Investment Q&A

Q: Both MDA and PLI have reached new 52 week lows. You have always considered MDA to be a solid company and have given it an "A" rating. Given the current situation, would you consider that things have substantially changed with the MDA outlook or is this actually a buying opportunity?
I also have the same question for PLI, but someone else has already mentioned about the Seeking Alpha comments. Which leads me to ask your opinion of the quality of comments, generally on Seeking Alpha. Weren't they also beating up certain stocks for short selling?

Q: Hi Peter and gang,
A few days ago, in a response to a question regarding MDA,
5iResearch indicated that the P/E ratio for MDA was 11X. But according to TD Waterhouse's site, MDA's P/E ratio as of yesterday was 21.5X based on an EPS of $3.07. Just wondering why there was such a big different between the two P/Es given that MDA's price did not move significantly either way over the last week or so. Thanks.

Q: A couple of your listed companies listed here.
Publish if suitable.
http://www.theglobeandmail.com/report-on-business/rob-magazine/made-in-canada-five-factories-transportation-equipment/article33088005/

PB

Q: Hello 5i team,
Thanks for the quick 2-3 hour turnaround response about CIGI, except that the second part was about MDA (not MG)
Thanks,
Antoine

Q: MDA has dropped allot over the last week, is this just year end tax related or is there something else going on? Would you consider it a good buy right now?

thanks,

Paul

Q: There was a discussion on BNN today suggesting a "stealth takeover" of MDA. Does this topic have any merit?

Q: Any idea why MDA fell so much today. Do you think I should take a 20% loss and move on?

Much thanks

Q: I hold HCG and MFA in TFSAs at 1.4 and 1.8 percent, respectively, of my & my husband's total portfolio. (combined calculation as recommended by 5i!) They are both down close to 30% since I bought them. Given their percentages, should I just leave them, or should I take my loss in one or both, and move on? Thanks for your help and support.

Q: good morning
time to move on from MDA? perhaps insurance, manulife or sunlife or......?

thank you
cindy

Q: I know you have high regard for MDA but had frustration with it's performance. Today the market is reacting badly to recent news. Do you think reaction is overdone or does this reaffirm your decision to drop it from your portfolio. I own 200 MDA right now and am wondering if this is an opportunity to "average down" my cost, or just throwing good money after bad. Your thoughts please...

Q: Quarter does not look great. Thoughts??

Q: These stocks are all down 2 to 7 percent in the last month. Given the experience of DH should I be concerned with any of these and sell?

Q: Hi Peter and team, Do you know why the big drop....especially today today?
Thanks!
Silvia

Q: According to a BNN guest, MDA has been negotiating a procurement structure that allows them to compete for US military contracts but that allows them to retain their Canadian domicile for head office & taxation. Approval is expected this fall assuming they are successful.
Do you have any more info or opinions on this? Thanks!

Q: Since being removed from 5i's model portfolio MDA has tumbled about 8% on strong volume. I'm not sure if there's a connection here or just coincidence, or some other reason for the decline? I wonder if you agree with TD's analyst consensus of Q3 earnings expected to be flat at $1.51 compared to 2015 and a revenue rise to $542 MM from 515? I exited this position when you did, now looking to re-enter. Thanks, J.

Q: I'm very sorry. Apparently, I failed to mention the company (Macdonald Dettwiler) when I submitted my question, which was:

Do you regard this as a "blue chip" company for Canadians, or are there others in this sector that are better for a conservative investor? Thank you

Again, my apologies for the original blunder.

Q: I am looking for a term of reference from 5 I on how to decide when to finally get rid of a company, despite that it might be a good one, overall.

In the case of MDA, for instance, you finally threw in the towel because, essentially, it has been dead money for some time even though there's nothing much wrong with it.

Would it not be the same case, then for Airboss? I've come back to where I started, at mid-$15s ... and then watched it drop, almost daily until yesterday it whispered by on $13. Is it not time to throw in the towel on this one as well: to acknowledge that though it may be a good business, it's a lousy stock and opportunities are being wasted.

Would it not fall into the same category as Linamar, and Magna, for instance, who are now just treading water as well, due to a lull? Once again, great companies, but it doesn't seem to be the time to own them.

While I am a longer term investor, yes, and take the long view, I think perhaps treading water with Airboss is not a good thing right now.

Your thoughts, please. They are always much appreciated!

Q: In your recent response to Helen you noted an almost doubling of earnings over the next 2 years. RBC shows earnings of $6.08 2015,$6.16E 2016,$6.70 2017E. I am wondering what numbers you are projecting.
Many thanks.
Mike

Q: Hello: I read a few of your recent answers to other people that mention MDA. I noticed that your report about this company is dated Mar. 2013. I also looked up their dividend history and saw that in Mar. 2015 they cut the dividend by 43%. So, I'm wondering, especially with the dividend cut, what is compelling about this company?

Q: What are the US and Canadian companies, that have what they call a wide Moat? What would be your definition and criteria of wide Moat companies?