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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 Team!

When does GC next report and what is expected vs prior quarter ie Q4 2018 vs Q4 2019. Also can you supply the same numbers for fiscal year 2018 vs expected 2019?
From the charts, they have basically been in a downtrend since March 2019 and leveling off around the $40 mark the last 3-6 months. I have read prior Q&A and it seems like they may not get back to an upswing until 2021...also supported by your Company page Financials wrt Fy1 12/19 vs Fy2 12/20 EPS numbers.
Can I interpret from this that this may be dead money until then and perhaps it may be better to invest in a company that offers a better upwards trajectory and revisit this stock at a later time? Or should one look further ahead and accumulate at these low prices anticipating better returns as they finish up some projects?
They do seem to have some pretty impressive financial numbers (ROE) and past growth numbers (from your Companies page). Not sure if these have changed given 2019 performance, or lack thereof.
I have held this stock for about 1.5 years.

Cheers,
Steve (in Ottawa)
Read Answer Asked by Stephen on February 09, 2020
Q: Hello Peter,

Being a relatively long term member, I have greatly benefited from having my portfolio mimic the 5i Balanced portfolio and a selection from the 5i Growth Stocks. I have not yet sold out of WCP and switched to SU. Before I do, I was wondering you thoughts on taking the WCP proceeds and adding to MX instead? I am growing impatient waiting for an Energy turnaround and MX seems to trade like one anyway, but I like the fundamentals more. I already have a full position in ENB. Some commentators on CNBC (i.e. Cramer) is of the opinion that millennial fund manager hate fossil fuels, so oil stocks may be in the doldrums for a long time, or worse broken stocks forever. Of course, this could very well be a bottom when everyone "hates" this group.

As always, thanks for the continued great service!
Angelo
Read Answer Asked by Angelo on February 04, 2020
Q: Hello 5i team,
MX paid US$414 million in 2018 to buy back just over 6 million shares. What is 5i's view of management doing this near the highest the shares have traded over a multi-year period? Does 5i feel that MX's large Venture Capital shareholder exerted undue influence to make this happen?
Finally, what is 5i's view of taking a partial position in MX at this time?
Thank you. Edward
Read Answer Asked by Edward on February 03, 2020
Q: Hi Peter, Ryan, and Team,

Most recently, Peter, you're quoted in the StockChase website as follows:

"They have done nothing but disappoint for the last couple of quarters. He kept it because the valuation changed and no one expects anything from this company. He is going to give it a couple more quarters."

Two even more negative sentiments were recently expressed on the same website:

"Their competitors have an electric bus and NFI is struggling with that transition away from fossil fuel buses. A value trap."

"He would not be a buyer today because there is a pending transition to electric buses. Municipalities are holding back until they become more main-stream. Wait one to two years to see larger orders."

We're down 45.7% in a TFSA, and wondering if 5i agrees that the electric bus situation is hurting NFI, and what to do in a couple of quarters if 5i drops it.

Thanks for your insight.
Read Answer Asked by Jerry on February 03, 2020