Investment Q&A

Q: Hi, Regarding your recent addition of Intac Financial to Balanced Portfolio, could you please elaborate more on the rationale for this selection, as this company has not been discussed much on this forum. Property and Casualty Insurance has been talked about a lot by Portfolio Managers lately and in their opinion, projected to be the fastest growing sector in Insurance business. So, it should be a timely addition to the 5i portfolio!!

Who are Intac's main competitors and how does IFC compare with them in terms of market share, growth trajectory and valuation ? What are the major components of IFC's business and their geographical presence ? What's your take on company's recent decision for selling their UK Personal Line of business to Admiral, as, looks like, the news caused some concern among investors resulting a bit of selling in the stock, over past 2 days. (BTW, we started a 1.5% position, on Friday. Thanks for the alert !! )

Q: Hi,
Some months ago I had asked about non correlated assets and you mentioned Private Equity as an option and chose these stocks. (Also your perennial favourite BN!) I have half a position in BN and plan to add more soon.

Among the 3 (BX/KKR,BLK) which two are your favourite and why? Or you can rank order them from the best to your least favorite.

Q: Can you provide an updated current view of FICO

Q: Can I get your thoughts on this company

Q: Hello, could you comment on EQB bank results?

I wonder what the end game is for EQB. Grow to become a mid to large cap bank in Canada or be taken out by one of the majors. I guess either can be good for investors.

Best regards
Stephane

Q: Please comment on EQB's latest Q especially to Provision to credit losses(PCL) as to amount and comparison with those of the big 6 Can.Banks. Market's initial reaction was strong--H$82.25, L$80, C$80.31+.71 Txs forU usual great services & views

Q: My question is in regard of the new financing that GSY just took:
(-- goeasy Ltd. (TSX: GSY) (“goeasy” or the “Company”), one of Canada’s leading non-prime consumer lenders, is pleased to announce that it closed its previously announced offering of US$550 million aggregate principal amount of senior unsecured notes due 2028 (the “Notes”). As announced on November 14, 2023, in connection with the offering of the Notes, goeasy also entered into a currency swap agreement (the “Currency Swap”) to reduce the Canadian dollar equivalent cost of borrowing on the Notes to 8.79% per annum. Before giving effect to the Currency Swap, the coupon on the Notes is 9.25% per annum. goeasy will use the proceeds from the sale of the Notes to fund the redemption of all of its outstanding 5.375% senior unsecured notes due 2024 (the “2024 Notes”).)

It seems to me that the cost of borrowing almost doubles that of the notes due for redemption. The amount is also considerable. Is it material to the forecast estimated EPS for 2024?

GoEasy is on a tear these days and I wonder if I just add to an already 4% position size or wait and let go. Buy more on weakness or buy now or stay put?

Thanks in advance and I know position size is personnal but GoEasy will continue to grow hence position size is still very reasonnable.

Q: Hello Peter,
Would the fintech stocks be classified under technology stocks similar to Amazon, Google, etc or are they seen as more financial ? if there is a rotation out of tech, would the fintechs be hit accordingly? Thanks very much

Q: Selling BIPC for tax loss and planning to rebuy iin 30 days. Can you please suggest a proxy? Or not.
Many thanks and Happy Holidays
C

Q: If a person has quite a high capital gain in SLF would you still endorse selling to a 2.5% and buying IFC or just continue to hold SLF?

Thanks

Q: For a purchase today would you pick ZEB or XLF? Or perhaps you have a preferred alternative in the financial sector?

Q: Would you be able to tell me the trailing P/E and estimated forward P/E for BN and BRK.B? I assume this may be difficult for BRK.B, when they often seek permission to not disclose all of their current holdings. Where can I find the most accurate P/E info for Canadian and US stocks?
Thanks!

Q: Why is TD dropping today?
How long do you expect the Canadian banks to be in the penalty box?

JR

Q: What are the pros or cons of the Offer to Buy Back offer by CI Financial. Thanks Mavis

Q: Hello 5i Team,
Propel has had a really good month; do you know what is making it move?
Thank you,
Brent

Q: hi, I feel "overbrookfielded" in my investments. I own BAM, BN, BEPC and BIPC. I'm thinking of selling BAM, and putting the proceeds into BIPC and BEPC ( my position in BN is large enough now ). my thinking is BAM has less potential for capital growth compared to BIPC/BEPC ( and the latter 2 also have a good dividend, like BAM ). I would keep BN for more growth focus. Does this sound reasonable to you ( overall my brookfield investments are about 2.5% of total ). cheers, chris

Q: Looking for the possible positive scenarios in investing in BNS.

If a series of events led to 10%+ inflation (i.e. countries lose the inflation battle), I'm assuming commodities would then become very attractive. Recognizing BNS's Latin America exposure (i.e. commodity producing nations) yet on the other hand also recognizing that persistent high inflation is not necessarily a good thing, would this be a scenario where BNS could become a better investment relative to the other Big 5 ?

Not sure if there are any other positive situations. Mind you their residential mortgage exposure is better than the others.

Q: I HAVE APPROX EQUAL $ AMOUNTS IN BOTH OF THESE COS.
IF I WAS TO SELL ONE WHICH ONE COULD IT BE AND WITH THE SALE PROCEEDS WHICH OTHER BROOKFIELD CO WOULD YOU CONSIDER TO BE THE BEST. THANK YOU.

Q: Hello Folks:
We are seniors 75 years old considering somewhat re-adjusting our portfolio to include a sizable stake in BERK. We realize BERK does not provide dividends, however contain a superior mix of quality American Companies likely to weather economic storms better than most. We currently own a sizable mix of bank stock and understand you consider BERK a financial stock. Would you think we would need reduce our bank investment weight if purchasing BERK, or are there other segments we should consider reducing?
We are certainly don't intend doing so, however would BERK be a realistic stock to comprise the majority of a senior's (75 yrs.) growth portfolio (not considering lack of regular dividend payments)?
Thank you so much for your terrific service!!!!!
brian

Q: Can you please explain why this company would have negative free cash flow? On their cash flow statement, they have large negative numbers under "change in Other Net Operating Assets". What does this refer to?

Thanks!