Investment Q&A

Q: Hello 5i
I am a value investor with some growth positions LSPD, LNS). Having learned from LSPD I trimmed some Leon's. The yield of ZIM seems excessive but the company has been improving over the years, dept is improving and it is showing a profit. Is the yield sustainable? Does it fir a profile as a value investor with 10 year outlook in need of industrials and global invesment?
Thank you
Stanley

Q: Regarding Jerome Powell, is quoted today as saying he "Pointed to an economy in 'a different situation' from the last interest-rate hiking cycle, highlighting a tighter labour market, the fastest inflation since the 1980's,"
The 1980's were great for interest -- I locked in a GIC for 5 years at 17% annual compound growth.
For the outlook today, can you provide any advice on what to do an what not to do give the outlook above,
Thanks for your valued advice.

Q: I own small positions in Fiera, Firm Capital, Alaris and Mcan for their outsized yields. I'm close to even on three and down 5% on Fiera (8 5% yield).
Would you keep them as long term investments and please rank them. Thanks.

Q: Would you recommend to buy some short term put options to help protect a portfolio from anymore downside risk. If so would you do this in names you already own or look for some tech names that might be still overvalued.

Q: In a Jan 28th response you stated cash had declined and there is maybe a need to raise capital. This is a company that has grown by acquisition, which usually requires cash. Has the outlook changed drastically in a short period and now they have cash flow issues? Is the status of their cash flow available before the quarterly report?
A potential sale of the company was also mentioned. Can you reference any additional information regarding the sale of the company? Thanks.

Q: Good day.

1. I am considering the purchase of mentioned. I did some quick research and noticed that on Jan 19th you mentioned in a response that it had a P/E of 15. Looking at its profile on your site and the BMO site, it shows 9.x.

If I look at the current stock price of $142 and its EPS of $15.66 (from its profile), this would correspond with the P/E of 9.x (which would not even be its forward looking P/E but its historical).

Am I missing something here? It appears to be a great deal.

2. I read your Jan 18,2022 report about this company. At the very top of the report (on the right hand side) it states that debt is high. At the very bottom of the report in the Summary section it mentions that that this company has strong balance sheet. Furthermore, this section and and "Key risks" section do not mention any concerns with debt. Is this something we should be concerned with? (Note; I normally look at the debt on the balance sheet but have difficulties understanding how to interpret this number for financial institutions as they have customer deposits on-hand as debt OR they would need to borrow money to lend it out which is also debt. Do you know of any articles that help explain this).

3. Do you think the business model is sustainable? I went on their web site and rates start at 30% for personal loans. That is high, really high (I feel).

Thanks again. Walter.
P.S. I recently posted a question and must have accidently posted it as private. If you want to make it public, please do so.

Q: In a response to Craig on 19 Jan you stated that "Without reference to goals or risk, we would side with the significantly larger and more diversified BAMR". TD Waterhouse lists the market cap for BAMR at $534 million whereas TSU is listed at $1.8 billion. However I see that on your profile page you list BAMR at $1.93 billion, only slightly higher than TSU.

Q: I am looking at ALC and CNR. What are the fundamental reasons that CNR commands a much higher P/E? Is this all about growth prospects? Also, how is "fair value" determined by Morningstar?

Q: Which, in your opinion, will provide a better return over the next 5 years: Shopify or Kinaxis?

Q: Current thoughts regarding Celestica please. They seem to be finally coming around.
Looking forward do you think they might sustain. Thanks.

Q: Seeking suggestion of a proxy for possible tax loss sale of ARKF with intention of buy back after 30 days.

Q: LSPD reports F2022/Q3 on February 2 after the market closes. For this quarter, what is the estimate for revenue and gross margin, and what is the estimate for adjusted EBITDA (loss) and adjusted EPS (loss)? Thank you.

Q: Peter; It looks like the EV sector is out of favour- most of the stocks, GM,F,MG.LNR,LAC er are all off from a couple of weeks ago. What’s changed ? Thanks.Rod

Q: Following up on my last question on buying SHOP in US or CDN funds, I am not sure I was clear with my question based on your answer. I have both a CDN and a. US TFSA investment account. As a Canadian living in Canada, I can buy the stock from either account. Does it make more sense to buy this company from my US account as they do most of their business in the US. In the long run will I benefit from doing it that way ?

Q: any chance this has serious upside

Q: Hi, am thinking of selling DOCU and replacing it with NVEI in my tfsa for growth. Does this make sense?
Peter

Q: Can you comment on their earnings release, valuation with the recent fall and opine on their prospects? Wondering whether this is a decent entry point for what I think is a "pick-and-shovel" company in the semi space? Thanks

Q: Greetings - Considering the impressive returns from the energy sector last year, the leadership of the sector so far this year, the current supply demand scenario for oil , the likelihood of greater US production, geopolitical realities, and what we might see in the next 3 to 6 months (insofar as there is any clarity that far out) 1. Is energy a 5 or 6 year investment or more likely a shorter term trade. 2. Does it seem to you that the oil price is more likely to continue to climb throughout the next 6 months rather than to recede. 3.Which 3 of these 8 listed securities offers the best upside and which 3 the least risk and thirdly if you had to pick just one to buy a full position of today which one of the eight would you personally click the buy button on and would you be comfortable doing so at the current price.
Thank you for the input - Ken

Q: Hello 5i
I know that it is a good idea to either have a certain number of US stocks that are not represented in Canada, or an etf for the US market, in order to have a balanced portfolio. Fortunatly, or unfortunatly, I have both. And I am wondering whether I should either get rid of my stocks or get rid of my etf's. The above are the US stocks I hold. in pretty good percentages. If i were to hold only stocks what might you suggest to supplement these? I know that I am probably heavy in tech to really represent the US market and will probably have to trim here, maybe in percentages. any other suggestions appreciated. Most of these are held in tax sheltered accounts, so taxes shouldnt matter too much.
thanks as always

Q: Hello,
A question about the Canadian Money Saver Model ETF Portfolio.
Unless I've misread, it seems like you use a combination of VEE (Emerging Markets) and VE (Developed Europe All Cap) for your International/Ex-NA exposure.
Wondering why this combo instead of the more usual VEE plus VIU (Developed All Cap ex North America)?
Thanks,
Roman