Investment Q&A

Q: Hi, Not a great day for ATS stock, Today, on the top of several weeks of declining share price, following the last quarterly results. Pressure on company's backlog was already noted by analysts' community, for last two quarters. However, except a couple, most Canadian brokerages stuck to their BUY ratings and price targets in the range of $61-$73. So, once again, there seems to be a noticeable divergence, when US based analysts cover Canadian Mid/Small Cap companies ( ATS: JPM - Hold $58 and GS: Sell $47 ). What is that they know and we don't ?

Goldman Sachs pointed to slowdown in Transportation, EV spending running in late stage of the cycle and company's lack of exposure to semiconductor capital expenditure. If, in your view, these headwinds are already reflected in the current share price, what catalysts do you see for share price appreciation, in the near term and going forward ? ( Besides expected growth in Life Sciences area, but whether, that will be enough to offset weakness in other sectors )

We own a 3% position ( with 20% loss, now ) and are contemplating, if a wait till next earnings release is worth it or this capital could be allocated to more efficient and attractive opportunities in the sector.

Thank You

Thank You

Q: I'm curious as to the lack of a high dividend paying etf in your Income portfolio? Also curious as to your thoughts on the partial use for these in a RRIF or PLIf account ( I am in MB and we have PLIF's). I'm setting up a PLIF and considering having more than a full position of HDIV, along with big stable dividend growers I'd pick from your favorites. I have a RRSP of the same value of the PLIF and investments in TFSA. I've been 100% equities all my life, eat volitility for breakfast. If you were setting up your own PRIF, looking to make significant income, what would it look like?

Q: Why the price drop today?
Is the is an opportunity to make it a full position?

Q: Can you please prioritize the top 10 up and coming AI stocks for future growth?

Q: Thank you for your answer to my earlier question. I just want to clarify. I had asked for current dividend growth ideas for a long term hold. In your answer you mentioned “high dividend”…same suggestions or a little different? Thanks again!

Q: Can you please share your favourite Cdn dividend growth stocks for long term hold in a non-registered account.

Thanks,
Janet

Q: In comparing total returns of the respective banks from Pre-Covid and then from Mar 16 2020 to present why does 5i continually endorse BNS - is it simply the DY ?

Q: How will Bitcoin halving affect glxy stock price?

Sheldon

Q: Some 4% drop on Mar 21 after Q misses estimates.But on Mar 22 it closed at $77.90 - .19 after announcement that former PM ,Mr Harper has joined the board.Is it timely to buy/add? and what is good entry price?.Txs for u usual great services & views

Q: Hi 5i, thx again for prompt feedback on my WELL Q's.

Here are a few comments from TD and RBC analysts, both positive, followed by my new Q.

RBC: WELL Health Technologies is well-set to create value, but RBC analyst Douglas Miehm says the market doesn't appreciate it. After a strong 4Q that largely beat expectations, the stock fell about 10% following an unexpected 8% rise on Wednesday in anticipation of 4Q results. In a report, Miehm says that "the market is currently underappreciating the long-term value creation opportunity in "transforming Canadian primary/Dx care, as underscored by our strong forecasted return on invested capital and internal rate metrics for recent acquisitions." He says that there are multiple
tailwinds in Canadian patient services and in diagnostics services to carry it in the longer-term.


TD: WELL Health Technologies shares were down sharply despite reporting better-than-expected earnings in the fourth quarter, but TD Cowen analyst David Kwan says this could be chalked up simply to algorithm trading patterns after the previous day's gains. Shares were down nearly 13% on Thursday to C$3.71 after reporting higher 4Q profit, a revenue beat and upgraded its outlook for the year. On Wednesday, shares rose 8%, and Kwan said Thursday's swing could be trading patterns playing out. "This could be a case of more algo-driven trading patterns," he said.

My Q: please expand on how impactful these "algo-driven" trading patterns are on stocks, especially small caps. Thx.

