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  5. DOL: Hi 5i, As part of my continuing education could you explain something for me, and also answer a question re ETFs. [Dollarama Inc.]
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Q: Hi 5i,
As part of my continuing education could you explain something for me, and also answer a question re ETFs.?
In looking over DOL I notice that in its last 11 quarters it beat expectations 6 times and missed 5 times. Two days after all 6 of those beats the share price fell, sometimes substantially, and two days after all 5 of those misses the share price rose, sometimes substantially. I've also noticed this same dynamic at work with other companies. It seems counter-intuitive to me and I wonder if there's an explanation that's widely applicable for why the share price would move up on a miss and down on a beat. (Maybe it has to do with 2 days after a quarterly report being too short a period to draw any conclusions from, but if that's the case why would the two day movement be recorded and reported in the first place - by CIBC Investor's Edge in this case?)
And second question - could you identify what you think are the best CDN ETFs holding consumer defensive names?
Thanks,
Peter

Asked by Peter on October 04, 2021
5i Research Answer:

Such movements typically relate to the 'forecast'. If one is looking at historical numbers one may see the 'beat' but perhaps the forecast going forward at the time was materially different. Websites will record the earnings surprise but not take note of the new forecast. There are not a lot of choices in the ETF question: we would suggest XST.