Investment Q&A

Q: How does VEE compare with ZEM with respect to fees, performance, dividend and holdings? Which one would be your pick for new buying today with a 5-10 year timeframe?

Q: Thanks for the update on GSY.

I like the valuation, growth rate, management stake and conservatism. My main concern is whether they are chasing loan book growth during a period where Canadian personal balance sheets continue to deteriorate. In an unfortunate scenario of net charge-offs rising through their B/E charge-off rate of 24.6%, how quickly could their funding dry up? Does this name have a large short base from the short Canadian Financials camp out of the U.S.?

Do you know the breakdown between secured and unsecured loans within easyfinancial’s $1.03 billion loan portfolio? For the secured portion, what type of collateral do they typically receive?

Thank you very much!

Q: Hello 5i team. Laugh if you want, but I'm very tempted to take a small position in Tesla. On the one hand, the stock is up almost 70% in the last six months, they turned a modest profit last quarter as you well know, deliveries are at a record clip, and it definitely has the cool factor. On the other hand it has bled buckets of money for years, quality issues abound, and I'm torn between thinking Elon Musk is a pothead / space cadet, or a genius. Please act as my chamber of sober second thought on this one. Thanks.

Q: I'm considering a contrarian play on an o&g service company. I understand it may take a number of years but at these prices the right company could be a multi bagger when the sector turns from these very low share prices. A strong balance sheet is key to be able to last however long it takes. I see MCR, TCW, and ESN fitting the bill here, but which one would you invest in? MCR has actually done quite well in the downturn and is up considerably. TCW and ESN are more similarly aligned and have both been beaten up. I'd imagine TCW and ESN would have much more torque than MCR in a recovery, so more value there. Clarke has been a big buyer of TCW at these levels, but MCR has large insider ownership. Which one do you feel is the best choice and why?

Q: Could you please compare and contrast two pulp sector companies - MERC:us and CFX.to

What are their current debt levels, consensus earnings (loss), revenues and dividend coverage safety etc.?

Q: I own Chartwell and H&R few years , they are steady however it appears in the continuing low interst several Reits out perform like Granite REit Dream industrial cap reit etc I don't follow Reits . I am considering replacing one say H&R or both
with quality names in Canada or U.S Sector doesn't Matter

Q: What sector would you place Magna Int'l? I see it in both Consumer Cyclical and Industrial?

Thanks...Steve

Q: Hi 5i team,

Over the past several years, I moved a lot of funds to the U.S. for the growth opportunities. The CDN dollar has been range-bound in the 74-76 cent level but is now breaching 76 cents. I am inclined to think it won’t push much higher, as the FED is on hold and the recent U.S. job report was a lot stronger than in Canada. But you never know, so I am considering some hedging activity. I don’t really want to move money back to Canada. Is there a large cap S&P type ETF product that would hedge the CDN $ in my U.S. accounts?

As an alternative, as I am not really an ETF guy, is there an option to buy/add to some Canadian domiciled, inter-listed companies in my U.S. accounts, such as OTEX, MEOH, FTS, TD, others, assuming they fit my portfolio? If the stocks do well, and the CDN $ rises, then my U.S. priced stock will have to rise proportionately to keep pace with the CDN $ value. Does that option make sense or is it all a wash in the end?
Any other ideas for hedging a large U.S. exposure?

Thanks again for your insight, and for a great year in U.S. stocks, even though it is not your focus area.
Dave

Q: Would you recommend continuing to hold this Reit in view of recent hits to this sector? I have a very concentrated portfolio and only have this one Reit. I'm open to moving these funds to another dividend Reit or another similar dividend stock in a different sector. Your ideas please. Thanks.

Q: I have a balanced and diversified portfolio.
In reviewing my holdings, these two stocks are at the low end of my portfolio %. I have money to invest, so my options could include rolling one into the other to increase my holding %. , or adding $ to one or the other.
I see ALA has restructured and their outlook looks positive whereas ITP is OK for income but not growth. Your thoughts and recommendations?

Q: hi guys a while ago in the globe there was an article on a canadian reit that invests in american rental properties maybe not exclusively but at least a good portion ive since lost the name im wondering if you know or at least have a recomdation thanks as always

Q: Looking at using some cash in our RIF accounts (mostly a mix of Income/balanced portfolios) to boost the yield a bit and am considering AW.un or NFI. With price pullbacks, both currently have a higher than average dividend (sustainable ?) and, it appears, some cushion against any significant capital loss, (barring any new bad news). Do you think these are now good candidates for an income portfolio ? Alternative suggestions?

Q: I would ask for some clarification re your response to my question re a custodial issue . Brokers note that "These securities are held in segregation and cannot be used in the conduct of our business " . Given that the securities are registered in the broker's name , how does " held in segregation " protect the investor ( the beneficial owner ) from a loss , as a direct result of insolvency of the broker , it's parent or affiliate ? Again , I refer only to a loss which exceeds the limited CIPF coverage . My question relates to a loss , not the probability of a loss . Also would you shed some light on the basics involved in registering shareholdings ? Thanks .

Q: Is Uniliver oversold today? Is it a buy at this price?

Thanks.

Liping

Q: Whats the near term (one to two yrs) for these Companies
Sell any of them?

Q: Would you average down on CS? Would it go back up to $1.50 in January.? What do you think of copper for next year? Many thanks

Q: What can you tell me about this Berkshire backed company for a 1-3 year hold your thoughts about management,growth etc thanks

Q: What are the tax implications for the spinoff of OTIS and Carrier for Canadians?
i.e. Will they be taxable as income or will the spin-off be eligible under section 86.1 such that the ACB is allocated between the original shares and the spin-offs.

Thanks

Q: Both of these companies are up significantly over the past year. Could you highlight what your rationale is for purchasing at these levels, and valuations. I am thinking of acquiring both, but want to understand more clearly.
Will there be a report update in near future for CSU?

Q: Hi 5i Team - Could you provide me with an up-to-date evaluation of Mediagrif as an investment with a one to three year time horizon. Also any details on debt, revenue and earnings, insider holdings/buying etc. Thank you.