Investment Q&A

Q: Do you think national bank is the best bank stock to buy? If not, which bank stock do you recommend? With thanks. Rose

Q: With the increase in interest rates, is this a good time to purchase bank stocks and what would be the preferred bank?

Q: A bit of a timely question here but GSY has pulled back a fair bit today. Obviously due to the 100bp rate hikes which directly affects their business. At what point are rate hikes so high that GSY is no longer a good buy? Would you add on this pullback? Thx

Q: Does it make sense to park some money from fixed income CVD to TD, which is close to 52 week low, and move it back to CVD, if and when TD shares have moved up.

Q: Could you please provide an update on the Deutsche Bank (Germany) ADR? It looks like it pays about a 2.53% dividend, though the stock price has been going down for a long time. I'm wondering if now is a good time to put a (small) toe in the water. Thanks.

Q: Thoughts on Mara as a long term investment? Insider buys?

Q: THOUGHTS ON NEWS TODAY

Q: When looking for stripped bond offerings on my broker's screen, I can see an entry named Sagen Mi Canada that offer's a good yield with a credit rating of AH/BBB+. I know nothing of this company. Would you have any insight on the matter, or should i just keep passing on it?
Thank you

Q: Hello 5i team,
Would you recommend this stock in one of the portfolios in the future?
Andrew

Q: Hi!
I got into CIX a few months ago at around $20. I am happy to hold and wait to break even at least. Would you be able to suggest how long that will wait will be? Also, are the fundamentals still in place for CIX for the market to pay $20 for CIX.
Not to worry...it wasn't a massively concentrated position or anything! : )

Q: I live in a city where every other car seems to be a Tesla. I noticed on teslas loan page that they only deal with the three banks mentioned above when it comes to financing.

Will this materially move the needle for any of these institutions in the long run?

Thanks

Q: We owned Onex since 2006, we are from $20 to$ 64. Not that great given the meagre dividend. It is about 1% of total portfolio. we have some newly realized cash and wonder if we should augment the position to 3% given the low valuation now.
could you suggest other well priced private equity or conglomerate, (Claivest?) We are looking at the long term.
Thank you.

Q: Can you please compare GSY from the Growth Portfolio and BNS from the Income Portfolio. I believe that 5i continues to be very positive about GSY, but in this present economy, BNS looks like a much safer bet to me. GSY seems have about $1.7B in debt, whereas BNS has about 198B in cash or $348 per share. BNS has a forward dividend of about 5.4% and GSY is 3.7%. If you could only invest in either BNS or GSY today, what would you choose for a 5 year hold?
Thanks!!

Q: Hello, CDN Banks are trading at or near their 52 week lows. BNS and CM have a dividend yield of over 5% now. Do you believe, their valuations have reached close to or near their bottom and it makes sense to add, for income and growth, with a time horizon of 5-10 years. If so, what will be your preferred order for these names ? Thanks

Q: Hi Guys
With everyone saying they don't understand their financial statements isn't this a red flag?.Also when everyone loves a stock,this to can be a cause for pause...remember Nortel Networks..
Assets are like 9.5x the total shareholders value of this company, isn't this a recipe for disaster in a rising interest rate world?
Thanks Gord

Q: As a follow up to your answer to Shane, when you say 'turn off investors' do you mean that many people consider its general business practices unethical? Or is it something else?

Thank-you.

Q: Hi Team,
Have you had a chance to look into GSY's deal with Canada Drives? It seems like a good move to me by the company. How successful is "Canada drives" with sales? I have never heard of them until now but apparantly they are Canadas largest online car sales platform.The stock didn't seem to get any big love from the announcement. On another note...GSY continues to amaze me how this company is not worth so much more. P/e shows 10.6 on my platform, growth has been solid and proven for many years now and the loan book growth is now going parabolic the last year or 2 as it reaches scale it seems. Dividend growth has been stellar. Yet...I rarely hear it talked about by analysts on bnn or elsewhere. Do you feel it is still relatively "unknown?" Or is the company just being given a cold shoulder by many that view it as a predatory lender? To me the company checks all the boxes a person should be looking for, especially in the inflation environment when it comes to valuation and dividend growth, earnings growth. People can say what they want about recession scares with this name, but they have been there and done that have they not? 2020 they proved their business is resiliant. Your comments on all this would be appreciated. Thanks!

Shane.

Q: Would you be a buyer of US Banks now or would you wait for potentially lower prices? I have a small position in RUBY which I'd like to increase but it is down 26% from my original purchase price but I am not sure how US Banks are expected to perform in this market and facing a possible recession.

Q: Can you speak to GSY financial stability and how a struggling economy could effect them / how much of a concern is defaults.

Q: Are Fiera's dividends sustainable? I just read an article which said it had a 160% earnings payout as dividends to shareholders and a 55% cash payout ratio last year. Can you explain which metric you consider more important? Thanks!