Investment Q&A

Q: I hold the above in my income portfolio. With the exception of psi they are half positions. psi has diminished to well under a half position. I have enough new money to top 4 or 5 up to full positions. Which of the above (if any) would you suggest deserve a full 5% weighting? I am of course willing to move in a new direction if that were your advice. I currently hold 24 positions in this account.

Q: Hello 5i Team
I am thinking of selling NFI and replace it by MRE.
Although expectations for NFI are much better I think the return for the forseable future is better for MRE.
What do you think

Raouf

Q: I currently hold 3% positions in FTT, TCL.A, ARE in the Industrial; as well as MG and NFI in Consumer Discretionary (I realize that these are in a different sectors but are also semi-industrial). I am thinking of adding MAL as a long term recovery play. FTT, & ARE had been added last year for these reasons. I'm quite bullish in NFI and see it as having the most upside in the short term.

Do you see this as being a good addition/strategy?

To fund a 1.5% position MAL is there one company that you see as not having as much "upside" that you would trim by half, or a combination that you would suggest trimming from?

Thanks!
Cory

Q: What are your thoughts about the relative potential & impacts to NGA (American company??) / Lion Electric (Canadian company??) and to NFI Group (Canadian company) of President Biden's Buy America policies?

Q: Hello 5i team,
On the seeking alpha website, they have a press release stating that NFI acquired an order for 46 ZE buses for fleets in Scotland which can be checked on the ADL website (an NFI subsidiary).

Then there is another press release today for 126 ZE buses for Glasgow on the seeking alpha website which is not on the NFI website.

1) Is the second press release true?
2) If both orders are correct, how much does this move the needle in terms of back orders (I am guessing that these orders can be canceled at any time)?

Thank You,
Andrew

Q: Bought BAD a few months back as a recovery play and have done ok however recent results cause me to question the growth prospects. Should I continue to hold or sell and add to my existing positions in SIS, NFI, QSR and MG. All good recovery plays in my opinion.
Thanks

Q: Of the companies listed, which one would you start a new half position in today for a potential 5 plus year hold in a balanced portfolio. And would any in particular benefit from reopening? I understand that I would need to keep on eye on the cyclicals with a view to exiting if needed.

Q: I believe NFI reported yesterday. How did they do? Profits are surely down but did they cover the spread (AKA meeting analysist’s expectations)?
Thanks,
Jim

Q: Peter; Do you think this am’s government announcement re a billion or two for buying electric buses will,impact the above companies? Thanks. Rod

Q: Hello,
I already own these stocks. I am doing some selling / trimming / buying and would appreciate your comments:
DSG - I did well. Exposure at the high end but ok. How confident are you in the name for the next few years? If sold partially, I would allocated to KXS of TIXT. Your thoughts?
TOY - Do you like it more with momentum as of late? Decent long term hold or good time to sell at these level?
REAL - I am down about 25% but small position. I was thinking of adding at these level (or sell since position not big enough). It would be a long term hold. Your thoughts?
NFI - Hold or sell?
Fortis - Would you add at these level?
Thank you,

Q: I am attracted to Lassonde's P/E of 12 and D/E of 0.4, but becoming concerned about Canadian companies with significant US exposure. Can you provide any insight or point me to articles that discuss the impact of Buy America policies on Canadian companies such as LAS.A (may sell juice to military bases or other federal programs), CVE (owns part of American refineries) or NFI (was expected to benefit from US funding of EV transit)? Thanks for any information you can provide. Use as many credits as you feel are required.

Q: hi,
what is your tough for those company, position 1-3% in my portfolio.
thanks jean guy

Q: Late 2020, Quebec based Electric bus manufacturer Lion Electric went public through merging with US based SPAC Northern Genesis Acquisition Corp https://pages.thelionelectric.com/lev/

On Jan 12, 2021 NGA announced a large IPO. NGA has stated that it intends to focus on opportunities whose business model demonstrates clear commitments to sustainability and strong alignment with environmental, social, and governance principles.

It would seem that a blank check company formed for the purposes of M&A's, might view NFI as an attractive target, as it appears to be undervalued with a strong tailwinds & attractive governance coming from planned infrastructure spending across it's markets. There would also appear to be strong synergies between Lion and NFI's businesses.

While the above is highly speculative, does 5i view acquisition of NFI by NGA as making sense. Why or why not?

Thanks
Cory

Q: I can't say I expected the green industrial stocks to do so well so quickly. I mean, I'm happy and all but it's all moved so fast. And I must say that with the urgency I feel we need to deal with climate change I'm glad that the market seems to agree with me (finally - and perhaps only temporarily?!).

