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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: Retired, dividend-income investor. Can I have your latest thoughts on Leon's please?

I bought it over several tranches through 2021 to get to a "full" position and my average cost is $22.50. I am ok hanging on, while waiting for an upswing but also don't have a problem taking a tax loss and moving on. Not all investments work out.

Just looking for your thoughts going forward and what you would do?

Thanks...much appreciated...Steve
Read Answer Asked by Stephen on July 13, 2022
Q: Now that Savaria stock price has lowered substantially since the beginning of the year, I am considering it for my income portfolio with its 4% yield and some growth. Before I do, I have the following questions:
1. In your opinion, is Savaria a "Capital Intensive" company? -- Capital intensive companies don't perform well during inflation period.
2. What is the dividend payout ratio over cashflow?
3. How do you feel about the debt level compared to its free cash flow? and
4. In your opinion, to what extent will higher interest rates impair their acquisition strategy. If they can't aquire other companies, what is the risk the growth becomes anemic?

Thanks.
Read Answer Asked by André on July 13, 2022
Q: Hi, These two companies, which are leaders in the packaging industry ,and enjoy a positive view with 5i, have seen their share prices perform quite differently. Over a 5 years period, RPI has outperformed CCL.b significantly, but during past 12 months and more recently, CCL stock has shown signs of steady comeback, while RPI price continues to languish at 50% below its peak of $85, reached in Oct, 2020. We are aware that two companies operate in different segments of packaging sector and while CCL has a larger geographical reach, RPI's operates in North America, primarily. We used to own CCL.b few years ago, but sold our position and replaced with RPI units, about 3-4 years ago. Could you make a comparison of the two companies, with respect to their size, leverage/debt, business/growth prospects, insider ownership, current valuation and risk to assess, how they compare/rank on these metrics and the reasoning. Also today if you own them, what will be the objective - Income or Growth or Both for each. Thank You
Read Answer Asked by rajeev on July 12, 2022
Q: Just a note of interest about ATZ. I visited one of the mega malls 2 days ago and it was fairly quiet except for Aritzia. It seems to me that people still want their products especially young women. With this in mind is it not possible it could hold up through a minor short recession which is being touted? I would like to add today before it reports.
Much thanks
Read Answer Asked by El-ann on July 07, 2022
Q: Hi Guys
Just curious why you guys on more concerned about their stretched balance sheet.
Interest coverage is a mere 1.1x . There is also a ton of debt, net debt around 1.45 billion on a Market Cap of about 2.8 billion
Free cash flow also only covers about 16% or so. Will they have to raise more capital in the future?
Thanks Gord
Read Answer Asked by Gordon on July 07, 2022
Q: Without naming every company - I have full positions in most banks, insurance cos., utilities, pipes, telcos and renewables,

This is where I see some relative safety and the best yields.

With the dip and yields improving are there any names that stick out as very attractive and safe in going a little overweight on?

Read Answer Asked by Dave on July 07, 2022
Q: Could I please have your thoughts on an article in the Globe and Mail (july 4)with regards to CEO compensation in particular Shopify CEO with more than $25 million in salary and another $25 million in stock options in a year when the stock has lost 75% of its value. On a positive note I see CSU Mr. Leonard still owns more than 1 billion dollars in stock with no stock options.
Read Answer Asked by blake on July 07, 2022
Q: Everyone, I never believed the multiple at $160 per share and I don’t believe the multiple at $25 per share. What is the appropriate multiple for today and one year from today. I have held the stock since the summer of 2019 and I have added many times since. I believe the strategic plan the company has changed for the better, with added features to the software. Clayton
Read Answer Asked by Clayton on July 06, 2022
Q: Pinterest and Docusign have recently replaced CEOs suggesting a need to change strategies. They, and companies like Enghouse seems to be facing uphill battles to regain the positive outlook they had a couple of years ago.

Is it worth sticking with these companies to see if they improve, or is it wiser to take my lumps in small positions in these companies and consolidate into bigger positions in companies that offer more promise going forward like GOOG and BAM?
Read Answer Asked by Kevin on July 05, 2022
Q: Dear 5i,
I am thinking of eventually purchasing ENGH in the next couple of months for a 2% position in my TFSA.
Can you comment on their balance sheet. Are they pretty much debt free?
Can you see them continuing to increase the dividend every year?
Do they have significant insider ownership and are they buying back stock?
Is the recent price of $28.43 dirt cheap?
This stock will be a good test of my patience if I purchase it.

thanks
Read Answer Asked by Ian on July 05, 2022
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