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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: 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,
Read Answer Asked by Peter on August 28, 2023
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?

Read Answer Asked by Adam on August 11, 2023
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
Read Answer Asked by Tom on July 18, 2023
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
Read Answer Asked by Will on June 21, 2023
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.
Read Answer Asked by Leonard on June 02, 2023
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?
Read Answer Asked by Mike on May 15, 2023
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%
Read Answer Asked by Djamel on January 17, 2023
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.

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?

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.
Read Answer Asked by Walter on December 14, 2022
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.
Read Answer Asked by Carlo on November 07, 2022