Investment Q&A

Q: Seems inevitable that people will travel on planes are some point starting next year and will ramp up from there. With the dominate company that services Canada, does that make Air Canada a "no-brainer" stock to invest in for the 3-5 year time frame?

Any reason to not get in at this point?

Q: Hello 5i Team. I have a moderate risk tolerance and am looking to make a long term contrarian play with up to 10% of my portfolio on a couple of well established names that have been squeezed by COVID, but will ultimately endure (strong balance sheets) and prosper in a post COVID world. I can stomach volatility, but want to stay away from companies that have a higher chance of going to zero. Air Canada has caught my attention and it is well covered in your question bank. I was planning on pulling the trigger on it, but before I do, can I get a risk/reward comparison between it and Southwest Airlines. Between the two, which would you go with? For my second play, I am considering MGM Resorts International and American Express. Can I get your take on these two, and specifically for American Express, whether its business model is more inclined to benefit than the other major credit card companies once a vaccine arrives and travel starts to pick up. I realize that these are two very different businesses, but which would you go with and why?
Thank-you.

Q: If you could see into the future and knew COVID, people's fear of COVID, the economic effects of COVID were all gone ( basically a complete return to normal scenario was 100% for sure in 2021/2022) what basket of Canadian stocks would you purchase now for longer term hold (5-8 years).

Q: Every year I look for a beaten down company - out of favor this year but with an intact business likely to do well in future years. What should we be keeping our eyes on?

John

Q: I have a travel credit with Air Transat. Do you think Air Canada would honour Transat credits if it takes it over?
Quite a drop in price from $18 to $5, makes one think Transat may not make it through this pandemic if the take over doesn't happen.

thanks,

Paul

Q: Do you feel there is good risk / reward for this stock with a 3 year hold at current price?

Q: Interesting question/answer on Oct 1 "I would like to have a little fun with this question. Imagine a boxing match between Canadian companies and American companies". Can you please answer the winners among Netflix/Disney; Amazon/Shopify; Union Pacific/CP; AirCanada/delta. Thanks

Q: If we found a Covid-19 vaccine tomorrow, what are the most depressed companies now that would benefit the most?

Q: Hi, I own NFI, which is down almost 50%. Would you recommend selling it for AC if dividend and sector are not my primary concerns? Thanks.

Q: What are your thoughts on buying into SNC and Air Canada on their lows?

Q: Hi All,

With the help of 5i research, my portfolio was well diversified and full of strong named well positioned to withstand the pandemic. The two exceptions were small positions in AC (which I fortunately sold half of @ $45/share) and CAE. Would you hold these depressed names in the hopes of a news based pop or move the immaterial amount of capital into stronger names for the next few years? If the latter, any suggested replacement names? (Please feel free to deduct multiple credits here as i rexognize i asked two questions)

Q: After buying a majority stake in Circle Medical, do you still suggest to buy more for WELL, since the stock already increased over 20% today. The reason I asked because I am thinking to sell AC and buy more WELL, so far I owned 33% for AC:CA, 33% for LSPD:CA, 17% for WELL:CA, 17% for REAL:CA.

Q: Hi 5i gang,
I suspect that travel-related stocks are at their bottoms or nearly so. My impression is that airlines will be first sub-sector to rally, especially if the U.S. government goes ahead and sends them big stimulus checks that are being rumoured about these days. Given this context, which airline companies in your opinion have the best prospects of returning to their prior Covid-19 levels?
Robert

Q: Hi i5,

According to "Buffett Indicator", when it's in the 70% to 80% range, it is time to throw cash at the market. When it moves above 100%, it's time to lean toward risk-off. Now Market Cap to GDP Ration > 100% means stocks in bubble territory. Do you think Canadian stocks may also in bubble territory? If US in bear market, do you think the above Canadian stocks which I am holding can be survived? Perhaps, should we start to off load which may be in danger during the bear market into cash, or switch among balance or income portfolio. Any suggestion?

Q: Hello 5i,
Could you give me your long term analysis of Air Canada, it’s Covid response and where it should be in 5 -10 years.
Cheers,
Rick

Q: Hi 5i,

Can you provide your assessment of AC's 2nd quarter results.

Q: I just started a new portfolio few months ago targeting for 1 to 2 years, brought Air Canada @ $21 with 2/3 of the funds , and LSPD @ $35 with 1/3 of the funds.
The reason I brought them because the tradition of fundamental concept keep telling me of the book value for AC is near 1, which should be more safe. The book value of LSPD is 7 which is high risk, therefore I divided portion due to the risk. Do you think my concept is out dated, perhaps I should change my mind to adjust my portions?
However, I am so upset for the performance of Air Canada. Should I sold half of the AC to buy other stock instead, any suggestion is welcome. I don't mind to keep for 3 years, but just worry that I may missed out the opportunities cost.

Many thanks.

Q: If one wanted to make a bet the world will travel again, which airline would be “suitable”, I am leaning toward luv
Thanks

Q: With the some positive news regarding Covid and a treatment, how comfortable would you be owning AC? There has been a nice little pop today, do you see that continuing and a recovery taking place?

Q: Wondering what your outlook is on airlines in general, and Air Canada in particular, at this juncture. Would you recommend holding if one has AC in their portfolio or considering exiting the position ?

Thank you