Investment Q&A

• Canadian National Railway Company (CNR $135.38)
  • $135.38 P/E (TTM): 18.42X Cap: $83.83B
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• Canadian Pacific Kansas City Limited (CP $101.22)
  • $101.22 P/E (TTM): 22.16X Cap: $92.50B
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• WSP Global Inc. (WSP $239.78)
  • $239.78 P/E (TTM): 36.15X Cap: $31.31B
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• NFI Group Inc. (NFI $13.49)
  • $13.49 Cap: $1.60B
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• Magna International Inc. (MG $68.32)
  • $68.32 P/E (TTM): 13.22X Cap: $19.28B
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Q: For industrials I have CP CNR WSP and MG. I would like to add one more to this sector. Do you have a favourite pick for medium and/or long term hold?

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Read Answer Asked by Terry on February 21, 2017

• Magna International Inc. (MG $68.32)
  • $68.32 P/E (TTM): 13.22X Cap: $19.28B
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• Exco Technologies Limited (XTC $6.86)
  • $6.86 P/E (TTM): 10.92X Cap: $257M
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Q: Hello 5i, since both look cheap at the moment, I would like to select one for a long term hold (at least 10 years). I am looking for dividend growth. Thanks.

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Read Answer Asked by Jean-Bernard on February 21, 2017

• Balanced Equity Portfolio (BEPORT)
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Q: Hello 5i,
If I was to put $100k into the BE portfolio today would you suggest mirroring the current allocations or buying equal amounts of each stock?
Thanks
Dave

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Read Answer Asked by Dave on February 21, 2017

• ECN Capital Corp. (ECN $3.04)
  • $3.04 P/E (TTM): 108.81X Cap: $859M
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Q: How does the news alter the outlook? Why did they do this now?
Thanks.

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Read Answer Asked by gordon on February 21, 2017

• ECN Capital Corp. (ECN $3.04)
  • $3.04 P/E (TTM): 108.81X Cap: $859M
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Q: What are your thoughts on todays announced sale and prospects going forward. I suspect they must have something else fairly major lined up to buy. Todays sale was actually worth more than the market cap (at least what shows on the tsx site, without options etc).

thanks Tom

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Read Answer Asked by Tom on February 21, 2017

• Shopify Inc. Class A Subordinate Voting Shares (SHOP $221.76)
  • $221.76 P/E (TTM): 89.3X Cap: $288.57B
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Q: Hi, would it be reasonable to buy Shopify at current level or wait for a pullback? My investment horizon is for long term.

Thanks.

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Read Answer Asked by Andie on February 21, 2017

• Element Fleet Management Corp. (EFN $36.00)
  • $36.00 P/E (TTM): 24.54X Cap: $14.39B
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• goeasy Ltd. (GSY $124.06)
  • $124.06 P/E (TTM): 8.97X Cap: $1.99B
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Q: I am looking for more growth potential so I am considering swapping my position in EFN for GSY today. Do you think that is a good idea and would this trade help accomplish that?

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Read Answer Asked by Paul on February 21, 2017

• Miscellaneous (MISC)
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Q: Are there any NR stocks in the Model Portfolios that would likely be rated less than B-? If so which ones? I like to focus on investments rated A+ to B-. Thanks

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Read Answer Asked by LARRY on February 21, 2017

• New Look Vision Group Inc. (BCI $50.00)
  • $50.00 P/E (TTM): 49.85X Cap: $783M
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Q: BCI is about the only B+ or better stock in your coverage universe that I do not own.

Currently it appears to be quite oversold .... and does carry a small but respectable dividend.

Do you still like the company & would this be a good entry point?

Thanks.

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Read Answer Asked by Donald on February 21, 2017

• Open Text Corporation (OTEX $46.15)
  • $46.15 P/E (TTM): 17.32X Cap: $11.75B
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Q: Late January you commented that Open Text was trading at 15 times earnings or so...however I cannot figure how you calculated this.
Was it forward earnings? GAAP or Non GAAP earnings? What was the earnings number you were using?

