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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: hello 5i Research team,
When you answer that Magna be among the companies that will benefit from the increase trend toward sales of EV: can you elaborate on how and why, and also which of MG reporting segments (body exteriors & structures; power & vision; seating systems; complete vehicles) will benefit and especially how will it benefit. I cannot specifically identify a winner. My intuition says « power & vison » will probably loose from the transition out of oil (it represents about 30% of sales: which is about appropriate for an entier vehicle). Therefore if I am correct, there is no specific advantage for MG from the transition to EV. Please enlighten me. Thank you for your collaboration, Eric
Read Answer Asked by Eric on November 10, 2021
Q: On Nov 9 you said: We don't like stepping into such negative momentum, and would hold off for now.

On Nov 4 you said: The stock is very cheap right now, but with some disappointment and maybe year end tax selling, we think it could remain under pressure. We might do a partial position at $5.50.

Hmmm. Such conflicting advice doesn’t inspire confidence. Which is it?

I am a long term believer in the Warren Buffet approach to investing. Study a company and its business in depth and determine if it is a sound, long term investment that you hope to never sell. A business in which you can trust management to make sound decisions to grow the business. Is AT a business worth investing in for the long term or not? If it is, then should you not be advising subscribers to buy more the cheaper it gets? It has $1/share in cash and could buy the company at current prices with its own cash in about 5 years time. Am I wrong?


Read Answer Asked by David on November 10, 2021
Q: Continues to drift lower. Would you be buyers? I suspect there are some further tax loss selling going on.
Read Answer Asked by Chris on November 09, 2021
Q: I read your answer on DND this morning and you noted they missed EPS expectations.

I was trying to figure that out after the earnings were released yesterday but it seems pretty muddy to me with the shares, debentures, diluted eps/non diluted etc. The EPS expected on the TD site was 21cents and if you take shares outstanding (listed on TD at 68.1m) I get 32cents EPS on income of 22.1m.

So to break that down what did you see as the expected EPS and on what basis was it?

Also I cannot find any information on the debentures (other than the amount raised and the nominal denomination) and at what rate/level they are convertible. Do you have that information?
Read Answer Asked by Graham on November 09, 2021
Q: Looking at the concern over rising interest rates I took EIF as an example of the effect,
EIF has a dividend of approximately 5%, the equivalent interest rate would be in vicinity of 6%.
So if my calculations are right interest rates have a long way to go to have a material effect,
In this case also we have some growth and the possibility of acquisitions.
So should I be concerned about the effect of rising interest rates on EIF?

Roy
Read Answer Asked by Roy on November 08, 2021
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