Investment Q&A

Q: Would it make sense for both Couche Tard and Suncor to strike a deal for the former to take over the latter's retail gas stations? Would such a deal unlock value for Suncor, and at the same time be a meaningful addition to Couche Tard?

Q: Hello,
Do you think ATD.B is looking attractive? the Circle K brand is trying to bring EV charging stations to the US market and possibly Canada eventually..I think this will be very good for the company. I am thinking of building up a full position.What are your thoughts?

Q: Which one offers the best return over the next 5 years?

Q: I wonder if you think the risk level has risen in Couchetarde? The bmo analyst that follows the stock seemed perturbed when he heard Alain Bouchard saying unequivocally on a French language interview that he needs to be, wants to be and plans to be as big as Amazon and Walmart. I don’t think that it is ego pushing him to this. I believe he honestly believes this is the only way forward in the current market climate. Great if he could pull it off. But does this news not change the perception of this company from a relatively fast growth comfortably company to something far more risky?

Q: Hi guys,

I have these "retailers" inside my portfolio, all around a half of a position. Would you recommend keeping all 4 of these or should I consolidate into two of them?

thanks
Jim

Q: Hello -
I have a concern about the grossing up of Canadian dividends (non registered account) affecting my OAS when I reach 71. By that time I will be forced to RRIF, I'll have my CPP, and I also have a company pension that I will be drawing from prior to that.

I know you are not tax experts, but wondered if you see anything wrong with my thinking here. I am leaning more towards lower paying dividend paying blue chips in that non-registered account. I already have ATD.B and CNR. Are there any other quality Canadian companies that you are comfortable with in this "lower dividend" category?

Alternatively I was thinking I could "swap" some investments. i.e. have more Canadian dividend payers in my RRSP and have my emerging market ETF's - ZID and VEE - in my non-registered account. Do you think this is worth considering?
At least those dividends would not be grossed up. Although the trade-off is that you lose the dividend credit.......sigh.

Q: Good morning
On a recent post, you commented "Shareholders are still a little shocked that it even decided to go after a low margin grocery chain, so may just be a little more wary." Balancing that, you also noted the partnership with Carrefour could help Couche-Tard 'get closer' and position them to acquire the parts of Carrefour they really want. Against that backdrop, my question is,
Does 5i feel that ATD is working to strategically reposition itself given the momentum building with electric vehicles? Do you feel ATD will be able to adjust strategically to make its network of stores still attractive in future with many more electric cars on the road? Thank you.

Q: Hello: This firm hasn't done anything for some time which would increase their share value. I don't have a lot of it but I like to see some action and all I've seen is a drop in price of several dollars over the past year. Would you suggest getting rid of it or hanging on.

Q: First of all, thank you for your amazing work. Cannot express how helpful my 5i subscription has been. Life-changing in all honesty.

My positions in LSPD (17.3%) and GSY (12.7%) have gotten a little out of hand. I was fortunate to pick them up near their lows in April. I've already trimmed both a couple of times, but I am really struggling to sell more given the positive outlook 5i has of both for the future. I've seen similar questions asked about trimming and selling positions with phenomenal growth and seen your responses suggesting to trim positions to reasonable weightings. I thought I might have an easier time doing so if you suggested some positions to add to or some new ones viewed as favourably as LSPD and GSY.

I have the following companies in a TFSA and have included the weightings only of positions I think might warrant a second look. While I anticipate a comment about weightings needing to be personal what would YOU suggest as the highest weighting for LSPD and GSY? And, again, please suggest some positions to add to or new ones.

Feel free to take question credits as you see fit.

DOO (2.1%), ATZ (2%), AW.UN, BYD
ATD.B
BMO, BRK-B:US, GSY (12.7%)
WELL (4%), VEEV:US (1.3%)
CAE, DAL:US, AC (1%), XBC (3%)
LSPD (17.3%), KXS (7.6%), DSG (3%), CSU, PHO (1.1%), AMD:US, CRWD:US (2.4%), U:US (2.1%), NVDA:US (0.83%), TTD:US(1.2%)
ROKU:US (1.9%), TTWO:US (1.2%), PINS:US (1.5%)
AQN, BEP.UN
REAL

Thank you again

Q: What is your opinion on the bid by Couche-Tard to take over Carrefour? Did management not do their "due diligence" as they seem to have been very surprised - that their was push back by the French government on the grounds of "food security".
Is the governments excuse a reasonable one or was it just to keep a major head office in country?
In the past Couche-Tard usually did very good job of looking for potential problems before attempting a takeover - usually only walking away because of a higher bid they were not willing to beat.

Q: Have you any thoughts as to why ATD.B did not bounce back to its pre-announcement- Carrefour-purchase price of about $42 or so? Thank you for your sevice.

Q: I am considering selling my PBH position and using the proceeds to add to ATD. I'm not concerned about the sector differences, particularly, and it looks like this could be a good time to add ATD, notwithstanding the uncertainties around the Carrefour offer. Is ATD in some ways like BAM, rather unique Canadian companies that can play skillfully on the biggest stages? What are your thoughts on such a switch, from one good company to another? Thanks, as always.

Q: can you pls explain the $$$ benefits to ATD shareholders with this announced strategic partnership? How much does a partnership make in terms of revenues and profit on the bottom line? And how long do shareholders have to wait to see these benefits? the conference call may answer some of these questions, but have you seen other deals of this nature result in immediate shareholder value or should we sell the news.

Q: Is this stock a buy at his level ? Thanks

Q: I find this strange that ATD is down since the offer was annouced and Carrefour has not increased to the offer price. It seems that even the Carrefour shareholders don't think it will go through, so why such a drop in ATD? I don't think this entire deal will go through, the government of France will not allow the sale of the grocery side, but it's possible that Carrefour will be able to sell of their convenience stores, which is what ATD normally wants. What do you think about this option?

Q: My two cents worth on the proposed deal. I think ATD would be better served looking forward slowly adding charging stations, customers will linger longer and do more impulse buying. Should stick to its netting.

Roy

Q: I want to sell my DOL (for a gain) and buy ATD-D on the dip. Good call, bad call or indifferent?
Ian.
PS. I think very highly of 5i and am recommending it regularly to anyone who listens. Please accept my thanks for this great service.

Q: I am looking to "trim the fat" from my TFSA, which currently holds 20 stocks: ATD, BCE, BMO, BNS, CCO, CM, ENB, FFH, PDYPF, INO.UN, LAS, NXE, NWC, NA, NTR, PEY, PZA, MJJ, TRP, WELL. Are there any positions that raise red flags with you? In addition, could you suggest 3 or 4 value picks suitable for a long-term hold (20 years plus)?
Thank you!

Q: ATD.B is by far my largest holding in my portfolio. I have owned it since the early 1990's. If it was not my large holding I would be a buyer of ATD.B today. An alternative is to buy call options. What do you think of this strategy and which call option would you recommend?

Q: Hi,

I just purchased ATD.B at $42 thinking I was getting a good price. I guess not. I started with a 3% position so I still have room to add. Would you add on this news? It seems that this French grocer operates a number of convenience stores and has a footprint in Asia. Could this be a reason for the acquisition? Not sure why make a pitch for the whole Company if only parts of it are strategic to ATD.B.

Thanks,
Jason