Investment Q&A

Q: Have insiders been buying stock ??

Q: Hi 5i - which stock (PKI or CGX) would you add at today's price for the current yield and long term capital appreciation? Or is there another stock in the portfolios you would add before these two? Thanks, Neil

Q: I am retired living on dividend income. Over the past 4 months I have bought 1/2 positions in the following stocks because they are in the 5i portfolios, and they are down (some substantially). My question is should I add/hold/sell the following stocks:
CGX -20%!
GS-6%
KWH.UN -6%

Q: CGX keep lower everyday for last two weeks and the volume is pretty high. I hold some at -30%. Should I get out before down further, or they have chance bounce back?
Thanks as always,
Tak J

Q: Seems like a barrage of questions on Cineplex, in a week, but will ask, anyway. What is its current/ forward PE and is the present valuation justified (even after the steep decline) ? Do you expect Cineplex to continue to generate strong cash flow to pay down its very high debt load ( $600 mln ? ) and support 4.5 - 5% dividend ? How are the results of Cineplex capital investments in new initiatives like Rec rooms and VIP Cinemas ? Cineplex was removed/sold from 5iPortfolios, last year, in what looks like a smart move. But added back to Income portfolio, after some time, at a much lower price ($36.50, I think). With the recent drop in price, do you still have conviction that it's a good income stock to own and would you add ? Also, any change to A- Rating, with all recent developments and outlook ? Thanks

Q: CGX downgraded today with a $37 target price.Dropped by $1.83 to $32 to continue its recent decline.Now at a 5 yr low.

Q: Guest on Market Call Tonight states CGX is spending all of its free cash flow on the dividend. Please refute or confirm, I'm in the stock for the dividend. Thanks 5i.

Q: This morning, I am establishing a 1/2 position in CGX. I feel a little bit like I am catching a falling knife, but with a 5% return on a near monopoly and retirement only a few years (3) away, it feels like a good long term,holdgfor income. What are your thoughts?

Q: I am looking to add either CGX or GS to my holdings primarily for income. Aside from the dividend payments, which of these two would you prefer with capital preservation in mind? (i.e. which one has the lesser likelihood of a steep decline below its current price, and would hold up better in a general market decline)

Q: This morning RBC came out with an industry report on movies and entertainement for the US that was not that great, plus lowered guidance by Dave and Buster on monday had an influence on the industry according to comments from Scotia in a report on CGX and TD lowered target price from 47 to 40 on lower expected revenu this morning. All negative this morning !

Q: I am thinking about buying cineplex (new position), say 3-4% of my portfolio and 5 year time horizon. Would you endorse ? What is the payout ratio and do you consider the dividend safe ? What's their record at missing estimates in the last 2 years ? Do you think their will continue to grow in the next few years ? Would you know if the VIP offering is a success so far and is it becoming important in terms of their revenue ? I was thinking adding the position to my RRSP instead of TFSA ? Thank you for your help !

Q: I have asked a number of questions on this stock but now CGX is down another 5.68% today (09/01/18) with a low not seen since 22/06/2013. Is this more of a correction to get the valuations in line? Is now a great opportunity to buy? Or simply hold on to a stock that apparently has lost the confidence of investors?

Q: Cineplex is off $1.52 (4.17%) this morning - are you still positive on the stock and any reason for the stock coming off this morning? - thanks

Q: Hi ... I'm looking to take advantage of the recent declines in one of these two companies and would appreciate your opinion as to which represents the best growth opportunity over the next 3 years.
Thanks, Rick

Q: Hi 5i Team

I've been watching CGX from the sidelines and can't get past the persistent high P/E ratio in the face of the struggles that the movie theater industry is going through. I understand that CGX is working hard to diversify and that the have a virtual monopoly on screens in Canada but that doesn't justify the high P/E to me. I'm leaning more toward buying PUTs rather than buying the stock or CALLs.

I'd appreciate your opinion on CGX's current valuation and prospects for next year.

Thanks
Peter

Q: I thought perhaps CGX would gain some $ after Tax Loss Selling. Any reason for the continued selling, for instance today? Or is this to be expected?

As always, Thank You

Q: Hello Peter.
Just read your Post article and looked into current losses for pruning. My losses are the four highlighted.
I have a sense however that it is too early to prune the small caps(ITC, GUD and PTE) since I have held them for very short duration; not even a single earnings report. And it is likely a good idea to hang on to CGX given its monopoly position and new slate of movies generating Buzz.
I continue to hold CPG for the now 3% dividend and hope of investors returning to Canada and CPG.

Except CPG, all the losses are small $ value as I was only beginning to step into each of the small caps as they tumbled........(and all the losses are in registered accounts)

Would you allow these names to be included in the new years clean up or give them more time to let current themes run their course; current oil price movement for CPG and business execution for ITC, CGX, GUD and PTE?

Thanks
Dave

Q: How secure is their dividend? If I'm reading financials correctly they are paying out 158%?!
Nor can I find any history of their dividends on their website or annual report.

Q: Hi 5i,
My income portfolio is light on consumer discretionaries. What would be a good stock or two that would compliment my current holding in that space - CGX.

Looking for a bit of growth and income growth.

Thanks!

Q: Hi Peter and Team,
For this year's RRIF payment, I need to sell approximately 14K of stocks as I've been almost fully invested over the last year, in large measure due to 5i's superb recommendations. The stocks listed above are in sectors where I am overweight. I have several questions, so please deduct credits as you see fit:
(1) If I sold CGX outright, I'd obtain roughly 14K and would reduce my total number of holdings and lower my overweight consumer discretionary stocks. Even though CGX has fallen from its lofty heights, I'm still up, especially when factoring in the accumulated dividends. Also, there would be only one sell transaction. Are you OK with this plan?
(2) Are there any others in the list that could/should be an outright sell?
(3) Or, would a better plan be to reduce holdings in each stock by taking profits?
Of course, this would mean more sell transaction fees.

As always, I defer to your recommendations, and have been rewarded for doing so. Thanks in advance.