Investment Q&A

Q: What has caused the big drop in CCL.B stock the past few days Thank You Bob

Q: Sorry, I forgot....it seems that somebody knows something (maybe TD knows?)...the stock is tanking!

Q: Good morning team, I know you like CCL/B, but would you pls. comment on TD's theory of removing their position from their model portfolio...

Materials
We are removing our position in CCL Industries Inc. (CCL.B-T, portfolio
weight 2.5%), given what we view to be a poor sector backdrop and a high quantitative risk outlook.
Given CCL's consumer product customer base, we view the removal of CCL as part of our strategic rotation to reduce exposure to consumer stocks. We view the weak pricing environment, as seen through the low consumer price indices and the very poor performance of the U.S. consumer staples sector,
as a potential negative trend for CCL. Our concern is that the weak pricing and potentially higher costs in consumer stocks could be passed down onto packaging and related companies. Margin pressures in consumer-products related sectors, such as auto and auto parts, is a common theme late in the cycle.
Quantitatively, we are seeing a modest deceleration in CCL's trailing and forward earnings momentum. Following its recent quarter, the 2017 consensus estimate was lowered slightly more than its 2018 consensus estimate. As a result, CCL has what we would consider to be high 2018 year-over-year earnings growth expectations of 15%. Combined with a high multiple of 21x 2018 consensus earnings, we believe that CCL is at risk if 2018 consensus earnings are lowered.
Following its recent price recovery and what could be technically viewed as a "double-top" formation, we are willing to take profits at this time.

And Thank You!! for the upgrade on your website.

Q: Love the new website format and content. Please rank ccl,b and sj based on long term growth and current valuation. I only have room for one in my tfsa. Thanks

Q: What are the earnings estimates for this upcoming quarter. Does ccl.b have a track record for beating the estimates? Good time to take a half position before or after earnings

Thanks

Q: I own all three of these companies. I am up 10% in WSP, 10% in CCL.B and 13% in RCI.B I want to add to one of them, which one would you suggest?
Thanks for your help. Dorothy

Q: I am in my late 30's, and I have a long-term time horizon. However, I find myself gravitating towards stocks with stable businesses that pay dividends. I currently own BEP.un, NWH.un, CSH.un, and SLF.
For a long-term, yet somewhat conservative investor, what are some companies that I should consider adding to my portfolio? Thanks in advance!

Q: When I was constructing my portfolio I decided to buy WPK instead of CCL.B because CCL had just had a big run up and was starting to look expensive. I feel CCL is a superior company overall but at the time I thought Winpak might outperform in the shorter term. My question is for a 5+ year hold would you now make the switch from WPK to CCL? Would you expect CCL to outperform WPK enough to justify this switch in a 5+ year timeframe.

Q: Hold NWC in my tfsa but thinking of switching into CCL-B. Also, is Amazon a threat to North West Company?

Would you be ok with the switch?

Q: I have a reasonably well-balanced portfolio encompassing many 5i suggestions. I have recently opened a TFSA account and would like your assessment of the above for immediate purchase in that account.
Thanks for your assistance.
Geoff

Q: Why is CCL.B being hit hard since its recent $68.47 high in mid June?Is this the time to enter a position? Appreciate u normal great services & opinions.

Q: I would like to hear from you on the potential impact that bad policies such as the rise of minimum wage, high power costs in Ontario and the risk of losing the NAFTA framework may have on good companies that were thriving under previous governments.

Q: Hi, CDN Dollar has gone up from $0.73 to 0.82 (+8%) within a span of less than 2 months. BOC did n't wait till October meeting and raised the Prime, indicating their bias towards more hikes in the future. In this environment, I am trying to figure out the currency impact on results of companies like CCL Industries, which have a fair share of earnings globally but report in Canadian dollar. CCL.b has already seen its share price tumble from $68 to present $57, within last 2 months.
(assumption being that CDN$ rise is the major reason)

Which are the other companies, in your coverage, deriving a decent share of their revenue in US Dollars and could see the impact of higher CDN $ ? Should this change in CDN/USD value raise a concern and revisit the holdings/weightings in your portfolios ?

Thanks

Q: Howdy!
I try to be a buy and hold investor with a long-term investment horizon in my RRSP account.
I have recently joined your service and am thinking about trying to reposition my RRSP account to emulate the sector allocation in your Balanced Portfolio.
About 30% of my portfolio is sitting on cash /cash equivalent investments right now; and I have almost 0% in the Technology and Basic Materials sectors.
As such, would you recommend a position in all of the nine equities that represent the Tech and Basic Materials sectors in your Balanced Portfolio?
Or have some of them (like CCL.B) peaked /not as much room left for appreciation compared to when first bought?

Q: Good Morning All,
I have cash from profit-taking in resources and I'm looking at ABT, ITP,SIS,CCL.B, or ZCL. All had some pull-back and pay a decent dividend. Your thoughts please. Many thanks for your excellent service. Bob.

Q: I am reviewing my holdings in Consumer non-cyclicals for my RRSP (balanced approach with 15+ years to convert to RRIF). I am underweight in this sector (4%) divided between CCL.B and FSV which you agreed in a previous Q&A that they can be considered c. non-cyclicals.

I’d like to increase to about 8-10% total by boosting one of the two holdings I already have (which one between CCL.B and FSV would be best at this time?) and/or acquiring one or two additional stocks. Here I think it would be wise to buy more typical c. non-cyclicals like ATD.B + PBH or perhaps simply just XST to get exposure to a basket of food-related stocks at once (primarly ATD.B, L, MRU, SAP). Your observations will be appreciated as always.

Q: I want to re-balance my portfolio across sectors but I found that a few holdings can fit more than one sector for all practical purposes.

CCL.B is classified as materials, but can we also consider it as consumer goods given its labeling and container products directly serve the retail market? If so would that be c. cyclical or non-cyclical?

MG is classified as c. cyclical, but can we also consider it as industrial?

I have a hard time with FSV which is classified as financial, but to me consumer non-cyclical (recurrent residential residential/condo maintenance fees, property services) is a better fit.

Finally, how about MDA? Can it be considered either technology or telecommunications?

Thank you for validating the above, it will be useful to explore my options.

Q: I have room for one of CCL.B, BYD.UN or ATD.B. Which has better growth prospects?

Q: Hi, in a bad market, a slight miss of whatever metric leads to a big drop of price. It is Ok for long term investors who got in long time ago and had huge gain already and took some profit. What is your recommendation on the above mentioned stocks for those lone term investors just bought in recently. Buy more, hold or sell? Thanks.

Q: In a market like this some stocks are unfairly punished and could be an opportunity please give an opinion which is a good deal.