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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: My portfolio has held up reasonably well so far in the current downturn , so I am not sure whether replacing ccl.b with Costco is worth doing. I have been reading positive comments about Costco and could use more US exposure. Do I want more US exposure in this environment ?
The reason for selling CCLB is that I still have a healthy profit in it and am considering protecting it.
My intent is that this would be a longterm decision,
and done in my TFSA where I currently hold
ccl.

Thanks in advance
Read Answer Asked by Leonard on March 05, 2020
Q: 5i Team,

I'm curious what I'm missing in analyzing GUD? They're about a week or so away from reporting the first results of the acquisition, which should start to put them at a run rate of slightly less than $300M in revenues.
They should also have, once the dust clears have about $300M in cash left.

No debt, incredible growth, and a cash hoard for another major acquisition and it trades below book?

What am I missing?

Thanks!

Read Answer Asked by JAIME on March 05, 2020
Q: I noticed a number of questions recently concerning STC and I thought your members may be interested in the response I received when I asked my Hedge Fund (who follow the stock closely and are bullish) about the recent results:

We thought the STC quarter was strong. Gross profits were up 20% YoY and cash earnings were up 89% YoY. They lowered revenue guidance but increased EBITDA guidance.
Recurring revenue (service business) as a % of revenue

20% in 2018

30+% in 2019

40-50% in 2020

*Margins have followed suite

The conference call was very informative and the focus continues to be growing recurring revenues and profits

Feel free to publish this if you think it is of value.

Cheers
Scott
Read Answer Asked by Scott on March 04, 2020
Q: Hello 5i
I've never participated in a Dutch Auction before. Is it likely if I submitted my shares at say $42 they would be purchased? If so, in this market, there is a good chance I can buy them back for less than $42 on one of the many market dips we are seeing. I might be able to gain 5+% in the process. Your thoughts would be most appreciated.
Thanks
Dave
Read Answer Asked by Dave on March 04, 2020
Q: Hello 5i team,
I've held a good number of stocks you hold in your BE portfolio and I've managed to obtain a 14% compound annual total return in the last 11 years.
100% of my portfolio is in equities; I'll be shortly 77 years old and plan to reduce my equity exposure to 30%, with the above stocks in mind.
Your opinion is most valuable
Antoine
Read Answer Asked by Antoine on March 02, 2020
Q: Two questions: i) You have previously voiced concerns with respect to NFI production control issues and ii) there appear to have been several additional contract awards to NFI in recent weeks. Do you consider the production issues have now been addressed and no longer a concern and, do the additional/cumulative contract awards represent a significant improvement in this company's outlook and is this a decisive move by purchasers of mass transit vehicles? I appreciate there is unlikely to be a short term profit bump but if there has been a productive move or change in purchasing trends do you expect the benefits will mostly accrue to this company and in the longer term. Thank you for your response.
Read Answer Asked by Mike on March 02, 2020
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