Investment Q&A

Q: Hi Peter and 5i Team,

I currently own a good amount of GUD, mainly due to management, large cash reserves and zero debt. It has performed excellent the past few days. I've seen stocks I have been watching such as WSP, SJ, AYA and IT sell-off sharply over this time. Do you think a partial switch out of GUD into any of these would make sense?

Thanks

Q: Looking at the current pullback as a future opportunity, what 10 companies in your coverage universe would you recommend as a purchase once the bloodletting stops. Do not worry about weighting or sector and whether or not they are an income or growth story.

Q: What dividend stock names would you be adding to in this selloff if you had money to deploy?

Q: I haven't owned energy for a while and am waiting to buy 2-4 of these: HSE,WCP,PKI,IPL,ARX,GH. Please rank them in priority. Assume I'll buy them today.

Would you replace any of the energy stocks with SU or CNQ? Thanks

Q: You suggest a 5% weighting in energy at this time. If I were to reduce my energy holdings to 5 %, it would involve taking a significant loss (and buying high, selling low). I'm ok with just holding on unless you think that's a bad idea. What are your thoughts on this? Many thanks for your steadying hand.

Q: With CPG's recent free fall far exceeding the recent decline in oil, do you expect the company's entire senior management to be booted out? Thanks as usual.

Q: Where do we hide in this market?

Q: In a reply recently, you mentioned that there is no sign of a capitulation yet. Will you have a posting when you think capitulation has, or is, happening. Thanks

Q: In response to a recent inquiry you indicated Casey Hoyt, one of two new principals at PHM, owns 1.5% of the shares. Canadian Insider shows both he and Michael Moore own 19 million shares each and Max Hoyt owns 4.7 million. Collectively, that totals just under fifteen percent. In addition, according to Bruce Campbell during his Wednesday BNN appearance, they paid $1.46 per share. If these numbers are correct, that certainly provides a huge incentive for the new guys.
Has PHM commenced their share buyback and would their listing application for the TSX be in jeopardy due to price erosion?
Thanks.

Q: I have pretty much gone from thinking I "understood" the investment risks of preferred shares to now a singular emotional thought of "I hate these pieces of $*@#. I am currently looking at a 25% capital loss on the CPD ETF with no end to the bleeding in sight. The yield can't ever come close to compensating for such a large capital loss. I had the apparently misguided belief that a preferred share ETF like CPD would have less volitility and not put my capital at as much risk as an equity. It would seem preferreds combine the worst elements of equities and bonds. My question is where did I go wrong and do you think I would be better off booking the loss and moving on to something where I won't spend so much emotional capital being ticked off. Thanks

Q: I own some CRH and would like your opinion on its current state.
It seems to be dropping a bit more than most. Any fundamental news or are investors just spooked for now? Would you consider it a good hold?

Q: Good Morning
I am planning to add US and International ETF holdings to an otherwise balanced portfolio. No foreign coverage presently. I am in my mid 70's. What % of my total portfolio would you recommend for each.

Thanks Guys

Q: What do you think about this company? Earnings and valuation? Revenue growth seems impressive for the last fiscal. Thanks.

Q: What opinion would you have on this Latin American bank?
Thanks

Q: Good morning - I own the above stocks in the energy sector and they make up a total of 9% of my portfolio. I am obviously down considerably. I own all of them for income purposes, but of course would like to see growth over the long term as well. With a long term outlook (3-5 years), does it makes sense to just sit on these stocks and collect the dividend? Or, do you suggest selling one ore more at a loss (CPG at a 55% loss) and redeploying the funds in something other than energy once things settle down.

Q: Which is cheaper loblaw metro or dollarama? I want to pick up a consumer staple in this market. I already own loblaw and was thinking of adding to it.

Q: Could I please have your thoughts on this reit. It appears to have a number of good canadian and global holdings.

Thanks, David

Q: Hi, sorry for adding to the barrage of questions about PHM. But I notice the "forward P/E" ratio according to globe investor is now 5.9. This is very low, but do you have the current number? I guess I'm wondering what type of growth rate is built into this forward P/E number? Or another way to ask: if growth does slow or even stopped and they had to rely on current deals already in place, without buying more companies (with the assumption that they can't use their stock for acquisitions since it's now so low), where would Earning shake out at? Can they be profitable just integrating what they have, or do they need to issue stock and grow aggressively for them to be sustainable? If they can just slow and prosper, and then use earnings to grow later, maybe they are entering "value" territory at this price? But if they need to grow aggressively with stock, they might be in bigger trouble than the retail crowd recognizes?

Q: Bruce Campbell recently said that management and the board are large shareholders owning over 40 per cent of NYX. He also commented on forward earnings being below industry peers. Can you provide your independent assessment of NYX as a speculative investment given your familiarity with the gaming sector. Is is "very" interesting or just interesting at these levels? Risks are understood. CP

Q: I am curious about the effect of shares coming off hold after a financing where the share price is now substantially underwater. Are investors who also owned the stock previously likely to sell those shares and take a tax loss as they will still have shares from the financing? While there are obviously other issues, could this be part of the reason for the current weak market for PHM shares? What is likely to happen when the 24,000,000 shares of PHM sold @ $1.50 come off hold in early September?
Any insight you can provide on this concept in general and PHM in particular would be greatly appreciated!!
Rob