Investment Q&A

Q: Performing very well on a tough overall day, clearly the market is very impressed with VHI's acquisition of Strata Health.

As always, would appreciate your analysis.

Q: My wife feels like she has too big a position in WELL for a relatively small company.

She is thinking of selling of some and buying ISRG or else TMDX during what seems an attractive current dip.

She is fine with risk, so is considering ISRG for its growth more than its stability.

Please give your thoughts on the relative outlook for each of these companies in the mid- to long-term.

Q: Good morning. This isn't so much a question as it is to follow up on my question yesterday relating to the tax treatment of 1:1 exchange of share of units of AW.UN to AW.TO for the benefit of other 5i members. My original question, 5i's answer and the answer I received subsequently from AW Investor relations appears below.

Question: My AW.UN shares were exchanged 1:1 for AW Newco. As this was an "exchange" should my broker be showing a capital gain? If there is indeed a capital gain what is the share price that should be used?

5i Answer: The transaction is tax-free, providing unitholders make a Section 85 Election. If new shares were received on a fully 1-for-1 basis (no cash received other than the distribution), the ACB should be the same as it was before. Brokers are inherently bad at these things. One can contact them to change it, but it is better to keep one's own records for CRA purposes.

Following 5i's Answer I reached out to both my broker who referred me to AW Investor Relations.

AW Investor Relations Answer:
"The conversion from units to shares is considered a deemed disposition at a value based on the date of settlement, which varied broker to broker. We have been advised that in the context of the acquisition and disposition of listed securities, the CRA has traditionally taken the position that the acquisition/disposition date for tax purposes is the date of settlement since it is only at that time that taxpayers have the use of the property received (i.e. A&W shares) in consideration for the property they disposed of (i.e., the Fund's units). We are recommending that shareholders with concerns that the delay in settlement caused them to realize a capital gain (on the disposition of their units) that was larger than it would have been had the transaction settled more quickly should consult with their tax advisors as to whether they can reasonably take a different position."

Following AW's response, I sold out of our position in AW "Newco" today for a tax loss at $37.36 to reduce our Capital Gain on AW.UN which had reflected a settlement value of $43.08. We will either reinter in 30 days or move on.

AW's structuring of the sale was, in my opinion, very poorly executed.

Q: Which stock (Franco vs Agnico) would you pick for a 5-10 year hold?
With appreciation,
Ed

Q: Income model portfolio: The list of selected stocks seems quite stable with time, are they considered among the safest choices within TSX , or some other reason ? how to interpret the ratings ? I appreciate the choices but I wish to better understand the guidelines..

Q: 1) Which has the highest & lowest 10-yr total return potential according to 5i’s research & data?

2) What other defensive names in the US & Canada might provide similar (or better) risk-adjusted returns over 10 years, given current valuations?
Thank you.

Q: I have positions in both CP and CNR and need to lessen my position in one of these railways. Which one would you choose to lighten up on and your reasoning. Thank You.

Q: Would you see BRK.B as a buy-and-forget type purchase for a 5-10 year hold? What do you see happening post-Warren Buffet?
Thanks

Q: The market seems to really like the earnings of ABBV. Got a nice dividend raise too. Where do you see the runway for this is over the next five years?

Jimmy

Q: Please provide me with a few recommended tickers that would benefit from supporting the data centers in USA with their electric needs.

Q: Hi,

Your comments on Allied's results ?

Thanks

Q: A SC 13G was filed on October the 18th. BlackRock was the name in the filing. Does this hit the radar as very interesting and boost the confidence.

Q: Good Morning,

All things considered, would you rate SMCI a hold or sell today?

What do you think the likelihood is of it being de-listed from the Nasdaq? Would you wait to make a hold/sell decision until after next Tuesday's scheduled business update, or do you think there's not much that management can say to change the market's perspective on this stock?

Thanks,

Brad

Q: Regarding SCMI, how badly would their accounting have to be misstated before it was not attractive based on fundamental reasons? Looking at the current and forward P/E, it's relatively cheap for a good business in a great part of the market.

What if a company with a different name produced a quarterly report that showed SMCI's numbers in terms of growth and earnings but without any of the baggage and negative perception? What would 5i value this other entity at with current financials and for fun, what would 5i value it at if the numbers are revised to be 25% worse.

Thanks

Q: With the US election coming up on Nov 5 2024 when there is going to be volatility, what are some companies on 5i's hit list?

Q: What are your views on these two small companies?

Q: Thoughts on earnings? Thinking of buying a position but going to let the dust settle first. Do you think the price action is well supported by the earnings and guidance? Seems like growth is very strong.

Thanks.

Q: hi. can you discuss the recent earnings results, including forward guidance. is this a buy, hold or sell at this time?
cheers, Chris

Q: Thoughts on this Etf

Q: Which drug companies would you suggest if arriving late to the GLP-1 party? For a 5-10 year hold.
Thanks