Investment Q&A

Q: If you didn't have a full position in GSY-T, would you add on recent weakness? What is your long term view of this company?

Q: Any stock suggestions for replacement of BCE.

Q: Regarding BCE under performance. In your opinion do you think a CEO replacement is in order and might rejuvenate the stock price and give investors more confidence in management. It seems to me that the current CEO is "reaching" for growth by looking South to a more competitive market and it won't end well. Has the board at BCE ever replaced their CEO? If I understand correctly the CEO said the dividend was not going to change in 2025 and from your last post you stated the board might reduce it. Am I incorrect or is this another example of misinformation from the current CEO?

Q: Looking to start a position in Gold streaming - is WPM the best choice - could you provide the pros and cons of this. What are the other possible companies in this space and their brief pros and cons.
Thanks

Q: Hello 5i, Could you comment on the recent all cash transaction by H,I.G. Capital to acquire Converge Technology Solution, Thanks.

Q: One of your readers noticed that you made a great call on this one! Now that it's more in the public eye, would it still be worth jumping in after it's sudden and rapid price increase? If not, what are two or three other US stocks that you see as high growth over the relatively short-term to midterm?

Q: What is your take on the chances that America's 'economic war' on Canada starts by interfering or even seizing US domiciled assets, or ETFs listed by US companies, such as Vanguard and Blackrock? How much independence do markets have to let resources float without government interference?
It seems like a plausible escalation strategy that would quickly buckle any foreign country's finances, including Canada's.

Q: Hello 5i Team,
DEFI is my first step into the crypto world; what percent of a portfolio would you be comfortable with?
Thank you
Brent

Q: Is TRI worth getting into at today's prices after the recent jump? How favourably does it compare to some of your other favorite growth stocks? Incremental buy-in and slow accumulation today, or a larger position?

Q: looking for one Canadian Blue chip company to invest $2,000 yearly into a Resp for a 6 old.
Which would you choose of the above or could you suggest something better?

Q: Hi. I totally missed the boat on Palantir. When the stock was in the high 20s, my beliefs and lots of what I read was confirming that the stock was over priced (at least that is what I thought), and I felt same as the stock rose to the 30s, 40s, .... and now over a hundred. And I still feel that the stock will need to correct at some time, as it has a trailing P/E in excess of 500 and possibly a P/E of at least 300+ looking forward. I made exactly the same mistake with many other companies such as Netflix, Facebook, .... I know that small, newer companies can exponentially increase their profits as they grow up but there is no guarantee that they will be successful (let alone be excessively successful).
So my question is three fold (please deduct necessary credits).
1. What did I do wrong here? I watched the stock go up and up and never pulled the trigger, thinking it was always too expensive. I sometimes feel it is more of a meme stock.
2. Would you buy Palantir at these prices / why?
3. Do you feel that there may be some other companies out there that may be in their early days (or well established) with lots of room to grow. If yes, your listing a few of your top convictions, along with a sentence (or two) explaining your rationale and intuition would be greatly appreciated.
Thank You.

Q: Your thoughts on the most recent results for MCK would be appreciated. Thanks
Ian

Q: I hold AEM, T, TSU, ARX, CVE, BB, WELL and KITS.
Would you consider these holdings relatively safe from
possible US tariffs? I’m trying to figure out what to sell
now before this might happen and if I’m wrong buy back later.

Q: I noticed BlackRock filed a report with the SEC that it held 16 million shares of CAE. Is there any significance
to this that you might know of?

Q: Hi, is TVK priced too high right now? Thank you

Q: What is the expectation for BAM’s earnings and what growth levels do these represent from last year? Thanks.

Q: What do think earnings will be for DELL on February 27th 2025

Do you recommend its purchase ? RAK

Q: The Cerebras IPO, that has been delayed since last year, looks very interesting. I wonder if 5i has a view on if/when it will happen and considers it attractive.
Having spent some time working on wafer scale integration, it is a far more complex and challenging problem than they make it sound like.
Appreciate your insight, Peter

Q: Rob's question regarding Constellation not issuing new shares and any other companies, I thought maybe BRK fit that or because of BRK.B guess not.

Also not to nitpick but CSU and GOOG can't be compared in the non issuing equity even though not a direct comparison as you did say "To our knowledge, GOOG has not issued shares other than for acquisitions, which is not quite the same" as GOOGLE has issued insane amounts of shares via SBC and of course they buyback to keep share count BUT Is there not a better way? BEN HUNT says it well I think:

"When stock buybacks are used to sterilize stock-based comp (i.e., a company gives managers stock with one hand and buys it back from them with the other hand), no money is “returned to shareholders”. This is true whether or not management actually sells its shares into the buyback program.
Stock buybacks only “return cash to shareholders” to the degree that the buyback program reduces the share count. To the degree the buyback program does not reduce the share count, but simply sterilizes new issuance to management, it is purely a transfer of wealth from shareholders to management."

Thoughts or rebuttal to that?

For readers on Constellation:
Mark Leonard was funded with 25 million from OMERS in 1995 to start, they had one private placement in 2000 that Leonard regrets for 60 million (TD Capital – Birch Hill and OMERS), then going public in 2006 no shares were issued just provided exit for OMERS/Birch Hill.

The best things about them among never issuing new shares for acquisitions etc is they have no Stock Based Compensation or RSU/ESO and that combo is not replicated anywhere (plus executives and employees having to buy stock with parts of their bonus and hold for 4 years is great alignment).

This along with numerous other factors are why its my highest holding and you never worry about it, ever, 10 years reading your answers and your views have never changed on this company, you have always been a big bull and wish I didn’t wait until 2022 to buy or really understand the company!

Q: Hello, can you please provide your opinion of IXJ and whether you think it is a buy at its current price.

Also, if there is a different US healthcare ETF that you think is better please provide advise why and what you think a good entry price is.

Thanks as always for the advice.
Paula