Investment Q&A

Q: Other than half a dozen or so major banks (i.e. BNS), there are a number of smaller banks such as Home Equity bank, Fairstone bank, Canadian Western Bank, ... If I want to acquire GIC's with any of these smaller players, should I be concerned? I have visited the CDIC site to see if they are covered and all appears to be fine but there could be other issues I am not aware of. Thanks.

Q: CM is approaching a 52-week low following disappointing quarterly financial results. On the other hand, it is one of the big six banks with a ~6% dividend that it just increased. All things considered, is CM a bargain that should be picked up for a long term hold? Or, would it be better to buy a slightly better performer like BNS that is also value priced and offers a similar dividend.

Q: Is there a stock in the USA that is the same size as TCN and how has its performance been in the last year?
Thanks again

Q: These two have almost exactly the same yield going forward. Which do you see as having better dividend growth over the next ten years?

Q: Hello 5i team,
I was thinking of selling the rest of my NTR (a bit of CAE) shares to start a position in PBH. This is more to have a non-cyclical position since I currently have none.

In your last report on PBH you state that their dept is Medium/High. How well are they servicing their dept (paying it down or adding to it)?

PBH has also been growing their dividend over the past 5 years, what is the payout ratio for it's dividend? Has the payout ratio increased over the years?

Thank You,
Andrew

Q: Hi Guys
I have noticed that there has been heavy insider selling on Capstone over the last 12 months, looks like they have collectively sold more than 20 million shares. Shares they could have accumulated around .55cent a few years ago. Insiders now only own around 5%, have we not missed the boat here?
Thanks Gord

Q: What am I missing?The market seems to hate this new BAM/BN spin out.Talk about loss of market value!!!

Q: The new BAM stock price dropped 7% on Tuesday. Is there something that an investor should be aware of ? Is this an opportunity ? I wanted to purchase this one post-split.

My understanding was that the yield for this stock would be in the 3.25%-3.75% range. Would I be correct in assuming that it could quite likely now be above 4% based on the Tuesday $41.60 close?

Is it true that the company plans to raise the distribution by between 15-20% per year ? That seems high to me. Maybe I misunderstood.

Q: Hi Peter, Ryan, and 5i Team,

More comments, a question, and a link regarding Algonquin and some historical relevance!

AQN was held in my wife's RRIF and daughter-in-law's RRSP. My feeling is that AQN will be in the 'penalty box' for quite some time, and the share price will settle around $10.00 or less. Since they're both conservative investors, I switched them to Fortis FTS, which they already held in their respective accounts. It was an easy decision. Do you agree with the thinking here?

AQN was also held in our son's TFSA, but he needed the funds recently for a house purchase. I was fortunate to sell it at around $16.00.

I didn't act soon enough with the two other accounts holding AQN for several reasons. Living in Oakville, where AQN's headquarters is located, resulted in "home town bias" - a mistake in retrospect, because I never felt comfortable with its acquisition of Kentucky Power. It was too expensive, and too much debt was taken on by Algonquin.

Finally, here's a link from 'Seeking Alpha' which outlines the fate that AQN may face when compared to a similar ill-fated and debt-ridden mistake made by AltaGas when they bought WGN. It's taken them a long time to correct their mistake, and I suspect that AQN's mistake will have similar consequences.

https://seekingalpha.com/article/4563884-altagas-vs-algonquin-discounted-utilities-with-ominous-similarities?mailingid=29958270&messageid=must_reads&serial=29958270.150190&utm_campaign=Must%2BReads%2BDecember%2B12%2C%2B2022&utm_content=seeking_alpha&utm_medium=email&utm_source=seeking_alpha&utm_term=must_reads

Thanks for your continued guidance!

Q: Hi 5i,

Further to Dennis's question on the 21%, the comments may pertain to how much of AQN's debt is floating and not the rate they are paying.

Just a thought!

Q: What do you think of selling PBH for a loss and buying QSR as a replacement, for a long term position?


Thanks.

Q: I have a position in FOBI and am down quite a bit. I understand small caps are under a lot of pressure currently. Is there a worry that this company could go bankrupt? With a longer term outlook would you continue to hold it ?

Q: Hi Peter, what do you think of this ETF based on technical analysis ? It is down in the 9 month since inception but by less than the overall market and the company Fairlead that runs is seems very competant. Are there other funds that follow similar approaches and if so which if any would you prefer ? Thank you.

Q: 11:23 AM 12/13/2022
It seems that the Brookfields are nothing but trouble from a taxable perspective and the new withholding tax may make it worse. The brokers will naturally take the withholding tax and it will be a fight to try to claim it back.

My question however is about the exchangeability of BEP.UN and BIP.UN into BEPC and BIPC. Can these exchanges still be made?

If I get my broker to do the exchanges does this become a taxable capital gains event? If so it is prohibitive for us as we have huge capital gains in both BEP.UN and BIP.UN which would prohibit the exchange.

Any suggestions on what to do?

Thank you......... Paul W. K.

Q: Hi 5i,
3 questions I believe, so please deduct accordingly:
In each of the following groupings which name do you see as having the largest gain (dividends and capital gain) after a three year hold and, if you would, brief reasons for your choices. Also, if any seem to you a bad idea to buy and pay little attention to for three years, please say so,
1. BIR; ARX; CNQ
2. NWC; EMP.A
3. ZQQ; TXF
I look forward to your thoughts. Thanks.
Peter

Q: I was surprised to see BMO announce a rather large stock issuance after market close today, at about $4 a share below today's closing stock price. They said it was due to the increase in the DSB from 2.5% to 3.0%. I thought all of the big Canadian banks were very well capitalized. Is this going to be an issue for the other big banks? Are we now going to see them all make large stock issuances? Are some more likely than others to need to do this?

Q: The following are some of the companies I’ve lost money with and will sell for tax purposes. I am wondering what your opinion is re their repurchase as commented on below.

The following I don’t feel I need to buy back, unless you feel differently.
NFI, QST

The following I would like to buy back ASAP unless you feel otherwise. Considering the state of the market do you think I would need a proxy for the next 30 days?
CRWD, GSY, META, NVEI, ROKU, WELL

The following are stocks I would like to buy back but don’t see the urgency, considering how the market currently views these companies, notwithstanding their financial outlook.
COIN, LSPD (I already own SHOP), U, UPST

Thank You.

Q: I have several small cap stocks which are significantly down in 2022. I need to harvest some tax losses. Can you rank these in on a scale of 1 to 10.....#1 being "Sell for sure", and #10 = "speculative hold for possible recovery".

Q: These are my holding inside my TFSA. I am 25 years old and would like to know your opinion on this Portfolio and if you think these are good longterm holdings or if they could be replaced with a better investment (please indicate what company you would replace with). Also witch companies would you consider a Buy in 2023 from these holdings for my 6,500$ contribution room.

Thanks

Q: With the split of BAM.A, would you transfer the new BAM to an Income Portfolio as it is more a dividend paying stock but keep BN in a Balance Portfolio as it is more growth-eee?........Tom