Investment Q&A

Q: Peter's column citing some "unusual events" during his time in the investment industry was most interesting. and, so real. thanks for sharing!

Q: Hello Peter,
If one of your members wants to donate credits, I am happy to take some of them. There have been many questions on Nuvei, and do apologize for another one. However, my biggest concern is not the short sellers. Regulations take time and there will always be companies looking to profit from potentially fake news or reports. I am more concerned about the firms that are happy to raise money from companies like Nuvei, sell stock to their clients (as we see many analysts from firms having much higher targets for the company prior to short seller), but when a negative report comes out, very few come out and defend the company, especially when the company comes out with a release that their guidance is intact. In some ways, it makes one think whether it is really worth putting monies in high growth companies as when something goes wrong, the retail investor is left holding the bag with less monies than invested. I have two portfolios, one conservative with BAM, banks, costco, etc and other with high growth. The conservative portfolio over a ten year period has done much much better. Please comment on the investment industry on their lack of response (well some did but not to a great extent). Also, can you comment why Enghouse is lower and lower after the company announced a potential sale. I was expecting it would surge slightly. Many thanks for the service over the years and the various questions from the investors.

Q: Thank you to everyone at 5i for all your excellent information and patience with many of the questions.

I hope that the many accolades you receive obliterate the criticizers.
Please don't change anything to accommodate the know-it-alls!

I wish you all the best of the season and throughout 2022 and far beyond.

Best Regards

Q: Hi
From earlier question about ATD

The conversion was not completed smoothly.
I was informed, to keep placeholder, Broker used U.S. available version until corrected.
The situation will be rectified over next two days. Maybe even by Friday
Dave

Q: I agree with Joel about the passive response from Canadian companies and sometimes you need to give the antagonist a bloody nose otherwise they will never stop doing this. These shorters need our shares to short and the institutions are only allowed to lend those out from a margin account, so I believe. I do wonder if in fact that is the case.
The only way you can be sure that your shares are secure in your regular account is if you hold those shares physically as stock certificates. Who does that today in this electronic age?

The regulators need to do much more in preventing this rape of our portfolios happening.

If nothing is done, no stock will be safe, this will continue, people will still panic and the long term objective of realizing your nest egg will take a lot longer as these attacks can technicaly damage the stock.

I have been a customer of 5i since 2013 and am in a position that I am very comfortable with my portfolio today thanks to your help. I very rarely need to ask a question and therefore I am happy to donate 3/4 of my 168 question credits.

Keep up the good work

Peter

Q: FYI, I think Citron since last year are no longer publish sell report...

Q: Not a question, just my thoughts.
I understand the need for people to question companies business practices etc. but I think that there should be (monetary) repercussions to the SHORT REPORT authors if they have no facts to prove their thesis. Seems that when a report comes out making accusations of fraud, the affected business is deemed guilty until it can prove it's innocence. Meanwhile, the short seller walks away laughing with a pile of money. Individuals have rights if they are personally attacked and have legal recourse when they are slandered. Why are businesses treated differently?
Comments?

Q: Hi Peter/Ryan can you comment on this short report and why it affects stocks so negatively. Thanks

Q: Its great when companies that are under short attack, such as LSPD and now also NVEI, post earnings in successive quarters to prove up their business and invalidate the short thesis. But why stop there? Why do these companies not take the opportunity to very aggressively buy back their own shares? Even if it requires adding some leverage to the balance sheet with cheap debt if needed. Reducing the float is good for earnings, good for existing shareholders and very bad for short sellers.

The passive response of Canadian companies under attack invites more attacks. Carl Ichan killed some very committed shorts in Herbalife, a truly garbage company, using more aggressive tactics.

Thanks.

