Investment Q&A

Q: As much as I enjoy your service, there are times when I find your answers provide insufficient depth. I can understand that when you are asked about obscure companies that most of us have never heard of, but I do expect more, perhaps incorrectly, when the question pertains to companies in your portfolios. Case in point on Feb 6 a question asked what you would recommend , GSY or ECN. Your answer without any support was GSY with no rationale for your choice
On Feb 5, ECN held an information session that provided guidance for 2019.
Management are looking at EPS of 23-25 cents . up from about 11 cents in 2018.
Key sub components are looking quite strong:

Kessler's projections imply earnings growth of close to 40% and revenue growth of around 60%.
Triad is guiding for adjusted operating income to grow around 17%
SFC guidance is for adjusted operating income to grow around 25% in 2019. Originations guidance is expected to be up around 36%. Management believes that the business can grow about 20% annually going forward.
Without getting into them there are other numbers that I have not mentioned that also look quite strong..
The company has been in a transitional phase the last couple of years and there will be some potential losses as ECN sells some of its legacy assets. All in all, it would appear that guidance was extremely positive.
So given this outlook what is it about GSY that makes it a better choice?

Q: The Industrial section of my portfolio is underweight.
Which stocks would you suggest to bring it up.
I have $40.000 to invest. Thanks.

Q: Hello: I notice the price of MX has dropped from over $100 to its present level. I have shares in my RRIF. I bought in when the price was much lower. Would you suggest selling now and repurchasing later or wait out for prices to improve again?
Thanks
Ken Beatty

Q: Hi 5i Guys,
With latest announcements from the company, do you think Photon is worth buying at these prices?
Thx

Q: Thoughts on the quarter?

Q: What didn't you see?
TSGI still seems to be thought of in a positive note by your firm however it's lost quite a bit in the last 6 mos. What were the signs that caused the decline that you (all of us) failed to notice? And, contrary to that, what are the signs that make you think the company has good growth potential in the next 6 to 12 months?

Q: Thanks 5i for your unbiased insights and for introducing me to many new Canadian growth stocks that I had been unaware of.

Question on Constellation. CSU seems to have some conflicting attributes for a typical tech stock. It trades at a very high PE ratio, 58, yet a low beta of 0.53. Can you explain why this stock trades at such a high valuation with such low volatility?

Q: Can you provide the short interest on TSGI from last July, 1 month ago & now. Thanks

Q: Hello 5iR Team, Many brokerage houses have developed the portfolio structure of identifying a short list of their "Highest Conviction" stock picks. Then they separate them from all of their other "BUY" rated stocks and/or stocks they have selected to put in a portfolio.
Yes, I know you have your three model portfolios but choosing a few stocks from these portfolios or something different forces everyone to concentrate and co-operate to develop the ultimate 5iR focus list.
Is this a concept the 5iR team has considered?
Would it be possible to ask at this time can the team give me what 5iR thinks are its' Highest Conviction ideas for 2019? Thanks Team. Cheers, Chris

Q: Can you please provide specific reasons why you like this stock? Starting to lose patience and believing I can reallocate it to more productive names. Thx

Q: Good morning crew.

A general observation that you can feeel free to correct. Having been a member for two plus years I notice that your patience with picks that do not have a dividend, or a small one, seem to have a shorter leash that say a stock that has a healthy dividend.

Would that be accurate or are the prospects for growth what really matters. Like GUD for example.

I know this is a simplistic observation, but my own patience is somewhat relaxed when in receipt of a dividend like an ENB or PBH.

Thanks. Appreciated.

KC

Q: Please comment on earnings. Thanks

Q: Hello,

Would this be a good time to initiate a position in WSP, or did the tide already rise? Thanks

Q: I hold most of the income portfolio in a cash account to supplement my retirement income. I have equal weightings of most of the holdings and am beginning to double up on them as more cash becomes available. Could you suggest which three holdings would you double up on at this time? Thank you.

Q: I am wondering what price do you use as the sold price to calculate performance when you take a company out of of your portfolio. For example CLS was recently taken out. May I know which price would you use for performance calculations ? Thanks

Q: Hello 5i,
Stars group continues to be one of your favorite higher risk growth stocks. I personally have the same view. However, it appears the market continues to beat this company down.
Please explain what are the top 3 reasons (other than the high debt) that you believe is causing this stock to currently continue to move down and please detail (debt reduction, revenue beats, acquisitions etc..) what will have to occur in the mid-term in order to drive this stock higher and make an u-turn. Finally, what should the minimum time horizon be if one is currently holding this security. What are the top downside risks (Including: Regulatory, political, execution etc..) and to what degree is each of these risks going to impact this company on the downside.

Thank you,
Joseph

Q: What do you think about buying some shares of CSU now, or is it too late? Or wait for a better entry, in that case what is a better entry point?
Margita

Q: Do the earnings results change the long term view here? Thank-you.

Q: Please comment on the earning result of MX? Thanks

Q: This is about the volatility of stocks such as Shopify. I understand why it is volatile being new, growing fast and very high valuation. My question is, assuming it continues to grow what might one look for as indicators that the volatility is going to settle down.
Thanks as always,
Peter