Investment Q&A

Q: Peter; Eric is on the BNN soap box and he is always talking about stocks trading at “ 10-15% free cash flow”. How does this relate to the actual dividend yield and why is it so an important benchmark ? With tax loss selling looming wouldn’t any oil rally be drowned out by sellers? Thanks . Rod

Q: After that 70 million convertible debenture financing. I believe it works out to about 14.3 million shares at a conversion price at $4.87.
Would this be a considerable negative factor on the stock ever getting above the conversion price considering its roughly a 80 million market cap?
thanks Gordie

Q: One of my kids just turned 18 and has $6,000 to invest in a new TFSA. What would be your best 4 to 6 CDN equities for long term growth with a moderate risk profile?
Thanks in advance,
Greg.

Q: The stock down 11% but i can't find a reason. The rumour about Amgen was a week ago and Alxn's fundamentals look solid. Any ideas?

Q: Good Morning 5i,

So on this fine Friday long weekend morning, I'd like to pick the brains of people who've "been there and done that" much longer and more successfully than I, and have seen some things in the financial world first hand that I have not.

I want your opinion on oil and gas. Are we not watching one of these classic "blood in the streets" scenarios you always read about as investors and wish you'd had the fortitude to plug your nose and dive in? The shares of almost every publicly traded company in the space are being thrown away for nothing. The good ones, the bad ones, the ones making money, the ones losing money, good balance sheets, bad balance sheets - it's almost irrelevant. If they're in the space they're being slaughtered.

So if the thesis is:

a) it will take a lot longer to power the world with worm casings, pixie dust, and unicorn farts than some would have us believe (i.e. hydrocarbons are not going anywhere in the foreseeable future)

b) a surprising number of these companies have solid balance sheets

c) a surprising number of these companies are earning profits hand over fist, doom and gloom aside

If a, b, and c are indeed true, you'd have to believe a lot of these companies trading at historic lows will eventually make investors a lot of money. Like buying Florida real estate in 2009.

What am I missing? What holes can be shot in this thesis, looking at it objectively?

I take the point that there is no catalyst to change things or excite investors in this space (although I do get surprised from time to time that the fact that a company can throw off ridiculous amounts of profit and return it to shareholders via dividends and buybacks doesn't itself become a catalyst, but I digress...)

I also take the point that these scenarios can persist for a lot longer than people think they can before things change.

Single-company risk is always there, I understand that, but I reject the idea that all of these companies are headed for bankruptcy.

Aside from patience and the stomach to watch your investment get hammered in the short term - where exactly are the risks?? This seems like such a great buying opportunity that I feel I have to be missing something.

Thank you for whatever insight you can share, and happy long weekend to you and your families!

Ryan

Q: Which stocks will benefit the most from legalization of edibles in Canada? Do you think that this is already priced into stock prices?

Q: If you could choose only one company between CSU or MSFT, which would you recommend for a long term hold. I am leaning towards MSFT.

Clayton

Q: LGO, at 1.37 is close to its 52 low. The chart/ trend is ugly.... definitely not my friend :( BUT according to RBC it is cheap at 6xe .... and has a Morningstar "Undervalued" rating with a FMV of $2.05 (~50% upside). All of this has me thinking that this is a good time to add to a losing current position.
Could I have your current thoughts on LGO given its continuing presence in the 5i Growth Portfolio.

Thanks.

Q: I currently own SIS and under water but thinking of buying more as my weight is only 2.5 %. Do you think it ok to buy more to make it a 3% weight?
Thanks

Q: RBC shows fair market value of $41.37...would you concur with this valuation with a pe of 59.6 and pb 1.4x and roe of 2.28 and total debt of 11.38%...but a profit of 5.28% .. eps growth of 92.7% sales growth of 45.16% and income growth of 60.18%...these numbers seem all over the map ...also would you still remain positive on growth at todays price of $25.31...thanks for great service...gene

Q: The direction of Corporate profits is relevant to investment strategy. I am finding an annoying number of contradictory statements on this matter in the financial press. Case in point: in Saturday's G&M Report on Business, the Chief Investment Strategist for BMO Nesbitt Burns says "However, earnings have been continually beating upwardly revised expectations and are now up more than 8 per cent year-over-year in the second quarter." In the same article, the Managing Director of Guardian Capital says "....there are clear signs of the global economy slowing and corporate earnings growth trends continue to decline markedly." Seems to me this is a matter of fact not opinion. Can you tell me if corporate profits are going up or down? Thanks..

Q: Please list these as best for the potential of capital appreciation over the next 4 years.Thanks.

Q: Hi,
looking at the 3 portfolios I don't see any gold stocks , with talk of a slowing economy isn't it time to buy some gold, which top 2 cie would you recommend

Thanks

Q: I currently own rid.ca and am looking to replace it with a better performing etf. What would be your suggestion?
Earl

Q: I need to increase my materials exposure by 2%.
I was thinking of starting positions of 1% each in MX and KL in a taxable account.
Your thoughts on these two or other suggestions instead.
Thanks
Jeff

Q: Hi Team, TWM is down to $1.00 level, Is it worth to gamble on ? Thanks as always.
Tak

Q: In possible answer to Bruce's question about why Shopify and Lightspeed are down heavily today, there was an article on the Motley Fool today which said that anyone buying these stocks was gambling, not investing, as they were both ridiculously overpriced and subject to huge risk.

Q: When a PUT for WEED expires on a certain date the proceeds are deposited in my brokerage account. If it's uncovered (i.e. I don't own any WEED shares) what happens concerning the purchase of the shares to "cover" the PUT expiry? Is it up to the individual (me) or the brokerage firm to initiate the transaction?

Q: The company is proposing a share consolidation of up to 10 pre-consolidation common for each 1 . .How would this benefit me as a shareholder or company.

Q: I am reformatting my spreadsheets to line up with the 5i format and have a couple of questions using the Balanced Portfolio for July as a reference:
1. Where it says "1 Year -6.6%" does that mean total calendar year for 2018?
2. Under the "Calendar " column where it says " 2018 -13.2%" - does that mean trailing 12 month period (i.e. July 1, 2017 - July 30, 2018)?

Thanks for your help here.