Investment Q&A

Q: Just a comment. Quite some time ago GSY was trading around $90 and issued a huge number of shares significantly under 90. The deal sold out plus the over allotment. The market price dropped of course on high volume. I realized that the firm buying the shares were fully expecting that the value of GSY hence the share price would go well beyond $90.
I apply the same thoughts to PRL

Q: Hello, from your growth portfolio, what would be your current ranking in order of purchase please?

Q: Hi Team,
Prior to the CEO departure announcement in early July GSY was in a nice uptrend. Since then the stock has struggled gaining any ground; even though last earnings were record as usual and outlook looks fantastic. Do you see the CEO leaving and lack of replacement thus far as the main overhang in the stock performance recently? Any rumors swirling about who might be available to take the job?

Q: Hi 5i team,

What would be your current 5 best (highest conviction) buys in each of the following categories please.
1. small cap
2. mid cap
Hold target is 3-10 years or longer.
I prefer these categories as they seem to have the most torque (in the right environment) albeit also the most risk.


Cheers,
Steve

Q: With the markets at all time highs, are there certain stocks you think people can scoop up or add to that have good growth opportunities at a reasonable price? I know 5i is not usually worried about buying companies at 52 week highs, but it is still something difficult for me!

Q: I own both Propel and Goeasy. Goeasy I've owned for quite some time, Propel I have been adding to slowly for the last 4 months. I would like to continue to own both. Would you balance the two out by selling some Goeasy to equal out the value of the two? If not, what sort of ratio would you suggest.

Q: Holding the following Financial sector stocks: BAM, BN, BNS, GSY, PRL, SLF, TD, X for a total of 20% in TFSA & RIF combined. Would like to reduce # of holdings to 5 or 6 and Financial % to about 15% . Your comments/suggestions/alternatives on the following setup would be appreciated:
RIF = HMAX, BAM, X
TFSA = BN, GSY (or BN, PRL or BN, PRL, GSY??)
As always, thank you for helping to provide clarity.

Q: Hi,
After carefully curating the Q&A over a period of time and posting questions, I put together these companies as my own personal 5i Small cap fund!
As of today this is where I stand:

GSY negative 8%;
LMN negative 11%;

HPS.A Positive 1.5%;
PAY Positive 7%;
PRL Positive 1.5%
TOI Positive 5.3%.

On the whole in terms of raw numbers, it is still positive.


For the new monies, would you add to these positions or suggest another small cap equity.
IF you were to add to these existing positions, in which order would you add.
I am a patient guy and willing to wait for a while. I was with you holding Knight Therapeutics for a long time! (Negative)
Also with you in energy sector (Positive) So, I know how this goes.

Thanks for all your answers.

Q: Good afternoon. GSY is struggling a bit lately but so is the rest of the market. I read an article that said GSY has high debt levels that are not well covered by cash flow. This got me wondering why does GSY have high debt levels and where does it get its money to lend? If they borrow to raise money to lend and rates drop could they not get into a squeeze where the margin between money they loan out and loans they have to reply narrows?

Q: It seems possible that interest rates will be higher for longer, triggering flat or recessionary economy. How would you assess prospects for these 3 fintechs in this environment. Are there any that are vulnerable?

Q: Can you rank in order the top 10 small caps that you feel have the most potential over the next 6 months and provide a quick statement on why each is included?

Q: Which one is a better buy ? The PE of PRL is so much higher than GSY. Thanks a million.

Q: In what order would you rank these stocks today for growth.What would you consider a good entry price for each?

Q: Hi,
Both gsy and PRL seem to be similar businesses to me, although gsy is a lot bigger and more established. Which one would you figure is going to show more overall growth in the next 2-3 years? Thank you for your excellent service!

Q: What are your best ideas 5 in Canada and 5 in USA over next 2 to 3 years for capital appreciation ? Thank you RAK

Q: What are the best 5 Canadian and US growth stocks at current valuations to hold forever…and you can still sleep at night?
Thanks

Q: Is it fathomable that GSY could one day expand operations to become a Prime Lender as well? What about a merger with Laurentian Bank who recently put itself up for sale? Interested in your opinion. Thanks

Q: Every financial stock is rising, while GSY keep dropping recently. Any reason ?

Q: All three companies came out with decent financials and all are down significantly with these results. GSY was the best and it is down 7 dollars. What if they had been bad results. Seems like you cant win in this enviornment. I feel like cashing out everything and waiting. This was also during very good trading days after the collapse. Does this sound wise because of an impending slowdown.

Q: Hi Team,

I am watching Gsy shares fall after beating on earnings. Any idea why the shares are selling off after what seems to be great results? Also ; has there been any speculation yet of who will get the new CEO role? And also do you feel it’s possible Mullins is leaving due to a possible upcoming “taking private “ of the company? I found it odd for him to leave at this stage just when Gsy seems to be growing its scale at an exponential rate. Thanks

Shane