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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: Hi, I’ve read your comments about BEP and BEPC. I understand a bit of correction and consolidation but a 30% drop in one day seems excessive. Surely something else must be affecting this and if not how can one possibly invest in a stock that can drop 30% in one day without a reason? I get risk but that seems absurd to me, especially for a Brookfield security.
Read Answer Asked by John on December 14, 2020
Q: I am thinking of buying Intel for my grandchildren's account. Do you see any potential for growth in the near future? Please provide recommendations that you see have a good entry price at this time. As well would this be a good time to buy US funds? Thank you.
Stella
Read Answer Asked by Stella on December 14, 2020
Q: Hi 5i,
Questor is confusing to me and I hope you can help me to understand it better than I do now.
In September, 2018 it was at approximately the level it's at now - around $2.20. But then, starting in September, 2018 it increased fairly steadily and had more than doubled to over $5.00 by mid February this year, before plunging straight down to $1.30 or so in the COVID sell off. The chart looks like if COVID hadn't come along it might have continued the upward trajectory. However that didn't happen and, unlike many others that declined hard and fast in February/March of this year, Questor's recovery has been halting - its only gotten back to about where it was in September, 2018 and not close to its pre-COVID level.
Bringing me to my confusion: Something positive appears to have been motivating buyers for the 18 months preceding the precipitous COVID decline and I wonder both what those positive factors were, and why (whatever they were) they haven't taken hold again? I wouldn't have thought that Questor's business would be COVID sensitive going forward from the February drop, but perhaps it is in some way?
The CEO was quoted in today's FP as saying that the just announced carbon tax increases will be good for "our industries", which implies they'll be good for Questor. Could it be?
Hoping you can provide some insight.
Thanks!
Peter
Read Answer Asked by Peter on December 14, 2020
Q: Hello Peter & team,

Listened to Money Talks this morn. They discussed preferred shares and the higher dividends they can provide while protecting capital. Have to be honest in saying I am not well versed with this investment vehicle and would like to be more educated as a viable option for an income investor. I understand there are 3 types of structures for Preferred Shares - Perpetual Preferred Shares, the slightly more risky Rate Reset Preferred Shares, and the Floating Rate Preferred Share with coupons that renew every quarter. With Bond rates so low and the inevitable inflation we should expect in coming years my question is...

Am I right in thinking the Floating Rate Preferred Shares should be the most attractive over the coming years for income related investors based on rates eventually increasing? Does the Dividend tax credit still apply to the Floating? And which Preferred Shares would you recommend for an investor seeking income and $200,000 to invest?

Thanks for all you do

gm
Read Answer Asked by Gord on December 14, 2020
Q: Hi 5iR,
Cannabis advertising platform Weedmaps going public with $1.5 billion valuation with blank-check acquisition firm Silver Spike Acquisition Corp. I do realize that SPAC merger companies are usually future growth potential companies. What interests me here is a company that is claiming to be profitable since every year in its operation,
has grown revenue at a CAGR of 40% over the last five years and is on track to deliver $160 million in revenue and $35 million in EBITDA for 2020.
https://mjbizdaily.com/cannabis-advertising-platform-weedmaps-going-public-with-1-5-billion-valuation/.
Can you give your guidance on this. Thanks in advance.
Read Answer Asked by Vinod on December 14, 2020
Q: Hi gang,

With all the talk about ESG I was wondering if it could be added to your stock info page? I realize it may not factor high in your evaluation of a company, but a lot of fund managers are referencing in their answers to questions about stocks.

For example today's guest on Market Call used it in her response to a Q on ATD, stating that because they sell cigarettes in their convenience store, she would not invest in the company.

Thx again for all your great work!
Read Answer Asked by Christopher on December 14, 2020
Q: I've owned both OSB and WFT since mid April, was very lucky with my timing. I had planned to hold both for a couple years due to the strong housing and retro markets. A month or so ago, as we all know, WFT (trading at +/- $72.00 at the time) took out OSB (trading at the time +/- $43.00) in an all stock offer which seemed at the time to be acceptable by large institutional shareholders (Pattison/Brookfield) as well as the two boards in general. The take out price for OSB was +/- $49.00. Being an all stock offer, I believe OSB shareholders were to get +/- 0.6 WFT shares for their OSB shares. In the time since the announcement, both WFT and OSB have continued to rise in value. As of late last week, WFT closed at $82.68 and OSB closed at $55.36. Can you please help me understand how this structured all stock take over might now pan out???? Will OSB shareholders only get the $49.00 offer upon closing or was the structured all stock take out offer based on a %, ie, will OSB shareholder still receive +/- 0.6 WFT shares. I need to decide what's best for my family accounts. I like $55 a lot more than $49, but it's a wash if it's 0.6 shares of WFT
Read Answer Asked by jeff on December 14, 2020
Q: According to a recent report by Statistics Canada, household debt has been on a steady rise since 1990. What effect, if any, do you think this could have on the markets long term? What needs to happen for household debt levels to flatline or reverse? Curious to hear your opinion.
Thanks
Read Answer Asked by Curtis on December 14, 2020
Q: Hi guys, I have 80 WORK stocks and 25 CRM stocks and was wondering if I should sell my WORK stocks or keep them. With the Slack acquisition from Salesforce, I am not sure what the implications are. Can you please explain and what is beneficial in either keeping or selling my WORK shares. Thank you so much for your service. Keep up the good work! No pun intended.
Dan
Read Answer Asked by Daniel on December 14, 2020
Q: I know it’s a good problem to have but my listed tech stocks have done really well thanks in part to recommendations from 5i. So much so that I now have 41% in the tech sector. Since selling my mutual funds and establishing my own portfolio, your guidance and suggestions have been so much appreciated. It seems that other sectors may be the place to be as we come out of the pandemic. The issue is that these are for the most part proven quality stocks. I’m not keen on selling any of these. Does one bite the bullet and sell some ? If so suggestions are appreciated? Or does one just trim profit and migrate into other sectors and buy more of companies like DOO GSY and WELL? Thanks
Read Answer Asked by Dennis on December 14, 2020
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