Investment Q&A

Q: Would appreciate your guidance on building a healthcare portfolio with these names and any other suggestions divided into 2 categories [1] core [to constitute the bulk of the portfolio] and [2] growth, for a 3+ year hold. If you could add a few thoughts on each as to why you like or not, that would be most helpful.
Best wishes

Q: Hello, I am wondering what your thought is on nuclear energy and uranium stocks. As we know the world is turning fully electric with cars and much more. All this power has to come from somewhere and nuclear seems like one of the best ways to create clean energy. I know OPG is building a new SMR (small modular reactor) at darlington plant in the future and if it all goes well more are to be put up in other areas. Would this be a sector worth while looking into sooner rather then later?

Thank you.

Q: Of Loblaws and Sun Life, which do you think has the most growth potential over a two year period hopefully coming out of recessionary times?

Q: I believe the US dollar is significantly over-valued due to geopolitics, and I anticipate it will gradually return to more normal over the next 4-12 months. What strategy (or equities) would you recommend to take advantage of this return to normal. Shorting the US dollar is an obvious option, but I see it as a bit too risky.

Q: Hello 5i team:
Without editorializing or getting too “grumpy old man”, it seems we have a productivity issue in Canada, and now a labour force participation and perhaps also a work ethic issue. Every employer where I reside is bemoaning “people problems”.
I’m wondering if you have done any work on identifying companies that generate high free cash flow with relatively fewer employees? I know you have mentioned ATA in the past as maybe a way to play the theme, but I’m thinking of companies that are already there because of the nature of their business.
Thanks

Q: I have held TOY for many years and it has shown glimpses of promise but has never really fulfilled its potential. My return has been relatively flat over that time period. Part of my interest in TOY was the potiential for it to be taken out, but the more I read about the company the less convinced I am that the founders have any interest in exiting. Although it has held up better than the market during the past year, I am wondering if it would be a good time to take advantage of its relative strenght and purchase one of the many good companies that have been "unfairly" punished and which might have greater upside than TOY over the next 3-5 years. One such stock I have been watching is CTS.
- would you agree that a trade of TOY to CTS is likely to yield a better return over 3-5 years?
- would there be a better trade you would recommend?
- how likely is it that a large catalyst (ie a blockbuster toy or a takeover) is going to occur to propel TOY higher?
- on a scale of 1-10, 10 being most risky, how would you rate the risk level of TOY vs CTS?

Many Thanks
Scott

Q: Thoughts on the deal?

Q: Could you please give your view on how to differentiate the advantages (licencing, moats, etc.) of the multitude of sports betting companies now in operation? It seems that the non-listed organizations like the BCLC affiliated PlayNow have ramped up smartly in recent times, especially since the availability of single game wagering came into existence locally. It seems like the BCLC are well-equipped and well-established at this point to grow and compete with any existing or prospective challengers in all aspects of gambling, including internet opportunities.
Thank you.

Q: Hi 5i,
this question is about stock Beta and standard deviation.
Do you think these metrics hve practical use?
If yes, which stock Beta and Standard Dev. would you typically use (3 Years?).
Do you know where I might find 1, 2, 3, 4 and 5 year metrics for these.
Your web site reports Beta but, what year is it reporting?

Q: Can I please have your top 5 US and Canadian consumer non cyclical stock choices?
Are there any international choices as well?

Thanks so much.

Q: Hi 5i,

Looks like Suncor is working with activist investor Elliot, and is looking at possibly selling their retail business. My question is, what would be the most logical suitors, and what possible regulatory hurdles would they face.

Thx

Q: I crystallized tax loss on LSPD & GSY over 30 days ago. Is it worthwhile buying them back? Thank you, Fooklin

Q: Hi 5i, can I have your current view on the market with respect to inflation, interest rates (inverted yield curve) and recession chances. I realize markets are forward looking and I'm trying to guage future rate increases as I have a few quarters of dividends to spend on income stocks. Oh, and what would be your top three dividend stock picks now? Was looking at SLF, BNS and AQN, but based on your answer to first part, I may hold off.

Thx

Q: So much news these days about the ramp up to electric vehicles and the eventual elimination of internal combustion engines.

Governments have committed to installing charging stations to accommodate future demand.

What is the current status of power generating facilities. How easily can they ramp up supply to satisfy the future demand or is there already enough capacity.

What are your favourite power generators to satisfy future demand. Thank you

Q: I have a sense that retail investors are still buying the dips and we haven't seen real capitulation. Do you have any data sources that would help to inform this thesis?
Thanks
Mike

Q: I am interested in what 5iR thinks of one investing in TD’s fixed income TD Bank Semi-Annual Pay Step Up Extendible Notes July18 2023 to July 18 2025. The coupons rates are Year 1: 4%, Year 2: 4.4%, Year 3: 4.8%. With today’s volatile stock market is it better to invest in this fixed income vehicle instead of stocks. Thanks … Cal

Q: Today Jeremy Siegel was asked about the main sources of market returns for investors i.e. multiple expansion, dividends, earnings growth, stock buy backs.

The person asking the question said that over the last 10 years 40% has come from multiple expansion, 15% dividends, most of the balance from earnings growth.

100 years ago 50% came from dividends.

The Q then was “ where will the returns come from in the near future?”

His answer focused on the massive role played by STOCK BUY BACKS.

Finally my Q:

Do you agree with that looking ahead this will be a major source of stock returns ( vs multiple expansion and dividends)?

Is there a filter to ID companies with the highest buybacks( similar to historical data on dividends)?

Thanks.

Q: I'm thinking of switching out of some or all of the above securities to better balance my portfolio. Do you see the potential for a significant bounce on any as negative sentiment or other conditions improve?

Thanks.

Q: Would you wait for the deals to close or sell?

Q: Thanks to 5i I have held Kinaxis for many years and even with the current drop in price am still up 320% on it in my TFSA. I am considering selling and replacing it with Shopify which I already have a very small position in at much higher prices. Would you consider this to be a logical move if you were in my position ? Alternatively would you recommend any other stocks with potentially outsize returns over time that you currently like better. All proceeds will be going to my family eventually so time frame is not an issue for me.

John