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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: If Canada Goose was to beat estimates soundly as is their history for the coming quarter earnings (large share price increases follow reporting), how would this be viewed in the current market? Or would the current down draft ignore this and continue the downward pressure. For that matter if any company was to beat estimates this quarter is the selling pressure too much to overcome?
Read Answer Asked by Mike on January 24, 2022
Q: A follow-up question on Shopify. If someone has already asked, disregard.
What impact will/did the news have that the company was terminating fulfilment contracts with some providers? In your opinion, is this a positive or negative? Maybe a positive that they have found a better way to do it (themselves) or a negative that things aren't working out as planned? Should the company have anticipated the reaction to the news and had a better prepared statement to deflect some of the price reaction? Finally, do you consider this a gradual buying opportunity?
Read Answer Asked on January 24, 2022
Q: What is your view on the downfall of Shopify? It's dropping way more than the market weakness. I believe the fundamentals are solid but this market and shop's performance makes one think twice. What is your take on what's happening? What support level will kick in and stop the bleeding? When does it report next and what does it need to report to be classified as good results? What do you anticipate? I have a small position that is getting smaller each day and am thinking of increasing my position.
Read Answer Asked on January 21, 2022
Q: As a long time member it seems to me previously 5i indicated a 1% position was too small to help performance in a portfoilio. Lately you have been adding 1% positions, why the change?
Read Answer Asked by Charles on January 21, 2022
Q: With the business update from WELL I'm reminded of a similar update from GSY in the depths of market turmoil in 2020. I think GSY re-affirmed their business at a very low stock price ($12? maybe $20?). Had I been wiser and more knowledgeable at the time I would have bought more then and I didn't.

I'm curious why one would not add to (or start) a position in WELL today?

Thx,

Cam.
Read Answer Asked by Cameron on January 20, 2022
Q: I see that WELL is planning to initiate a buyback program to take advantage of the drop in share price. Are you confident in management's assessment that the share price in undervalued? The price has still more than doubled in the past two years which is a steep increase. Also debt is almost 40% of it's market cap and they aren't currently showing any earnings. How will they fund future big acquisitions to continue this growth?

If we are confident with their assessment of value and their ability to execute going forward, should we not want the share price to drop further to make the buybacks more effective? In which case, why are they releasing material to pump the share price back up?

If the answer is that they need the share price higher to help fund acquisitions by diluting shareholders then the buyback program seems misleading.
Read Answer Asked by Alex on January 20, 2022
Q: Hi 5i.
While I have never been a fan of TD Bank Locking my sister in to GIC's for her childrens' RESP, I have remained quiet on the topic.
I can no longer do that so I turn to you for some information.


For the Market linked GICs held from 2016 to 2021 - 5 years - DESPITE MARKETS and SUB Indexes being near All Time Highs, TD Bank has told my sister the maturity value of the Linked GIC is the "Minimum Guaranteed Interest Rate of 0.389% total.
Instead of the 20% Max Payout that I can easily calculate based on annual sub index values.

It is my understanding these Linked GICs are a structured product with two pieces; zero coupon Bond and a futures contract. If Markets are at all time highs (annual index values below) how can TD Bank claim the product meets only the minimum interest payment? Do you have any insight into these products or know of a resource. The reason we are in the dark is due to the Financial Planner at TD saying, "sorry I can't help you understand that, it is calculated at head office".
(side note: I wonder if this Planner will be able to sell this product after the March Know Your Client changes? The TD Product is obviously not known to the Branch Planners)


The GIC - 50/50 link to TSX Bank Index and TSX Utility Index


Bank Index Values(Jan 3, 2017 thru Dec 31 2021:
3169.62, 3467.88, 3067.94, 3398.64, 3326.3, 4418.27
Utility Index Values ( Jan 3, 2017 thru Dec 31, 2921)
235.05, 250.41, 216.78, 290.84, 319.5, 343.21


Are these products just a TD Bank Scam and will never pay out?
How can the Markets be at all time highs, after a massive run from March 2009, and this TD Bank Market Linked GIC ONLY payout "Minimum Guaranteed Interest of 0.389%?

What are the steps to make TD Bank prove this outcome?
At Branch level they claim ignorance.

PS.....Unfortunately it does not only pertain to this year. Now I have to go back to each of the past three years to see if only minimum interest was paid instead of my calculated max Payout.
Read Answer Asked by Dave on January 20, 2022
Q: Hello!
What is the likelihood of WELL needing cash giving the share price drop, potential acquisitions, and value returning (or not) to the sector. Are we taking on unnecessary risk holding it at these levels under water? I really like the execution team and their strategy, but sometimes there are things the business cannot control. Would love to see them continuing expanding paying penny on the dollar, I don't see any insider selling so far at glance, encouraging.
Thank you!
Read Answer Asked by Etienne on January 20, 2022
Q: Hi,
Trying to decide whether to top up Boyd to a 2% position or sell it and buy Magna instead. No tax implications. As an fyi we also own DOO @ 2% incase that impacts diversification. We’ve been a happy Boyd share holders for years- thank you! Just wondering which company you think has more upside going forward.
Thanks for all that you do!
Kerri
Read Answer Asked by KERRI on January 19, 2022
Q: Having held SHOP (TSX) for a number of years, it's discouraging to watch it whither away. While this downturn plays out, would it make sense to short the US version of the stock? Obviously, there are considerable risks involved and it would require close attention for entries and exits, but it seems like this might mitigate some of the losses. Or is this a dumb idea? Thanks.
Read Answer Asked by Michael on January 19, 2022
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