Investment Q&A

Q: Hi,

How will a transportation company be able to make money in an environment with high gas prices, high inflation, high interest rates and short supply of workers? Unless they are able to transfer the costs to the customer..Even so will it impede their growth? Thanks.

Shyam

Q: Which name would be your better choice for a three year hold in terms of combined return(yield+SP gain)? Thanks.

Q: Wanting to add some large cap growth stocks to my large cap utility, bank, pipeline,infrastructure, portfolio as new money becomes available. Growth seems to be out of favour so am seeing this as a time to buy with a 2 year window.

You often advise waiting for a declining stock to show some strength, or at least to start building a base before stepping in. I find this difficult on 2 aspects. Technically, how do I determine when to buy a declining stock in this market ? Psychologically, I hold off on buying when the stock declines further, thinking the decline will continue, and if the stock moves upward I get get frustrated believing that I missed the boat . Do former “ favourites “ such as the 2 above lose their shine even when the markets recover ? Which of these would you purchase first ?
Thanks. Derek

Q: Hi, I just finished reading your report on TFII which outlined it’s history of acquiring smaller trucking companies within the fragmented trucking industry. Got me too thinking about the probability of TFI making a bid for Titanium Transportation. Do you see a takeover as a possibility why or why not and the probability on a scale of 1-10 whereby 10 is most likely.

Q: You mentioned "rate declines" in one of your comments on TFII yesterday. What exactly are the rate declines you refer to? Thanks.


5I RESEARCH ANSWER:

TFII is getting hit on rate declines and recession fears, so much depends on an investors' time frame. It may stay weak in the short term. But we think $95 would be quite attractive, and it could get there on some market weakness.

Q: The above stocks are hitting new lows and on every downtown goes lower. I have held these in a riff for some time with still capital gains, however I am loosing patience with the down turn.
Can I have your opinion of 5i if I should continue hold or sell.
How much lower would you expect to see?
Thanks
Rick

Q: I have trimmed some of my oil % gas stocks today back to my sector weight and would like to rotate the proceeds to other stocks. I already have the Balance Portfolio of stocks including MG at full position and was thinking of buying some LNR to complement MG or do you think there are other stocks in the Balanced Portfolio that you would consider more compelling at this time? Could you name your preference? Thanks.

Q: What do you think would be a good entry point for TFII?

Thanks for the great service.

Mike

Q: Hello 5i,

I would appreciate your thoughts on TFII vs ODFL?
If you like these which one would you prefer for a long term hold?
Can you please provide your high level reasons?
Can you please give a good valuation buy price?
Is the current weakness due to inflation and high fuel prices?

thanks for your thoughts

Q: My cost on TFII is around $90 and it looks like a recession is unavoidable at this point. Do you think it would make sense to sell this holding now with the idea of buying it back in 6 months at what should be support of around $75?

Q: Good morning 5i
Recently someone asked a question about how to manage cyclical stocks in a largely buy and hold portfolio. You said, i believe, that a good strategy is to always hold a certain percentage of cyclical stocks. There have been many questions recently about Tfii. With its rapid fall I have been wondering what percentage should one hold of an individual cyclical stock. Say, for instance, if one used 5 percent as a full position.
Thanks as always for your excellent service

Q: Peter; The following might be part of the reason the stock is struggling- re question from Curtis
Walmart raises truckers’ starting salary to as much as $110,000 a year. The pay bump, from $87,500, comes as companies deal with a shortage of long-haul truckers. Relatedly, the video game developer Activision agreed to convert 1,100 of its temporary employees to full-time status, a sign that workers might be gaining more bargaining power.

Q: Just a quick follow up question on TFII. I've read companies like FDX and UPS are often seen as leading indicators on the economy, if Freight Rates at TFII are falling is that an indication that inflation is beginning to come down? Or would that be reading too much into the situation....thanks as always.

Q: TFII went from being a darling to a dog pretty quick...is this why you should never listen to analysts that come on BNN? What are your views and you buy today? Thanks.

Q: trucking has been down the past while. tfii has fallen with the group. do you see tfii as typical of the sector or an overperformer who will shine again? with the drop the past 10 days, would you add to a position? what do you see for the company

Q: Do you now believe Tfii. Is oversold?

Q: Transports getting hit today. Do you see this as a trend for money flowing out of transports over next while?

Q: Hello, I am using Portfolio Analytics and it's suggested allocation is to increase Consumer Cyclical, Industrials and Utilities and increase in U.S. exposure. What is your suggestion for these categories for investment into TFSA & unregistered with a 10-15 year timeline? stocks or ETFs? thank you

Q: Any reasons you might know for the big drop of TFII Today?

Thks
Marcel

Q: I purchased TFI INTERNATIONAL and ATS AUTOMATION TOOLING in October 2021.

My returns until today are as follows:

TFI INTERNATIONAL is down 4%
ATS AUTOMATION TOOLING is down 14%

Each of the above holdings are only 3% of my Portfolio and therefore I am able to add. Right now, more than 20% of my Portfolio is in cash.

Which of the above would you recommend that I add to based on today's price, and your reasons.