Can you provide a short list of Canadian and US companies that would fit into the general green industrial/energy space? I own most of the above, but am looking for something I may have missed. I don't own any US companies in the space.

Thanks

Q: Thoughts on NFI going forward? Investor day today in Winnipeg. Did you have a chance to tune in? Marketseems to like the guidance. Thx

Q: Given the thesis's that has recently been discussed in Seeking Alpha and in the Globe, as well as NFI's high market share/strong relationships, and the guidance provided in today's Investor Presentation, I would think that the stock has the potential to rise greater than the 52 week high of $33.94 in the near future. The main driver is the move to Zero Emission Buses (ZEB), in part aided by infrastructure spending/subsidies, from traditional buses.

NFI had been trading at $59.00 in February of 2018. At that time the Fiscal 2017 Performance was Revenue: US $2.38B, Adjusted EBITDA: US $318.0M and Return on Sales: 13.4%. That was prior to their acquiring Alexander Dennis.

NFI had their "Virtual Investor Day" this morning; which would have been a greater catalyst than the Seeking Alpha article. I watched the investor day video
https://www.nfigroup.com/investor-relations/investor-day-2021/ this evening, during which NFI:
- reaffirmed its financial guidance for 2020, including Adjusted EBITDA of $145 million to $155 million;
- announced its financial guidance for 2021, including Adjusted EBITDA range of $220 million to $240 million, representing a potential improvement of over 50% from 2020 expectations; and
- announced longer-term targets for 2025, including Adjusted EBITDA of $400 million to $450 million and a Return on Invested Capital ("ROIC") target above 12%.

Given the above, as well as the state of today's markets as it relates to renewables and EV's do you think that we might see NFI trading at or near $60 in the next year?

Thanks for the great work you do!!!

Cory

Q: Looking at its stock price chart NFI turned the corner late last year and is making steady progress upward. How do you assess it going forward?

Q: Hi 5i,
This may well be 4 questions, so please deduct points accordingly.
Portfolio Analytics indicates that I'm underweight in Communications Services, Consumer Defensive, Industrials and Consumer Cyclical, and I'd like to top up these sectors.
I try to be a balanced investor and like income, but I don't mind taking on more risk and little or no income on something with a solid premise. Especially right now I'm looking for companies that are poised to benefit from the return to (more or less) normal life that 2021 might bring.
My present Communications Services weight all comes from the following ETFs - TXF, ZDI, DISC and ZWU. Can you provide a few Canadian equities to look at in this sector at this time, other than the big four?
My present Consumer Defensive weight comes mostly from NWC, with a smidgeon from ETFs like ZFI and DISC. Are there two or three Canadian equities in this sector you'd currently recommend looking at?
My present Industrials weight is in FTG (which I'd be happy to sell unless you think it has the potential for recovery in the coming year), QST and XBC. Are there another two or three Canadian names you presently favor in this sector?
And finally, my only Consumer Cyclical other than whatever might be in the listed ETFs is NFI (although I'd have thought it would properly be classified as an Industrial). Again, could you recommend two or three Canadian equity names that might qualify as viable Consumer Cyclical holdings going forward?
Thanks a lot and Happy New Year!
Peter

Q: I have a DOY balanced portfolio (Alpha-Balanced for guidance) , with less than 10 year timeframe.
I’m underweight communication services, and energy. Not a fan at this stage of oil or precious metals. Overweight in industrials and technology.
My concern is with my overweight in technology. Reading a number of opinion articles that refer to the tech boom as another dot.com. The reply often is oh but this is different.
Here’s my two cents worth especially related to tech stocks I own. First of all investors/traders seem to be jumping in and out of technology based on the latest COVID-19 / vaccine news.
Re KXS; will still be in demand long after Covid-19. LSPD; somewhat sensitive to Covid-19 but have done a good job diversifying and adapting restaurant services etc. Will do well in recovery.
Maybe more acquisitions.
SHOP; like Amazon will carry on even though the valuation is high. Younger generation will still shop on line.
Now comes the tricky part. WELL and VEEV. I don’t quite have a handle on. Not sure if the demand for their service will still be there post COVID-19.
Your comments and/or thought would be greatly appreciated. I have a feeling that many of your clients would be interested in what you have to say.
I’m an experienced investor but don’t have access to the kinds of info I once did. I depend a great deal on your unbiased expert opinion.
Merry Christmas

Roy

Q: Potential tax loss selling -- could you please provide suitable placeholders for these companies. Also, if you recommend keeping these "placeholders" instead of switching back after 30 days please let me know.