Investment Q&A

Q: In answer to @Cheryl, Knight released two news yesterday. The Triumvira repayment shows that Goodman's strategy of battling mostly 'singles' (except the GBT 'homerun') is working.

However, a more meaningful news is that Knight finished repurchasing 100% of their shares buyback under their NCIB. I don't recall a company actually buying "all" of the NCIB allocation. We knew they had bought 78% of it as of March 30, 20 in their Q4 2019 quarterly report. We could have expected they would buy the other 18% but still did it quickly with Stock having dropped a lot in the COVID market (even though they said COVID had not affected their business - well not yet at least).

Question: their NCIB only expires on July 8. Does it mean GUD has to wait until July 8 to request another NCIB to the TSX if they want to continue buying back their shares? Medison still owns 7.5% (10.5M shares) of the company, and I would really like to have GUD arrange a 'block' buyback of Medison's Shares via a 'special NCIB' repurchase to finish the Meir Jacobson involvement once and for all without disrupting the share price, or at least causing uncertainty/concern on that.

Is that possible? And if so, does it have to wait until current NCIB expires in July even as they have completed 100% of the current NCIB already? Thank you!

Q: Hope you are all staying safe and sane.

I have about 20% of my RRSPs following your Balanced portfolio, the rest in cash. I would like to deploy most of that cash in the next year. Which names would you start adding to first?

Q: Do you think Shopify can hit or exceed its old high of ($786.07) on its next earning report ?(early May)
It certainly seems to be tracking Amazon, which is hitting new highs daily.

Thnx for your great service you provide the individual investors!! 👍

Dave

Q: Hi, great insights lately, thanks! I'm slowly buying quality names, but pausing for now on ATD.B. Can you please counter my following doubts:
- They are relying a lot on revenue from gas stations, not only gas but mainly associated convenience stores. In the short term very few are visiting for gas, but even when things open up, people will just pay at the pump and not take the risk of going in for snacks, etc.
- Once they get past that which may be 1+ years, there is still the longer term trend away from gas stations.

This just seems to have the "Spin Master" feeling. What is the short and longer term compelling case to have them near the top of your lists? I'm supposing quality of management, valuation, hopefully recovery of business that that seen before this year?

Q: Hi group first question if you were to pick one US and one Canadian stock for capital appreciation with the least risk what would the names be bases on todays environment . 2 nd question I got stopped out of BYD (Stopped out @140) and CSU (stopped out at $1180) in the recent downturn what strategy would you use for re-entry? ( have been waiting for significant pull backs that have not materialized at this present time in the cycle please give me you thought's on strategy to reenter these names Thanks for your thoughts

Q: The loan repayment made by GUD seems to have made the market happy, is it significant?

Q: Gentlemen.
Own NFI in RESP (-72.5%/-15k) & SIS (-38%/-17k)
Which one to sell (for buying the other) ?
Thanks

Q: PEO is up 9% on good volume today. Are you aware of anything to account for this?
Thanks
John

Q: Could you comment please on the increased short position on BAM.A.
Thanks
Bob Rose

Q: Hello,
I am funding my two kids TFSA’s this year, ie; $6,000 each. In your opinion based on long term growth what would be the 4-5 companies you would invest in at this time, preferably in the Balanced Equity portfolio.
Cheers,
Rick

Q: From your 3 portfolios what are the top 5 names from each you would recommend in order for new money over the next few months for combination of income and growth

Q: Any reason why SHOP has gone up so much over the past 2 days? I haven't seen any news that would account for it. In fact, there have been some analyst 'HOLD' ratings (like a kiss of death).

Q: I currently own PKI at 2.38% weight and under water but was wondering if I were to increase this to 3% weight if you are comfortable with this or wait a bit longer before adding to the name?
Thanks

Q: Hi- why has CSU rebounded "not as strongly" as other tech stocks?

I am a young invesstor with a long term time horizon. Would you take a position in CSU here? I have LSPD as well. Thanks.

Q: Hi Peter, are any of these at risk in this environment over the next year or alternatively in particularly good shape ? Would you continue to hold them or elimate any ? Thank you.

Q: HI Gentlemen,

I, like most on this board, tend to buy stocks that you put then into your portfolios and sell the stocks when you remove them.
You also seem to instill in us the investment practice not to panic in crazy markets when there is no bid for the equities, for this too shall pass.
So, I was rather surprised in your March 17th email to us suggesting you were going to take MX and CSH.un out of the portfolios.
On march 17th MX was approx 65% lower than it was in the prior month, and the lowest its been in the past 10 years.
On March 17th CSH.UN was approximately 50% lower than it was the prior week.
My question is two fold.
Why did you sell at decade lows when there was ample warning that things were going poorly for these companies? MX was been plummeting more or less since 2018 when it was $100. What took you so long to sell and why at the multi year low?
If you waited this long and the stock had been performing so poorly why did you not revert back to your philosophy on how selling stocks in this type of market might not be the most rational idea.
MX is +30% since it was removed from the portfolio and
CSH.un is +18% approx.
I'm not using 20/20 vision here I am talking about investment philosophy on these 2 issues.

Thanks

Sheldon

Sheldon

Q: Hello 5i Team,
Thank you for all your guidance throughout this type of market. I'm sure all the Canadians are greatly appreciating your impeccable work for us DIY investors.

If you have ~$20k of cash today and your goal is to appreciate this into a much larger amount not too long after coming out of the other side of this market (i.e. after a recession), which 10-15 Canadian equities would you go after with a good sector diversification?

Since I am younger and my nest egg is still small, I'm not too concerned or rely on dividends. I'd much rather have stocks whose valuations may appreciate greatly rather than going for the slow and steady dividend aristocrats and blue-chips.

I have been eyeing the large discounts on Canadian equities such as the following: AC, CAE, SLF, GSY, LSPD, PLC, GIL.

Q: Hi

I know you have recommended this in the past based on valuation and it has recently rebounded almost 100% off the lows.

As someone with a 5 year+ time horizon, but concerned about capital preservation, is this a good place to be right now

My concern is that if people are struggling to pay bills, rent, buy food, these loans will fall first.

A secondary concern given the present environment is government intervention to reduce the interest rates GSY can charge which would fundamentally impact the business.

Thoughts?

Q: Hi 5i,
Is it advisable to switch PKI to ATD.B at this time for long term hold?
Thanks.

Desiree

Q: hello 5i:
Could you tell me what percentage of their business WSP derives from the US? And, thinking of infrastructure happening at some point, could you advise a US equivalent to WSP?
Paul L