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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: Re: Your answer, today.(units sold in Can. Dollars) Each time I purchased this stock,(on TSX) it always calculated in US dollars. Am I buying it in on wrong exchange?
Cec
Read Answer Asked by Cecil on December 16, 2015
Q: I would be interested in your take on this company. Thanks!
Read Answer Asked by TK on December 16, 2015
Q: Good Morning Peter, Ryan, and Team,
My question is more relating to the discipline of trimming and adding to positions. My one account follows the Balanced Equity Portfolio very very closely. CSU, CCL, and SJ have held up very well of late (Thank you) which of course means they now represent 7.25%, 7.2%, and 6.75% of the total account value respectively. Should I trim these outperformers now and top up some of the laggards like CXI, BNS, AYA, etc. or allow the market to steady up a bit after all the tax loss selling, FED noise, etc. has abated and then reassess the situation ?? Thank you for your sage advice. DL
Read Answer Asked by Dennis on December 16, 2015
Q: Hello,

Is the dividend (19.96% as per TD) sustainable? I got hammered on WIN looking for a stable dividend, do you think the same scenario can happen with TS? Would you initiate a position here?

Thanks
Marios
Read Answer Asked by Marios on December 16, 2015
Q: Hello,

I think the news today is not a good one for those who still hold the stock.
I have it in a registered account so selling for tax purposes is not an option, down 84%. Do you have any replacement recommendation?

Thanks
Marios
Read Answer Asked by Marios on December 16, 2015
Q: Hello Peter and Team,

I bought this ETF a few months ago hoping to participate in Europeam equity rebound. So far not much has happened. Your thoughts on this ETF and please recommend any if you feel will participate in rising European stock prices. Thanks, Rossana.
Read Answer Asked by Rossana on December 16, 2015
Q: I WONDER IF YOU COULD PROVIDE ME WITH YOUR INSIGHT INTO WHERE YOU FEEL THE U.S. AND CANADA ARE IN THEIR INDIVIDUAL BUSINESS CYCLES.
THANKS,
RANDY
Read Answer Asked by Randy on December 16, 2015
Q: The stock has dropped steadily,would you comment is the dividend at risk and where you see it forward ?
Read Answer Asked by terrance on December 16, 2015
Q: Can you please tell me what the ticker symbol for
Oil, Natural Gas & Gold is please.

Thank You
Craig Ogilvie
Read Answer Asked by Craig on December 16, 2015
Q: I'm constructing an income portfolio and I'm looking for long term stability.

With Brookfield Renewable Energy, part of their dividend is comprised for a Return OF Capital. This is essentially giving back to shareowners a piece of the assets. I don't see how this is sustainable for any company, let along one that has a lot of CAPEX involved as it is a utility.

Can you help describe why management has chosen this course of action and what's the long term plan for the dividend?
Read Answer Asked by Eugene on December 16, 2015
Q: I hold a small position in INO, mainly for the income. Is the payout safe and is the share price likely to remain fairly stable.
Read Answer Asked by Glen on December 16, 2015
Q: Hi Peter
I'm still holding a small position in Bellatrix at $3.00. At the current price of $1.35 would consider it still too risky, or do you think there could be some upside?
Thanks for this wonderful service and best wishes to you and your staff and families for the coming holidays. And, dare I say it, Merry Christmas.
GUY R
Read Answer Asked by Guy R. on December 16, 2015
Q: Hi Peter and team,
What caused the stock's $4-5 fall this month, do you think? Any company developments?
Hola,
Mike
Read Answer Asked by Mike on December 16, 2015
Q: I want to replace GSK with MDT, JNJ or UTX. Yield, weight and sector is not a factor here. Please give me your pick or just add more GSK. Thanks.
Read Answer Asked by Charles on December 16, 2015
Q: Hi,

Down 40% on PUR.TO in RRSP <2% weight now. Was thinking of selling and with some cash in account taking 2-3% position in Algoma Central in it's place. Thoughts on this change and on Algoma in general now in light of new CEO's moves and valuation?
Thanks,
John
Read Answer Asked by John on December 16, 2015
Q: Hi,
In further response to Michael's question on Boyd, the analyst's report on Boyd that you mentioned essentially said that Boyd was over-valued.

The following is an excerpt of that report, but please post only if you consider it appropriate to do so and feel free to redact the size should you choose:

Future EBITDA growth for Boyd Group Income Fund (BYD.UN-T) is "set to slow from very high levels as large acquisition opportunities become more scarce," said RBC Dominion Securities analyst Ben Holton.

Cautioning that the open-ended mutual fund trust's valuation is currently near the high end of its multi-year range, Mr. Holton said he's "sensitive to the risk of multiple compression." He initiated coverage with a "sector perform" rating.

"BYD has been consolidating the North American auto-collision-repair market, and has more than quadrupled its revenue base since 2010," he said. "However, we expect the pace of acquisitions will slow, and with it, the pace of EBITDA growth."

He added: "The roll up of Multi Store Operations (MSOs) has driven consolidation in the industry, but these opportunities are becoming more scarce and more expensive. The slowing of this growth channel is significant as 70 per cent of the stores BYD added since 2009 came directly from MSO acquisitions. We believe organic growth will remain strong and single store acquisitions will accelerate, but are unlikely to make up for the decline in MSO activity. Further, the foreign exchange tailwinds benefiting 2015 can’t be counted on in future years. Specifically, we forecast revenue will grow at a 13-per-cent [compound annual growth rate] and EBITDA at a 16-per-cent CAGR over the next five years, still solid, but a significant deceleration from the 35-per-cent and 40-per-cent respective CAGRs seen since 2010."

Mr. Holton set a price target of $72. The analyst average is $77.22.

"BYD is trading at near record forward multiples, which we believe is at odds with our forecast of slowing growth," he said. "Accordingly, we see the risk of multiple compression. Specifically, BYD has traded in a range of 10-12x [next 12 months] EBITDA since mid-2013, though through this period BYD was growing EBITDA at a pace of [approximately] 50 per cent annually. Through this period, we also believe investors were paying up for potential MSO acquisitions that were not explicitly in forecasts. BYD is still trading at the upper end of this range, despite forecasts for slowing growth as MSO acquisitions become scarce."
Read Answer Asked by Christopher on December 16, 2015