Investment Q&A

Q: My 26 year old son has some funds to invest in his RRSP. He also holds a TFSA and Cash account and between the 3 accts, he holds, BEP, ECN, BNS, VHI, BAM, GSY, KUT, PBH, TOI, ENB and SLF. We would like to add a couple new names and on our list are TD, MFC, TIXT, GOOG, AMZN and EQB.....if you were advising your son in this situation, how would you rank these 6 stocks for addition to his RRSP? If you could add some colour as to your ranking, that would be much appreciated.

Many Thanks for the great service and advice

Scott

Q: Good day, is ARE good value here? Thanks

Q: Hello 5i team,
I was thinking of selling the rest of my NTR (a bit of CAE) shares to start a position in PBH. This is more to have a non-cyclical position since I currently have none.

In your last report on PBH you state that their dept is Medium/High. How well are they servicing their dept (paying it down or adding to it)?

PBH has also been growing their dividend over the past 5 years, what is the payout ratio for it's dividend? Has the payout ratio increased over the years?

Thank You,
Andrew

Q: The new BAM stock price dropped 7% on Tuesday. Is there something that an investor should be aware of ? Is this an opportunity ? I wanted to purchase this one post-split.

My understanding was that the yield for this stock would be in the 3.25%-3.75% range. Would I be correct in assuming that it could quite likely now be above 4% based on the Tuesday $41.60 close?

Is it true that the company plans to raise the distribution by between 15-20% per year ? That seems high to me. Maybe I misunderstood.

Q: What do you think of selling PBH for a loss and buying QSR as a replacement, for a long term position?


Thanks.

Q: Why is this company down almost 5% today? Any news?
Thanks

Q: I'm trying to understand the new Brookfield Asset Management Ltd spinout. I have two questions:
(i) It seems to act like a royalty on the asset management business. Am I correct that it does not have to add any additional capital to the business as time goes on?
(ii) On its web-site it claims a 90% payout ratio. However, from the recent Investor Day presentation (page 62), it states that there is 4.9B of distributable earnings for the original company for 2022, which would mean about 1.2B for the new spinout. As I calculate it there are around 450M shares, which means a projected dividend of over $2/annum. However, in the announcement of Dec 6, it stated that the starting dividend is about .28/quarter, or 1.12/annum. What am I missing?

Q: Can you please give me your thoughts on Constellation's deal in acquiring WideOrbit through the Lumine group. Do you think that this will be a positive for CSU shareholders? How will it affect current CSU shareholders and will there be a special dividend? Any information that you have would be appreciated. Thank You.

Q: Hello Peter,
This question is relating to your holdings in your Income Model Portfolio. Are all the income declared from these investments qualify for dividends tax credits? Or are they treated as normal income like interest income from GICs and would be subject to our normal tax rate?

If it is taxed at our marginal rate, would you recommend holding these investments in a RRSP account?
Many thanks,
Roger

Q: Hi Peter and 5i,
Sorry if this has been asked before. I also can't find anything in the previous questions either.
Would you be able to provide us how the Adjusted Cost Base of the previous BAM.A shares should be divided up between BN and BAM?
Thanks so much.

Q: hey guys can you please elaborate on the insider sale of shares on f Friday is it a bad thing or is it status quo thanks as always

Q: hi,
are you able to provide the expected price split for BN and BAM based on the closing price of 58.88$ on Friday ? I am trying to figure out where the prices of the 2 entities are now compared to prior split. thanks, chris

Q: Good morning all, Is BN a buy today ? Why the big discount or is this a new issue thing due to the exchange ?

Q: Hello 5i,

In a December 7 question, you include DND in a list of stocks of which you write: We believe these companies fit the description of simple, predictable, strong financial position and undervalued companies: BAM.A, BNS, TFII, CSU, DND, QSR. I have a small position in DND and for me, (aside from the undervaluation) I don't feel like it fits that definition well. There is definitely something I am missing. Can you enlighten me on your logic?

Thanks

Q: Does any one able to explain the current prices of these new shares. The value of BN shares make sense but the NEW BAM shares . Maybe my math is wrong but can you explain?

Q: What is your view of the company after the latest results. The market appeared to like it.
Appreciate your insight, Peter

Q: I am looking recommendation for a solid long term Canadian growth stock, that one can largely purchase and forget it. This is for my grandchildren's portfolios which currently have a core holding of VEQT and small satellite positions in MICROSOFT, COSTCO and Visa. The portfolios are expected to be held for a very long time. I do monitor the positions currently on a quarterly basis.

Any thoughts on this approach and possible securities that would fit the bill?

Q: I have REAL in both my TSFA and non-registered accounts. I would like to get rid of it from my non-registered account. Could you suggest a replacement (I do not plan to repurchase it? Do you suggest selling it from the TFSA or waiting for it to turn around a bit?

Q: Hi team,

LSPD is my largest position in my TFSA and it is down 75% from my purchase price. The TFSA itself is down 50%.
You are obviously not positive about the future of LSPD. And, at 82 years old, I am not in for the long term.
My choice is to sell to save whatever is left of it or to keep it with the hope of selling it later with a smaller loss than now. What do you think ?
What would you do if you were in my shoes ?
Thank you for your attention.

Jacques IDS

Q: A few months ago you indicated a multiple of 7.5 to 8 times sales. What do you believe the multiple will be in 12 months. The question is in regards to selling my entire position. My average price is $36.31. I believe we will have a low chance of a recession because the job market is still strong. Clayton