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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: I follow the Balanced portfolio for my RRSP; it's time to make my 2021 contribution. My goal for this account is steady, long-term growth while accepting moderate volatility as it is all-equity.

I have a small amount of TOI from the CSU spin-off, and am contemplating adding to it to bring it to a half-position, would you endorse this move? If not, then I would close my position since it is quite small at this point.

I would then have enough money to add to maybe 3-5 additional positions, which of these would be good to add to right now?

AEM, AC, ATD.B, CCL.B, ENB, GUD, MG, PKI, SHOP

I am fully weight/overweight the other Balanced Portfolio holdings so would rather not add to those.

Please deduct as many credits as required. Thank you.
Read Answer Asked by Walter on March 03, 2021
Q: Dear 5i,

Contemplating bringing down 10.54% AEM Weight in my TFSA to match 5i Balanced portfolio.

Option 1 - by 6.91% to match 3.63% AEM Position Weight.
Option 2 – by 2.24% to match 8.3% Material Sector Weight as I don’t own in Materials 4.67% of CCL.B.
My AEM Unrealized % Loss is 8.6%.

What would you suggest:

Question #1 – Bringing down AEM Weight now or wait for the bounce.
Question #2 – Bringing AEM down to match Position or Sector Weight.
Question # 3 – Buying CCL.B in the Materials sector now or wait for better times.

Much Thanks
Read Answer Asked by Hali on March 03, 2021
Q: Hey guys,
You answered a question regarding LNF about hidden real estate of about 100M. Bill Harris' estimate is closer to 800M to 900M in today's market. They have 369M in cash , as of 2020. Market cap of 1.6B - real estate 800M-cash leaves 369 M = ~500M for the business. 160M earnings last year gives me a P/E ratio of 4-5. Which seems like a dream.
Is this a flawed way of thinking about valuation? Leon's has a boring name with little analyst coverage, A Peter Lynch special. What will it take for the market to figure it out?
Read Answer Asked by David on March 03, 2021
Q: BAM has made recent sales in the market of West Fraser Timber and GrafTech is there a specific reason do they need to raise cash, or are they taking profit.
Best Regards,
Tom
Read Answer Asked by Thomas on March 02, 2021
Q: I have held TFII for a short period of time about 2 1/2 years, last year I trimmed when I got over 6 %. With the recent runup I left it to run to 7% and did nothing as I am unsure of the valuation with such a large aquistion of UPS and maybe it would come back some which it did. I wanted to see a quarter or two after the aquistion before I trimmed or not. On the 22nd you made a comment about TFII being cheap could you add some color to that comment as I am struggling with a valuation post UPS takeover. Thanks
Read Answer Asked by Jerome on February 26, 2021
Q: Hi 5i - I was very interested to read about Lightspeed's new partnership with Latin American fintech dLocal. It appears that this new partnership, will enable LSPD merchants to accept local payment options. It appears it's live in Mexico now, but given the breadth of dLocal's operations throughout Latin America and other emerging markets, do you not think this may be a major accelerator to scaling and growth for the company outside Canada & US?
Read Answer Asked by Martha on February 25, 2021
Q: LSPD has 115,000 locations (74,000 in third quarter report on February 2020 and 47,000 in third quarter report on February 2019) serviced by their SaaS. Dax has indicated that there are 49 million SMB and there are targeting 7 million of those. My question is what is the projected number of locations in five years? If they are targeting 7 million SMB then those businesses have 1.5 locations per business (my estimate) gives 10.5 million locations. What is the probability they can get 10.5 million locations - zero chance. What is the probability of getting 5 million locations - zero. What is the probability of getting 1 million locations - 100 %. If they have 115,000 locations today and they will get to 1,115,000 locations in let’s say five years that is a 10x increase. I understand the metric will change from price per sales to price per equity because they will be profitable. Is it possible to say that the share price increases by a factor of 10?
Clayton
Read Answer Asked by Clayton on February 25, 2021
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