Investment Q&A

Q: I'm sorry . I meant to ask on LIF as opposed to LAB
it has a low P?E, High dividend yield and a high payout ratio of over 100%
Just wanted to gather your thoughts as to the sustainability of the dividend and the growth potential given the high payout ratio

Q: Although I'm generally a fairly conservative retired investor, I do have a small portion allotted to small caps. I'd like to pick up some LMN. However I wondered about the potential negative impact on share price in a challenging economic environment.

Not sure if this is a good reference / comparison, but I noticed CSU had four significant drawdowns of between 24-29% between the GFC and COVID time periods. I actually thought it would have been worse than that. Considering LMN is already down 15%, and assuming possible similar stock price action, I'm getting a bit more comfortable pulling the trigger even now.

I don't want to make this a predictive question, but do you think this stock price action is a reasonable comparison? Perhaps this is oversimplifying? Do we know if the valuation of LMN today lines up with the valuation of CSU back in 2008 prior to its drop?

Q: Which stock: HPS.A, PRL, TVK or VHI would have the most growth going forward? I take after today, it's best to wait a few days?

Thanks for your service!

Q: Your answer earlier today suggested CLS was not reliant on AI sales and was lower valued than AI plays and should bounce back faster from this panic selling. Can you suggest a reason why it has plunged so far (-26% today) and performed so much worse compared to almost all the AI stocks?

Q: Hello team 5i:

It seems that for better or for worse utilities seem to have entred into a "union" with Technolgy sector, thanks to the perceived putative need for high energy demands !

Therefore utilites espcially in the US no longer have an inverse relationship with growth stocks. So it seems to me. I thought they will play the role of a "stabilizers" for my portfolio. That has not been the case.

Any thoughts? Should I consider something else (sector or stocks) to lower the volatility? Can you give me some names, say 3 to 5 stocks in the US utility sector that are NOT involved with AI energy demand craze?

My Canadian utilites fortunatlely remain "boring" and chugging along nicely :) Of course I can collect some nice dividends plus in my non-regd account, dividen tax credit helps!

Thanks for your help as always.

Q: What is your view of this fund for exposure to US Large cap Growth names, with an investor comfortable with higher risk, over long term ? Mark Schmehl appears to have done a decent job with the funds he manages with Fidelity for 30 years.

Thank You

Q: This stock dropped 29%, Monday, along with several other names after Chinese app news.

Is it a good opportunity to start a new position or wait for a further pullback ?

How is the AI related business risk to its growth profile, compared to other names in the sector ?

Thank You

Q: With stock performance possibly to be flat or down for a year or more, could you provide a list of EFTs that could capture extra upside in such a market using options
In particular I’m looking for US small/mid cap ETFs with covered calls/put options for the next couple of years in the event the market is flat to down

Also, is it possible to access a “search tool” for such an inquiry as follows:
US mid cap
CC options
In CDN dollars hedged
Defensive sectors like utilities

Q: Hi Guys

It seems the pressure to increase spending on defense in Europe is overwhelming. One assumes that European nations would much rather spend that money with European defense companies versus US ones. Can you give me your 3 best European defense companies., preferably with US listings. And if possible could you give a statement of how these companies compare to major US defense companies like RTX.

Much thanks

Stuart

Q: Re Nuclear Growth I thought Uranium would be the play but I see the Builders of Plants are moving better then Uraniums ie SMR NNE SNC CCO owns 49 % of Westinghouse with Brookfield What are your thoughts Buy more NXE CCO or SMR NNE

Or others that you think would be a better play on NUCLEAR RAK

Q: On January 21st you replied to a question by Graeme "electrification" plays and one of companies in his list was GEV which had split from GE in April of last year. At that time I was looking at it and the stock was priced at about $137/share and today (early Friday), it sits at $437 and unfortunately I never pulled the trigger.

In your reply to Graeme, you noted that GEV had the highest valuation currently.

I am asking if that valuation is justified considering they are part of a team that is actually building SMRs. One (or more) for OPG in Ontario and just announced recently one for Tennessee Valley Authority (TVA) in TN. Of course that build other generating equipment as well.

Other SMR- associated stocks have recently jumped (SMR, NEE, OKLO) but none of these are actually building SMRs.

I would very much appreciate your thoughts.

BTW, I love your site interface because so much information is at hand. Thanks for all that the Team does for us little guys and gals.

Q: Good morning all. A very noteworthy announcement was made by Softbank in regards to BN being approached as a financing partner for the Stargate project. May we have your opinion at this early stage of the project. Thank you.

Q: Trading volume is good. Yield is similar to other cash savings etf but this has an advantage when held in a taxable account because it does not pay distributions. However it is trading for approx 1.5% premium. If there was no premium, I would buy it for a 9 month hold but the premium is more than half the yield I can expect for 9 months. Am I right that in my situation, pick another cash savings etf? To pay a premium is not a good idea for a cash etf no matter how good it is? What do you think? Thank you!

Q: Rigetti is clearly a very volatile company with lots of possibility for growth given the nature of its business, and it's current stage in its lifecycle. In your opinion, what differentiates Rigetti from other quantum computing businesses; and if you were to invest in this space is Rigetti your top option or are there other possibly more mature firms that should be considered.

Q: Here's a rewritten version: "Considering investing in NBIS, a Russian stock, for the long term. What are the key risks I should be aware of?",NBIS:US

Q: Good morning, just wanted fire off a note to say how appreciative I am with your timely communications. With this Deepseek announcement, I knew there would likely be some carnage with the AI stocks. I recognize that this could still adversely affect stocks like NVDA long term, but it is most helpful to receive your comments so quickly,

Q: Down 7.5% today (27/01/25). Is this possibly an AI related thing/

Q: What's causing TFII to buck the strong sell-off trend today? I don't see any news but there must be something up.

Q: Hello 5i,
Can you believe it I just bought up to 1/2 positions in NBIS, CLS, and VRT on Friday and now there all down 20 -35%. Where do we go from here? Have they suddenly lost their relevance? What would 5i do?
Thank you

Q: I heard that NBIS already has Deepseek. Why did the stock fall like 35% then and falling more as we speak.