Investment Q&A

Q: How do you see the real estate sector performing over the next 12-18 months? In an otherwise balanced portfolio, I currently have no real estate holdings. Would you suggest I add here and - if yes - would you opt for RIT or DIR.UN? It would be a 3% total weighting. Alternatively, I could purchase either OTEX, EIF or PRMW. Looking for a combination of growth with a fair-sized dividend and moderate risk. What would recommend - and in what order (strongest first)? Thank you.

Q: 2 for 1 questions...

1- What is the average PE for the construction industry as it appears that URI misfortune may be linked to the residential slow down. What is the forward PE for URI?

2- It appears that TD is the most shorted of all banks throught the world according to Bloomberg. That's not a small statement. Having said that, would you buy now or wait for a general bank recovery?
Sorry this makes 3 questions. LOL LOL

Yves

Q: I am looking to initiate a position in Canadian Telecoms and noticed that only BCE is present in your Income portfolio (4.5 %). Nothing in Balance or Growth. No Telsus either. Could you elaborate your reasoning please.

Q: What would you do with doo today if owned at a loss.

Q: Hi, Why has the stock dropped sharply over past 2-3 days, including this morning ? Thanks

Q: What do you think of WSP's purchase of Calibre? Good deal? Will it have much impact?

Q: There was a recent question as to the significance of GSY's $41m credit risk at Canada Drives and why it was not reported, I asked this very question of a Hedge fund tht holds GSY and below is their response. Feel free to publish if you think it will be of interest to your members.

"The are a few moving parts to the Canada Drives story.

The business is split into two segments 1. Retail 2. Lead Business

The retail business is the new business that was losing money and is being wound down. They expect to liquidate their inventory over the next couple months and pay off all existing debt facilities.

The Lead business was Canada Drives original business from 2010 and has been consistently profitable. It generated $11m in EBITDA on $86m in sales in 2020. This business is asset light and doesn’t take the balance sheet risk like the retail business did.

GoEasy owned $40m of the $50m of convertibles notes. The court documents show that GSY may acquire or end up owning the Leads business which has been stated that it will continue to operate.

Overall, I don’t think GSY disclosed much of this publicly because it doesn’t breach materiality. $40m of capital on a $2.9B enterprise value."

Q: DA Davidson has downgraded DOO. They said,

“From conversations with our dealer contacts, we estimate March ORV retails ales were relatively in-line to slightly weaker than what dealers experienced in February,” said Mr. Rolle.

How accurate are these type of checks?
Thanks

Q: Is the TRI reverse split effectively a share buyback? What are the advantages to this approach as opposed to a NCIB? Do you view this news as a strong positive for the stock or this basically neutral?

Q: At the time of this question, I haven't yet seen anyone ask about TRI's move today. Great about the special dividend, but I haven't been able to turn up anything about what constitutes their 'share-consolidation.' Sounds somewhat ominous. If you have some detail, it would be greatly appreciated.
Thank you as always...

Q: Hello,

If you ultimately think Go Easy will be fine. And as per their CEO at the National Bank conference saying that they will “continue to grow and meet targets”. How is this not a buying opportunity with the company down 25% and out of favour?

Q: I recently flew Air Canada from Toronto to NYC and Fort Lauderdale Florida and on both flights the planes were operating at pretty high capacity. The plane tickets were crazy expensive. Westjet has really contracted the places it flies and their frequency and AC seems to have practical monopoly on certain routes. I know that does not replace fundamental analysis but it means something.

Q: I have 3 positions at a total equity weight below 0.5%. Which one I should consider selling or increasing position size?

TOI (Size 0.39%, small profit)
MG (Size 0.41%, small loss)
GSY Size 0.54%, substantial loss)

This is in a well-diversified portfolio.

Thank you.

Q: I have 60K to invest, which 6 companies in each Growth Portfolio and Balanced Equity Portfolio would you recommend in a TFSA?

Q: With all the volatility we are seeing, I am looking at trading a few stocks so I would like a few suggestions from you. These should be names I wouldn't have a problem holding if the trades don't work out. Both US and Canada. Thank you in advance.

Q: Hi 5i
I thought one of the Canadian banks (National?) had a large interest in FSZ. If this is the case would it be less likely that FSZ would consider cutting the dividend ?
Your thoughts on the dividend safety at this time.

Thanks

Q: Hi, On his BNN appearance, Feb 13, Peter was very positive on the stock " We do consider it one of the best industrial stocks right now." Peter also indicated having visited the facilities/plants and met the Management, at the time he owned a large chunk of the Co., while managing funds for a large Canadian institution. Stock has seen a phenomenal run over past 9 months (+65%) and YTD +30%. ATS also appears to have grown to a 7% weight in the 5iGrowth Portfolio.

We have taken a starter 1% position, over past 2 weeks, to complement Industrials in our portfolio.

Could you (Peter) kindly share your current view of the company, with respect to its management, valuation, debt and Growth prospects. Also, in light of such a strong run up in the share price, would you still be comfortable adding at current levels or wait for a pullback ( If it happens, at all ), for a long term investment ?

Thank You

Q: I an down about 25% on gsy. Would you suggest to hold, sell or buy more on this down turn? And do you think that the company may reduce their dividends as well? Would appreciate your advise here. Thank you

Q: Goeasy has always traded at a reduced multiple due to the risk of the government lowering the maximum legal interest rate. Now that has happened, do you see a multiple expansion opportunity once GSY has proven they can still grow the business? Also, do you still see it as a dividend growth story?

Q: Your thoughts please on the quarter?

Thx