Investment Q&A

Q: Hi 5i
I'm doing some portfolio clean up based on the assumption that the next 12 to 18 months are going to bring economic doldrums as the economy reacts to interest rate increases which, I think, take a while to filter down to where they effect corporate profits generally and, possibly, to where manufacturing and construction falls off enough to directly affect these names.
I'm thinking about selling DXT, CSW, WJX, LIF, and MREL (all at modest losses but in a registered account so no tax benefit) on the premise that they will not do so well over the next year and will take quite some time thereafter to recover such that there is a significant opportunity cost to holding them. (I was happy enough to hold them for their respective dividends/growth in the before times, but not so much now when growth seems unlikely.)
Could you give me your thoughts on my thesis in general and on how I've applied it to these names - is it sensible to sell them now at quite small losses given what is likely coming for them over the next year or so, when compared to what might be made of the money they are presently tying up if I handle it right.
Thanks!
Peter

Q: Hi 5i,
I wonder if you could give us some guidance. My wife holds the above in her RSP, with all being more or less a full position except for ENB at 2X, BCE, CM, and SU at 1.5X each and CHR and DXT at .5X each.
She has until the end of 2024 to convert to a RRIF and currently has $40K to contribute to her RSP and has the room for that contribution.
She would like to invest in some different names, or divest/reinvest in those she has, with an eye to maximizing value before the conversion to a RRIF and to continue thereafter. She's not asking for much - just safety, capital appreciation and income ...!
Based on this info, can you offer any thoughts on new names to add or which of the existing to either pull back on, or dump entirely if that extreme measure seems warranted?
Thank you 5i, and we wish you all an excellent holiday season.
Peter

Q: Good afternoon,

Can you confirm if CSW.A reduced their dividend over the last few days?

If they did is it a hold for income or time to abandon ship? I have no intention of buying more.

Thanks for your help.

Q: I have held this company for about 5 years. Early on they paid special dividends on top of its regular dividend, which at the current price yields 4.8%. The price has had a strong run YTD and I am close to breakeven. I am looking to switch this money into either GSY, FSV, WSP, ATZ, CIGI, or TFII as I would like to take advantage of the weakness in these growth stocks. Is it time to sell the position or do you think it has room to run with the move into safe staple stocks? It seems if it can break $20 it may run quite comfortably to $22. Can you rank my list according to safety and growth prospects. Thank you.

Q: Happy Friday to all.

Your thoughts on these three stocks in terms of income, sustainability and growth potential.

Thanks very much and have a great weekend.

Q: May I have your comments on earnings. Looked like a dividend increase! Thank you

Q: Hello,
Is there a reason for the recent weakness? Is it a good time to start a position - long term hold? Do you consider the stock lower risk despite being a small cap. Thank you.

Q: These results look medicore,
1. Is this partly due lo restaurant closures,
2 may I ask you to explain the dividend announcement. It seemed opaque to me. Many thanks

Q: What is your opinion as to Corby's dividend sustainability?

Q: I have held this company for 4 years. It pays a good dividend and in earlier years it paid special dividends once a year. The share price has dropped 30% since acquisition. Given its growth prospects, do you think it should be sold? If so what would you buy in its place?

Q: I hold the following shares (among others) in my various (RSP & TFSA) accounts. I'm a buy-and-hold investor, strongly leaning to dividend payors or preferably dividend-increasers.
These companies have all recently cut or suspended dividends, either as Covid-19 responses or otherwise.
ET have not cut or suspended (yet), but neither ET nor CSW have paid recent special dividends as they sometimes have in the past.
I purchased these originally on the strength of the companies' long-term potential, management strength and abilities, and growth or at least sustainability.
How would you rank or position these now in light of recent dividend cuts or suspensions, given that they are all underwater, some significantly, or at best more or less flat (ET), after mostly holding periods of 5 years or longer?
Which ones is it time to dump?

Q: Hi- it seems everyone is walking around with alcohol these days. Groceries, toilet paper and booz. Any idea on how to play that? Does consumption at liquor stores make up for the lack of consumption at restaurants. There;s really nothing else to do but drink. Even my girlfriend has gone to the liquor store more often than usual last few weeks.
Can you give me your thoughts, and perhaps a few ways to play this? Thanks.

Q: Hi 5i. your comments please on Corby's quarter and future prospects.
Thanks
Rob

Q: Good Morning, please comment on recent earnings report from Peller. Do you like this security or better to look elsewhere for a small cap with good upside and minimal risk. Rob

Q: CSW.A I owned this one oncemany years ago for quite a while and sold at nice gain. I am thinking of buying back at the current price? Seems to have minimal debt. - high pay-out ratio of 146%, liquidity ratios are great: dividend sustainable? Place to park money and earn a good dividend & would be a very small % of my portfolio?

Q: I've owned this for several years as an income stock. Over the past year it has performed very poorly, with no evidence that management has any concern. Do you see any potential for price recovery, or will that only happen after I've dumped it.
Thanks

Q: What is your opinion of Corby's Class A for dividend income? The price keeps dropping and it looks interesting at close to $15

Q: Hello 5i Team
1 - Please update CSW.A after last week's quarterly results.
2 - From the MD&A, Pernot Ricard owns 51.6 % of the class A (CSW.A).
Are there any other significant (>10%) shareholders of the Class A (CSW.A)?
Are there any significant holders of the Class B (CSW.B)?
3 - Could you speculate on whether Pernot Ricard would eventually take over CSW or is there an obscure provision in the Class B shares prohibiting this?
Thanks for the great service.

Q: Why has the bottom fallen out of this one? Usually a somewhat stable stock. Volume is usually low too, but it has increased a bit more than normal.

Q: CSW.A had reached a high of over $24 three years ago. Do you see anything holding it back from reaching that level over the next few years?

Jim