Investment Q&A

Q: So where are we on this stock now, up 43% in the last year, more future here now.
Thanks again

Q: Is NFI's financial position improving any?
Wondering if I should dump these shares in a TFSA or hold for 3-5 years.

thanks,
Paul

Q: Did Coliseum "engineer" any changes to senior management in exchange for the cash infusion? I assume they now have seats on the Board Of Directors.
Thanks,
Jim

Q: Hi 5i,
I'm real confused by all the goings on with NFI, and all the conflicting views, and do not understand this world of high finance at all.
I think a private firm just bought 38 million shares at $10.10, giving NFI cash to draw on to pay down debt - and that private firm might actually have been a large creditor, so perhaps it gets paid back with some of its own money ...?
Be that as it may though, I expect it put up that kind of money believing it will profit handsomely, and I wonder how it would plan to do that. Will it hold the shares until they've appreciated significantly and then sell them, or would it have something more sophisticated in mind?
National Bank presently rates NFI as an outperformer with a $15.00 target, and Morningstar pegs its fair value at $21.15 and describes its financial health as "moderate". CFRA meanwhile dubs it a "strong sell" with negative valuation, quality, growth, street sentiment and neutral momentum.
I can't make hide nor hair out of all this contradictory information, but I do get the sense that a buy in now might be more than just raw speculation - is it possible that NFI right now represents a compelling value story, or is that just wishful thinking?
I believe your opinion has recently been very negative and you've dropped coverage, but do any of these recent events serve to change your view, or would you still recommend staying very far away from this one.
Thanks 5i,
Peter

Q: what are your observations on NFI refinance actions?

Q: You have recently dropped coverage on this company due to several detrimental factors. Would you therefore sell this company and deploy the capital elsewhere? It’s a kind of rhetorical question which I want to ask. Thank you.

Q: You recently dropped coverage of NFI at $11.34 after initiating coverage with an A- rating at $54.51 in November 2017, for a loss of ~80%. When you reflect, are there any lessons you take away from the experience? Did you miss something in your initial analysis? I'm curious to hear how you reflect on what in hindsight was a poor investment and if you have any new insights or changes to your approach moving forward to try and avoid similar results in the future. Looking at the company snapshot from November. 2017, would you still agree with your A- rating with the information that was known at that time?

Thanks!

Q: Similar to a question you responded to recently. I hold the above stocks....all in the red....and wondering if I should hold or sell and replace with another stock....and if sell, please suggest a replacement.......Thanks for your insight....Tom

Q: If you already hold NFI at these level, would you sell and move on or does the risk / reward make sense for a few more quarters or longer term?

Q: With the rush to electrify economies, and reduce reliance on fossil fuels, many Co.'s will experience strong growth over the next several years. Can you provide a list of 6-8 Co.'s with strong fundamentals, that trade in Canada, from various affected sectors that you feel stand to benefit by this coming move to electrification. Please rank them from best growth prospects to least. Thank you and please take as many credits as required. ...Will

Q: Unfortunately I am down over 50% on all these stocks (held in my TFSA). I am “cleaning house”.
Please give your opinion as to whether any have the potential to recover and are worth holding for a bit longer.
Thanks for your help.
Len

Q: In your monthly reports, you have been rating NFI as B. At the same time you have been advising against acquiring it at this bargain price because of high debt load. Could you please explain how do you rate the companies?

Q: NFI has announced a package of initiatives which I assume are intended to address their burgeoning order book. There are a bunch of questions which arise as a result of their action including but not limited to adequacy and effectiveness, dilution, balance sheet improvement, residual problems etc. Could you please appraise their initiative and offer your comments?

Q: Your observations on todays earnings please.

Q: What is the #1 problem with this company?, poor management? supply chain?. It seems they get all kind of orders, make basic buses, electric buses, what they just cannot deliver the product. If the supply chain improved would it make much of a difference or are there to many other issues?
Thanks Again

Q: Hi 5i,

In Sept 22 you gave NFI a "B" rating. You commented that it is a little on the risky side.

Do you think the Balance Sheet and Cash Flow are strong enough for an investment in their convertible debenture (NFI.DB) which is due in 2027? I realize their would be no conversion possibility with the bond.

Thanks for your opinion on NFI.
John

Q: Good morning Team,
In a registered growth account, for min 5+ years hold. Which ones to keep, to sell, or to add
Cura 11%$ -60%
NFI 12%$ -70%
SIS 55%$ -15%
TOI 23%$ -44%
Thanks
Regards

Q: I bought these shares today at the open after I saw the news of the amendments to their credit facilities and government support.
Is this company another Bombardier or is there a real turnaround opportunity here?

Q: The following are some of the companies I’ve lost money with and will sell for tax purposes. I am wondering what your opinion is re their repurchase as commented on below.

The following I don’t feel I need to buy back, unless you feel differently.
NFI, QST

The following I would like to buy back ASAP unless you feel otherwise. Considering the state of the market do you think I would need a proxy for the next 30 days?
CRWD, GSY, META, NVEI, ROKU, WELL

The following are stocks I would like to buy back but don’t see the urgency, considering how the market currently views these companies, notwithstanding their financial outlook.
COIN, LSPD (I already own SHOP), U, UPST

Thank You.

Q: Hello , following is my list of losers .. and I am assessing which ones to sell this month for YE capital loss. I appreciate your comments.

As an aside; in watching the huge drop in some of these stocks, one certainly wonders about the wisdom of their CEO's ... as an example META, they are spending billions on Metaverse so that people can work and play and interact in virtual reality .. maybe in the year 2050 !!. and many others that just didn't adopt their businesses to people post Covid returning to work and shop at malls... truly incompetent .. For me, this crash has convinced me to buy shares in companies that are making money and have a strong management team.

Thank you
Carlo R.