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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello, I have some stocks that I am planning to buy in the future. They are SJ, CSU, BYD.UN, SIS, NFI, KXS, RRX, PEY. Could you please rank these stocks from the safest to the riskiest? In your opinion, do you recommend these stocks for a long term hold? Also, which one in the list do you think has the most potential? Thank you.
Read Answer Asked by Esther on May 16, 2016
Q: Disappointed with the market initial reaction(It was $51.51 early yesterday) 2 notes: Today TD Bank increased its target price to $57 from $51 & rated a BUY.On 2/25 V Hirsch,who closely follows SJ for many years,interviewed management 1/2 weeks prior to 2/25.Management advised that it was starting to get major orders to replace poles,which is @ the end of its life.Apparently CNR is expediating replacement of railway ties.Hirsch rated it as a BUY for 2/3 years
Read Answer Asked by Peter on March 18, 2016
Q: Further to the concrete rail ties comment, in my travels (North Shore, Georgian Bay) I've noticed when a wooden pole needs to be replaced, hydro technicians install a pole made from a resin-like material. These new poles come in stackable pieces that enable the height of the pole to be adjusted according to the terrain. On seeing these, my thoughts were no more hydro poles full of giant woodpecker holes and are these new poles a threat to Stella Jones?
Read Answer Asked by Patti on March 09, 2016
Q: On BNN 2/25,guest V Hirsch said that SJ,whose business is utility poles & railway ties,has great management.SJ is starting to get major orders to replace poles as its average live is coming to an end.CNR stated that it is expediting replacement of railway ties because of slower volume when it is easier to do it. 5I,any other news & is it reporting on. March 14.Appreciate your normal great services & views.
Read Answer Asked by Peter on March 02, 2016
Q: I appreciated Ryan's take on stocks that can benefit on the low Canadian dollar in your recent blog. Of the ones mentionned, I was wondering which would be the best buy at the moment, not considering the rest of one's asset distribution? I notice, for instance, that Blackcome has gone up quite a bit over the past year, while the others have fallen. I like the idea of something as solid as railway ties. I guess they will always be needed. But, maybe one of the others is a better buy at the moment.

As i say, asset mix is not a consideration at the moment. Also, in profiting from the American dividends, is it possible to get the dividends in US dollars straight out, or do the brokerages all convert them to Canadian?
thanks
Read Answer Asked by joseph on February 22, 2016
Q: I have a decent holding in this co. and read your recent comments on Stella-Jones. There appears to be no logical explanation to sharp drop in stock price from a high of $54 to a low of $41.50 within a span of 4 weeks. Even on market up days, stock's advance is fairly muted. I feel that 20% decline could not be entirely market related. My suspicion is that market is punishing the stock due its association with railways. What percentage of its business is from railway ties? Utility polls business should be stable ? Is there a large short interest ? How is its valuation on current and forward basis? Do you believe it's an excellent time to add at current levels? Thanks
Read Answer Asked by rajeev on January 25, 2016
Q: In a response to a prior comment on this stock you mention how SJ anticipated "the upswing in the spending cycle" I guess for poles and ties. Your April report forecasts a 1 year Revenue growth of 10.4% vs 5 year growth of 25% p.a. and a more recent (Nov.) TD report of forecast 18% growth for 2016, which I can assume is partly extraordinary FX gains to date and partly acquisition based since Apr. What I wonder about is just how cyclical is this business and what a decline in the spending cycle of utilities and railroads might look like. TD forecasts only 7% YOY Revenue growth of 2017 vs 2016 but does not take into account any M&A activity. When was the last downturn in this business and how long did it last? I note they grew EPS in 2008/9 but were a much smaller outfit then. Thanks, J.
Read Answer Asked by Jeff on January 05, 2016
Q: Thoughts on currency hedging these days?

http://canadiancouchpotato.com/2015/02/04/stepping-back-from-the-hedge/

"McCreath sees the supply of oil as being the key determinant as to whether the Canadian loonie hits US$0.65, taking stocks down with it, or a perceived recovery of oil prices into 2017 enables Canada to outperform." Your thoughts and to What CDN companies do you like most that are US currency friendly? I will find it even harder to invest in good US stocks for 2016 (i.e. Disney, Costco, Monster Bev etc) since we'll lose out on the currency rate this year.
Read Answer Asked by Michael on January 05, 2016
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