Q: Hello 5i
I know the policy is to stay invested through thick and thin. In the past with some companies I was up thousands. I started to see the price per share decrease but 5i wrote to "keep going we will see what happens". By the time 5i got around to throwing in the towel I was down thousands. After, when a company started to go belly up I listened to my gut and got out before 5i gave up the ghost. I saved several thousand by doing that. NOW, with PBH, I am up several thousand. Though the metrics still look good, I want to take my winnings before a disaster happens, however I will still keep the principal invested in PBH.
Question: does this sound like a plan or should I still keep fully invested in PBH?

Q: Good afternoon,

Long-term holder of SIS and barely above water. It seems like the potential has always been there, and decent div, but based off of some of your recent comments I'm wondering if a switch to ATS may make sense - both industrials, yes no Div (but growth trumps div's), and it actually appears ATS is cheaper than SIS on PE (though not on P:book).

3-5 years out, which do you feel has more potential to outperform the other? Thanks in advance. - Jeff

Q: 5i’s Income Portfolio:
You’ve stated elsewhere that this portfolio targets a 4 to 5% income and 6 to 8% return….thats easy to understand.

What is not clear to me is the rationale behind the composition of the portfolio. Sector weightings, for example, do not conform to advice provided elsewhere.

Would you please explain the composition, or point me at a place where you have already done so.

Q: What are some of the negative outlooks of GWO? Is it worth investing in as of today and if so is it primarily for the dividend or growth? And how come lots of analysts are reiterating a hold? What insurance company would you recommend over GWO?

Q: I struggle with ATS and KXS whether to sell or continue to see drifting lower. I know you suggest selling if something fundamental has changed for the worse. People commonly thinking ATS is a growth name, but their backlog is shrinking, still a growth name? Fundamental changed? KXS's growth is declining as well....when it will resume their growth? If sell them, what to buy to replace? Can I have your thoughts? Thanks.

Q: Bit confused over 5i responses given on WELL yesterday. 5i initially said results were good and it appeared from answer that there were no negatives. But stock was taking a big hit. Then new questions came in and you responded that there were some negatives (eg decrease in margins, net income and , cash flow). Obviously these are important as sellers stepped in and continue today so far. Usually 5i provide good insight but I think you guys dropped the ball on this one. The initial response should have hi-lited both the good and the bad. And whether the stock had a good run leading up to earnings shouldn't affect your response. Again, I stress usually you give full and fair insight and assessment but not this time.

Q: Hi there, any further insight into WELL after the conference call?

Are they being unduly punished for any particular reasons after good results, and if so, can you explain why the markets are pushing the stock down so hard?

I'm confused as to why this stock keeps being held down with such good growth over the past few years!

Any further help would be greatly appreciated.

Thanks!

Q: Hi, ATD stock is considered as One of the Best compounders in Canada and is strongly liked at 5i, for a long term ownership. Shares dropped sharply today after soft results, due to lower fuel margins ( It was expected and analysts believe these margins could be volatile and turn any time ) and sequentially lower SSSG, caused by reduced foot traffic ( Inflation impacting purchasing power of consumers ).

Do you believe that above issues could be resolved over time and the sell-off is presenting a buying opportunity to accumulate more shares ?

Thank You

Q: Here is another take on WELL:

Adjusted gross margin 43.7 % down from 51.3%

Adjusted net income $52.4 million down from
$ 53.7 million

Adjusted free cash flow $42.4 million down from $ 48.9 million.

I am in the camp of Warren Buffet and Charlie Munger who dismiss EBITDA. If you’re going to give a financial number before interest , for instance, you may as well exclude salaries ( or anything else for that matter ) as well.

I own WELL but will keep a closer eye on it. Please shot holes in my thoughts. Thanks. Derek

Q: I sold 1/2 of my ATD because it got to over 20%. Do you think a good replacement with the recent weakness would be BYD or do you view the risk as significantly higher? Do you think the selling on BYD after its Q release is over done? What would be a good entry point? Is there another stock you would consider a better replacement for ATD?
Thank you.
John