Investment Q&A

Q: Hello 5i,
There have been many negative questions regarding Tariffs and other non-Canadian officials. Wondering if it makes sense to look to those Canadian companies that would benefit from the upcoming April 28, 2025 event results.
Following is my list of questions for you – please feel free to take as many credits as you require since I typically don’t use many.
• The clear winner looks to be BAM/BN/BIP/BEP with the massive housing & project build plans. Some housing build plans look to be well beyond anything the private sector has ever seen. Outside of investing in BAM/BN/BIP/BEP are there any other companies that will experience increased growth rates? Perhaps Canadian Only Lumber Companies, Steel, etc.… Being careful to ensure the industrial carbon tax doesn’t offset any building growth rates.
• Looks like major projects are going to be built to save the country from the tariffs. Assuming these are going to be non-conventional energy would the companies such as BAM/BN/BIP/BEP/WSP, benefit the most? Are there any other companies to start looking at? Perhaps carbon capture companies?
• I wonder if there are any areas of benefactors increasing/decreasing the amount of tax havens in Canada? There are a fair number of mid/small companies that could setup a beneficial tax structure and become more profitable. My experience with setting up offshore structures is that there are setup/dismantle/maintenance costs with Lawyers and Accountants but perhaps other benefactors are investable. Are there any publicly traded Accounting or Legal companies to start watching?
• With proposed additional spend to media companies are there any benefactors? Will BCE benefit from the overall plan? Are there companies worth looking at in the media sector?
• With the additional military spend are there any companies in Canada to invest in? I have a small position in MAL which could benefit from Canada built fighter jets. Is BBD.B a good one to look at?
• After reviewing the proposed firearm buyback pricing list, the overall program looks to be worth ~$2B in 2025 for Canadians. My question is could there be benefactors to this spend? Maybe ~$2B is not enough to stimulate the economy considering the current spending levels but it reminds me of a COVID-like spend bump. Assuming a large portion of the funds will be redistributed back into the economy.
• Health care seems to be getting an increased focus compounded with the buy Canada therefore are there any pure Canadian pharmaceutical/healthcare companies that will benefit? I have a SIS position that I could add to if they are going to be benefactors. Are there any companies that provide safe site vending machines or building structures?

Q: Some brokers are downgrading RCI.B from Sector Outperform to Sector Perform and decreasing the target for this stock by almost 15%.
What is your insight for RCI.B looking forward ? Hold, sell or buy?
Any comments on the sustainability of the dividend will be appreciated.
Thanks again for your valuable comments.

Q:

BCE is trending down, ex-dividend. If YOU would cut the dividend, would you wait for next earning release in May, or sooner? What would be the probability the stock stays flat, instead of up or down when/if the dividend is cut?

Is Rogers a better bet at the moment or just a hold (I just sold it for tax loss) ?
I’m sticking with my Telus for now.
Thanks. Have a good week.

Q: RCI.B and magna look delicious.

What am I not seeing here?

Q: Hello.,

What would happen to either company if the MLS deal did not go through? For example: Would this be accreditive to rogers and negative to bell?

Thank you

Q: I am underwater significantly (-20 %to 30%) on the above 5 companies. I have a well balanced portfolio so am looking to either sell the above and replace them or add to them. Can you please give me your thoughts on which ones you would ditch and which ones (if any) you would add to. If you have any suggestions as replacements for any that you consider should be sold I would appreciate it. Thanks for your ongoing great insights. Peter

Q: Would you feel it is worthwhile hanging on to Rogers Communications stock? Assume you had a portfolio with a lot of different stock holdings and wouldn't mind reducing that number somewhat. It certainly is cheap at about 8 times earnings, and has a good dividend rate, but is there much of a potential for the stock price over the next 2 - 3 years? The latest earnings report was rather unimpressive and they are forecasting 0 - 3% EBITDA growth next year.

Q: I own three major Canadian Telecom stocks, BCE, Telus and Rogers. They all have done poorly in the Y 2024. I have all three for some time, they all are negative with BCE and Rogers losing more than Telus. BCE and Telus are paying good dividend. I also own AQN which is losing money and paying decent dividend. Should I take loss on these and move? I do not have need for cash. What are their chances of turn around? How safe is dividend for all three? If I decide to take a loss, which ones to keep?
I also own BEPC and BIPC, if I want to keep only one of them which one has better potential? If I decide to sell both of them, what would you suggest to replace them with? I do own other utilities: EMA, ENB, FTS, TRP and PPL.

Q: I would like your thought if it make sense to replace BCE with Rogers or Telus at all, or there are better alternatives , even in other sectors. Please suggest a few alternatives if outside of the above. Thank you as always

Q: telecoms have had a rough year and have not reacted positively to the lowering of interest rates with the heavy debt levels they have I would have expected a positive reaction by now. That being said if you had to choose between Rogers, Telus or BCE what one would you choose and why ?

Q: I know that utility and pipeline companies usually have higher than normal debt levels but would any of these cause you concern? A quick comment on each company would be appreciated and whether you would buy, hold or sell. Thank you!

Q: Hi!

I am thinking about getting a chunk of rci.b. Good idea?

Do the markets seem frothy?

Would you suggest your top 5 stocks for share price increase in the short term...and with next to no chance of permanent loss of capital in the long term?

Cheers,
David

Q: Can you please provide your insight with respect to RCI.B ‘ s equity offering of $7 billion to reduce debt ? The stock today is down $2.
How this will impact the shareholders ?
Thanks.

Q: Hi 5i Team, I Have two questions following today's significant deal between BCE and Rogers.

1- Market reaction was a bit negative on Rogers stock following the deal with BCE, What would be the trigger point to take a position in Rogers following that deal should Rogers stock keep falling.

2 Following that deal between these two giants, which company would you consider the best deal BCE or RCI.B at current levels?

Thx for your opinion.

Michel

Q: Good Morning. I need to trim my holdings portfolio down to a more manageable number. My portfolio is pretty well balanced. From the list of NTR,PBH, DIS,RCI.B, ADN,GE, FCX,WMB,GS,CVX, CAT,LYB and APO how would you rank them with 1 being the best and 5 the least favoured. Please take as many credits as you need. Thanks Peter

Q: Morning Team,

How would you rank the above 3 telcos from high to low and why?

As alway, thanks for your invaluable help.

H.

Q: What is your opinion of Rogers Comm. today. How have they performed compared to the other Cdn. telcos. Is their future any different then BCE/Telus?
Would it effect their performance if they divested of their sports teams. Are the teams a distraction? or do they add to the bottom line. My opinion is they should concentrate on the telco business.
Thanks

Q: Please give your opinion on qbr as a buy for growth/dividend vs Bell,Rogers for a 3-5 yr hold
Is the growth potential margin worth the bet on a smaller more regional player
Thanks for your great service
Peter

Q: Hi Team,
Would you choose Rogers or Cogeco to get exposure to the wireless sector?
I would lean towards CCA due to CDPQ "partnership" that could limit the drawdown in my opinion and the high leverage of Rogers.

Second question ? Would you prefer CGO vs CCA to get exposure to Cogeco and why?

Thank you !

Michel

Q: I have a well diversified TFSA with 23 stocks. I usually hold for long term. Looking to add one more stock and I have short listed to AFN, NTR AND RCI.B. Would appreciate your ranking and brief why.

Also, 5i Research is my main source for decision on buy/sell. I use your resources on a daily basis. Thanks for the years of service.