Investment Q&A

Q: Internal Damage?

When companies go through a major drop from their 52 week high (TSGI -60%, SIS -41%, GRUB-51%, NVDA-53%, KXS-35%) What kind of internal damage is created? I'm thinking employee moral, to stock options, to the ability to finance future growth? Other items? It's very tempting to continue to average down (although my dry powder is getting low) but when a company loses 40%-50% of it's value is it the same company anymore? Or is buying something like a Microsoft (down only 11%) a more prudent investment? (i.e. it hasn't breached a point of internal damage)

My holding period is very long, but I'm wondering if the current steep discounts currently are somewhat false illusions...

Q: Hi 5i, On September 19 a client asked you a question on this stock and its price peaked at $0.45 that day. Here is part of your response "At $220M market cap, each 'future' location is being valued at about $4M, which seems high to us for a small retail outlet."
Stock is now $.05 - market cap 28.55 million. With the managements experience running Solo Liquor stores, does this seem like a good entry point, this would of course be risky and speculative as it is the Cannabis space, negative momentum etc, I am not looking to add a ton of money to this but maybe a 1% position, what are your thoughts on the company now? Recent update states they hope to have 25 stores open by end of 2019 and are focusing growth on Ontario now. Also, with Ontario possibly opening up liquor to private retailers this could be a play on that as well. Thanks for your advice.

Q: Can you comment on why Onex has been so terrible in terms of this years performance.....and what you think it's prospects for 2019 are?Also is Vermillion dividend safe in your view?

Q: Hi 5i,
Can I have your opinion on averaging down on these in the current climate, say in the next few days,. Without regard for weightings,risk profile etc, could you rank them in order that you would chip away at them?
Thanks

Q: Hi guys,

I look to hold companies that are able to maintain a reasonable ROE despite being debt-free. Some of the companies that I currently hold that meet this criteria are ENGH, TOY, CSU (pretty close), RCH, VCI (very small cap).

Can you suggest 5-10 more debt-free companies that screen well to you guys?

Thanks!

Q: Hi Folks
Looking to add some companies with the following qualities to my portfolio. 1) in a fast growing non-cyclical industry 2) must be the best company or companies in it and 3) excellent management today and hopefully, in the future - can you provide some names that you feel meet the three criteria.
thanks for a great service

Q: Hi Team

Can you name 5 companies that have good growth and value after the recent sell off. Also do any of them you feel comfortable about being overweight.

Thank you

Q: Hello team

Can you name your 3 favorite companies in Financial, Industries and Technology sector. For both Canada and the US.

Thank you

Q: What is your opinion of this company

Q: I have owned TRI for many years in my RRSP and have finally been rewarded with share price momentum. With the recent sale of the financial and risk business, I am now confused on their future direction and growth drivers. Does it make sense to sell and move on? I was thinking of replacing TRI with BBU.U. Thoughts?

Q: Hi,
For the Industrial portion in my RRSP account, I am considering the above companies. With RTN, I wanted to diversify outside of Canada with a large cap stock. Do you see any issue with this company at this time? Is there something else you would prefer? I know you don't cover the US but respect your opinion.

As for the other three (TFII, TCL.a & NFI) could you rank best to worse buys at this time? I am considering adding 2 of the 3 to limit the number of stocks owned. My criteria are: to hold for long term (5 to 10 years), lower impact by any slow down of economy, good growth in dividends and low leverage. Is there another stock or two that would be better than the ones I am considering?
Thanks as always for your help.
All the best,
Dan

Q: I have just read about this company which trades on the Nasdaq.
see attached link:https://www.forbes.com/sites/afdhelaziz/2018/07/24/how-loop-industries-is-becoming-the-intel-inside-of-the-circular-plastics-economy/#6a5d3d1e1fd7.
I would be interested in hearing your views and whether or not you think this would be a good company to invest in. We know that we are drowning in plastic and this company seems to have the technology to do something about it.
Look forward to your comments.
Shirley

Q: An analyst from Citi has warned that “debt service ratios for non-financial firms” in Canada are very high, and a crisis is possible within a year. Is it safe to assume that none of the companies you recommend would have any trouble servicing their debt (TSGI, SIS, PBH, COV, TOY, etc)? Do any prominent names come to mind which might be at risk? Thanks for your thoughts.

Q: How do you feel about the various debt metrics at TCL?

Q: I have a small position in shop with a very nice profit I am pondering selling it to add to tsgi gsy and kxs averaging down on these 3. the shop position is to small to sell half. what are your thoughts on selling shop and proceeding?
Thks
M

Q: So looking at the bid price of $4.91 (down 20.29%%)and taking into account your comment on if it reached south of $7.00.....A good time to take a position. Anything fundamentally change just recently? other than the div cut.

Q: Hello 5i
1) On Nov. 28, 2018 your answer to Charlie regarding CGX was, "a stock that can decline 29% in a year is likely not right for a retiree". As a retiree myself , and down 30% plus on WCP, DOL and KWH.UN, would your answer be the same? Also, would you sell them now, and could you suggest replacements?
2) Including the market we are presently in, is there a percentage decline in price that you would suggest a retiree to cut losses and sell? Thank you for your help. Happy Holidays to Everyone at 5i, Bill

Q: in your opinion not knowing what I own what would u say is your number one stock in the USA and what is your number one stock in Canada. I understand lots of factors but just your opinion?
thanks for all your help merry xmas

Q: Hi. I contributed some money to my RRSP account and would like to buy 3-5 stocks that have a lot of upside potentials given the latest drawback of the market. Though I have a 10+ years holding period, it would be nice to see short term gain. I don't mind buying US stocks (or Canadian stock) if you can recommend.

Q: Hi
What would the BE portfolio performance be without CSU Constellation Software be as holding over time? What if it was a company listed outside of Canada. With this thought, are there any companies outside of Canada that you would consider the same caliber as CSU (same sector is not important to me)? Sorry for the outside of Canada question but I am hoping to add some diversification over the next few years.
Thank you
J