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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: Hello 5i Team, Leon's announced earlier this year their intention to repurchase up to $200M in value of common shares. I received paperwork today from my brokerage that states I have until Dec 23rd to decide if I want to exercise my option to sell back shares. I'm wondering if you could provide general guidance on the Leon's buyback opportunity via the "modified Dutch auction" approach.

I think it would be advantageous for me, personally, to hold onto my shares but I've not been in this situation before so curious about any considerations that could be broadly applicable to all shareholders when something like this happens.

Any advice/information is greatly appreciated!
Read Answer Asked by Daniel on December 08, 2021
Q: Good Morning Peter & Team,

You are going to correct me where I am wrong as you should, but I am having a struggle understanding how a company such as NVEI can experience a 50% share value loss in less than 24 hours based on a report generated by a third party the contents of which may very well be exaggerated and dare I say it, even worse be false in nature purely for the purpose of profiteering on a short bet. Are there not laws in place to prevent this kind of market manipulation from taking place? How can investors such as ourselves protect ourselves from this? Maybe the first step is to avoid investing in stocks which have high multiples like NVEI @ 121? That doesn't seem to make sense considering other companies having much high multiples i.e. TSLA @ P/E 341

Thanks for all you do

gm
Read Answer Asked by Gord on December 08, 2021
Q: Mr. Left of Citron is defending NUVEI by dismissing some of the claims about the CEO's college and driving records. But also adding NUVEI's financials were audited by Price Waterhouse Coopers, and he expects analysts and companies to defend NUVEI. Quote: Left Buys The Dip: After Wednesday’s crash, Left tweeted that he bought the dip in Nuvei. “Spruce report says word fraud 48 times..yet no proof of fraud. Easy to find cust. complaints on any company. Who cares if CEO did not graduate college or has a driving record,” Left said.

Left also pointed out that Nuvei’s financials have been audited by PricewaterhouseCoopers, an extremely reputable auditing firm.

He went on to praise the investigative work conducted by Spruce Point but said he is betting on PriceWaterhouseCooper’s audit over Spruce Point’s investigation.

Not sure what to make of one short seller opposing the short attack of another short seller. Any brief thoughts on this. If you cover this idea in other questions, ignore this one. Thanks
Read Answer Asked by Gordon on December 08, 2021
Q: Hi Folks,
I have the above companies in my TFSA all at the same or so weight. I had BYD but sold it when it started to drop. I am still ahead in my sold price as compared to its current price. I am looking to add another or even BYD now that it has settled somewhat, can you give me your suggestion as to what you would add to this lineup - buy back BYD or can you provide some others that I can add. Thank you very much for your suggestions over the years.
Read Answer Asked by JOHN on December 08, 2021
Q: Hi 5I team,

Can you please provide your investment strategy view on sector level for 2022? Will raising interest rate put Utility and Technology sectors under pressure? TD monthly e-report recommends to overweight on Financials and Energy sectors and underweight on Utility and Tech. Do you tend to agree with it?

Thanks,
Read Answer Asked by Yang on December 08, 2021
Q: Good morning 5i.

I've perused the Q&A section which has been extremely helpful. I'm looking to build a concentrated portfolio with growth in mind, but also a few names to balance out volatility. Based on what I've read, I was thinking of starting equal weights in the 12 positions below.

CSU, TOI, SHOP, DSG, KXS, NVEI, BAM, GSY, TFII, BYD, WSP, ATZ

What are your thoughts on the the blend of companies and would you suggest any adjustments?

Thanks for your time.
Read Answer Asked by Semper on December 08, 2021
Q: Hi 5I
I have $180,000 split evenly amongst above companies in RRSP. I was going to begin withdrawing $10,000 every year and am looking for strategy to draw down to maximize growth of account. Is there a ranking of companies to sell first, or take a bit from each? I like them all so tough call for me. Appreciate all your advice since my initial membership in 5I.
Read Answer Asked by Craig on December 08, 2021
Q: Do Canadian ETFs that track US tech firms underperform? I was looking at these and a few others on the G&W and the Canadian ETFs with the exception of HTA and HTA.B (up 35%ytd) seem to have significantly lower returns. And I think HTA uses covered calls.

XLK is up 32% ytd, IYW 35%, IGN 31%. The most popular Canadian ETFS seem to be ZQQ(ZQN) 26%, XQQ and HQQ 26% and TEC 25%. Some of this is due to currency moves, but the hedging costs of the hedged ETFs surely aren't that large. Is it better to just buy XLK or are HTA/HTA.B a better alternative?
Read Answer Asked by John on December 08, 2021
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