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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: No question on CoStar (CSGP) in the database.

Great Cash Flows, low Cap Ex. Grew Reneues and EPS roughly at 10x in 10 year with only ~2x share count increase. Something good is happening here. However, on P/E basis, it is really expensive.

With Gross Margin at 80% and 20% Net Margin I don't understand why ROE is so low (<10%).

Balance sheet is fine with very little debt. Digitizing conservative industry (real-estate), which appears to have good long term growth opportunities.

Is that a US version of Altus Group? What do you think of the Name?
Read Answer Asked by Jennifer on November 16, 2020
Q: Hello, looking for emerging markets, ETFs you recommend ex China and ex India (as I already hold INDY and FXI). Also looking for non-Canadian REIT ETF recommendations (I hold XRE). Finally what are your thoughts on preferred share ETFs and which would you recommend (Canadian or not) outside of CPD.
Thanks!
Read Answer Asked by Sophie on November 13, 2020
Q: Hi again,

I asked a question about SAFE the other day. Thanks for your answer there.

I was actually asking because of the I didn't know whether the new public offering represented a positive or a negative sign. Can you comment on that?

Also, they talk about offering these shares at $61 until Nov 13 (tomorrow!) which is lower than the market price. I am a shareholder and would be interested in buying at this price, but am not sure if it's available to me or how I would acquire the shares.

Feel free to make this a public question if you think the information would be useful to other members. If you could reply in time for me to buy the shares (if I'm able), I'd appreciate it but don't expect it.

Read Answer Asked by Kevin on November 13, 2020
Q: Hello 5i Team
The Northview Canadian High Yield Residential Fund Class A units, initial public offering has closed and the units have begun trading on the TSX as NHF-UN.
The units are trading today (Tuesday) around $13.00 up from the IPO price of $12.50.
The website “northviewfund.com” does not offer much information yet other than the initial prospectus and IPO marketing materials.
Questions I have are as follows:
1 – How does a “closed end fund” differ from REIT from an investment and/or taxation perspective?
2 – Is this a reasonable investment, given a three to five year hold.
3 - When compared to the other residential reits (BEI.UN, CAR.UN, IIP.UN, KMP.UN, MI.UN and MRG.UN), how does NHF.UN rank?

Thank you
Read Answer Asked by Stephen on November 11, 2020
Q: I intend to reinvest the proceeds from the NVU.UN buyout settlement. I'm looking at TCN or IIP.UN as replacements. I'm leaning towards buying TCN to diversify a bit into the USA housing market since I also hold CAR.UN and to avoid the effects of the Ontario rental rates freeze. Total hold for the two holdings would be about 6%. What is your view of which of these options to chose and also would you suggest a third alternative?

I realize that market timing questions are almost impossible to answer, but given the very recent bout of almost irrational market exuberance, should one buy now, make a partial buy now, or hold off a bit?
Read Answer Asked by John on November 11, 2020
Q: I'm confused about the price action of FSV today as opposed to CIGI. Both derive most of their income from the property sector, though in different ways. Yet FSV is down over 5% today while CIGI is up almost 10%. Since I've seen no company specific news I'm assuming this is in response to the vaccine news. What I can't figure out is how CIGI comes out so far ahead with a vaccine but FSV will lose out.
Read Answer Asked by John on November 09, 2020
Q: Hello 5i,

Our portfolio has 1% in each of CAR.UN, IIP.UN, and KMP.UN. Of the three IIP has seen a major correction. Is there a specific reason for the weakness in IIP compared to the other two? Would you be adding to the above positions now or wait until tax season is over?

Cheers,
Debbie and Jerry
Read Answer Asked by Jerry on November 09, 2020
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