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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: Morguard REIT has just come off a recent high and although I like the dividend, I am down 11% since I bought the shares and there doesn't seem to be much promise of growth, so I am considering selling. Is there any reason for the recent drop?

I am well represented in the REIT sector in Canada and the US and would replace the shares with another good dividend payer. Currently thinking of KWH.UN.

Any comments?
Read Answer Asked by John on April 26, 2017
Q: You mentioned CRH Management will hopefully address the short report in their Management call tomorrow. They already took a first jab in the quarterly release:

"While acquiring less than 100% of an anesthesia business will obviously create more rapid increases to non-controlling interests versus purchasing the entire business, our joint venture strategy does significantly increase our opportunities for accretive acquisitions. As a result, our acquisition pipeline remains strong and we are confident in our ability to deliver on our growth strategy."
Read Answer Asked by Jennifer on April 26, 2017
Q: Great article: The Other Side - April 19, 2017 by Michael Batnick
http://theirrelevantinvestor.com/2017/04/19/the-other-side/

See/Insert graph:
http://theirrelevantinvestor.com/wp-content/uploads/2017/04/12.jpg

Excerpt:
...
If I were in the business of picking stocks, I would do two things: I would try to exclude the worst stocks rather than attempt to pick the best, and I would focus on value, which are really two sides of the same coin.

While the best performing stocks from year-to-year are all over the map, from deep value to high beta and everything in between, the worst performing stocks over time share similar characteristics. So maybe it’s not such a bad idea to be a closet indexer after all, except you should try to be in the closet that screens out stocks that are highly levered, have growing accruals, inventory build, or whatever metrics you prefer.

Investors are drawn to glamour stocks because the payoffs can be huge. But while they have great possibilities, they also have bad probabilities, as Patrick has shown. The best performing glamour stocks outperform by 112% on average, but the median result is underperformance of 11%. The best performing value stocks on the other hand, saw a 78% average excess return, while the median saw a 5% average excess return.
...

Comments? As usual, thank you for sound advise.
Read Answer Asked by J Carl on April 26, 2017
Q: With goeasy's large drop today, assuming it's due to a sideswipe of the HCG debacle, is this a time to add to GSY. I know you like this company's growth prospects and have recommended it recently, but my concern is if there is a strong possibility that government may take a closer look at the 'alternative' financial practices given HCG's meltdown. Thanks for your take on this evolving situation!
Read Answer Asked by Warren on April 26, 2017