Investment Q&A

Q: In a portfolio where capital preservation and income are the goals there are 13 equities including 2 banks and one insurer. H is in a small loss position; it currently has yield of around 2.84%. POW has a yield around 5.2%. What would your thought be about switching from H to POW? Many thanks for your excellent service.

Q: Sorry to keep asking questions about GXE but there are share holders who have not received their proxy vote letter/email and the vote has to be in by Jan. 28, 2025. Is it unheard of for a company to extend (delay) a proxy vote, especially since this is a transformational vote for GXE? If it is not a crazy/unprecedented request to have a proxy vote delayed how would share holders let management know that they think share holders need more time to vote? I suppose calling GXE investor relations is a start but are there other measures that can be taken? I have been able to vote without a hitch but a friend of mine who is a GXE shareholder has not received anything via mail or email and it is already the 26 of January!!! If the vote is in favor, then GXE will be ripped apart with part of the company being sold to CVE and the remaining rump of assets being renamed Lotus Creek. Would you be in favor of holding shares in Lotus Creek since it will have only 1700 BOE of production when it starts trading.

Q: Hi Team,
On Jan. 15th Jordan Zinberg from Bedord Park Capital had Gsy as a top pick. He mentioned that GSY has a credit card. Is this true? I knew that the credit card was being looked into and possibly in development but I had not heard that it was active. I tried looking on the goeasy website by the investor presentation hasn't been updated for almost a year now. If you could share any info you have on this that would be great. I would think a credit card could be a big growth engine going forward for GSY.

Thanks,
Shane.

Q: Hello 5i Research Team,
What is your opinion of KITS senior management and board members? Could KITS be significantly affected by U.S. tariffs (manufacturing in Canada versus geographic breakdown of sales: 80% U.S. and 20% Canada)? What is the sales potential in $ with current production capacity? What is the next steps in KITS's strategy to continue its growth? If the end game for KITS is the sale of the company as the founder did in the past with its previous company,: where should KITS be in its development and when that could be (time horizon)? What does KITS lack to be included in the growth portfolio? What characteristics of KITS prevent you from writing a report on KITS? If you had written a report on KITS, what would its rating be (B+?)? How do you explain the loss of stock market momentum in recent months prior to the last week? What weighting of your (Peter's) portfolio would you like to have in KITS, or what is the maximum number of KITS shares you would buy, given its daily volume? Which Canadian small caps (market cap below $1,000M) are you considering better than KITS?
Thanks for your cooperation, Eric

Q: Please provide your opinion on NPI, and if positive what is a good entry point? Will Trump derail any of their projects?

Q: Hello
Follow-up recommendation for the portfolio basket inception date. It’s a little misleading when there is only one date . Perhaps you can add a column in your spreadsheet that references when the stock was added to the basket

Q: Hello , I'm new here and i see that the portfolios that you have created have done quite well.

Would it be possible to start a new basket of stocks, given that the inception date is 10 years ago

thank you

Q: With DeepSeek Chinese open source models being competitive with American models using less compute power, I can see other American tech giants and small players try to replicate the same very soon.

How bad is this new development for companies like NVDA and AMD? Should we cash in some of our profits now and wait for further development?

Will companies like Microsoft, Google, Meta, Amazon... suddenly feel like they have wasted their billions? Will this drive a negative sentiment for their own stock prices in the short term ?

What does 5i recommend if we have large gains in the bive mentioned stocks?

Q: If I still own shares by the date the company is acquired will my account simply be credited funds owed and the shares be removed from my account? Or, do I need to sell in advance of the transaction? When is that date?

Q: Peter; Friday night and I just saw an article on a new Chinese AI released today , called DEEPSEEKS. It is apparently equal to , or better, than the AI engines available. I know it’s early days but looking at multiple articles , it could be a major disruptor to others .
I know you can’t quantify the impact but it may be one to watch.
Rod

Publish if you wish.

Q: Will a 25% tariff affect these companies?

Q: With the uncertainty of Trump how do you feel about the oil/gas companies. Specifically CVE, ATH, MEG, BTE. Is it time to buy sell or hold.

Q: Would Canadian funds such as ENCC, BANK, HMAX which hold Canadian stocks be taxed as dividend income or as capital gains income by the CRA ?
I believe that similar funds holding US stocks would be taxed as capital gains.
Thank you.

Q: Which would you anticipate to have stronger growth over the next 3-5 years...and why: JPM or FIX? Thank you.

Q: I have two entirely different endpoints for my TFSA and my RRSP. TFSA is shorter-term funds to pay down my mortgage, and RRSP - its intended purpose, longer-term funding for my retirement. In this case, would you consider the percentage of each account separately when weighting, or use the combined value? Currently I am separating, but because I own a couple of doubles (NVDA and TVK for example), the position sizes are higher than I would normally hold. If considered together, my positions do not exceed my maximum weighting. Thanks!

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: You may have covered this question but with the exchange on the USD now close to 40% is it worth buying US stocks, in case the US dollar is devalued? The Canadian tourism industry should flourish with the difference in the dollar while not as many Canadians will make the trip to Florida this year.

Q: Any info on VLN.To would be appreciated.


thanks Valter

Q: In a question yesterday - attached - I asked you to recommend one or two US equities and listed those already held. In response, you gave me two equities which I had listed as already owned. Clearly you have not had your morning coffee:-) Please try again.

Yesterday's Question:
VRT has now grown to 9.5% of my total portfolio. (Thank you for the recommendation!) Would you let this winner run? Or would you be inclined to trim? If trim, what one or two US equities would you purchase (any sector) with the proceeds with a similar risk/growth profile...and why? The following US/international equities are already held: GOOG, NVDA, AMZN, MSFT, V, COST, AXON, ISRG, CLBT, and NBIS. Thank you.

Answer:

In our view, as a company aproaches 10% of a portfolio, the portfolio starts to become a bet on that single name and we would typically prefer to trim the position down. For something with a similar risk profile and growth potential, we might consider NBIS and CLBT, but both are higher risk.

Q: Good morning,

Would you consider switching EQB for TD today, if EQB is already held?

Thanks,

Brad