Investment Q&A

Q: Can you suggest some Canadian companies, other than in technology, utilities or finance, that you currently consider to be undervalued and worthy of consideration for a long term investor. I've done very well with your suggestions of MG, WELL, ATA, TFII, EIF, PBH, GSY. I don't mind adding to any of the latter but would like to know if you see value ( or at least promising growth from today's prices) Thanks and best wishes always - Al

Q: hello 5i Research team,
When you answer that Magna be among the companies that will benefit from the increase trend toward sales of EV: can you elaborate on how and why, and also which of MG reporting segments (body exteriors & structures; power & vision; seating systems; complete vehicles) will benefit and especially how will it benefit. I cannot specifically identify a winner. My intuition says « power & vison » will probably loose from the transition out of oil (it represents about 30% of sales: which is about appropriate for an entier vehicle). Therefore if I am correct, there is no specific advantage for MG from the transition to EV. Please enlighten me. Thank you for your collaboration, Eric

Q: I would appreciate your assessment of this company both in terms of the recent earnings report and future prospects. They mentioned that there are supply bottlenecks and cost inflation of labor, materials and energy that are affecting their results. So how do you see these being resolved and when? Would you be a buyer of these shares after Friday's drop? Please provide rationale for your position. Thanks.

Q: Hi Peter, Ryan, and Team,

I’m overweight in Consumer Cyclical, and need to raise some cash for an underweight sector. Between CCL.B and MG, please rank them in order to sell a partial position. I like them both, so this is a tough decision! Thanks in advance for your assistance.

Q: Hi there, I am looking to pick up a few positions. I am underweight in consumer cyclical, real estate, financials, energy, and US. I have no holding outside N.America. My investment profile is Balanced to growth-oriented.
I currently own the following in those categories:
ATZ, BRP, CELPH. COST, LULU, MG, PLC, TSU, X, RY, SLF
What stocks would you buy today?

As a side note, Is there a publication or investment service you would recommend, for US and international holdings?
Thanks for your advice.

Q: what is expected from magna this quarter?

Q: Please suggest investment portfolio for a conservative 55 year old who opened a TFSA account with $50,000. Will not need to touch this money for the next 5 years.

Thanks for your valued service since 2014.

Q: What would your top 3 stocks be to capitalize on the apparent trend in EV's. Looking for companies that supply to the automotive industry, parts or underlying resources such as lithium.

Q: Please name half dozen of your top choices for an income portfolio.

Q: Why is the chip problem concerning Magna and not Tesla?

Q: Good Morning Peter & Team,

I know you don't endorse timing. And I don't want to move away from long term strategies holding good names. But there are trends that at time present themselves.

Industrials are experiencing some misses in the current reporting period because of the supply chain issues. A guest commentator on BNN mentioned they expect good quality industrials will be lowering their expectations moving forward. The supply chain challenges will get fixed and when this happens with these lowered expectations in place, this same commentator said the Industrial Sector could perform quite well.

Do you think this is going to happen? And if so, which names would stand out for you? Does Eaton Corp (ETN) make the list?

Thanks for all you do

gm

Q: Good morning!

I hold a 1/2 position in Magna. I do believe in this stock longterm. With the shortages and things appearing to be priced in. Is it time to top up to a full position?

On a separate question what are your highest conviction growth pics in TECH for the 4Q.
Preferably US but can spribkle some Canadian names as well.

Thank you for the amazing input and service. It's been immeasurable.

Q: Hi Peter and staff,
Thanks for the great information that you guys provide.
These are the holdings in my wife's TFSA account. I have owned CNR since March of 2020 and have done quite well but I'm wondering if this stock has reached the top of the price range and it's time to move on. The average Price Target is $165. Do you think that CNR still has upside or can you name two stocks to replace it.

Thanks and have a great day
Joe

Q: hey guys hope all is well i,m currently down 10 % barclays came out with a sell rating i had originally bought this with a 2 to 3 year hold i,m wondering how bad this could get considering chip shortage if you could please let me know what you think maybe get out now and get back in when things are better Thanks as always

Q: Hi 5i,
Regarding Robert’s inquiry on journaling ENB or MG and the BMO Investorline answer, I journal stocks all the time when I want to increase my U.S. exposure. This is an option in lieu of Norbert’s gambit. With TD, the stocks are moved to the U.S. side. I sell them and have more U.S. currency for new purchases. There is no point in holding the stocks on the CDN side in U.S. dollars as when one sells them, you are hit with FX conversion charges, and end up with CDN cash not U.S. cash. Perhaps there was just some confusion by the Investorline service rep.
Dave

Q: Hi
I use BMOInvestorline as my brokerage account. I have a CDN and a US dollar side.

I'm overweight Canada and wanted to increase my US holdings. I thought that one easy way to do that was to journal my Enbridge and Magna positions from the CDN to the US side of my account.

I think I misunderstood what this meant. I had thought that it meant that my existing shares in ENB and MG on the TSE would be exchanged for ENB and MG shares traded on the NYSE. But the fellow at BMOInvestorline said that it's just changing the currency and the shares will continue to trade on the TSE.

Is there a way to take an existing position on the TSE and exchange it for the same shares being traded on the NYSE?

I'm not sure I really diversified my holdings. I just changed the currency.

Thanks,
Robert

Q: Good Morning Peter & Team,

Morgan Stanley called MG an auto supplier standout. MG reports first week November. Are you able to give us an idea what to expect? Positive or Negative???? ... considering the supply chain concerns (now [hopefully] waning) and of course the ongoing chip shortage.

Thanks for all you do

gm

Q: Hi Peter, Ryan, and 5i Team,

My wife and I need to reduce holdings in some stocks in our RRIFs to raise enough cash for the mandatory RRIF payments, which in our case is in late December.

Portfolio Analytics allows various ways to rank stocks, so I looked at the column "Total Portfolio Equity Weight" and ranked the stocks accordingly. For example, in my RRIF, my highest weight is with MG, and my wife's highest weight is with GSY. Not surprisingly, Portfolio Analytics also indicates that the Consumer Cyclical sector (MG), and the Financial Services sector (GSY) are overweight in our combined family portfolio (RRIFs, TFSAs, and non-registered accounts).

Is this a good way to determine the stocks that could be reduced to raise the required cash while at the same time putting sector weightings more in line with the recommendations of Portfolio Analytics?

I notice that many members ask questions about their holdings in various stocks, but 5i generally answers that weightings are personal.

Perhaps there's an alternative "rule of thumb" to use when going through this yearly process, and your valuable advice would, as always, be greatly valued.

Q: Hi 5i,
Would you consider ATA a good replacement for MG/LNR if one is looking for growth or as an addition to them?

Q: hello 5i:
not many questions on BWA. Could you comment on growth and valuation? Is it a direct competitor with MG? Which of the two do you favour, and why?
thanks
Paul L