Q: How do you feel about management and the prospects of Stack Capitol Group?
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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: I can not find ether capital in your search?
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Brookfield Renewable Partners L.P. (BEP.UN)
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Brookfield Infrastructure Corporation Class A Exchangeable Subordinate Voting Shares (BIPC)
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Brookfield Asset Management Ltd. Class A Limited Voting Shares (BAM)
Q: Which of the BN subsidiaries do you think offers the best overall return profile over the next 5-10 years and why.
Many Thanks
Scott
Many Thanks
Scott
Q: I am down 80% of UPST ( avg price $149) and 50% down on AFRM (avg price $75), both in registered accounts.
Any chance of breaking even in the next 12 - 18 months or is it time to move on?
Any chance of breaking even in the next 12 - 18 months or is it time to move on?
Q: Hi - of these two, which do you prefer for a growth mindset. Having said that, please feel free to say that you wouldn't invest in either at this time/prices. Lastly, do you see a possibility for AGF to be taken over (obviously with the blessing of the Goldring Family).
Q: CIBC analysts have suggested one of the reasons they downgraded this name today was potential concern of more and lower restrictions on the maximum interest that company’s like Goeasy can charge.From 35% to 30% for example.How likely do you think this potential/fear could be?
Q: In some answers, you have referred to some lending companies being exposed to a "rate risk". I am not clear what that is / when it will impact a lending company. More specific to GSY....is it exposed to a rate risk? How will anticipated falling rates affect it? I know that new highs ( or at lest here a recent one) do not concern you but given its run up in recent months, are its valuation metrics still looking favourable?
Thanks for your excellent service.
Thanks for your excellent service.
Q: Hi, Referencing the recent questions on GSY, here is some color from CIBC on the rationale for their Downgrade to Neutral. Please publish, at your discretion, with or without your comments.
"Downgrading Go Easy To Neutral"
"After reviewing draft regulations for the new interest rate cap, it has come to
our attention that a consultation process was recently completed examining a
further reduction to the rate cap. The timing of the consultation was much
earlier than expected, and we are left to wonder if it was scheduled
intentionally to conclude in advance of the 2024 Budget. We have no basis to
speculate on the outcome and no proprietary insight on the decision-making
process of the Finance Minister’s office. However, we fear that a political lens
might be more appropriate in assessing the probability of further action on the
interest rate cap than an academic one. There has clearly been some forward
progress on this file and it simply doesn’t feel prudent to maintain an
Outperformer rating on goeasy in advance of the Budget. We are
downgrading GSY to Neutral and maintain our $160 price target.
Our concern, however, is that decisions of this nature can sometimes be influenced by the desire to achieve political objectives rather than engage in a balanced assessment of a complicated issue. The considerations described above did not prevent the government from taking action on the initial reduction to the interest rate cap, and our concern is that it may not stop it from taking action to reduce the rate cap further.
We believe that the first sentence of the draft regulations may be somewhat revealing regarding the federal government’s sentiment towards instalment lenders:
“Predatory lenders take advantage of some of the most vulnerable people in our communities, including low-income Canadians, newcomers to Canada, and those with limited credit history—often by extending very high interest rate loans.” Describing instalment lenders as “predatory” sounds almost adversarial or outright hostile, in our view.
Bottom Line
In our view, the range of potential outcomes appears to be skewed asymmetrically negative. On the one hand, the federal government could elect to take no action and this would become a non-event to shares of goeasy. At the time of writing, we believe that this outcome is already priced into the stock. GSY shares have run up nearly 50% since late October (i.e., the same month that consultations were launched) and the P/E multiple has normalized back towards long-term averages (see the line chart in Exhibit 3). This suggests to us that there is little evidence that public market shareholders are bracing for an adverse outcome.
On the other hand, the federal government could take a heavy-handed approach and reduce the rate cap further. In this scenario, the magnitude of almost any reduction would likely be meaningful to the earnings power of GSY. "
"Downgrading Go Easy To Neutral"
"After reviewing draft regulations for the new interest rate cap, it has come to
our attention that a consultation process was recently completed examining a
further reduction to the rate cap. The timing of the consultation was much
earlier than expected, and we are left to wonder if it was scheduled
intentionally to conclude in advance of the 2024 Budget. We have no basis to
speculate on the outcome and no proprietary insight on the decision-making
process of the Finance Minister’s office. However, we fear that a political lens
might be more appropriate in assessing the probability of further action on the
interest rate cap than an academic one. There has clearly been some forward
progress on this file and it simply doesn’t feel prudent to maintain an
Outperformer rating on goeasy in advance of the Budget. We are
downgrading GSY to Neutral and maintain our $160 price target.
