Investment Q&A

Q: Happy New Year guys

In regard to CNR it would appear one of the main issue the company has seen over the last two years, and going forward, is too much freight to move and a lack of capacity. I have to think isn't this a "problem" a lot of companies would dream about. Only really two possible railways to choose from and both running higher than capacity. One would think that would give CNR some pricing power as well. And moving forward it would appear the only option for the next few years to move oil is through increased shipments, where the government of Alberta is paying for the cars.
In this environment the stock has fallen about $18 a share.

My question is what do you see as weighing over the stock, are these fears justified and do you see this as a decent entry point. How is the stock trading in regards to typically where it would be at the end of an economic cycle.

Much thanks

Stuart

Q: What is your preferred holding in this sector? I currently hold CNR.

Q: I would like to add one railway holding to an already well-diversified portfolio .. given the recent news about CN's development of a bitumen "puck" as an alternative method for shipping crude, which of these two (CNR or CP) would you favour this month? Does this news have implications for pipelines?

Q: Hello Peter, Ryan, and Team,

I sold some holdings in my margin account to take advantage of tax loss selling. My Industrial allocation needs to be increased, and I'm considering purchasing CNR, as a large-cap holding that's recently been beaten down. Our other Industrial holdings across all accounts are BAD, CAE, NFI, SIS, STN, and TFII. Would CNR complement our other industrials? Or do you have other suggestions?

Thanks as always, and Season's Greetings to everyone at 5i.

Q: I own all these company in a non-registered account. At the present I am losing money on all of them. These are all strong companies with good to excellent balance sheets. I know that 5i do not want to sell companies that are strong and that have reported a bad quarter. I could sell these a get a tax loss and receive approximately a bit less than a $1000 in tax refund and buy them back in a month or buy other company in the same sector? What should I do?

Q: Hi Peter:
Season greetings to you and your team.
I would like your opinion on the trade(s) I was thinking about.
1) Sell full positions in POW and NFI.
I've had POW for 5 years and it has done nothing during that time except go down about 20%. However, I also think that at $24.00 it has potentially hit a bottom support number. I would be happy collecting the nice dividend it pays.
I also think based on your recent answers to questions that NFI has potential going forward.
2) If I sold POW and NFI, I would add to the positions that I already have of the other companies that are mentioned.
I'm well diversified and this would not interfere with my sector or geographical weightings or the amount of dividends I am receiving.
I think both scenarios have their positive attributes and would appreciate your thoughts. Do the trade or remain the course.
Thank you very much for your valued opinion.

Q: Could you comment on Carrick's article about the Connolly report. The prospects for CNR ( I always chicken out on CNR and then it goes higher). Are there similar strategies that appear to predict long term growth that you like ? And perhaps another name you like ?

Thanks for all yoru support,
Mark

Q: Who will benefit the most from the current crude-on-rail initiative (i.e. Alberta paying for rail cars to transport crude) CNR or CP? Thank you...

Q: Hi,

Can you provide your overall views on the transportation sector and your ranking of the three noted companies. Thank you.

Q: Looking at starting a position in railroads - how would you rank the above for a 3-5 year period and why - are there any others you would rank higher - and what is your overall view on investing in this sector at this time.

Thanks,
Terry

Q: Please compare the two rail companies for projected revenue growth and your thoughts on growth and possible share price appreciation in the next one and three years timeframes.

Q: What do you think of CNR as a 3-5 year investment ? Thanks.

Q: I am looking for a transportation company to add to my portfolio. With another delay in the TransMountain Pipeline, is now a good time to consider the rail companies, and if so, which one should benefit more from a possible increase in oil shipment?
With or without the oil shipments, is there another transportation company you would recommend instead, planning on a 5 year time frame?
Thank you
Grant

Q: Do you think starting a 2% position in CNR is okay at this time?

Q: Hello 5i, Thanks very much for all you do for your members. I look at your organization as the "Robin Hood" of the Canadian financial industry. My question today is: I sold my ECI this last week and decided to capture the gain and redistribute to one new position with the proceeds. I'm looking for another dividend aristocrat (as identified by the S&P index or one that could be as CIX will be getting the boot) I'm closing in on retirement but still like to stay in the growing type names. Not terribly worried about maximizing my income at this point. Which of my choices do you think has the most upside over the next 5 years.

Q: Can you please comment on their earnings and what is the likely short term impact on the stock price.

Thanks Valter

Q: Hi Peter, Can you advise your 5-6 best candidates for covered call strategy, Thanks

Q: Your opinion please on CNR vs UNP ? I have a long time horizon. Looking to hold as forever stock.

Q: I am learning a lot from your services of 5i, Canadian Money Saver, ETF newsletter..
I have owned CNR since 2005. From an original 10% of the portfolio, it has now grown to 20%. I read your answers to other questions about CNR.
My dilemma is-
1. CNR is a good long-term hold: So, leave it.
The risk is its falling in a recession/ tariff war. (It fell 30% in 2008.)
2. Portfolio weighting is more important: Trim to a lower percent and pay the tax.
But, from selling other stocks and 5i Growth stocks, I already have some capital gains.
What would you do?
Thank you for your wonderful service and great investor education.
Shan

Q: Hi guys, love the service thanks!
Looking at a long term hold of 15-20 years , growth and dividend , but not really risky. I suspect all 3 are good, do you have a particular favourite? Or perhaps a better recomendation?
Thanks again!