Investment Q&A

Q: hi there,

ADP is trading way above its historical average and the yield has dropped to about 2%. i understand that payrolls will go up as we come out of the pandemic but they have a huge gap to close just to get ot prior payroll levels. What is driving this valuation and does it make sense!

Q: Could you please explain what it means when you say a company is priced at
"X" x earnings? For instance, in answering Ben's question this morning about TECK.B, you stated that it is priced at 7 x earnings, but on the TMX website it says that it has EPS of -1.61 and a P/E of -14.70.

Q: Could you comment on the deal with Annaly Management ?

Q: Why was trading halted on BBTV on Thursday?

Q: Any thoughts on Yelp at these levels?

Q: Is real looking more appealing at this levels?

Q: Your opinion on AN today?
Thanks

Q: Thoughts on Hunter Technology please.Thanks.

Q: Pho has a filing on Sedar re a potential prospectus. Enquiring minds would like your view on this?
Ciao

Q: "Asked by Jerry on March 25, 2021
5I RESEARCH ANSWER:
It is hard for us to comment on the specific strategy, as it does sound a bit like market timing if we understand it correctly (go to cash, CMR, then switch to financials/income, FIE). CMR is far less risky than FIE as CMR invests in money-market instruments. In turn, the yield is 0.24%. FIE has more equities, and in turn more risk, but also yields 6%. Due to the different risk profiles, it is hard to compare. If stability of the capital is less of a concern, and the income stream is more of a focus, we would be fine with FIE. But if stability of capital is the focus, CMR likely is the better choice. "

I just wanted to add a little comment to Jerry's question earlier on CMR. I used to hold CMR, but it hasn't paid a cash distribution since September 2020. So, aren't you taking the risk of holding without any benefit? (No return, no CDIC insurance, market risk. I sold my units because of this.)

Q: Hi 5i Team, Could we please get your opinion on GoPro current situation/valuation, updates from your last analysis/answer (on July 10, 2019) + future perspectives/growth potential ?

Many thanks

Q: I kept waiting for the semi-conductor stocks to get cheaper and missed the big run. Has the sector not been cyclical historically? Do you think the sector is cooling off or entering a downturn, or is it time to step in? Qualcomm or Nvidia?

Q: Under the heading “no question is a stupid question”. In your answer to Ford & NCR you stated Ford is 10X earnings & NCR is 14X earnings. From your companies page what numbers did you use to calculate those multiples. Thanks … Cal

Q: Bre seems to spin its wheels in the sector.Could you comment

Q: Is the significant drop in price associated with any bad news?
Thanks
Gaston.

Q: With the choice of adding to CAE(currently about 2% of equity portfolio) or purchasing a new position in AC which would you recommend and why? I recognize CAE may be less volatile in this market. Thank you .

Q: Peter et al:
I would appreciate your latest thoughts on teck.b:ca. Is it the b that I should be buying. Many times in your responses, in order to cement your answer you comment that share xyz was a larger dollar amount 10 years hence. Teck.b was $51.00 in Jan 2011. Today $ 22.00. Your detailed comments please.
Thanks,
BEN.

Q: Hi ,
With wild swings up and down with high growth tech stocks, its my opinion that nothing has changed other than their markets caps and the price. In some cases they have even become cheaper then they were, EV/sales etc. I decided to hold on to my high growth stocks as the "underlying business" fundamentals have not changed. In some cases, they have even got better.
My portfolio is down roughly 40%, which i would consider quite normal during a pullback of this sorts.
Would you agree with my thinking ?
Thanks,

Q: I know you have mentioned that you think BRP (DOO) is a good growth stock that you like. In looking at the results they just released today, I see an normalized earnings number for the quarter of $1.82, a 62.5% increase over last year. The guidance for 2021 shows an estimated normalized earnings of $7.62 (mid point of the range), which would be a 41% increase over the 2020 number. At roughly $102, the stock is trading at a p/e of only about 13.4 times this year's estimated earnings. That looks very cheap to me for a company with that high an earnings growth rate. Just wondering what your thoughts are on the quarter, and if you agree that the stock looks very cheap comparing the p/e to the growth rate. Trading at a similar p/e to GSY, with a comparable growth rate.

Q: I believe DOO had earnings. Have seen no comments on my search.

If correct could you please offer some

Sheldon