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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: Hello,

I've recently acquired a half position (2.5% of my portfolio) in NFI Group. The company has announced several, large new orders since the beginning of August, is trading at a quite reasonable 12 times P/E ratio and is paying a very healthy dividend of approximately 6%. I have several questions however that I'm hoping 5i might be able to assist me with.

When NFI "sells" a bus do you know if they actually get paid whatever price has been agreed upon and are then free and clear of that transaction OR do they actually, typically either lease the vehicle to it's new "owner" or finance the sale price themselves in any way?

Are you able to please provide me with NFI's current dividend payout ratio, as well as with any information about what their dividend payout ratio may have been, on average, over the past 5 - 10 years? Have they ever cut or eliminated their dividend?

Do you believe that their recent acquisition of Alexander Denis Ltd. (ADL) might be exposed to any risks from Brexit?

Thank you!
Read Answer Asked by Richard on October 07, 2019
Q: According to RBC, Methanex has had a negative surprise the last 3 qtrs and they estimate a .01 profit , down from .13, 30 days ago. Yesterday they upgraded price target to $50 US with an outperform rating. I purchased a partial position around $40 with helpful guidance from 5i, thank you, and am thinking of adding to my winning position. What do your numbers show for Q3, do you think the stock can do well over the next year or two even if the Energy sector doesn't?
Read Answer Asked by Charles on October 04, 2019
Q: Over several years Savaria has grown and evolved from a Canadian company to one that now operates internationally. Is Savaria's leadership evolving accordingly? Does 5i feel that Savaria has identified, and is recruiting, new people to join the Board and Senior Management with the necessary experience and skills to help guide the firm in its next stage of growth?
Read Answer Asked by Edward on October 04, 2019
Q: Enbridge has been a long time favorite of yours but I find myself questioning the merits of holding this company. Three and five year charts are dismal and, I think, totally out of character with the type of stocks that you prefer. Every bit of perceived negative news causes a downward move in the share price. I have to assume that the current dividend is what supports the price but if interest rates start to rise this stock has all the look of a stock that will fall further. So I would really like your rationale for holding it your portfolio. Is there not another pipeline that has better growth characteristics?
Read Answer Asked by John on October 01, 2019
Q: Do you have any idea why MX charts so closely to many Oil and Gas stocks? I don't think they are in the same business but maybe they are after all. I thought part of the problem with Oil was excess supply (abundant shale oil for example). Is there just too much Methanol out there for the existing demand? Since Methanol is used as a substitute or an additive to gasoline and also used to create plastics do you think we are experiencing an emotional rejection of Methanol instead of a verifiable decline in use?
MX on their website illustrate the use of Methanol to power cargo ships. Is this a new growing use of the product?
Thanks,
Jim
Read Answer Asked by James on September 30, 2019
Q: Reading Tom's question on Sept 23rd and your response to read the cost of waiting versus lump sum investing article was quite informative. I try to follow your income portfolio and notice a double digit cash position for well over a year as I also have. I assume your reasons have to do with the frothy market and bear market mentality. As a retired couple living on dividends we are very tempted to not keep waiting for the BIG downfall and put our 12% cash in a reasonable safe etf with low volatility as outlined in the article. Your 5i bal may be too risky, but more like VCIP or XHD or please give us safer alternatives. Even XBB, CBD. would improve on loosing cash to inflation.
Thanks in advance.
Read Answer Asked by Peter on September 26, 2019
Q: At what point do you sell the stock or double up on your share count. The ‘fundamentals haven’t changed’,only peoples perception on its stock price has changed and I have a 5 year hold. I have contemplated waiting for another sharp drop and buy additional shares - like double my present position. OR I thought that if the stock hit the 200 day moving average I would sell. FYI - I bought the stock at $40 ish and sold at $80 ish. Bought again at $100 ish and sold at $150 ish. Finally I bought it again at $180 ish and still own the stock. Like all of us I have owned stocks that went up and down dramatically only to hold on to long, ie Valient.

Clayton
Read Answer Asked by Clayton on September 25, 2019
Q: Peter,U were great on Market Call on 9/19.Thanks for answering my Q on AW.un. Please u short comment on LSPD's new retail 3.0 POS app. On Sep 23 the G&M filed a report on LSPD stating that it was oversold, co's forecasts of fiscal 2020,2021 & 2022 are greater than the street,Cassie de depot is the biggest owner below 40%, & tech support @ $30,then $25 & Resistance @ $40 & $45.Txs for u usual great services & views
Read Answer Asked by Peter on September 25, 2019
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