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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: TD advises that "growth at LEG (Leggatt & Platt) is below the industry average, and worse, is declining. The most recent EPS was $2.00, a decrease of -32.4% YOY.

Should I be kicking this one out of US portion of portfolio? If so, why?

Looking for steady income in US dollars.

If I'm kicking out LEG, what else might you suggest?

Thanks.

Read Answer Asked by Sylvia on July 14, 2023
Q: In a response a couple of weeks ago you briefly compared GSY and OMF. You indicated that you "consider these two solid for those interested in playing the debt theme". Do you feel any differently now.?
Since neither company rely on customer deposits, is there any reason why OMF has fallen so much more in the last week other than being in the financial business in the US?
How much has the risk changed for investors, compared to GSY? With the big drop in price and corresponding rise in yield  (11.8%) do you see OMF more compelling to start a position mostly for income and some growth? 
Lastly, which other high quality small to mid size US companies in other sectors would you consider if the goal was mostly income?
Read Answer Asked by Alvin on March 21, 2023
Q: Hello 5i,
Portfolio Analytics indicates that I need to add about 1.35% to my Consumer Discretionary/Cyclical and further that I need to increase my U.S. exposure by about 3.05%, so I am looking for a U.S. name that pays a decent dividend above, say, 2.25% in this sector & geography.
Some names that came up from a link (U.S. Dividend Aristocrats) you had previously supplied, in response to another question, that I was considering are:
Genuine Parts - GPC
Leggatt & Platt - LEG
McDonald's - MCD
VF Corp - VFC
So, my questions are:
1. Out of my list are there any concerns over dividend safety?
2. Safety of business in general?
3. Given my need for dividend income in this sector, would you have any other suggestions you might prefer over these names in terms of safety of both business and dividend?
My current Cons. Discretionary/Cyclical holdings are LNF in Canada and MGA (Magna) on the U.S. side.
Retired, income-oriented investor otherwise well-balanced and diversified.
Thanks for any help you can provide - always very much appreciated!!!
Cheers,
Mike
Read Answer Asked by Mike on October 25, 2021
Q: Just a follow-up thought to the Legacy question, investors should be reminded that the price they paid for any security is irrelevant to the decison of whether to hold or not. "Hoping" to break-even is not the way to think about a security. Instead, the fair value means everything. The stock doesn't know what you have paid for it, and it shouldn't matter because the price is what the price is. I think you have done a good job of mentioning this in the past and instead focusing on whether the company is still a good buy/hold/sell going forward.
Read Answer Asked by Zach on September 08, 2014
Q: Greetings!My question is about LEG; Legacy Oil + Gas. My former financial advisor recommended this for my non-registered account. Price paid: $12.45. Price today: $7.37. This puts me in a negative position, down $2,029.00 or 40.73 percent. Is there any hope I will ever break even with this stock in the next year or two? Should I just take sell and take a loss? BTW, I've read all the posts about this stock and did some Googling for additional insights. My objective is growth or growth with a growing dividend. (I realize LEG does not pay dividends.) Thank you.
Read Answer Asked by Helen on September 06, 2014
Q: Legacy Oil & Gas (LEG) has recently had a nice move to the upside on sizable volume. Would you attribute this to the year end reserves announced on March 5, some short covering, or is there something else that would accounting for same? As it has done little over the course of the last year, is it worthwhile holding it over the course of the next 6 months to a year.
Thanks in advance
Read Answer Asked by Robert on March 20, 2014
Q: I have owned Legacy (LEG) for a while at about $7. I understand they have some debt and the market seems to like the dividend model of other companies in the sector instead of the Legacy growth model. I have thought about biting the bullet and following the dividend herd. Could you suggest a Legacy strategy for me for this year?
Awesome service guys!!!!
Read Answer Asked by Randy on February 03, 2014
Q: I am a new member and must say I really enjoy your site. My question is specifically on short positions on companies. Legacy (LEG) has 34 million shares short out of 157 million float or 21% shares shorted. Is this a high percentage for a company and should this be one of several factors to consider when making an investment decision? Thanks!
Read Answer Asked by David on September 26, 2013
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