Investment Q&A

Q: Hello 5i,
I have, below, cut and pasted a segment of a press release:

"A&W Food Services of Canada Inc. ("Food Services") will also receive a similar dividend from Trade Marks on its investment in Trade Marks.

Food Services also announced today that it has declared a dividend in the amount of $1.0 million to its shareholder. The dividend will be paid out of Food Services' available working capital and is separate and distinct from distributions declared by the Fund to unitholders of the Fund..."

I have looked at the Investor Page of the AW.UN website and can find no clarity around what happens to the $1.0 million dividend. I am surmising that it goes into the larger fund for whatever purpose they deem necessary, but will NOT trickle down to individual unitholders. It seems the regular monthly dividend of $0.16 is all that we will receive, as per usual. Does this interpretation seem correct?

This confusion over the 3 entities, and who gives/gets what, goes a long way towards explaining the need for a much simplified corporate structure, imho!!

Thanks for any clarity you can provide!!
Cheers,
MIke

Q: Good afternoon. GSY is struggling a bit lately but so is the rest of the market. I read an article that said GSY has high debt levels that are not well covered by cash flow. This got me wondering why does GSY have high debt levels and where does it get its money to lend? If they borrow to raise money to lend and rates drop could they not get into a squeeze where the margin between money they loan out and loans they have to reply narrows?

Q: Peter with so many unions going on and threatening stikes in Canada I believe it will effect the owners ie shareholders to a negative affect . Can you give us companies with 5% div or more that are not banks and are not unionised. Thanks Ken

Q: What is your opinion of ATGE in an otherwise financial equity, diversified etf, and REIT-oriented portfolio? Also, how does it stack up against such firms as Franklin Covey or TAL Education Group?

Q: When looking at this group how do the present values compare to the historical valuations ?

Thx

Q: Hello 5i,
I have a follow=up question about HIND:CA. When I look at the data on your company profile, the market cap shows as being 2.5 million. Both GlobeInvestor and the company website peg it at around 26 million. I am guessing that your feed has a typo?
Also, on the company website, they reference a number - "126 B" as being their "Average Market Capitalization". What does this reference in relation to the fund's market capitalization of 26.5 M?
I note, incidentally, that this fund's market cap seems to be slowly increasing. At what point should one take this fund seriously? Would increasing market cap need to be considered in conjunction with length of time as an operating fund before jumping in?
I am not quite ready to "pull the trigger" on this one, but it is very high on my list, and I am looking for "buy signals" as opposed to buying blind.
Many thanks for any insights you can offer.
Cheers,
Mike

Q: Hi 5i

I have less than 1% in VEEV and have become frustrated with it after 3 years. I noticed that in an answer in June, someone at 5i held it, but an answer in August did not include the disclosure. So either it was sold or it was an oversight. Can you say which?
With the pullback in NVDA ($102) I'm getting very tempted to punt VEEV (S214) and use the proceeds and some of my cash pile to pick up NVDA. Would appreciate your thoughts.

Greg

Q: Hi again,

I just want to confirm that my investment strategy aligns with our prior discussions (Questions on this forum) and see if you have any recommendations for improvement. Here’s the plan I’m considering:

1. FHSA: I’ll be investing in the VFV ETF over the next 8-10 years, aiming for solid growth with moderate volatility, to support my goal of purchasing a home within that time frame.
2. TFSA: I plan to fractionally invest in your growth portfolio over the next 45 years. I’ll be contributing bi-weekly to both my FHSA and TFSA until they are both maxed out, reviewing and adjusting the portfolio as necessary every month based on the portfolio reports.
3. Bitcoin: I intend to allocate 15-20% of my overall portfolio to Bitcoin (in self-custody). Currently, Bitcoin makes up 8%, and I’ll continue to average into it alongside my other investments until I reach my target allocation.

At this stage, my portfolio would consist of approximately 66% in VFV, 25% in the growth portfolio, and 8% in Bitcoin. Moving forward, I plan to:
- Max out my FHSA (VFV) contributions each year.
- Match or exceed those contributions in my TFSA (growth portfolio). Ideally, over time, the growth portfolio would come to make up the majority of my overall portfolio.
- Gradually increase my Bitcoin allocation to reach my target of 15%, then maintain that percentage.

