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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi, we have a small <1% holding in Well Health. Stock does not seem to gain traction over $7-$8 level, despite great news time to time, over past 2 years. I know, you have a lot of conviction in the company, based on the CEO's past record. Even the last news of their majority share holder and HK business tycoon, snapping company's shares @ $9.50, during a private placement. My question is that is the stock worth holding due to its growth potential ( despite not so impressive price movement ) and if so, do you believe, it could reach $9-$10 in next 1-2 years. Or, we should be patient, expecting a buyer, at some point in the future.

Thank You
Read Answer Asked by rajeev on August 23, 2021
Q: Hi 5i Team

I see your Balanced, Growth and Income Funds annualised return since inception are 16.6%, 11.8% and 6.8%, respectively.

If one was to have a portfolio of a mix of these Co’s - banks, utilities and then Co’s like WSP, TFII, etc…..modelling out future returns what annual return would you use?

16.6% is obviously too high and 6.8% a bit low….is using 8% realistic?

Thx

Cam
Read Answer Asked by Cam on August 23, 2021
Q: Lots of questions about this one.

One argument I've heard for why the stock isn't up on the dividend news is that the dividend isn't tax efficient for US holders, who evidently own about 40% of ECN float. That coupled with the embedded gains and worry about taxes increasing has them selling now, and the CDN demand for those shares being sold isn't enough to push the stock price higher.

If this is true, it may limit the near term opportunities even after the dividend if Americans feel burned that they didn't get a good deal out of a great deal made by ECN.

That all said, I've added to my already large position due largely to management and they're proven abilities.

My 2 cents, curious what you think.

Cam
Read Answer Asked by Cameron on August 20, 2021
Q: Good Afternoon:
Further to Allen's question on the company's valuation post $7.50 dividend, does the market's then valuation of $2.60 per share accurately or fairly value the remaining divisions of the company considering their recent performance and that some debt may be repaid?
In that context, what factors in your mind exist or what positioning or news releases can the company make to mitigate the share price dropping by the amount of the dividend.
Lastly, aside from the direction of the general market in the last week or so, do you see the recent drop in share price as over reaction?
Thank you!
Ian
Read Answer Asked by Ian on August 20, 2021
Q: I have enough money to top up one of my positions and bring it closer to 5%. These are the candidates. I am diversified, but maybe a little tech heavy. I have Topicus at 5% All are in my TFSA, so a growth tilt is appropriate. But I'm stuck in analysis paralysis. Does any one of these jump out at this time as a particularly good candidate to top up. I know you like them all, so I guess it is a bit like picking your favourite child. But go ahead and pick. Your insight will be appreciated, and much better than me flipping a coin.
Read Answer Asked by Gordon on August 20, 2021
Q: Big bounce today on no news! (?) I've owned this since joining 5i. It has gone in and out of market favour but I've always enjoyed the dividend. I've been picking up dividend stocks for the last year and done well but I am not expecting a lot of growth from them from here. SYZ should get some decent growth and the yield is healthy. I like the SaaS field and this being tied to government work - which seems a way to get some beta away from the market business cycle. Does it really fit this bill? Yield makes me patient how do you see it over all?

TIA
Read Answer Asked by Gerald on August 19, 2021
Q: I've just started to look into GUD and I'm trying to understand why the shares have been trading down since 2017. From what I can see, earnings and revenue have been climbing, they've beaten EPS estimates the last 5 quarters, insiders are buying, the company is buying back shares, management has a good track record....what is the bull thesis or what am I missing?
Read Answer Asked by Marc on August 19, 2021
Q: Further to my Aug. 18 question, you replied net income for the quarter was $2.1 B and all numbers in the billions. Understandable since if you read the bottom part of their news release it presents the numbers but fails to change an earlier heading, what I'm taking as a typo. CEO states in the body "Net income of $2 million and $5 million for the three and six months ended were higher than the comparative periods due to..."

So it's $2 million vs a $1 million loss last year. I know it's unaudited, but do you ever see this kind of error? Link: https://www.5iresearch.ca/company/tsx/BAMR

Is the reason you selected TSU over BAMR for the growth portfolio simply because the latter is new?
Read Answer Asked by Jeff on August 19, 2021
Q: Is buying ECN shares considered “dividend shopping” in light of the $7.50 special dividend announced recently.If I remember from the answers to the questions on ECN, 5i mentioned that the stock may drop by $7.50 ex-dividend. If that is the case, although not guaranteed, why would anymore consider buying ECN shares other than for the special dividend and unloading the shares a few days after unless 5i believes that the stock has some growth potential groins forward. Thank you for shedding light on this matter.
Read Answer Asked by Gilles on August 18, 2021
Q: Leon's pays a regular dividend of $0.16/share/quarter and has also announced a special dividend of $1.25, both effective Sept 08/21 (DOR).

All else being equal, my understanding is that on the ex-div date the share price should drop $0.16 due to the regular dividend. Is the same true for the special dividend....in other words should we expect the share price to drop $1.25 as well?

Thanks...Steve
Read Answer Asked by Stephen on August 18, 2021
Q: Based on the companies contained in the two portfolios above, which of them are you most impressed with, having gone thru the pandemic, which would lead you to expect even better results as the economy moves past the stimulus provided by the feds?
Read Answer Asked by Kelly on August 18, 2021
Q: What can you tell us about Technavia? Are they a reliable info source? I came across a news release this morning wherein they purported to show likely growth over the next few years in the stairlift market, with Savaria apparently well down the list of significant players in the field. Boy, their report prices sure seem high-priced!? How coincidental is it that this news release coincided with a fairly big drop in Savaria price?
Read Answer Asked by Lotar on August 17, 2021
Q: Hi
I've got a 3% position in CAE currently in my RRSP. It's done well for me over time, but I'm thinking about selling it. If I do, I'm considering TFII as a replacement, if I stay in the industrial sector. However, I'm also considering GSY as an alternative. I'd like more momentum and a bit of a dividend, and without too much risk. What is your opinion on selling CAE and replacing it with either TFII or GSY? Which of TFII or GSY would you prefer at this time?
If you have another suggestion I'd appreciate hearing it. Thanks!
Read Answer Asked by Lois on August 17, 2021
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