Investment Q&A

Q: I am setting up an income RRIF and thanks for all your your answers to my questions. I would like to add one potential growth stock because that is me. It won't be a huge % say 3. Can you suggest a couple CAD and USD each? Thanks again. Dan

Q: I recently read the Simply Wallstreet report on PRL . Could 5i comment on what you agree/disagree with and why ? Their analysis is below .....

Positives

Earnings are forecast to grow 33.56% per year
Earnings grew by 83.6% over the past year

Negatives

Interest payments are not well covered by earnings
High level of non-cash earnings
Dividend of 2.02% is not well covered by cash flows
Significant insider selling over the past 3 months
They also gave it poor marks for valuation to peers in their Snowflake Analysis diagram

Thanks for your always valuable analysis ......

Q: Ignoring the the stock based compensation issue, it seems this company is caught with increasing administration costs , negative net cash flow generation , decreased ( slightly ) margins , This is countered with continuing growth in sales and backlog and and a forthcoming product price increase. I am interested to see if financially they are able to handle these dynamics. Their products seem good and they are in the big themed industries
( data centres, EV charging , infrastructure etc ) but could you dig into their financial capabilities for us. Thanks . Derek

Q: Seems like they are going to have trouble keeping up with demand. They are expanding to $900 million capacity, and then $1 billion by end of decade. If they want to grow faster and keep up with demand and capture market share, would they buy a competitor to gain more capacity faster, or?
What would you advise them to do strategically?
Could they be acquired by a larger company?

Q: Are the stock based expenses a one time thing ( yearly) or will they be part of every quarterly report? To have such a reportedly big effect on the earnings, was the company overally generous in this dept?

Q: Could you provide your comments on the first quarter results please.

Q: One more question to add for TFII. This has been a favourite stock of 5i for some time. It seems to make the list whenever someone asks for 'recommendations'. It has been falling consistently since earnings came out. I realize it is up over the year but I expect a top 5i pick to be that. One thing I find missing from the 5i service package is follow-up reporting on the top portfolio stocks when there is a miss in earnings. If no member submits a question on the stock, there is no mention of it by 5i. In the case of TFII, if I have it right, the last 'report' put out by 5i dates back to April 2022. There have been lots of commentary in the 'question' section, but nothing that brings it all together. Now I realize its only one quarter miss, but many of your customers may not see it the way. They may view it as the start of a long downward spiral. So my question is: what rating would you assign TFII today? Should it better the average market going forward or will it tread water, and if so, for how long? Where do you see it in 3.6, 12 months? Does it still make the 'list' today? When will you issue a new TFII report? And finally, would 5i consider introducing a special quick report whenever a portfolio stock 'misses' a quarter?

Q: I want to put in a partial position
what is a good entry price?
thanks
Michael

Q: Your thoughts on the quarter please?

Thx

Q: Hello 5i,
On April 26 in an answer to a question from Rob you said LMN lost $2.8billion due to a non cash adjustment on CSU preferred shares conversion.
My question is: Will this event be repeated? If so, how often?
The optics of "losing" $2.8 billion generally doesn't sit well with investors.
Thanks
Dave

Q: For new TFSA money this year can you please recommend you're top 5 picks in the Balanced growth/income portfolio?

Q: Please comment on earning. Thanks for your excellent service .

Q: When 5i wrote the report on PRL the share price was $15.65 ..... Today it is $23.60 . Which is a considerable rise since the report was written ...... Could 5i plug in the current share price into the section titled " Valuation " and calculate and reassess the same statements using the current share price ? ....... This will help me make a decision regarding a purchase at the current share price .... Thanks as always for your valuable analysis .....

Q: With the “missed” earnings, if there was a sharp pullback tomorrow, at what price range would you be a buyer? Aggressive buyer? Would you wait a few days or weeks for it to settle before buying? Avg cost is $50 so I’m still nicely up but would like to add more to my position for a long term investment. Assuming you still the long term thesis on this story? Thanks!

Q: Trying to understand recent moves of TFII. It continues to drift lower but analysts are posting reports with buy recommendations well over current price. Can you shed light on what, if any relationship, there is between stock price and analyst recommendations and target prices? I know its not a linear relationship but what?

Q: Could I have your assessment of Hammond Power Solution's 1st quarter report that was released last night? I am not sure what is meant by "earnings per share significantly impacted by share-based compensation".
Thanks 5i.

Q: Hi 5i,

I am slowly converting my TSFA to income. A model holding for me is BNS-T (Bank of Nova Scotia). A +6% dividend and good growth potential. Thank you 5i for the recommendation. Can you. recommend, "as of the prices today" 3-4 more companies that you would add. I do have access to your income portfolio of course, but I am seeking good entry positions for your current "fav's". Thank you.

Q: Could you please suggest 3-5 of the 'safest' products that provide a 7% yield. They could be stocks, preferred shares, corporate bonds, GICs... whatever. No specific time horizon. Could you please list them in order of safety. Thank you very much.

Q: Sunlife seems to have had a bad past 30 days, maybe worse than the overall market? It has had a great run since 2012, but when you look back to 2007 “yikes”. I know there was the big financial crisis, but it looks like the share price was cut by 2/3? Can you provide some colour commentary? Thanks.

Q: Hello,

What key valuation metrics is Hammond Power trading at (PE, FCF yield, etc). What are the metrics after this huge run and will the growth ahead meet expectations?

Do you consider it a buy here after hitting its 50 day?