Investment Q&A

Q: Hello 5i,
A very Merry Christmas and Happy New Year to all at 5i and fellow members!! Here's hoping for a great 2021!!
My question is pertaining to Goeasy which is at 3.93% of my portfolio with a very significant gain to my TFSA. As a retired, dividend-oriented Balanced investor with an otherwise pretty well-balanced portfolio, my question is: how high should I let it run before pruning? I have sold and re-bought in the past but prior to this most recent run-up was thinking of adding. In other words, what kind of weighting would you assign to GSY based on the foregoing?
And, I would like to take this opportunity to thank everyone at 5i for all of the work they do for the members - 5i Research can be extremely proud of the work they do on our behalf and should know how much it is valued and appreciated!!!
All the best!
Cheers,
Mike

Q: What do you think of well's update today.

Q: On a steady decline since $8.41 on Oct 16,though seems to have found support around $6.70-6.86 near the $6.75 Bought Deal price. This morning Well announced that it will be profitable in the Q.Is it unusual to preannounce? When will it reports the Q?.Is it timely to set up a position here especially in light of approval & subsequent distribution of Vaccine? Txs for u usual great services & views

Q: good morning
Bought BYD once before and was fortunate enough to sell it at its high around $225. Then repurchased it in spring and now it’s approaching $225 again. Time to sell again or hang in there? The 0 .31% dividend sure is not enticing.

thanks
Steve

Q: A follow up to Steve's question. All the positives which you have noted regarding LNF are impressive. I am wondering about the government funds they received from the CEBA program. Not having that in the coming quarters will make quarter over quarter comparisons less attractive... how much of an impact will this have?

Q: Lawsuit filed against Kinaxis? Is it time to bail?

Q: Hi team

made some nice gains from the above stock, thanks for recommending it

I wonder if it is large enough (assets over 1 billion) for the big pension
plan to show interest to own some shares (like Quebec Pension plan or CPP)
or it could be a take over target by a bank of life co

you mentioned that at 1 point, there could be a hike in dividends next year,
please elaborate, thanks

Michael

Q: HI Team,

Any news out of SHOP, or just a technical break out of trading range?

Thanks!

Q: Retired, dividend-income investor. I'd like to rebuild my position in Leon's.

When I look at the Fundamentals (P/E, P/BV, P/CF, P/S, ROE, Beta), they all lead me to just buy it at today's current level of roughly $20.

However, when I look at the Technicals, especially when one overlays the 50 mda and the 200 mda, a completely different conclusion is reached. The chart shows that very single time the 50 gets way ahead of the 200 (as it is today), that it retreats a couple of dollars.

This leads me to believe that a better entry point, instead of todays $20 level, is in the $18.00 to $18.50 range. But...doesn't this logic approach "market timing"?

Bill Harris on BNN just gave LNF a very strong endorsement and suggested if all of the stars aligned (my words), that a target of $25-30 was not out of line. He indicated their FCF was bordering on "absurd"...$250-300 million.

Please help me sort through the mire of Fundamentals vs Technicals vs Market timing and point me in the right direction.

Thanks...much appreciated, Steve

Q: Why the big jump with Sangoma recently?

Q: This company was first brought to my attention by an employee of People Corp, stock was .44 when I first looked, pretty sure I asked the first question ever in this forumn. I watched it for a while, bought in as business and liquiditiy improved, adding to my holdings a few times as I felt more comfortable. Didnt take too long and more than once it ran to a 10% position in my portfolio, so I trimmed it back. Yesterday I sold all my shares for a very nice gain. My point, how you manage your positions is just as , perhaps more important as finding good stocks to buy. Thanks for that!

Q: Hi and good day. Could you please provide some worst case scenarios with GUD stock and share price. Thanks eh

Q: Very good selection of People!!! With the acquisition more than likely to happen, what new position options are you considering for the Growth Portfolio? I know it is early to ask this but me, keen to move on to the next good thing!.....Tom

Q: Hi, I’ve read your comments about BEP and BEPC. I understand a bit of correction and consolidation but a 30% drop in one day seems excessive. Surely something else must be affecting this and if not how can one possibly invest in a stock that can drop 30% in one day without a reason? I get risk but that seems absurd to me, especially for a Brookfield security.

Q: Hi 5i,
Questor is confusing to me and I hope you can help me to understand it better than I do now.
In September, 2018 it was at approximately the level it's at now - around $2.20. But then, starting in September, 2018 it increased fairly steadily and had more than doubled to over $5.00 by mid February this year, before plunging straight down to $1.30 or so in the COVID sell off. The chart looks like if COVID hadn't come along it might have continued the upward trajectory. However that didn't happen and, unlike many others that declined hard and fast in February/March of this year, Questor's recovery has been halting - its only gotten back to about where it was in September, 2018 and not close to its pre-COVID level.
Bringing me to my confusion: Something positive appears to have been motivating buyers for the 18 months preceding the precipitous COVID decline and I wonder both what those positive factors were, and why (whatever they were) they haven't taken hold again? I wouldn't have thought that Questor's business would be COVID sensitive going forward from the February drop, but perhaps it is in some way?
The CEO was quoted in today's FP as saying that the just announced carbon tax increases will be good for "our industries", which implies they'll be good for Questor. Could it be?
Hoping you can provide some insight.
Thanks!
Peter

Q: Could I get your opinion on how big a threat the Blue Yonder law suit poses to KXS?

Q: Nice to see the acquisition news of PEO. What do you think is best to do now with my current shares? Should I sell now and buy/top up another industrial or wait until Q1 2021 for the deal to close(if any benefit)? What would be your top 3 industrials in your model portfolios to add to? Currently holding WSP, XBC, ATA, SIS, GDI, and AC. Thanks!

Q: Hi 5i Research team,
Could you comment on Goldman Sachs Merchant Banking take-over offer published this morning? What would be your guesstimate probability of a competing higher offer? Probably low since (1) : Goldman has access to large ressources, so acquirer competitors must know they would probably be at a disadvantage in a competing bid; and (2) this transaction is the result of a review of strategic alternatives for PEO. Isn’t such process (review of strategic alternatives) be a mandatory divulgation by compagnies since it can have a material impact? At what price would you sel at this time in a margin account? Thank you for your collaboration, Eric

Q: Can you comment on any recent insider buying or selling for GUD. E.g. has the CEO bought any large chunks? I am curious if there has been some insider purchasing/selling either before or after the shelf filing. If there has been buying, what do you think are the odds that there might be an acquisition in the works. I bought GUD at $5 and am trying to decide whether to hold, sell, or top up. Because everything else in my portfolio has done so well this year (all fantastic 5i suggestions), GUD has decreased to 1.3% of total holdings.

Q: I have owned GUD for a very long time. I currently have 22,000 shares with a break even cost at 5.35. With Knight to be removed from the TSX by the end of the year what would your advice be?