Investment Q&A

Q: There has been lots of good discussion about these 6 stocks on your forums section over the last year BDT, DRX, GSY, HPS.A, PRL, VHI. All have been big winners. Do you think they are still promising investments at current prices?

Q: Hi, Listening to a recent podcast by Keystone Financial, some concerns were raised about high debt level and low organic growth, with most growth generated from acquisitions for Terravest. Do you agree ?

The stock has been weak recently and is now trading at $73, below the recent secondary issue at $74.25 and $9 below its recent high of $82. The decline could well be market related, with DOW and Industrial Sector under pressure, the whole week and not really company specific - Don't know.

At the same time, ADF Group is hitting new highs, almost every day, ignoring the weakness in the Industrial Sector, in general.

Both these companies are on your recommended list. Also, my understanding, based on your investment approach is that you would rather add to a position with stock seeing strong momentum than average down when a stock is in a downwards trend.

Not sure, if the recent price action makes one of the two stocks better than the other, but if you have $$$ to add, which one will you choose today and why ?

Thank You

Q: Hi, ADF Group announced new contracts for $90 mln in Canada and US. Earnings release is due June 11th. How is the current valuation of the stock vis-a-vis its peers ?
Are you still buyers at $17 ?

Thank You

Q: Hi, All these companies are on 5i's recommended list and have been added to Growth portfolio, in the recent past and have done well. Kudos to your Portfolio Team !!!

If the Balanced Portfolio had Cash available and room to add to Industrial/Material sector, which one/ones of these will qualify and be your choice ?

Also, if one owns all above companies, in small positions, in what order would you add, based on their respective valuations, presently and why ?

Thank You

Q: Can you provide a few aggressive names you like Can or US for a TFSA? Thanks

Q: Can you comment on DRX from a valuation and prospect point of view.Is their order backlog significant?

Q: If I may add a follow up to your answer to Michael regarding concentration of business. While DRX supplies steel structuring for many different buildings throughout the US, their contracts are with the general contractor/project manager who has been hired been hired by say Eli Lilly to build 12 buildings in Boone County, Indiana. The large contractors (eg Fluor Corp) like to work with companies that have a proven track record of quality and on-time reliability. ADF Group has a terrific reputation and has the most automated steel structure plant in North America. The huge large scale building taking place in the US ( semiconductor plants, battery plants etc) require a company like ADF to meet their demand. If you are good, there is lots of repeat business from the same large contractors.

Q: Are you concerned about any of these factors?
Four clients contribute to 69% of the total revenue.
The U.S. market accounts for approximately 89% of revenues.
Deferred Income Tax Liabilities increased from $9.2 million to $15.9 million, marking a significant rise.

Q: I am setting up an income RRIF and thanks for all your your answers to my questions. I would like to add one potential growth stock because that is me. It won't be a huge % say 3. Can you suggest a couple CAD and USD each? Thanks again. Dan

Q: According to Yahoo finance , HMM has a cheaper PE. How does it compare to DRX in price appreciation ? Thanks a lot.

Q: Hi team,

About 6 month ago, you provided a list of 10 stocks you considered "high conviction" buys. Thus, I bought VRT, HPD.A, LLMN. I have no regrets so far....for good reasons.
Grateful if you would provide your actual high conviction list, both in Canadian and U.S. stocks, indicating your order of strongest conviction.

Gratefully,

Jacques IDS

Q: Would you wait to initiate a position in these stocks? Or do you feel this is a good entry point?

Q: Hello, I’ve noticed that Propel Holdings Inc. (PRL:CA) is not included in the list of the 10 Canadian Small Cap Companies - Special Report. Is there a reason? Thank you

Q: What is your latest idea that you think is as good as when you initially identified LMN? Thank you!

Q: Has there been any new analyst coverage/reports that may explain in part the recent share price appreciation?
Thanks

Q: I just discovered DRX in the Globe's Stars of the Week. Do you still consider it a buy after its runup on recent earnings? PE is now over 10.

Q: Good morning,

For a moderately aggressive investor with a two-year time horizon, how might you rank the listed stocks in terms of a new purchase today?

Thanks,

Brad

Q: Everyone, I have been watching the above growth stocks since late last year. I usually have one or two high growth quality stocks that will add to the average returns of my portfolio. My last purchase of a high growth stock was LMN, which I purchased last September, with an average price of $20.50. The ones I am watching now have risen significantly and I am hesitant to buy into them since they might decline 50%. So should I buy a small portion of each to maybe a 10% holding of my overall portfolio? Or should I wait till……..
Clayton

Q: Please comment on 4th q and year end numbers. Thanks.

Q: Good Day 5i team!

My question is around DRX and your thoughts around taking a bigger position? The stock has had a good run, has work in the pipeline and will likely gain some traction fueled by high-rise residential and infrastructure work. Next TVE, which I hold a small position in my RRSP and am thinking about adding more. Mostly due to the dividend and that energy should be a growth area in the coming years.

Thank you so much for all your efforts in adding clarity to this crazy world of investing!