Investment Q&A

Q: Hi 5i team,
I have applied the theory of letting the winners run in the BOS case since the late 1990's with great success. I can appreciate their journey from a very small cap to today, the stability of management, the limited share issuance, the dividend introduction and growth, the managed balance sheet, etc. as discussed in our question and answer of December 22nd, 2014.
I have two issues: the new level of their forward P/E and the weight in my portfolio. I am more used to a forward P/E multiple between 10x and 12x versus 25x (assumption of eps = 0,96 over the next 12 months). Is the 2015 version of BOS worth a P/E multiple twice as high as a few years ago? Even if this is the case, I now see less upside than in the past.
I used to see BOS as a solid/under-the-radar eps growth story with great multiple expansion potential. Now, BOS a grown up, and I see BOS as a solid eps growth story only, a state that could last for several years. I feel that BOS's role in my portfolio has changed a little bit. I feel I need to use some of this capital to prepare for the next growth phase of my portfolio.
For the second time over the last 15 or so years, I am tempted to sell a portion of my BOS's shares to decrease current weighting now reaching the mid-teens. No tax consideration, as the shares are in my RRSP. My alternative uses for this capital would be: decrease my leverage (exchange in kind with my cash account), increase dry powder, and some cherry picking buying of companies on discount sale (CXI, DHX.B, GUD, ?) which currently share some of the return upside BOS use to have (eps growth, and potential multiple expansion). Do you agree with this plan? Any other suggestions?
Thank you for your great advice, Eric

Q: Looks to continue growth potential with increasing sports avenues. Would you consider current income and share price worth investing?
Thanks

Q: Progress being made in trials, new products, etc. Your opinion of potential growth in share price?
Thanks

Q: What do you think of their acquisition of TECO energy for 10 billions US. Seem like a large bet into the US.

Q: Is this stock a good purchase given it's current price and assuming it will rebound after the oil market recovers?

Q: What are the 5 stocks that you'd be comfortable starting positions today for a short term (~1 year) hold. Thanks, Jerry

Q: Dear 5i,

This one is killing me. I'm down over 80%. Do I let it go and throw what remains of that cash into something else to at least stop the opportunity loss?

Thank you,

Q: I currently owned this stock and this is the only stock that I own in this sector. I am down 20% and is less than 1% holding in my non registered account. I am wondering if better to sell and put this into my 2 tech stock DSG and GIB.A to increase their holding. I understand that this 2 different industries.

Thanks

Q: Why is the yield on ZEB one percent lower the the individual bank shares. Am I better off buying the individual bank shares instead. Thank you.

Q: Would you have opinion of recent drop in share price?

Q: Hi Peter and Staff
Like many who added once it hit your portfolio,disappointed in the share price drop lately and now a dividend cut. I am hanging onto my oil producers and service companies,right or wrong in general wanting to be there for the bounce whenever it comes....Based on past comments about their cash position and company comment about M&A ,my thoughts would be to hang on to this one as well despite dividend cut as its chances for a bounce should be as good as others that pay a dividend like FRD,CFW,BDI,PHX,TDG and PD.....would you agree it is worth a hold if no rush?
Thanks for all you do
Dennis

Q: Been doing some research on Canadian Tire (CTC.A) and along with growing earnings per share, a share buyback in full swing, and a history of regular dividend increases, it also seems to have a controlling shareholder, in Martha Billes with 61% of the voting shares.

Just from some reading, it looks like Ms Billes is getting on in age, doesn't have any children (that I read about, anyway) and her history with the rest of her family is at times contentious.

Do you think Ms. Billes has an exit strategy in place regarding her controlling interest in Canadian Tire and what do you think those options are?

Thanks, again.

John

Q: Peter and Team:

I am down about 20% on full position of TFI. Sector weightings are good. I was wondering what the prospects for TFI are and if perhaps I should take the hit on TFI and put the proceeds and double up on BIN.
Long term hold. Unregistered account.

Thanks

Phil

Q: Just one more question on PHM! Could you advise the percentage of Shorts outstanding as of today. Thank you.

Q: I read your reply to Morgan Aug.where he down huge; however the decline has cont. & is prob. close to -35% YTD?
I do not own any prefs right now; but, hold all the common shares of the companies rep. in this ETF in my non registered account. I was thinking of converting my RRSP to a RRIF before the end of the year: would a long -term strategy to add this ETF be good with the possibility of cap. appreciation in the future. I also own the XRE ETF which I've held for a long time as well.

Q: Good Morning
Do you see any drivers to improve SP on this stock? Recent departures seem to be weighing on the stock. I do not own AVO but wonder if it is fundamentally a good investment with a 3 year time frame?
Thanks for your help as always.

Q: Hi Folks:
Can you recommend 3 or 4 Canadian infrastructure stocks that may benefit from all the election chatter we are hearing about new roads, bridges, etc. going to be built in Canada? Do any of them do business in the US also?

Q: Your thoughts of viability of the company?
Thanks

Q: At what point is it feasible to allocate a percentage value to stocks in a portfolio, as opposed to a dollar value? For instance, if an investor starts out with $100,000 in cash, it's easy to pick 20 stocks and allocate 5% to each to come up with a nicely rounded, well diversified portfolio. But, if an investor is starting out with only $50,000, or $25,000, does the same principle apply? Or should one arbitrarily assign a dollar value -- perhaps min. of $5000 per stock, and build from there ... so that a $25K portfolio might only have 5 good stocks in different sectors? Would that be enough protection/diversity?

I'm asking this to set the course for a few young adults in my family (nieces, nephews) who are starting out on their investment life, and are inheriting some funds.

As a follow up to that thought, would you structure this amount of cash differently for a 25 year old than you might for a 45 year old, with the same amount of cash?

Thanks for your help and insight, as always.

Q: How would you feel about buying IBB on this recent pullback? Already have CXR and PHM in the space. Or would you prefer IWO as a way to pick up a growthy etf at these lower levels? Already have VUN for broad U.S. exposure. How high of a weighting for either would you go up to for a young investor with a long timeframe? Cheers