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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: I continue be interested in SJ, but on a recent drive in BC I saw some work being done to replace railway ties...they were not wood, they were concrete. This struck me as being a problem for SJ but I'm hoping you can elaborate. Does SJ make mention of how concrete ties are affecting their business? Do you have any idea what the price point difference is between wooden ties and concrete?

Cam
Read Answer Asked by Cameron on May 07, 2019
Q: if you wanted to increase the weight in each of three stock SJ,SIS, KXS which would you top first, second and third?
Thanks
Read Answer Asked on April 30, 2019
Q: I'm looking for a new play in the materials/resource sector and SJ seems to be viewed positively both at 5i and others. However, I see it has traded sideways since mid-2015, and EPS dropped to 1.98 in 2018 from 2.42 a year earlier.

What is the reason for sideways trading and drop in EPS? Are they behind the company?
What are the short and long term catalysts for SJ?
I see its free cash flow is variable from year to year, what accounts for this?
I'm thinking of moving my position in MX to SJ.
Read Answer Asked by Cameron on April 25, 2019
Q: I hold NFI -2.0 % weight, PHO-1.7 weight and SJ -2.9 weight. I am under water all on 3 of these stocks in my TFSA and if I was to increase the weight , should I increase all 3 or just NFI and PHO to a 3% weight.

Thanks
Read Answer Asked on February 19, 2019
Q: which is a better buy - TFII OR SJ OR MX at this time based on overall return perspective over 3-5 yr time frame. thanks r
Read Answer Asked by RUPINDER on February 15, 2019
Q: My daughter TFSA contains the above stocks. She can add 1 (full position) or 2 (half position) this year. What would be a good fit for her present holdings? Would you suggest selling Stella Jones &/or Telus and replacing it with something else? She has a long time frame as she will not need the money in the foreseeable future.
Read Answer Asked by jacques on January 14, 2019
Q: Hi , i have 7 stocks that dropped below 2.5% of my holdings. BEP.UN (2.38%), NFI (2.33%), PHO (2.20%), SJ (1.92%), TOY (1.91%), DOL (1.61%), PIF (1.53%).
I also have a 15% cash position. Please Rank all 7 for potentially increasing to a 2.5% position. Also, is there any of the 7 stocks full position (5%) contenders.
Thanks
Read Answer Asked by André on January 03, 2019
Q: With the recent volatility, several companies on my watchlist have seen their multiples fall to more reasonable levels compared to the last 2-3 years. In the current climate, I find low debt, strong management and overall quality to be more important than ever.

Considering these criteria, RCH, ADW.A and SJ are starting to stand out. The main issue I have is, growth might not be as high/steady as it was in previous years, so in the end they might not be that much of a bargain; maybe they are just more fairly valued, not "mispriced".

What would be your take on this? Is a 15-16 forward P\E for 8-10 % EPS growth and overall quality a reasonable price to pay? Or is this a case by case basis? What are the main points of reference, aside from industry, competition, company history, etc.?

I understand there are many other factors, but still, am trying to get my head around valuation. Thank you!
Read Answer Asked by Pierre-Charles on December 12, 2018
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