Investment Q&A

Q: A Market Call guest, Gordon Reid, was very negative on SBUX, saying that they are wrong to borrow money to buy back stock. I disagree. With a return on assets of 14% and a dividend that is well covered by earnings, I would argue that loading the balance sheet with low-cost debt to maximize return on equity is a sound strategy. Who's right?

Q: Hello Peter,
Why is Descartes system down on an up day? Is there some negative news i am not aware of? Is it good time to step into AlamosGold and with lower rates coming, i would have thought BEP would have recovered somewhat. .i am down about 30 percent on it.. Much appreciated for your comments

Q: With the S&P's current P/E ratio at 27.93 far above the five-year average is it safe assume some profit taking might occur in the next few weeks? If capital gains aren't an issue, would it be wise to look at taking a portion of profits off the table post NVDIA earnings on companies with a high P/E?

Q: I am a long term investor who is very patient and has a high risk tolerance, but must pull a few weeds. Have held the above for a decent amount of time, but wonder about 5I's opinion on whether to hold for longer or pull. Thank you for all your help.

Q: Could you please tell me the outlook for this company and dissect the latest quarter for Quisitive Tech Solutions(QUIS). What initially made this company fall of the rails and what will it take to get it going again and how much does as they say on their website being a "top Microsoft Solutions Partner" bode well for the company and would Microsoft ever cut ties with them if the management wasn't operating to their satisfaction. What's the longer term outlook. Buy, hold or sell. What would it take for 5i to be interested in this company?

Q: hi, in follow up to yesterday, what do you see as the reason for the price decline today? Powell speech? or other things in the earnings/guidance. is this a buying opportunity?
cheers, Chris

Q: I realize there are no withholding taxes on BIP.UN in an RRSP

What about taxes in a tfsa

Thank you

Q: Can elaborate on your bullish thesis here?

Yes, revenue is growing extremely fast, you love the stock momentum, and they have a pretty clean balance sheet.

But, the valuation is also extremely high and they aren't earning much on the bottom line.

I typically view this type of situation as poor risk/reward. Any "miss" could elicit a sharp sell off.

How are you thinking about this company that gives you confidence in it and allows you to view the risk/reward as favorable?

Q: Good day all ! as a purchase for a 5 to 10 year hold in what order would you purchase these for US stocks and what would be a good entry price ? Thank you !

Q: How safe are these high interest savings ETF’s?

Q: Would you sell CTS if you were in a loss position? If you were going to sell CTS, what three choices would recommend as better alternatives in order of preference excluding CSU, DSG and SHOP which I own.

Q: Why did WSP price drop dramatically March 27, 2024 to June 3, 2024, and then bounce back up? Also does WSP incorporate AI into their engineering methodology?

Q: 5i and I agree on the importance of good management teams (think CSU and ATD). I'm inclined to pin the giant mess TD has created with money laundering woes in the US on its management team and most especially the CEO and Board. Do you agree and if so, would it not be prudent to stick with other banks until we see changes in the upper ranks of TD?

Q: Is IPAR a reasonably good value at current prices? When looking up financial metrics on several sites I get differing data e.g., PEG ratio at FINVIZ is a high 2.8 around 1 yet other sites show ratios closer to 1. From an admittedly very general review, I have the impression that this business has a reasonable good moat, a good management and favorable prospects for the next 3 to 5 years. IPAR is a much-favored company at a site I find honest and reliable (latter is Compounding Quality where it is in their suggested portfolio). It does not appear in any of the five models I have access to at AAII, where it does not qualify even for that organization’s “Shadow Stocks”. (Latter are companies AAII monitors for possible future inclusion).

IPAR seems to be a good--but forgotten-- company. Would appreciate your more detailed insight, giving your view on current valuations (PEG, forward P/E , prospects through 2027). Especially may one please have your insightful comments. Thank you.

Q: This question is about small TFSA with 98% Canadian equities with 32.06% total weight in the technical sector. Weight for LMN, SHOP and DSG are close to 5i Bal portfolio but CSU is at 14.8% (Thank you). All these names are at profit.

Question 1 -I am contemplating selling CSU to reduce Canadian exposure and buying MSFT or NVDA What is your opinion of such a move? Any other suggestions in technical space?

Question 2 - This TFSA has no exposure in Consumer Staples. Would you suggest buying COST instead of US technical name? Any other suggestions and entry price?

Much Thanks for your very valuable comments.

Q: Fully agree with your comment on Downside Risk Exposure. So important to understand and track!!! The problem for me is finding a free fee site to get this data or info. Would calculate it myself but it is difficult to do. With that in mind, I track the changes in the 52 week high and low and also the % change, just as an indicator. But you know of a web site that is free of fees to track the downside risk exposure of stocks???.....Tom

Q: What are the advantages and disadvantages for an investor to put all their funds in a "balanced ETF", i.e. Vanguard Balanced ETF Portfolio (VBAL.TO) or iShares Core Balanced ETF Portfolio (XBAL.TO)?

Q: Any opinion on I Shares XUSC (3% weighted) as a hedge against XSP where there is a major portion allotted to large companies?
I believe this is a new ETF and might, in my opinion, cause one to wait awhile however considering the issuer is there any point in holding off an attempt to partially offset XSP?
Any better ideas would be great.
Thanks

Q: My son is 25 years old and saving to buy a house in the near future. Which is a better TFSA investment strategy for him, investing his savings in a balanced ETF Vanguard Growth ETF portfolio (VGRO.TO) vs. allocating 25% of savings to Vanguard Canadian Aggregate Bond Index ETF (VAB), 25% to Vanguard FTSE Canada All Cap Index ETF (VCN), and 50% to Vanguard FTSE Global All Cap ex Canada Index ETF(VXC)?

Q: Your thoughts on Kraken following their recent earnings release?

Thanks

Phil