 months ago?

Q: Hello Peter & Team,

Have noticed both are off recently - MRE about 9% in a month & MG about 10% in the past couple of weeks.

Also noticed Auto sales have been reporting a little weaker than expected domestically but while internationally has been a little more promising.

Do you think this is the reason? or is there something else at work here driving these down? I got out of MG shortly after the split but still hold MRE at just under $10. Would you recommend I hold tight or take my profit - it's May so go away?

Thanks for all you do

Gord

Q: Is Magna or Linamar the better buy? I have no sector exposure at present and a long-term horizon. Thanks!

Q: Response to Magna selling some of the company has resulted in a negative market reaction. Could you please provide your outlook going forward. I believe you gave this company a B+ in your report.

Q: 5i
Recently Magna had a 2 for 1 stock split .
Could you tell me when that happened and what was the actual pre and post stock split prices ?
Thanks
Bill C.

Q: I was wondering if it was time to take profits in Magna or Linamar or both?
Thank you for your help.

Q: Hi Peter, read your article on March break strategies in FP. I will be spending April in Europe. YTD I did very well with some Canadian companies such as AC, VRX, Magna, but especially in the US biotech sector. What should I do? Go to cash? Put in stop-loss orders? Or just monitor the market from Italy - I can trade over the internet, of course.Thanks for your advice.

Q: Magna's announcement of a 2 for 1 stock split, indicated that the 2 for 1 stock split would be implemented by way of a stock dividend. I understand the concept of a 2 for 1 stock split, but what does implemented by way of a stock dividend mean. Thanks for you explanation.

Q: Today Magna will split stock price 2 for 1 and raise dividend. Also project lower profit for 2015. Would this be a good entry at today's price for 3 to 5 years? thanks

Q: Hi Peter & Team.
I've made a reasonable return on Magna since picking it up on the pull back in October. I've heard a couple of analysts comment that they think the stock is at it's top. I'm ready to hit the sell button but would appreciate your thoughts. Thx Scott

Q: Good Morning!
Thank you for keeping me calm while I rode through the September dip. I could hardly believe that I kept my head and bought Magna when it was down! I sold some gold at a loss to make the purchase, but I'm almost back up to where I started in August.

Magna is dropping slightly after a quick dip and recovery this week. I am trying to figure out the fluctuation and the drop. As a learning investor I need some help to understand this November 10th news release: "TSX Accepts Notice of Intention to Make Normal Course Issuer Bid".

Is Magna issuing new shares or buying back shares?
What do you predict for Magna going forward? I think I saw that the projected share price for next year is $150.00.

Gail

Q: Gentlemen,
With no consideration to sector which 5 best stocks to buy (20k each) now from 5i Portfolio
Thank You
Best regards

Q: I am considering adding to my position in MG but I am not sure that the market has settled down. I am a long term investor and can wait as much as 10 years before selling MG or any stock. I would appreciate your advice on MG and a little crystal ball gazing into the direction of the markets in general. Thank you.

Q: I have some money set aside and would like to take advantage of the pullback and buy 2 industrial stocks and 2 consumer stocks. I already own BGI.UN and DH, and the rest of my portfolio is well balanced in other sectors. I am looking at a long term hold with a view of overall return combining growth and div.
I'm looking at the following stocks in Consumer: SJR.B, BCE, T, PJC.A and ATB.B
And the following in Industrial: WTE, CAE, CNR, MG and AC.B
Could you suggest 2 in each sector (or suggest another stock that may be preferable to my choices) and let me know the basics of the choice?
Thanks so much, Kim

Q: Hey Team

Please comment on MG after the plunge today. I do not have a position and am considering it. What would you do? Wait or buy now? I feel like waiting. Any reason I shouldn't buy this stock?

Thanks for all you do

Gord

Q: Hi Team,
I wanted to buy more Magna shares and noted it has been going down recently. Would now be a good time to buy the stock?

Thank you for your past help

Q: Hello 5i Team

... anything further on the "news of the regulator" as per your comments on Monday?

Thanks for all you do

Gord

Q: I am considering buying linamar or magna with the recent drop in their stock price. Would you prefer one over the other and why?

Q: re:MG Magna

Hello 5i Team

Magna is one of those names I have been kicking myself for not getting into back in mid Feb when I began watching it. Now, as I continue watching, reviews coming in appear to be mixed which for me is a little confusing.

Everyone agrees it is a well run company, it appears to be trading at around 10 times earnings, and auto sales should improve over the coming years considering the age of the fleet and the slowly improving economy. my questions are...

1) is there a reason you know of that explains the significant drop today?

2) at the present price, how do the metrics look?

3) would you recommend buying now, or holding tight?

As usual, Thanks for all you do, it is always appreciated!!!

Gord