Does this strategy look solid to you, and would you suggest any adjustments before I move forward?

Thank you for all of your help!

Q: I just read an article in the western Investor online saying that WELL is going to split into 2 companies. I would like to know your thoughts on this and do you feel this could unlock some value or is it a non event. Would you still endorse holding this company/stock

Q: SMR from $2 to $16 To $8 .. do they have anything? I don't see any real projects. Who is building the SMRs for OPG? Would they be worth looking at?

Thanks for all you do. Danny-boy

Q: Hi,

Haivision has announced a few new contracts or collaborations in the last few weeks and has hit a new 52 week high today (Sept 04).
Can you please provide your thoughts on the recent news and if they are significant (from a revenue/earnings view) going ahead.
They are due to report their 3Q soon I believe.
I currently have about a 1/3 position. Would you top up to a 1/2 position based on recent developments....assuming a diversified portfolio?
I recall ET had made a play for them awhile ago and assume that is now off the table given the increased share price.

cheers,
Steve

Q: good day to the best team
what is your opinion about this cie in the near term and the utility sector in general due to the declining interest rate trend thanks for your super service

Q: Hi 5i,

Would appreciate your thoughts on DND fourth quarter results? Specifically, their progress towards debt reduction and the upside vs downside risk from the current valuation.

Thank you,

Greg C.

Q: Looks like the earnings report was not liked. Your analysis please

Sheldon

Q: Just renewed earlier this year and realized it's been 10 years. Thanks for all your sage advice over the years and the many multibaggers (I was hooked after Amaya) that came with it.

What initially drew me to 5i was Peter's enthusiasm for small caps. Using his methods can you recommend your current favourite US small caps at the moment (I have lots of Canadian ones thanks to the growth & balanced portfolios).

Thanks, see you in 2034!

Q: what are the metrics you use for CELH?. please compare the current metrics to the last 3 years. what is a good entry point. price? how much does Pepsi own out of the 39 percent insidership.? how much does management own? what is the forecast EPS for 2024/25. thanks Richard

Q: Please coment on latest results guidance & going forward. Txs for u usual great services & views

Q: Thanks for your answer of September 5th to my question on SCMI. You did not give me a guideline as to what you thought a good acceptable size would be. Currently it is 3%of my entire portfolio. Do you feel that is too large?

Also, to clarify, would you or would you not at this point sell OOM Covered calls on this positon, say 450 ,470 etc.

You felt due to the higher upside vs downside at this point you would hold the position.

Thanks in advance for your clarification



Sheldon

Q: Hi again! Just following up on the TFSA portion of my last question, where you suggested starting with an ETF like XCS and gradually adding individual securities from your portfolio as funds increase. I’ve found a firm (WealthSimple) that offers zero-fee fractional trading, so I’m considering the possibility of investing fractionally in one of your portfolios. While it seems like the return rate would be proportional, I wanted to get your insights on any negative implications that could be associated with fractional investing in one of your offered portfolios - if there are any.

My Plan A is to fractionally invest in one of your portfolios, but I’m open to considering a high-growth ETF if you think that would be a better strategy. I’m also comfortable investing in an American ETF if it could potentially offer a higher yield. However, with WealthSimple, there’s a $10 monthly fee to invest in American shares, which totals $120 a year. Given that my TFSA currently holds about $5,000, I would need a return of roughly 2.5% just to break even if I opt for the growth portfolio, which includes American companies. While this fee should ideally become negligible as I continue to average into the TFSA over time, it’s still a notable-ish consideration at the moment.

Additionally, do you believe the growth portfolio will outperform the balanced portfolio in the long term, and if so, why, considering its underperformance compared to the balanced portfolio over the last 10 years? Is the current outperformance of the balanced portfolio something you anticipated in this shorter timeframe? Given my long-term investment strategy, which portfolio would you recommend, and why? While the growth portfolio's strategy aligns more closely with my investment goals, I want to ensure it’s the right choice, especially considering the balanced portfolio's stronger performance over a similar time frame.

Thanks again for your guidance!

Q: Which Canadian bank would you buy today? I already own RY.