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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I'm looking at metrics for TVK and cannot understand the market's lack of concern over what appears to be a very high amount of debt. I use the Lynch guidance that Long Debt / Total Equity should ideally be < 0.25. In TVK's case I calculate 1.03, which appears to be in line with the 5i Report on TVK showing Total Debt / Equity at 1.49. In the same report WELL is cited as a Comp but WELL has a Total Debt / Equity metric of "only" 0.5 - fully 3x better than TVK, and yet WELL has been punished for having too much debt. Confused...
Read Answer Asked by Paul on May 15, 2024
Q: Hi 5i,

Multiple related questions:

#1 - I believe the purchase of Encore Wire (WIRE) by Prysmian @ $290/share should be confirmed in the next few days. Do you know anything further about this?

#2 - Would you recommend selling WIRE at this time @ +/- $282/share or waiting for the deal to go through at $290/share? At what point after the sale are shareholders paid?

#3 - In looking for a like-minded company (electrification transition, green renewables etc.) I came across Atkore Inc. (ATKR). What are your current thoughts on this company for a 3 to 5 year hold?

#4 - Between MYRG, STRL, ATKR and PWR how would you rank them out of 10 (10 being the best) and in what order for a 3 to 5 year hold?

Thank you for your wisdom and guidance!
Read Answer Asked by Brian on May 15, 2024
Q: Hi 5i,
Just mulling over how to punch up a part of my TFSA that's not done much for me lately and is looking like it might do even less in the next year or so:
Specifically, I'm considering the wisdom of selling all the CTS I hold (at a fairly sizable loss) and replacing it with either NFI (which seems to be trending in the right direction, share price wise) or DCBO (which might be at a good entry point right now) in the expectation that by making this move in a year's time I'll be ahead of where holding CTS would leave me.
So, boiled down, is selling CTS now sensible, and is either NFI or DCBO a good replacement and, if so, which one is likely the better replacement?
And if neither, could you suggest another?
Thanks for your thoughts.
Peter
Read Answer Asked by Peter on May 15, 2024
Q: I purchased AXON around $200 in a margin account, I'm paying 7% on the margin. Question, do I keep holding knowing that I need 7% return to break even or do you think it trades sideways until the next earnings report. Note: My Margin account only accounts for 10% of my portfolio. Thanks (I know short term is hard to predict.)
Read Answer Asked by Kevin on May 15, 2024
Q: Can you recommend a couple of your favourite profitable Canadian energy stocks which have roughly 50/50 income from oil and gas and have a good dividend ? Or you would rather recommend a companies which are profitable in oil only and gas only and combine such in a portfolio?
Thank you for your input.
Miroslaw
Read Answer Asked by Miroslaw on May 14, 2024
Q: Hi, Could you please help us understand why stock has been acting so poorly despite a supposedly strong earnings and the new drones acquisition. This is despite the fact that most analysts are bullish on the company and raised their price targets in the range of $345 to $375. As of today, stock is down over $30, post earnings. We like the story as 5i does, but are market expectations overblown and it's time to move on, before we start losing our capital ( ACB $290 ) ?

Thank You
Read Answer Asked by rajeev on May 14, 2024
Q: This US equity just reported and has corrected. The business model is similar to Couche Tard but it is much smaller. It pays a 10% dividend. If the share price drops under $20 I want to buy but would ask for your analysis on the company, ability to pay the generous yield, debt, guidance, valuation, etc. It seems to have a see-saw long term chart. Appreciate your opinion on a buy here.
Read Answer Asked by Ken on May 14, 2024
Q: I am somewhat confused and mystified....according to 3 sources I look at (including the company profile on 5i), the P/E for FSV is at 75. In an answer in early April you suggested the Forward P/E is 32.5; on April 25, you explained that while Revenue was up 14%, EPS was 67 cents down from 85 cents the prior year. 1. How does the Forward P/E drop by more than half when EPS went down? 2. You describe the results as good overall, yet the stock price continued to slide although it turned a bit at the beginning of this month: at this time do you see FSV as worth holding onto? Many thanks
Read Answer Asked by Leonard on May 14, 2024
Q: If I may add a follow up to your answer to Michael regarding concentration of business. While DRX supplies steel structuring for many different buildings throughout the US, their contracts are with the general contractor/project manager who has been hired been hired by say Eli Lilly to build 12 buildings in Boone County, Indiana. The large contractors (eg Fluor Corp) like to work with companies that have a proven track record of quality and on-time reliability. ADF Group has a terrific reputation and has the most automated steel structure plant in North America. The huge large scale building taking place in the US ( semiconductor plants, battery plants etc) require a company like ADF to meet their demand. If you are good, there is lots of repeat business from the same large contractors.
Read Answer Asked by Murray on May 14, 2024
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