Investment Q&A

Q: MMX is in the growth portfolio. It’s been there for a while and has not moved. Would you consider it buyable today?

Q: I own a small position in WELL and am looking to slowly add to it. Would you be comfortable adding new money to this company right now?

Q: I have a 1% position in WELL which is down 10% from my purchase cost. Trying to decide, do I increase the position to 3% or sell? I have a 3year time frame. Thank you.

Q: Growth Portfolio: As of Sept. 30, 6 stocks plus cash accounted for greater than 51% of the value in the portfolio. Excluding cash those same six stocks accounted for about 47% of the investments. There are 8 positions of less than 2%.

Is this a just case of a limited universe from which to pick or a reflection on the top positions having the greatest potential and the small positions are, for lack of a better word, fill?

Q: In the growth portfolio you bought REAL for $12.95 and sold it, per your Oct 12 update, on a day when the highest price it traded at was $9.81, locking in a 24% loss. If you "like the industry and the company's fundamentals continue to look decent," isn't this a classic case of "buy high, sell low" when nothing but sentiment has changed in the company's long term outlook?

Analyst consensus EPS is $0.47/share in 2022 and $0.56/share in 2023. If such earnings materialize, this would be 19% growth in earnings for a company with no debt. I know it's a big if, but if REAL does achieve $0.56/share in 2023, traders selling it today would be selling a stock with estimated 19% growth in earnings for only 17 times 2023 earnings. What am I missing?

I took a quick look at the 5I Growth Portfolio and found that a couple of your big losers, QST and MRS, are bigger losers than REAL and have no earnings and/or none forecast. Why not sell these instead of REAL?

Q: I am puzzled by their recent $75m bought deal when they have such a large amount to come in. Any thoughts?

Q: Hi 5i Team, Huge bump in volume today for the thinly traded SYZ.
Can you tell who is buying? Also, where do all the sellers come from when the volume is 20 or 30 times daily volume?
I take it this is a good sign to see the price moving up on a huge volume move.
Would you be a buyer in here?
Rob

Q: hey guys hope all is well i,m currently down 10 % barclays came out with a sell rating i had originally bought this with a 2 to 3 year hold i,m wondering how bad this could get considering chip shortage if you could please let me know what you think maybe get out now and get back in when things are better Thanks as always

Q: Please correct me if I've missed something but it appears that there are only gold focused metals/mining stocks in the materials category of any of the three 5i portfolios. Could you explain why you have no other metals covered and if you expect that to change in the next short while.
Many thanks.

Q: In response to Justin’s question about the short leash for XBC I wonder if you could comment on my rationale for holding onto this stock despite also being down about 50%. I agree with 5i’s principle of the longview of 3-5 years for growth stocks if no material change presents itself. As for XBC I remain positive for the following reasons: it seems much of the difficulty is COVID related, the board has taken concrete positive steps to rectify weakness, the business model has diversified significantly, the sector is just getting started and there should be years of tailwinds. In following your advice to invest for the long haul in growth, not get emotional about the volatility that presents itself in this space and the feeling that markets in Canada tend to overreact to news much more so than in the US, could you make the case for those like me that would like reassurance that XBC remains a viable position to hold based on valuation and potential.

Q: Just announced, Mission Ready Solutions Inc (“Mission Ready“) (TSX Venture: MRS) (OTCQX: MSNVF), a provider of comprehensive government contracting solutions, announces that it has granted incentive stock options (the “Options”), pursuant to its stock option plan (the “Plan”), for a total of 4,800,000 common shares of the Company, to certain directors, officers, employees and consultants of the Company. The Options, subject to the terms of the Plan and the corresponding option agreements, are exercisable at a price of CAD $0.25 per share for a period of up to 5 years.

I bought in at basically double this option and others maybe more. My initial reaction is disapointment. It seems management is being given a potential reward for bad performance.

Is my reaction "emotional" and perhaps there is good reason for this?.
Thanks John

Q: The stock has been declining and ask why and what are your recommendations for this company?

Q: Hi 5i,
A problem I have is selling winning stocks when I think they've reached their zenith, only to watch them continue to rise. Right now the "SELL ATZ" voice in my ear is pretty insistent and I need some counselling.
Given ATZ pays no dividend, the only reason to continue holding is more capital gain - do you think that's in the offing or do the underlying numbers and market circumstances suggest it's at or close to its zenith now, at 50 bucks?
Thanks for your thoughts,
Peter

Q: Dear 5i team.

May I please have your take on EGLX next earnings due in Nov? what are the estimates, and when do you think they will finally turn a profit?


Thanks for your help.

Q: Comments on the acquisition of Pavliks?
Purchased with cash on hand?
Has Syz issued stock in the past to raise capital for acquisitions?

Q: SIS dropped from some $22.50 in mid Sep to current $19.40 & QSR from some $83.38 in early Aug to current $75.43.What are the reasons? Buy.Hold or Sell.Txs for u usual great services & opinions

Q: I've been watching ATZ with interest, and fear. Do you have any information on the present shipping chain tangles that are affecting so many shipments from Asia? If ATZ suddenly finds itself waiting for stock to arrive, quaterly figures could quickly deteriorate and stock prices could tumble. Or am I just seeing imaginary problems? Does ATZ have a Plan B if shipments of stock are delayed at point of shipment? To open a partial position now or wait for shipment problems to be resoved ... that is the question? Thanks for your continued help, Elmer.

Q: After your positive report as well as my portfolio analytics suggesting I buy more consumer cyclicals, I was enthusiastic to buy Aritzia.

After a sudden share price jump last week and your answer to Harry's question on Oct 18 about possible headwinds, I'm wondering whether LNF would be a better choice at this time.

Q: what are your thoughts about Enb with the line 5 issue?can you shed a bit more light on this.
When are there final decisions to be made about it ?
what would the impact be on Enb if they shut this line down?

Q: This company BRP is very well run and has reported continuous growth, as well as seemingly never misses earnings.

Anyway my only concern is, in the current economic climate, with a company making "expensive toys" like BRP, how much of that likely downturn will affect its sales (and then directly on share price)?

I try to research back to 2008 (the last major economic crisis) but nothing goes back that far on line. Of course the forecast published by the company and selected analysts, though mentioned the current economy issues, still paint a very rosy picture for the near future.

Is my concern about the potential downturn and its effect on BRP valid? What is your take on this? Thanks.