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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 Peter, Ryan, and Team,

In a TFSA with PKI as the only "energy" holding, would you be OK with a switch to ENB? (Higher yield, lower beta, more conservative) The recent dropping of PKI from 5i's portfolio is another reason, and it's been quite a "dog" for me.

Thanks for your continued insight as we navigate this difficult market.
Read Answer Asked by Jerry on May 05, 2022
Q: If you had to pick four out of the above names to add to today, which would you choose?
Read Answer Asked by Andrew on March 21, 2022
Q: All three reported tonight (March 3). What are your thoughts on the results and would you rate them a buy/sell/hold and why? If a hold, what would you see as a catalyst to get each of them moving? Thanks for all you do.
Read Answer Asked by Randy on March 04, 2022
Q: In my RRIF account I hold NTR which has broke two of my sell/trim thresholds. It has grown by 100% and is now over 7% holding in this account, so I may trim back to a 5% holding. My short list to replace with a higher dividend income in mind are ACO.X, EIF, NWC, and PKI. Could I please get your ranking and if any should be removed from short list.
Read Answer Asked by Roy on March 02, 2022
Q: Hi Peter, Ryan, and Team,

I and others have recently commented on Parkland's relatively poor performance lately. PKI is held in our son's TFSA (which I manage). Being reluctant to sell at a loss, I've held off, hoping for better days ahead.

I found this analysis (from National Bank Direct Brokerage) and am curious if you agree with their assessment, or should we take our lumps and move on?

Could changing the sector index help PKI?
We note that PKI is classified in the S&P TSX Energy Index, which could be
misplaced given that retail constitutes >40% of its business. In our view, PKI’s
share underperformance is related, in part, to fund flow imbalance (given
that PKI doesn’t benefit from rising commodity prices). We further note
that many peers, including Alimentation Couche-Tard, Casey’s and Murphy
USA, are in the Consumer Index (either Discretionary or Staples). With a
growing non-fuel business (including the recent M&M acquisition), sector
reclassification for PKI to the Consumer Index could direct investor focus
more toward PKI's operational performance versus commodity exposure (it
could also help to reduce share price volatility in the long term). We remain
constructive on PKI given ongoing end-market recovery, attractive valuation,
and anticipated future accretive acquisitions.

Thanks in advance for your continued help as we navigate this difficult market.
Read Answer Asked by Jerry on February 24, 2022
Q: PKI's recent poor performance is well-documented but am I interested in a deeper dive as to why. Should its fortunes not have improved with the rise in oil prices? Or is the sky high price of fuel at the pumps resulting in lower volumes and thus decreased traffic in its high margin stores? Or is it something else? I have been a long term owner but my patience is just about exhausted and I am skeptical at best about the M & M acquisition.

Thanks for your views.
Read Answer Asked by Kim on February 07, 2022
Q: Hi Peter, Ryan, and Team,

Like many members as well as 5i, I am increasingly frustrated with PKI. For example, it dropped 5.2% on January 18. :(

We hold PKI in both my wife’s and my RRIFs. Both holdings are still up, but I’m considering exiting PKI while we’ve still made some money.

I was considering equal purchases of SU, CNQ or CVE, TOU, and KEY for each RRIF (2 for each RRIF). Would you be OK with such a move? Please rank these 5 stocks for safety and upside.

Another move I was considering is to raise our US exposure by buying Vanguard’s ETF VDE. (According to Portfolio Analytics, we’re underweight in the energy sector, as well as USA). Would you endorse this purchase, which would be for our non-registered account? Am I correct in assuming that any withholding taxes shouldn’t prevent this purchase in a non-registered account?

I also manage our son’s TFSA, and unfortunately his holding in PKI is down by quite a bit. I intend to hold it, but would certainly exit it if 5i drops it from the Balance Equity Model Portfolio. Is 5i considering such a move?

Please deduct sufficient credits, and thanks as always for your insight and guidance.
Read Answer Asked by Jerry on January 21, 2022
Q: Which of the above names would you be comfortable adding to today? Of those, what would be the priority order for additions? Finally, are there a couple of other names you would see as strong buy candidates to throw into this mix that are trading at attractive levels today?

Thank you!
Read Answer Asked by Andrew on January 17, 2022
Q: Could you please provide your top two picks in both the materials and energy sectors?
I don't have any investments in materials now and wonder if I should have something. Currently I hold ENB and PKI in energy and am thinking of switching PKI for TOU or SU.
The remainder of my portfolio is well balanced and as a retiree stability and income are more important than speculative growth.
Read Answer Asked by Lyle on January 14, 2022
Q: Hi Everyone,
Lately PKI seems to be on a downward trajectory. I am wondering if it's time to sell the stock, or do you see it rebounding this year.?
Also, I would like your opinion on DHT.UN. I know nothing about this stock,but it has a very attractive dividend. Does it have a lot of debt? How safe is its dividend and does it have any growth potential?
I appreciation your opinion.
Thanks,
Jane
Read Answer Asked by Jane on January 12, 2022
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