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: Good morning - can you give us a sense as to what Cdn companies (say 10) that would be most adversely affected by a tariff war with the US? Many thanks as always.

Q: Just a curiousity.

With the fires in California, a lot of houses will have to be rebuilt. How much a role do you think Canadian lumber would play in that rebuild?

Trump says they don't need Canadian lumber but I'm sure he wasn't taking this sudden need into account.

Q: My thoughts and prays are with the people of Los Angles. They are going to have to re build. Is there any forestry companies that could see a increase in sales. I presume it would be west coast forestry companies. US or Canadian compaines.

Q: I know that you had previously listed West Fraser Timber as one of the stocks that could be harmed by the tariffs. It has decreased over $10 in the past month or so. Do you think it is now pricing in the tariffs or not? Also, do they not have operations in the US? How does that factor into this question?

Q: If Trump wins election and he follows through with his promised 20% tariff on imported goods, which Canadian industries would be most adversely affected?

Q: Hello,
Do you think ADN is a buy and why? Can you please also comment on their payout ratio and debt level. Would it be your favorite in the sector? Thank you,

Q: Western forest Products (WEF) has really taken a pounding. It reports its second quarter results on July 31. west fraser already reported and the shares have been rising. I know they are different forestry companies but was the lift in share value because there is optimism in the forestry industry or was it specific to West Fraser. I was thinking of averaging down on my WEF holding just because the share price is so low. The market cap is only about 130 million and I believe that WEF still has little debt so my way of thinking is, "this can't go much lower!!" Surely all their 6 sawmills, industrial land, three manufacturing plants and all their timber rights have to be worth more than 130 million!!! Or am I looking at this all wrong?

Q: I have both NTR and WFG in my TFSA. I would like to raise some cash, and am considering selling either or both of these. Which would you sell? Portfolio balancing is not a consideration.

Q: Which lumber stock on the tsx would you recommend.

Q: Retired (25 years) investor, preservation of capital and income paramount. Can you please provide the following, ETF or equity suggestions for:
Basic Materials (hold 2% LIF), Communications Services (hold 4% BCE), Consumer Cyclical and Consumer Defensive (hold 0%), Healthcare (hold 1% HHL), Industrials (hold 0%), Technology (hold TXF 4%).

Thank you for considering my lengthy question for which I apologize.

Q: Material Sector - I hold a full position in .LIN and starter positions in EXP CS FCX WFG AEM - all recommended by 5i. I prefer to have a full position in one of these for a long-term [3-5 years] hold. How would you evaluate them [or any other you prefer] and recommend your highest conviction.
Thanks

Q: Portfolio Analytics indicates that across all accounts, we are underweight in the Basic Materials sector. The two stocks and CGL.C listed above are the only holdings in this sector. (CGL.C is a small holding. as it can be traded with zero commission)

Please suggest some additional Canadian and U.S. stocks in this sector to improve diversification, include reasonable entry points, and rank them in order of what to purchase first.

For a Canadian ETF, what is your opinion of XMA?

Please deduct as many credits as necessary.

Thanks

Q: In your answers to questions regarding sectors allocation, you say that materials sector should be at 10%. In my case it is 4% and includes AEM, NTR, CCL.B, WFG, MX. What would you do to increase my allocation? Would you replace some companies? Thank you

Q: With so many houses and condominims to be built in Canada and US which materials
will have extra demand.(Timber?Steel? xxxxxx?

Q: Could i get your 2 favorite companies to buy right now ( 1 Cad and 1 US) in each of Consumer Cyclical, Utilities, and Materials. Thank you

Q: Peter et al:
I have big losses on canfor pulp and western forest products, and have included them in my tax loss selling? Should I buy them back? Interest in these stocks has completely subsided, which makes me think that in a few years when the price is up a lot, we will hear about them every day! Please advise, with a detailed explanation. Also, would you kindly render your opinions on canfor , which Jimmy Pattison wanted so badly, and now no one mentions. Also, opinions on Interfor, and WFG, which you like a lot more, but never get any questions about. A big shortage in housing, and lumber stocks in the dumpster!!!!. They will have their day in the sun. Help me to determine that time frame. Charge me accordingly. Much appreciated.
BEN.

Q: Hi Peter and Staff
Long time holder of NTR and have whittled my materials to just this one with a 1% weighting . Selling now at this price seems like a bad idea but with the premise “it doesn’t care what you paid for it “ for a long term hold , do you favour it , SJ or TECK.B and why ?

Thanks for all you do
Dennis

Q: What would be some investments that would benefit from the potential residential building boom that is being incented by Federal money in Canada?

Q: Hello, I think I made a mistake in buying WFG. It has not done well and is at the mercy of lumber prices and the government (I think?). I used to own SJ and it may have more control of it's destiny. Your thoughts please. Frankly I'm starting to think I don't need materials as there is too many, copper, lumber, steel, gold..... I also own AEM in the sector. How do I choose? I prefer a safer less cyclical stock if that's possible in this sector. Any advise would be appreciated. Thank you.