Investment Q&A

Q: I would like to get your opinion on shorting Robinhood Stock. It appears direct brokerages are going to start offering commission free trades. What possible moat does the company have to maintain their 42 billion valuation?

Q: Which would you add to today for a longterm hold?

Q: thoughts on the quarter please? Thx

Q: Equitable Group Inc (EQB.TO) and Infosys Ltd ADR (INFY). Buy, sell or hold.

Q: Want yout opinion and target on the stock please, agf had some news in the pasts weeks and want to know if there's some good catalysts thx

Q: Would you be able to comment on FSK?

Q: Hello, Lately I've notice that Cathie Wood has been selling some of the big tech names such as Paypal. Is there something she knows about Paypal or do you think she is rebalancing her portfolios?

Q: Goeasy's loan book has grown from $30 million to $1.8 billion during the last ten years and is projecting to reach $3 billion by 2023. Given the high interest rates charged by the company (19.99% for home equity loan, 24.99% for auto loan, and 29.99% for personal loan based on their website), it's hard for me to understand how any borrower can afford such a high rate and the sustainability of their business model. Can you please shed some light? What will happen to the company's business when a severe recession hits or housing market crashes?

Thanks.

Q: Follow up on Trisura. The $10 reference point comes from the TSX chart, on July 9th the price went from $10 to $40 plus

Q: I am puzzled, on July 9th, was it a split or a consolidation at 4 - 1? from the chart, the stock went from $10 to $40 on that date. How do you get 4 times as much stock while at the same time the stock appreciates 400%. What am I missing since I also believe that on the whole the market is efficient. Thank you, Martin

Q: Lots of questions about this one.

One argument I've heard for why the stock isn't up on the dividend news is that the dividend isn't tax efficient for US holders, who evidently own about 40% of ECN float. That coupled with the embedded gains and worry about taxes increasing has them selling now, and the CDN demand for those shares being sold isn't enough to push the stock price higher.

If this is true, it may limit the near term opportunities even after the dividend if Americans feel burned that they didn't get a good deal out of a great deal made by ECN.

That all said, I've added to my already large position due largely to management and they're proven abilities.

My 2 cents, curious what you think.

Cam

Q: What is your general opinion of this Company? Is it a long term hold type Company?

Q: Good Afternoon:
Further to Allen's question on the company's valuation post $7.50 dividend, does the market's then valuation of $2.60 per share accurately or fairly value the remaining divisions of the company considering their recent performance and that some debt may be repaid?
In that context, what factors in your mind exist or what positioning or news releases can the company make to mitigate the share price dropping by the amount of the dividend.
Lastly, aside from the direction of the general market in the last week or so, do you see the recent drop in share price as over reaction?
Thank you!
Ian

Q: Is buying ECN shares considered “dividend shopping” in light of the $7.50 special dividend announced recently.If I remember from the answers to the questions on ECN, 5i mentioned that the stock may drop by $7.50 ex-dividend. If that is the case, although not guaranteed, why would anymore consider buying ECN shares other than for the special dividend and unloading the shares a few days after unless 5i believes that the stock has some growth potential groins forward. Thank you for shedding light on this matter.

Q: I would like to add a few (2-4) financial companies to my non-registered investment portfolio. Would appreciate 5i's help in ranking the above names based on total return potential for a 3-5 year hold. Please add any names you feel belong to the lineup, ranked appropriately, Thank you.

Q: thoughts on this company,seems to be getting hit pretty hard lately do you think this could possibly be a good entry point and does this have any shance to be taken over in this category .....Thanks

Q: Hello 5i,
I came across this equity when you recommended it earlier. I am assuming that given you listed it first, it would be the highest-ranked choice out of the options you provided. My parameters are very similar to those of the member who asked the initial question; we are retired, conservative, dividend-oriented investors with a more or less well-balanced portfolio as per P.A. We are very slightly under in Financial Services and underweight the U.S. by about 4.0%.
So, (finally) to my question: what kind of weighting might you recommend for MAIN:US? My thought was something in the 2.0 - 2.5 % range bearing in mind that if I make up the difference in the U.S. with another holding, I need to have a minimum of 1.0 - 1.25% available for that as well.
Many thanks!!!
Best to all at 5i!
Cheers,
Mike

Q: I have a hypothetical question regarding the $7,50 distribution that will take place later this year. Assume that I bought the shares at $10 and that the distribution was a return of capital. The ROC would reduce my cost base by $7,50 to $2.50. So if the market price of the shares dropped by $7.50 to $2.50 and I sold the shares at that price I would not have any gain or loss on the sale. Apparently, if my logic is correct, I would be pocketing the $7.50 with no tax consequences. Am I missing something? Or is this the logic that would preclude this distribution from being considered a return of capital?

Q: Hi 5i team,

Between BNS and ECN, which one would you prefer to own for better chance of share price appreciation for the next 3 years? I already have TD, SLF and GSY. Thanks.

Q: Hi 5i,
Regarding the preferred shares of ECN and the proposed sale and $7.50 dividend. This might be to simplistic, but here goes. ECN is selling the First Service division for $2B US. Paying out approximately $1.5B with the $7.50 dividend. Leaves $500M US. The preferred shares outstanding are approximately 7.6 million units of A and C issues. Total redemption value at $25 would be $190M Cdn. Their 5 year anniversaries are coming up on December 31, 2021 and June 30, 2022. With coupon rates of 6.50% and 6.25% on the prefs, I would think there would be redemptions coming using the proceeds of the sale and do any refinancing with cheaper debt.
What are your thoughts on the above scenario?
Thanks for all your professional insight and advice.