Investment Q&A

Q: Dear 5i,
do you know of any web source one can get Sharpe Ratio statistics for Canadian and US stocks in various time frames? If yes, where and which time frames do you think are useful if any?

Q: Ignoring factors at the portfolio level, would you be buyers of any of these at current prices and taking into account your macro outlook.

Q: QSR has not panned out for me. How do you like McDonald's or other quick serve restaurants? EAFT.NE - my daughter purchased on Apr. 7 of this year. The cease trade by the Securities Commission - are we protected for the money we have lost with this holding? When I search a specific stock it gives me a great amount of information. There is a deviation line with dots on it. Is it better when the dots are going higher or lower as I do not know much about this. Looking forward to hearing from you. Thank you again,

Q: Can you please give me the P/E ratio range for each of the below sectors? When to consider value and expensive stock.

Materials
Real Estate
Financial
Services
Discretionary
Utilities
Energy
Health
Staples
Industrial
Technology

Thanks for the great service

Q: I keep seeing and hearing questions about interest rates going down. I'm in my 70's. I had my first mortgage in 1985 at somewhere between 10 and 12% after my family helped me scrap together the 25% down required at that time.
I think interest rates are just normalizing (see https://www150.statcan.gc.ca/n1/pub/11-210-x/2010000/t098-eng.htm) and I do not understand why anyone would think rates would go lower? Could you explain?

Q: Hi 5i,
I'm real confused by all the goings on with NFI, and all the conflicting views, and do not understand this world of high finance at all.
I think a private firm just bought 38 million shares at $10.10, giving NFI cash to draw on to pay down debt - and that private firm might actually have been a large creditor, so perhaps it gets paid back with some of its own money ...?
Be that as it may though, I expect it put up that kind of money believing it will profit handsomely, and I wonder how it would plan to do that. Will it hold the shares until they've appreciated significantly and then sell them, or would it have something more sophisticated in mind?
National Bank presently rates NFI as an outperformer with a $15.00 target, and Morningstar pegs its fair value at $21.15 and describes its financial health as "moderate". CFRA meanwhile dubs it a "strong sell" with negative valuation, quality, growth, street sentiment and neutral momentum.
I can't make hide nor hair out of all this contradictory information, but I do get the sense that a buy in now might be more than just raw speculation - is it possible that NFI right now represents a compelling value story, or is that just wishful thinking?
I believe your opinion has recently been very negative and you've dropped coverage, but do any of these recent events serve to change your view, or would you still recommend staying very far away from this one.
Thanks 5i,
Peter

Q: Morning 5i,

Here's my burning question which I'll frame as a hypothetical;

Say a fella had 2500 shares of CTS in a TFSA with a BV of ~ $20K and a current MV of ~ $6.6K (hypothetically speaking ...). Taking into account the prospects for CTS over the next 3 years (the fella can afford to wait it out but doesn't like seeing all the red every time he looks at his TFSA account) would it be advisable to liquidate the CTS and invest the ~6.6K elsewhere and, if so and importantly, what 'elsewhere' would you invest in to get a return on the money (cap gain and/or dividends) that will outpace what it's likely to do if left in CTS, all without unduly risking compounding the problem?

You know, hypothetically speaking ...

Thanks 5i.

Peter

Q: In a recent question you answered " we think one of the most important skills for investors who choose to own high-quality compounders is the willingness to hold them through thick and thin, even in periods when they appear to be fully valued (or slightly overvalued)."
With this in mind could you please give a list of canadian high-quality compounders that you would recommend initiating a position in and holding through thick and thin.
Could you please include their sector designation and yield.
I am interested and low yield ones for a non registered account but would also like to see your higher yield ones too.
Thanks

Q: UPS drivers in US apparently negotiated an annual salary of $170k, which is startling of course, and concerning about operational control in the shipping sector. Could you please comment on impact to major providers in the sector, including TFII?

Q: Hi, these are my stocks that are currently down, and would like to do some weeding,and tax loss planning.
I would like to sell one outright, sell three to half position, and maybe keep the remaining position.
The idea is to acquire cash to slowly add to my more stable holdings like ( BN:SLF: CSU etc.).
Thanks, and appreciate your feedback and opinions.

Q: Could you please elaborate on your response to Tim today where you stated “ the odds of a recession we think are actually diminishing now.”
I have concerns on China’s messy economic future as a headwind. Thanks for your thoughts.

Q: what are your observations on NFI refinance actions?

Q: Hi 5i,
These holding are all in my RRSP, 12 months from retirement, I'm planning to sell 80% of TOI, LMN, NVDA (not now) waiting for "better time" if it's possible to catch it. Can I have 2 or 3 suggestions for income + a bit of growth.
thank you 5i for all your great work!!!

Q: I have had the impression rightly or wrongly that you aren’t buying into the current narrative that interest rates might stay higher for longer? Just supposing they do stay elevated for some time, are there any companies in your universe that you may have been previously positive on whose debt levels might give you pause under the higher for longer scenario? I’ll use EIF just as an example. Is it something you could run a screen on just to highlight some companies that you think could bear a closer watch under such a scenario? It always seems to me that when a company has an issue (Nuvei being a recent example), it’s always a suddenly too high debt ratio that ultimately takes them down (or at least keeps them from recovering). Appreciate your thoughts as always.

Q: I identified 9 companies that out performed the TSX 60 plus 3 energy companies that I believe have a bright future. All 12 failed the MACD. 5 are trading at double digit discounts to their 52 week highs; dsg,shop,l,tou and cve. P/E range from 85 to 6 etc, etc. Please pick your diversified top 6 for a 5 year hold, with consistent profitability, no crazy volatility and suggest a great entry price. Thank you

Q: Hello Peter and Staff

I was a bit surprised at your answer to Lee on August 21st where you included GSY and TCN as too risky for the average retired investor . I thought both are high on your list ?

Thanks for all you do

Dennis

Q: Hi,

1) Is the TRMLF (US) stock listed exactly the same as TOUR. CDN? I'm interested in your recommendations for a US nat gas stock?
2) If mortgage rates are going up, why aren't banks like RY and TD doing well?

Q: I'm in my mid seventies and retired. My pension income covers my monthly needs and I do have excess capital to invest. Dividend income is always welcome but I also would appreciate some growth in my portfolio. I realize you lean towards companies that have strong growth profiles and often find great investments in that arena. My questions are two fold.
1. Based on my limited explanation of my personal investment profile, could you list some of the companies you favour that could be, 'just too risky" for me to invest in?
2. Alternatively, could you list some of your favourite companies that I should consider investing in?

Q: Oh gosh, Keith Richards for the last 2 months in the Money Saver is raising red flags about the market.....comparing where the market is now to pass markets that have plunged downwards, like big time. And there is news out of China, the yuan falling and economy slowing down, like big time, too This makes me wonder, seriously about doing this --- should I sell all or most of the stocks held in the TFSA and LIRA accounts as there would be no tax to pay.....but hold on the those in the trade accounts What are 5iR's take of the stock market going forward and my pondering about selling??? .........Thanks for your insights.........Tom

Q: Hi Peter
took a hit and pays a nice dividend
I have some shares in Dol and ATD
like to start a half position in CTC.A

would you wait until a bottom forms?
what would you think is a decent entry point? thanks

Michael
likes Cdn companies as I shop at Cdn Tire and like
the dividends