Q: When you go to search and you get target price, history and then analyst's recommendations on the stock on NVEI Canadian, it is rated a strong buy. On NVEI US, it is rated a moderate buy. Are these analysts doing the rating third party analysts because Spruce Point analysts have quite a different opinion about NVEI than they do. I am skeptical about the ratings of these analysts - are they the same ones who rate other stocks? Thanks

Q: Good Morning Peter & Team,

You are going to correct me where I am wrong as you should, but I am having a struggle understanding how a company such as NVEI can experience a 50% share value loss in less than 24 hours based on a report generated by a third party the contents of which may very well be exaggerated and dare I say it, even worse be false in nature purely for the purpose of profiteering on a short bet. Are there not laws in place to prevent this kind of market manipulation from taking place? How can investors such as ourselves protect ourselves from this? Maybe the first step is to avoid investing in stocks which have high multiples like NVEI @ 121? That doesn't seem to make sense considering other companies having much high multiples i.e. TSLA @ P/E 341

Thanks for all you do

gm

Q: Hi Guys
I don't see how bonds can have a stabilizing effect on portfolios in todays fast paced electronic trading platforms.
Between Feb 2020 & Mar 2020 my holdings in XLB dropped roughly 23.3 % XRB also dropped a similar amount.
Looking forward to your answer.
Thanks Guys !

Q: Hi

I am currently holding RRSP/TFSA/Non registered accounts with Weathsimple (Both US/CA stocks) and trying move all US stocks to Questrade within same account. So that I can buy and sell US stocks in Questrade and keep CA stocks in Weathsimple. Do do see any issue with this move and any tax implication? I am not planing to withdraw the funds. Just transferring only.

Q: Hi Peter, why does the fear of higher rates cause stocks to decline ? Thanks.

Q: Hello -

I understand the attractiveness of TOI stock - the management, the CSU model, growth projections, etc. However, I can't understand the current valuation. Even after the recent pullback to $108 (at time of writing), has the company's fortunes really increased by 72% within the last 10 months to reflect the increase to today's price compared to the beginning of Feb. last year? I realize stock price / fundamentals don't follow exactly in parallel, but that is quite an increase.

My other related question is on the sector itself. There just seems to be so many software companies out there. Is there an ever increasing need for software in the world to today that matches the increasing number of companies that offer it? In the U.S. there is a history of 3000 automobile companies at one time or the another. Only a tiny fraction exist today. I know this is an apples / oranges comparison industry-wise, but hopefully you understand my concern.

Thanks for your comments.

Q: Peter,

I love the G and M watchlist to show comparative performances etc. However I am skeptical as tManyo the accuracy of some of their other data when looking at fundamental analysis. What faith do you have in the accuracy of the data when looking at ratios such as Interest coverage, debt / equity, forward p/e etc? Where do they get their calculations from ? Do you know of a better source where we can list a number of companies , for instance with a sector and compare the relative financial strengths all on the screen. Much seems to be latest and loudest with performance being the number one issue of interest.

Thanks

Paul

Q: Hello 5i,
This isn't a question per se, but rather an observation relating to Mary's question today about bonds/fixed income in a portfolio.
Something that was not mentioned which a 5i Portfolio Review and Portfolio Analytics pointed out is that if one has any kind of Defined Benefit pension (private, CPP, OAS, etc.) one can apply that to one's Fixed Income Portfolio allocation.
I am sure there might be some caveats that you could expand upon, but this may help some people with the bond/equity allocation conondrum.
Personally, we hold no bonds currently due to our pension positions which serve as our fixed income.
Cheers,
Mike

Q: Hi
The income model portfolio contains about 2% fixed income/bonds. Is the model portfolio meant to be followed as it is or are investors to decide on their own allocation to fixed income/bonds? I have been disappointed in my bonds. I know they can help soften the blow in a market crash but this is pretty expensive insurance so to speak. What is your position on bonds? Should one be increasing their bonds at this point in the market?
Thanks

Q: Canadian Depository receipts - NEO
I have read the article in the Globe & Mail regarding Canadians ability to purchase factional shares of major us companies, similar to US adr's.

Question: If I purchase 200 shares of PFE what exactly do I get? and do I also participate in any dividends.

Are these a viable investment option

Can I have your opinion on CDR's

Q: Earlier this year I transferred my Magna shares from my non registered Canadian Account to my non registered US account in order to avoid money exchange charges. I am interested in selling the shares and would like to know if the same shares can be sold through my US account so I can use the US funds to purchase some beaten up ADSK and CRM shares this month.
Thanks for all the support in 2021.

Kevin