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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: If you have lots of questions in the queue, this can wait, no rush.
You sometimes say GUD is dead money it has been and may still be I agree. However I have 300k of GUD and the last 6 weeks I probably saved 60k since most of my other stocks are down 20 to 25% and GUD has held up. Now suppose I take the dead money approach and invest my 300k in dividend paying stocks say 5%. That would give me 15k by Nov 2019 assuming those stocks keep their value no guarantee there. But if I keep my GUD it needs to go up .41 cents to $ 8.68 as I write this to cover the 15k. Question, what are the odds GUD will trade at 8.68 one year from now ? What are the odds it will trade down .41 cents ? As a fund manager you would respond one way, but would like your view as a personal investor.
And if they do make a large acquisition, I suspect the sp would jump 20% at the open, and this why I keep GUD my biggest position. Question do you agree ?
As you I am disappointed they have not made a large acquisition, I am questioning if they ever will based on their strategy since inception. After all Mr. Goodman did say this was for his grand kids. He has money, is in no rush obviously, perhaps prefers a stress free life at this point of his life. When did you speak with him last time or to management ? They would never reveal they were ignoring a large acquisition anyway. Question do you feel he has the drive for a large acquisition ?
Thanks, for your help.
Read Answer Asked by Luc on November 14, 2018
Q: Add our names for two thumbs up for 5i research! I am suffering like everyone else. But, I realise that I have received good advice from 5i. But, I don't expect you to have a crystal ball. And so the final decisions are ours.

We are wondering whether it is too late to sell Premium Brands for a tax loss. It is already the 14th, which means that we would not be able to buy it back until mid December. I expect much of the tax loss selling would be finished by that time, and , if it ever does turn around, it might be before that date that PBH starts to climb. (I suppose despite all of this we are always optimistic!) So, would it be just better to hold than to book the loss and possibly miss the turnaround, if it comes?
thanks
Read Answer Asked by joseph on November 14, 2018
Q: Do you have any recommendations for a short? I realize you primarily provide buy side analysis. I currently hold Dol short. Thank you as always.

Jason
Read Answer Asked by Jason on November 14, 2018
Q: Good Morning,
Any further thoughts on the potential sale of Mawer? I understand this company was founded by Charles Mawer back in 1974 and it is a privately owned firm . Does the Mawer family own the company? Or is it structured like a partnership? Perhaps the portfolio managers and employees own the company? If sold to a bank for example can I assume the culture would change significantly and many of the existing employees could move on, assuming they are more entrepreneurial perhaps then the bank culture ? Any thoughts would be appreciated.
Thanks
Read Answer Asked by Chris on November 14, 2018
Q: Good morning...I agree with many of the comments that you are providing a phenomenal service and great analysis...I have also been investing for the last 25 years with some wins and many losses...however, my position has improved significantly since being a member of 5i with proper stock/sector allocation...introduction to some stocks ....CSU, GSY, PBH, KXS...greed some times get the best of us and looking for someone to blame when it doesn't work out is all to easy......Thanks again!!

With some extra cash not want to sit....what REIT would you recommend for income and maybe a bit of growth...currently own SMU.UN and CSH.UN....was hesitant to add Retail but read article in Globe regarding Riocan, sounds interesting....can you provide a few of your favorites over the next 12 months to hold until move to more growth....(not concerned with weightings or tax)Thanks
Read Answer Asked by Matthew on November 14, 2018
Q: For your info

However, Enbridge could face some other problems in Michigan. The newly elected governor Gretchen Whitmer has voiced opposition to the aging Line 5 pipeline, yet another aging pipeline that ferries oil from Alberta, through Michigan, to refineries across the border back in Canada. The current governor, Rick Snyder, reached a deal with Enbridge in early October, which would require Enbridge to encase the pipeline in a cement tunnel to prevent any leaks. Such an endeavor could cost as much as $500 million and take seven to ten years to build.

Whitmer has suggested she would seek the closure of Line 5 before it can be replaced, a move that would put a further dent in Alberta’s takeaway capacity. Line 5 is 65 years old and carries 540,000 bpd.
Read Answer Asked by Josh on November 14, 2018
Q: Hi 5i research team,
Could you comment on AJX quarterly results. There is not many analysts following the company, so no solide consensus to compare results to. I found them a little disappointing. AJX barely generated a profit out of the first complete quarter of the largest contract of its history (more than 1x annual revenue). Management mentioned several items that lessen my optimism in AJX ever becoming sustainably profitable: industry softness, low price of crop, investing in R&D, capitalisation of development costs, without the sale of Outback cash would have decreased yoy. Also, could you comment on trading since the end of march (announcement of the large contract): initially heavy sellers at 0,90$, and most recently at 0,86$, while « anonymous » has been buying almost 75% of volume since the end of march. Could something be in preparation? Or, are these results saying: it is time to sell, because it is becoming clearer that AJX is hopeless?
Thank you for your collaboration, Eric
Read Answer Asked by Eric on November 14, 2018
Q: I have a question about LIF.
In the OUTLOOK section of their 3Q press release the company commented.....In its press release dated June 18, 2018, the LIORC Board indicated its intention to call a special meeting of shareholders to approve amendments to the articles of incorporation to, among other things, allow the corporation to invest in other mining royalties. While the immediate opportunity referred to in the press release remains a possibility, the Board has decided to defer the calling of the meeting.

You commented to a previous question that the takeover chatter on LIF is ongoing....with the above comment in their Outlook is the ongoing takeover chatter excellerating? do you have insight into who is speculated to take them out and what might be a friendly price? Thanks
Read Answer Asked by Gordon on November 14, 2018
Q: I had a half position in Loblaws before the Weston spinout, so now I have a tiny position in Wn. I'd welcome your thoughts as to how best to proceed. Do I dump Wn and build L to a full position or fill out Wn to a second half position?

(Supplemental info: If you looked at my full portfolio, you would likely say I am rather long on banks and utilities and short on consumer stocks, though I do have some ATD.b and ADW.a. However, I am about to retire, so I am keen on fairly reliable dividends.)
Read Answer Asked by Dave on November 13, 2018
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