Investment Q&A

Q: These Canadian banks and probably others seem to be strong proponents of ESG principles in running their companies. It seems clear that at least some aspects of ESG impacts profit negatively and therefor share price. A recent Financial Post column suggests the growth of this approach will erode the performance of companies and ultimately the Canadian economy. At the same time some investors see it as essential in choosing investments. Has 5i written about this trend and what weight do you place on it in making investment recommendations? Your opinion would be very helpful.

Q: Hello, with the recent announcements around the vaccine there has been an uptick with energy related equities including Seven Generations. What are your thoughts, would this be a good entry point for this stock? Thanks!

Q: Good afternoon and Happy Friday,

I would like to discus 4 stocks. Feel free to take four credits if you like. First of all I have 4 main drivers of my account now propelling it to new all time highs. They are SBUX, DIS, ABBV, and MEOH. As for AD.UN I simply am just wondering if you know when they may announce their next dividend?

Starbucks for the next 3 to 5 years out looks like an amazing investment. It represents 11.57 % of all my accounts. I am comfortable with the large weighting considering the outlook. My cost is $18.27 and I have been told to trim and sell but have never done so. What is your outlook for Starbucks and do you see a split in the near future?

As for Disney the outlook looks great as well. It is hard not to want to sell a stock that has risen so much so quickly but its only 6.75 % of my accounts. With the latest streaming developments and once the parks get back to normal I cant help but think there is a ton of more runway to go. What is your outlook on DIS and do you think they will bring back the dividend anytime soon? I bought the stock for dividends but I am very happy with the share price.

What is your opinion of ABBV for a long term hold?

I bought MEOH at $45.00 a share. Considering I watched it go all the way to approximately $9.00 and back I am tempted to sell now considering I am almost back to even. But considering methanol prices and the future of the company maybe I should hold for the long term and watch the economy recover.

Thanks
Jimmy

Q: Your analysis of this fund and its prospects would be appreciated. Thanks, Brian

Q: Good morning, I have room for one more stock in my income portfolio. I hold many of the stocks in your income portfolio. Could you list 3 choices for a dividend of at least 2% with growth possibilities as well. I don't really need the cash at this point so I'm happy to liven up this account with some growth.
Thanks for your advice.

Q: Hi 5i Folks,
Whitecap Resources was removed from the TSX Composite some time ago due to low market capitalization. Recently the company purchased two other small cap energy companies. This should increase capitalization with the additional shares (and share price). My question is: When does the TSX consider adding WCP once again and what is the criteria it uses to decide? Do you think the inclusion to the index will bump up the share price?

Q: Hi guys,
Thanks for your great service. I was wondering what you think of the ABNB pricing in the IPO and whether this is worth chasing after a first day doubling.
If you were to rate this opportunity compared to other high multiple companies such as SQ, TTD, U, SHOP, LSPD, XBC, DOCU, VEEV, AMZN, NVDA, and CRWD, where would you say that it fits in? Is it worth a swap to buy?

Q: Between CIGI and FSV, how would you rate them and why?

Q: Which of the two do like best or are they both buyable, knowing the small MKT cap risks etc? for both

Q: Hi Team, I own a full position in Union Pacific railway in the U.S. But I have some cash to place in a solid Canadian company for a 3-5 year period. Would you support CNR for this? Or would you suggest that with UNP already owned, there are other Cdn names to favour over CNR? Thanks!

Q: What went on with BEPC today? I missed something but just noticed the unit priced is down ~35% . It caught me off guard.

Q: Hi,

I'd like to take some positions in copper producers. I have read some of your recent comments on mid cap producers and will be taking positions in 3 of them. I'd also like to get your thoughts on these smaller producers from an article I read recently.
Aura Minerals, Capstone Mining, Copper Mountain, Taseko, Marimaca Copper (note Marimaca symbol would not come up.)
Looking out at each companies FY20 and FY21 potential earnings, Capstone offers the highest earnings potential (from your Companies page data).
I also see that these collectively have had pretty good % moves in the last 3-5 years. I assume this is because of perhaps mines coming onstream/newly developed.
Which of these above companies are most investable? Or do you prefer other juniors to add to this list you? Please list in order of investing preference.
I think I'll get the most torque (albeit risk) by adding mid cap and juniors. My objective is to add 5 copper miners total...3 mid, 2 junior.

Cheers,
SteveMc

Q: These companies have been drifting off their highs and am wondering if there is a particular reason for this; wondering if this is a good time to buy, or hold, and which you think have the best value and potential? Thanks!

Q: Hi 5i Research team,
Could you comment on Goldman Sachs Merchant Banking take-over offer published this morning? What would be your guesstimate probability of a competing higher offer? Probably low since (1) : Goldman has access to large ressources, so acquirer competitors must know they would probably be at a disadvantage in a competing bid; and (2) this transaction is the result of a review of strategic alternatives for PEO. Isn’t such process (review of strategic alternatives) be a mandatory divulgation by compagnies since it can have a material impact? At what price would you sel at this time in a margin account? Thank you for your collaboration, Eric

Q: Hi,
In a recent question from Jacques about renewable energy, you respond:
We would suggest; BEP.UN, AQN, BLX, NPI
Where does FTS fit in this list?
I own BEP.UN and FTS and considering selling FTS and replace with any of the other 3. Would you agree with such a move? What would be your ranking of these 5 companies in order?
Thanks

Q: Hi. In virtually every other publicly traded company I own or have owned, the CEO owns shares of the company. But in this case, John Proctor has been CEO for three years now and makes $400,000/year yet he owns zero shares? Why is this the case? Is it not a really bad signal that the CEO is giving a presentation on Monday December 14th at a conference to investors and analysts as to why MTLO is a compelling story yet he does not walk the talk and does not own any shares. Is that a fair question?

Q: My understanding is that RTX is down because of its aerospace division and covid. was wondering if company is good buy. Can't find it's P/E. Was It's merger with UTX good or bad timing in relation to the pandemic.

Q: Hello Team,
FR has announced a dividend for the first time, and it has Sprott on board, but it has a tax problem with the Mexican government.
What is your advice on this stock in relation to PAAS, for a long term investment (+ 5 years)?
Thank you,
Joseph

Q: 11:26 AM 12/11/2020
I am interested in TCL.A. Nice dividend growing slowly and good share price growth from 2012 to September 2018 when it was over $28. Then a sudden plunge downhill to May this year at under $10, with Covid just one more small bump along the way.

What happened in Sept 2018 to trigger the plunge?

Now the company appears to be doing well but I worry that they are in print media which is a sunset business. How much of their business and income is geared to printing? And are they reducing dependence on printing and if so what is the replacement income source?

Overall what is your opinion of this company for an income/growth investor for a very long term hold? It has always seemed a bit less than exciting to me but the dividend if it continues to grow, is appealing these days.

Would you buy now or could you suggest 2 or 3 other companies with a growing 4%+ dividend that you might like better in the same or similar space?
Thank you...... Paul K.

Q: Hello, can I get your views on Arconic Corp. Also, I own some shares in Alcoa, would you trade them for shares in Arconic? Thank-you.