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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: As a long time investor I'm gobsmacked that kxs, or zzz gets pummeled for a slight earnings misses. Can you provide some insight here? Kxs has had slight misses before but a growing firm with little or no debt and an Asian clent that re-nigged on them. What gives? Is this some perverse message to management to smarten up. Whzt a buying opportunity.
I feel better now!
David
Read Answer Asked by David on August 10, 2017
Q: I am looking for 3 or 4 Canadian dividend paying stocks to add to my portfolio. What are today's picks for safe, rising dividends, and fairly priced stocks of solid companies? My portfolio is well balanced, so sector is not important.
Read Answer Asked by Brenda on August 02, 2017
Q: This may be 2 questions:
As part of balancing my TFSA which is Growth oriented, I am looking to add positions in the Industrial sector; how would you rank these? any other to suggestions?
Similarly, what would be you top 3 pics and rank for Consumer Cyclical sector
As always, Thanks for the insight.
Read Answer Asked by Francois on August 02, 2017
Q: Hi 5i,

I currently have 14% of my portfolio in materials, which include MX (3.2%), CCL (4.25%), ZCL (3.47%) and AEM (2.84%).

I also have 12% of my portfolio in consumer non-disc, which include PBH (4.85%), DOL (3.47%) and ZZZ (3.2%).

For a growth oriented investor with 30 years until retirement what do you recommend as an appropriate allocation to materials and consumer non-disc? I will need to trim my holdings in each of these sectors to re-balance as I feel I am overweight so any suggestions on what should go?

Thank you as always,

Jon

Read Answer Asked by Jonathan on July 21, 2017
Q: I have A&W, CGX, and BPF.un in my consumer discretionary. I've been thinking of switching out A & W for TOY or DOL for diversification. Does this seem like a reasonable approach for a conservative retiree? Which would be the more stable choice for one in my position, or do you have another suggestion? Thank you so much for your continued help and advice. (CGX has done very well for me)
Read Answer Asked by M.S. on July 17, 2017
Q: My portfolio is somewhat light on consumer discretionary companies and I see that you favour this sector at the present time. Could you please explain your current support for the sector and suggest a few Canadian and American companies that you believe are fair value with solid growth prospects for the future. As always, I thank you for your appreciated opinions.
Read Answer Asked by Les on July 07, 2017
Q: reviewing your reports i like to add CAE and CSU to my cash account and CGX to retirement account.
i dont like to add to the number of my holding or the margin.
So i would consider letting go of CJT (recent purchase ) reduce my TD (FROM 300 to 200 units ) ZZZ (reluctantly, t has done well in the short time ). IN MY RET A/C let go of DIV .
Appreciate your feedback

replace DIV with CGX in my retirement account (i am surprised at your A- rating for CJX
Read Answer Asked by thambirajah on July 06, 2017
Q: Hi 5i team,

LULU has really taken a beating these past two weeks despite strong financials, solid management, and the majority of analysts believing it will outperform the market. I am down quite a bit recently, and I was wondering if I should keep purchasing the shares as they continue to decrease in value with the hopes of a rebound?

For Sleep Country, do you also believe that this is a hold despite the drop in price that occurred in the past two weeks?

Thanks as always for your excellent advice!
Read Answer Asked by Hillary on May 29, 2017
Q: In an otherwise well balanced portfolio,and knowing that they are in different sectors, which of the two stocks do you feel has the better
possibility for growth over the next eighteen months to two years. Dividends are not an issue.Their Market Cap, P/E ratio, REO, and price appreciation over the last one year appear to be similar. Thank you for your opinion. Ian
Read Answer Asked by Ian on January 23, 2017
Q: Many darlings of the past year or so have been hit hard,some very hard eg VRX,CXR & DH(yesterday) & today it was ZZZ.Bruce Campbell#2,who made ZZZ his top pick 4 times since 6/30, voluntarily told Market Call(3pm pt) that he had sold ZZZ as it no longer meet his metrics of EPS growth rate & valuation,& replace it with a better choice,but still like the co.Today ZZZ dropped 6% on big volume(385k).A very volatile market.Hard to make a buck.Note that the big 6 Canadian banks are slow & steady,but returns(average 4% dividend-40/50% p.o.-plus capital appreciation are lower than those darlings in their hey day
Read Answer Asked by Peter on October 28, 2016
Q: Hi, this stock was recently added to Balanced Portfolio has dropped sharply from its recent highs.

New Flyer today closed at $37.83, which is off by about 15% from its recent high of $44.87, reached just after quarterly results. When Marco Polo decided to sell about half of its stake @ $40.40, the secondary issue was oversubscribed 3/4 times. In one of your recent comments also, this weakness was again attributed to one large seller.

It has been widely believed that lately NJ issue has been responsible for the depressed stock price. Today's weak backlog numbers and sequential decline in ECU deliveries besides lower after market sales have caused market to press the panick button resulting in another sharp drop.

My concern is that stock may not recover in near term and is even at the risk of losing more value. Should I bail and find better use of my capital? Thanks
Read Answer Asked by rajeev on October 18, 2016
Q: Hi, Here is another stock in which I built up a full position over past 6-8 weeks. Based on your many comments, I believe that you like the company but last time decided to add Spin Master instead of Sleep Country, due to higher growth prospects.

The company also appears to be a favorite among many guests appearing at BNN and has been often compared to Dollarama, with respect to its future growth potential and expansion plans.

The stock quickly rose to a high of $33, but has been on a constant decline over past few weeks, losing over 12% of its value, closing at $29.01, today. Recent weakness has been attributed to soft results from Temper-Pedic and also a M&A few weeks ago which was completed at a much lower multiple than what Sleep Country had been trading.

When an expensive stock like ZZZ continues to trade lower, what could be the next event or catalyst, which could help stock reverse this trend and regain market confidence? Or, it's time to sell before stock loses more value and redeploy capital in more consistent names in your portfolio? Thanks
Read Answer Asked by rajeev on October 18, 2016
Q: Hi there,

I had two questions. The first one would is on Sleep Country - I noticed that has come off it's highs of around $33ish. Do you think today's price would be a good entry point or will it continue a down trend with profit taking etc?

My second question is on the Balanced Equity portfolio. I have been following your updates and stock selections and started out with a 5% weighting or so in each name. What is the best way to deploy any new funds if I wanted to follow the balanced model? A real world example of this would be if I contribute money into my TSFA next year, what would be the best way to deploy this new cash into the BE Portfolio? Should I divide up the contribution amongst several names? Hold it in cash and wait until you have added a new name to the portfolio and then deploy it? Is there a recommended approach to this?

Thanks!
Read Answer Asked by Michael on October 14, 2016
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