Investment Q&A

Q: If you were to add 3 positions to a well diversified Portfolio, which of these 10 would you choose.


Thanks Valter

Q: I am curious when CSU was acquired into the Balanced Equity portfolio. You show it as having a return of 508.75% since inception, the highest of all holdings. I have held it since April 28, 2015 and have a return of 51.67%. I try to mimic the Balanced Equity portfolio as much as I can but I know it can hardly be quite the same.

Q: I have the following stocks in an non-registered account with curent weightings between 2.5% and 3.5% : TD, WSP, CSU, TOY and PBH. I would like to deploy a 2% cash.
Which one of the following now would be best to add for a full position or would you suggest another company? I was also thinking of starting a new half-position with NFI...

Thank you,

Q: After you have listened to the conference call can you please comment on CSU.
Thanks

Q: For a 40 year old, starting to save for retirement. Currently have in an RRSP these stocks: TOY, ATD.B SIS and TD. Now have room for two more holdings. Can you suggest 2 or 3 please?

Q: Please comment on earnings. Thank you.

Q: I bought CSU at $110 ish in 2012 and sold at $600 ish in 2016, needed the money. I would like to buy it back for a five year hold. Is it a good time to but it now.

Thanks as always.

Clayton

Q: What is the consensus for Q3's revenue, adjusted EBITDA and adjusted net earnings?

Q: Good day, CSU has reached about 6.3% of my portfolio. This company performs so well I have a hard time trimming it. Is it best to bring it down to 5%, or is CSU good enough to let run up to 7 or 8 percent in a portfolio.

Thanks.

Q: Greetings 5i team:

Can you please suggest 3 stocks on a valuation basis that still have a good balance sheet that you consider have the best potential over the long term. If you can draw them from the mid-cap or larger dividend paying universe so much the better, irrespective of sector. Finally, if you could highlight what you see as the biggest risk for each?

Thank-you,

Q: My partner has $25k to invest in a new TFSA. Was thinking that 5 stocks of $5k each might be a good initial starting point. Do you agree? And could you make suggestions of stocks to add based on a moderately to aggressive approach. Her other investments inside a RRSP are primarily mutual funds or ETF based. Thanks!

Q: Speaking from a momentum perspective, can you please provide 5 of your favorite momentum plays for a med risk ,div income investor?
great service, many txs

Q: I need two- three growth stocks for the next 2-3 years. Of the stocks listed above, can you pick your top top 3and why? While I expect some volatility, I cannot deal with gut wrenching volatility.

Q: David Driscoll was on BNN Market Call early last week, and while killing surplus time at the end of the show he underscored the importance of eliminating correlation risk in a portfolio (also mentioned in his point #6 here: http://www.bnn.ca/david-driscoll-s-top-picks-august-21-2017-1.835439 ). If I understood him correctly, this would mean not holding significant positions in multiple stocks within similar industries or with overlapping product/service offerings, presumably so that if one industry got hit, it wouldn't pummel two or more stocks at once and do damage to the portfolio as a whole.

Is this the thinking behind you not holding CSU and OTEX simultaneously in any of your model portfolios? Are there any [other] noteworthy correlations of this sort between any of the other stocks you cover and routinely recommend?

Q: In discussing buying CSU in less-than-board-lot quantities, you said that "there can be some higher bid/ask spreads, so one needs to enter trade orders carefully." Perhaps this needs to be stated more plainly: *if* you want to buy less than a board lot, *then* set a limit price (i.e., don't buy 'at market'.)

But I know of no other constraint on small-lot trading. I have bought single shares of GOOG and AMZN with the same trading fees as would apply to penny stocks, and been filled at or below my limit price. For that matter, I now find it easier to scale my bids by dollar value than by share count. Much of the mythology around board lot trading seems to be just that: a myth.

Q: About a year ago (Nov 2016), you provided 10 "forever"stock ideas. Would you still categorize those same 10 stocks as "forever" stocks today?

Q: Please discuss share price issues in terms of the cost per share. Using CSU as a specific example, their price is nudging $700, which effectively means that an investor either has to have a rather large portfolio in order to buy in blocks of 100 shares and stay within reasonable "position" limits, or buy only part blocks, say 5 or 10 shares. Is there any real downside to buying such small partial blocks? What would make management NOT split the shares when certain levels are reached (such as my NA shares did not too long ago)?

Thanks for your continuing education!

Q: Further to the earlier questions on the Constellation Software debentures, the prospectus indicates that 5 years notice of redemption must be provided by the company. Given this, the earliest possible redemption date would be March 31st, 2023. Is my understanding of this correct?

"During the period beginning on March 16 and ending on March 31 of each year, the Company will have the right, at its option, to give notice to holders of Debentures of its intention to redeem the Debentures, in whole or in part, on March 31 in the year that is five years following the year in which notice is given, at a price equal to the principal amount thereof plus accrued and unpaid interest up to but excluding the date fixed for redemption. For example, if the Company chooses to exercise its right to redeem the Debentures in March 2015, the Company would be required to deliver notice of such redemption to holders of Debentures during the period beginning on March 16, 2015 and ending on March 31, 2015, and the effective date of redemption would be March 31, 2020. Given the foregoing, the first possible redemption date is March 31, 2020."

Q: Would you purchase CSU at the current level to replace ENGH?

As well, is CSU an appropriate addition to my current holdings (OTEX, GIB and KXS)?

Thanks

Sylvain

Q: Does the price of this debenture rise and fall with demand only. What are the other factors that would negatively affect this bond. When you say it can be redeemed in 2020 I assume this is by the company. (What are the terms of redemption) If you redeem at any other period I assume it is traded as any other security. I called TD but they were not able to provide me with any real info. The current price is $117.00 does that include paying the seller the interest payment since inception and the rest represents supply and demand? How could this debenture be seriously negatively affected? Thanks so much.