Our concern, however, is that decisions of this nature can sometimes be influenced by the desire to achieve political objectives rather than engage in a balanced assessment of a complicated issue. The considerations described above did not prevent the government from taking action on the initial reduction to the interest rate cap, and our concern is that it may not stop it from taking action to reduce the rate cap further.
We believe that the first sentence of the draft regulations may be somewhat revealing regarding the federal government’s sentiment towards instalment lenders:
“Predatory lenders take advantage of some of the most vulnerable people in our communities, including low-income Canadians, newcomers to Canada, and those with limited credit history—often by extending very high interest rate loans.” Describing instalment lenders as “predatory” sounds almost adversarial or outright hostile, in our view.
Bottom Line
In our view, the range of potential outcomes appears to be skewed asymmetrically negative. On the one hand, the federal government could elect to take no action and this would become a non-event to shares of goeasy. At the time of writing, we believe that this outcome is already priced into the stock. GSY shares have run up nearly 50% since late October (i.e., the same month that consultations were launched) and the P/E multiple has normalized back towards long-term averages (see the line chart in Exhibit 3). This suggests to us that there is little evidence that public market shareholders are bracing for an adverse outcome.
On the other hand, the federal government could take a heavy-handed approach and reduce the rate cap further. In this scenario, the magnitude of almost any reduction would likely be meaningful to the earnings power of GSY. "
Q: Any reason you are aware of for the drop in gsy?
Thks
Marcel
Thks
Marcel
Q: Good morning guys ..
would u start a position here with the recent run up or wait for a pullback with this story .
Thx
Mark
would u start a position here with the recent run up or wait for a pullback with this story .
Thx
Mark
Q: Thoughts on earnings and guidance ? Thank you.
Q: Hello 5i team,
I've held Propel for 2 years and it's had a really good run the last few weeks, should I trim or hold on tight?
Thank you,
Brent
I've held Propel for 2 years and it's had a really good run the last few weeks, should I trim or hold on tight?
Thank you,
Brent
Q: Now that MFC had derisked its US business especially its underformed Legacy sector,and had broken out of long term Resistance at the $26-27 level,is it timely to buy? Please U advices.Txs for U usual great services & advices
Q: Do you feel like this is just about the cheapest value stock in the market with upside and very little risk to keep anybody awake at night?
Thanks Again.
Thanks Again.
Q: Could you please provide your general impressions of Chesswood Group Limited's review of strategic alternatives announcement? The review completion deadline of March 31, 2024 mentioned in the press release is not too far away. Thank You
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PennantPark Investment Corporation (PNNT)
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Brookfield Asset Management Inc Class A Limited (BAM)
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Blue Owl Capital Corporation (OBDC)
Q: Please compare the first two with BAM. Seems they have much higher dividends, and lower valuation. Would you comfortable to pick one today for a long term investing? Thank you!
Q: Can I have your current valuation and prospects for Kinsdale……
Q: Do you still expect the cost of the run-off business to impact Q4? If yes, any idea when that should become history?
Thanks
Thanks
Q: One of the more recent questions by Kel was for 5i to rank the 11 sectors in 2024. I noticed that real estate was ranked last.
I've also noticed that 5i seems like to like stocks like BN (Brookfield Corp)
Can you advise how these two views compare?
I've also noticed that 5i seems like to like stocks like BN (Brookfield Corp)
Can you advise how these two views compare?
Q: HI Peter,
I want to get your thoughts on Olympia Financial (OLY) and its big run up. What do you think of its current valuation - is it expensive and what do you think of it in a TFSA. Also can you comment on its growth and ROE. Would you add it or wait for a pull back.
I want to get your thoughts on Olympia Financial (OLY) and its big run up. What do you think of its current valuation - is it expensive and what do you think of it in a TFSA. Also can you comment on its growth and ROE. Would you add it or wait for a pull back.