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Read Answer Asked by Stephen on February 21, 2017

• Shopify Inc. Class A Subordinate Voting Shares (SHOP $221.76)
  • $221.76 P/E (TTM): 89.3X Cap: $288.57B
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Q: Do you have any idea when SHOP will be profitable. According to their latest financial information it will not be in 2017.

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Read Answer Asked by Ernest on February 21, 2017

• Miscellaneous (MISC)
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Q: When using the above methodology (BTSX), by definition, sector balancing is uncontrolled. Given that, and the undisputed performance of the methodology, can a long term buy and hold investor commit to using this method for the bulk (say 75%) of his equity portfolio and feel confident of the portfolio's stability relative to the TSX index?

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Read Answer Asked by Jim on February 21, 2017

• Shopify Inc. Class A Subordinate Voting Shares (SHOP $221.76)
  • $221.76 P/E (TTM): 89.3X Cap: $288.57B
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Q: Hello 5i
My wife has taken advantage of a company matching stock purchase plan for the last 10 years. It has grown to represent about 30% of our combined retirement accounts. I'd like to move half of it into the balanced portfolio for better diversification. I also really like Shopify Open Text and CRH medical. Would you substitute current B.E. holdings to fit these three in or simply add them. My thoughts are to eliminate Enghouse and Sylogist but am curious to hear your thoughts.
Thank you for your invaluable advice!!!
Dave

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Read Answer Asked by Dave on February 21, 2017

• Intrinsyc Technologies Corporation (ITC $1.75)
  • $1.75 Cap: $35M
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Q: Dear 5i,
I reviewed the Intrinsyc technology website to gain a better understanding of their products. ITC has a lot of innovative products/ideas with many future applications. I don't have a lot of knowedge in this area. What is there competitive advantage? Who are their main competitors? I assume there are many major tech companies developing similar products. ITC has a tiny market cap creating more risk/growth. What makes them a better company?
Thank you,
Kerri

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Read Answer Asked by KERRI on February 17, 2017

• Enghouse Systems Limited (ENGH $20.18)
  • $20.18 P/E (TTM): 14.79X Cap: $1.11B
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• Open Text Corporation (OTEX $46.15)
  • $46.15 P/E (TTM): 17.32X Cap: $11.75B
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Q: Do you see Enghouse or Open Text as having more potential?
Thank you

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Read Answer Asked by Marty on February 17, 2017

• Liminal BioSciences Inc. (LMNL)
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Q: Prometic: you are probably up to speed on this one by now but do not see anything on the Q&A section. But California Capital Equity picked up 44M shares ... warrants at 0.47 cents. Dumb questions looking at the drop in price today (-7%). I am assuming this is not looked upon favourably?

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Read Answer Asked by Donald on February 17, 2017

• Liminal BioSciences Inc. (LMNL)
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Q: Regarding PLI's drop, if there is no apparent reason, does it indicate that the stock is being manipulated in some way? Does a halt like this with no apparent reason for the drop concern 5i as it is one of your "holdings"?

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Read Answer Asked by Kim on February 17, 2017

• Constellation Software Inc. (CSU $3,341.58)
  • $3,341.58 P/E (TTM): 75.52X Cap: $70.70B
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Q: Your opinion regarding the recent q4 report. Many thanks.

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Read Answer Asked by Tom on February 17, 2017

• Liminal BioSciences Inc. (LMNL)
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Q: In replying to Jim regarding PLI being halted you mentioned that the company had issued a press release indicating there were no material events to account for the drop. The last press release listed on PLI's website is dated Feb 6. Neither the website of TSX nor IIROC mention PLI's press release. Where did you see it? Is it available to the general public? If so can you tell me where?
Thanks

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Read Answer Asked by Carlo on February 16, 2017

• Kinaxis Inc. (KXS $176.87)
  • $176.87 P/E (TTM): 103.96X Cap: $4.95B
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Q: KXS is enjoying a good run of late.. Wondering how you feel about it for a 5 - 7 year hold?

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Read Answer Asked by Ron on February 16, 2017