Investment Q&A

Q: In answer to a question regarding the noted company you suggest the PE is still just 22 times even after the almost 35% increase on Friday. In the same answer you suggest 2023 earnings could be as high is $5.50 and 2024 earnings are projected to increase by 70%. Can you explain further please how you get a PE of 22? Thank you so much since I feel like I missed this one but if PE is that low perhaps not. John

Q: Hi, Any thoughts on Topicus stock, breaking out of $98-99 level, to a high of $107, with 8% jump in past 2 trading days, on reasonable volume ? Do you believe that stock is getting re-rated along with CSU/LMN family. Both CSU and LMN are trading at all time highs. TOI's 52 week high was $110, June 29, 2023 with All Time High of $142 on Nov 3, 2021. Thank You

Q: What do you think about this two companies? Do they have lots of debt? Odds of buyout?

Q: hello 5i:
Looking at estimates of Cash Flow (Fastgraphs) for FTS, I see that 2024 is estimated to be 7.69, 2025 is estimated to be 8.08 and 2026 is estimated to be 5.18.
First question is why such a drop off in 2026? A red flag for long term buyers, no?
Second question: how would such a scenario affect dividends/dividend increases?
Third question: how would preferred shares and in particular FTS.PR.K be affected?
thanks
Paul L

Q: Finally some good news about Tricon! TCN has been a real laggard in our margin account, and even with the recent substantial gain, it’s still down 18.6%. However, this is certainly not nearly as bad as it was several days ago! I can trade TCN for zero commission and of course, the loss will be reported in our 2024 tax return. Would your suggestion to sell half now still apply in this case?

Thanks.

Q: I am looking to park some cash for a while but have it relatively easily accessible. I understand that these ETF’s are not CDIC insurable but other than that what is the downside/risk of these ETFs and which one would you consider the best? Also I noticed that these etf’s are trading above their set value…$50.14. Under what circumstances would they trade back to their $50.00 value?

Q: Peter; Is there a risk that ,the chips manufactured overseas, could face a supply problem due to geopolitical problems, including the Red Sea/ Houthi situation?
Thanks.
Rod

Q: 9:51 AM 1/20/2024
Does the US newly instituted tax rule on limited partnerships doing any business in the US now apply to BEP.UN, BIP.UN. BEPC, BIPC?
I have owned these for many years and all have very large capital gains in cash accounts so I am reluctant to sell them due to the crippling 10% 'disposition' tax on top of the big capital gain were I to sell. It seems I am caught in a tax trap! I would appreciate any advice on which ones are vulnerable to the tax and what to do.
Regards............ Paul W. K.

Q: Don't know if the dividend is sustainable or not with this company, your opinion please and thanks

Q: Hello 5i
Many thanks for your continuing excellent weekly observations and advice.

In my RRIF, TFSA and Unregistered accounts some of the larger holdings are US companies (GOOG, MSFT, etc). I am concerned that upon my passing some or all of these US stocks may be vulnerable to US Estate Tax.
I know that there are various tax treaties between the US and Canada that might impact some or all of these holdings, but I am unclear on the details.
Can you tell me if either or both the TFSA and RRIF are exempt?
Can you provide references that would cover these questions?
Can you recommend CANADIAN-based ETFs that hold Mag. 7 and/or other popular US stocks?
Thanks again.

Q: One of the more recent questions by Kel was for 5i to rank the 11 sectors in 2024. I noticed that real estate was ranked last.

I've also noticed that 5i seems like to like stocks like BN (Brookfield Corp)

Can you advise how these two views compare?

Q: Can you give your analysis on this Canadian animal health care supplier? Microcap but kind of interesting. Thx

Q: Recently you recommended the above companies as top 5 small caps. Could you rank from 1 to 5 re: upside potential?
I currently own EQB and GSY.
Many thanks

Q: Would you prefer KXS or DCBO at this time for a long-term hold.

Q: The following is from a recent article in the G&M:

"Investors typically regard a cheap stock as one with a PEG ratio around 1. By that standard, many of the Magnificent Seven look to be reasonably priced.

Amazon (a PEG of 1.3), Alphabet (1.3), Meta (1.2) are on the borderline of cheap, while Nvidia (0.7) looks to be a downright bargain, according to calculations this week by Robert Armstrong of the Financial Times.

Microsoft (2.6) and Tesla (2.1) are somewhat pricey by PEG’s reckoning but not outrageous. Only Apple (4.6) looks like a true luxury item, perhaps because it’s perceived as a superbly managed, ultrasafe defensive stock."

What are the PEG ratios of SHOP, CSU, LMN, and TOI?

Thanks as always for your expertise.

Q: How would you rank these today for a growth oriented investor looking to hold?

Q: Hi 5i,

May I have your current take on this ETF?

Thank you

Q: Exco reports on 31 January . Today ( 19 January ) some 234,441 shares traded , the majority between 4.30 -5.00 pm EST ( after normal trading hours ) .50 day average trading is 17,353 shares . The share price fell some 8% .
Now , does somebody know something that the rest of us don't ? I'm curious to know if the TSE regularly monitors unusual trading activity , and what action they take . Now this could just be an entry mistake , but I hope it doesn't mean something nasty on 31 January .

Q: If I wanted to stay in the real estate sector what are your current favorite candidates to re-invest proceeds when selling my TCN holdings

Q: Would now be a good time to increase my shares of BIP.UN and is the dividend safe? Also If both of these companies have the same holdings , then why is BIP.UN eps .31 and BIPC eps 10.23?