Investment Q&A

Q: So, as followup to my question on MG/LNR, you suggested to XCD or "go drectly".
Does this mean buy equal parts MG/LNR/MRE to create my own little ETF?
Thanks for the clarification.

Q: Why is Magna being vastly outperformed by Linamar and Martinrea?

Q: Thinking of selling MG at a 30% loss and buying ATS for a quicker path to recouping my 30%. Your thoughts please.

Carl

Q: Hi Team,
Understanding that weightings are personal, what is the highest weight that YOU would be comfortable with before trimming the stocks above?
Thanks

Q: I am contemplating selling MG (bought at $103C) and buying DSG. I realize the diff in sectors, but using growth and risk as the prime criteria, would you be supportive of the switch?

Carl

Q: What would you consider to be a minimum net profit margin I should be targeting for companies? I was interested in Magna on this pullback but noticed their NPM is in the mid/low single digits which seems skinny for a manufacturer. Thanks

Q: Hi, What is your view of Linamar? You seem to prefer Magna, can you compare them?

Q: Hello
Wondering what to do with Magna? Before the big fall it looked like Magna was doing a little better than Linemar, at least by chart comparisons. I can book a fairly sustantial tax loss with Magna, with the idea of buying Linemar as a placeholder for 30 days and then buying back. I am a little worried, though, that L may suffer a similar fall. I am also wondering whether L would be a better stock to hold? Also wondering about timing. Would it be better to let Magna settle a bit before switching or do it right now? I would appreciate your usual excellent thoughts and advice on this question before making a decision.
Thanks

Q: Hi 5i, first thx for the earlier answer to a Q on MGs quarter. My question is on your view of the financial health and dividend sustainability?

Also, my feeling is that there is much pent up demand in the auto sector that didn't get fulfilled due shortages, supply issues. What would you see/forecast for 3 to 5 year hold in this company?

It's still above my cost and I love fire sales.

Thx

Q: All losers but long term investor. Would you rank them which are buyable to add to, hold or throw in the towel. Looking for 25% plus return in a 3-5 years horizon. Which fit the bill in your opinion. The best will be kept longer.

Thanks Yves

Q: Hello 5i,
Please provide comments on magna’s earnings.
1) has it written off it’s stranded assets in Russia?
2) is it backing the wrong EV horse by supplying Fisker its equipment?
3) in the industrial space I hold: Cnr,ata,and tfii. In consumer cyclical: mg,shop,amzn. Is it time to throw in the towel on mg? Doo and atz seem like better bets as magna looks as though it’s going to give back any gains over last 5 years and headed back to October 22 lows (apart from the 2.7% dividend.) risk reward not looking so good today for that sub-sector.
Tia,

Q: trouble appears for mg. weak earnings. where does 5i think things are going. is this a good time to buy after anticipated drop

Q: the large swing up seems rather unexpected based on recent results and comments to recent questions. What might be the driving force ?

Q: Is there a good Canadian ETF for consumer cyclical / discretionary sector? If not what basket of stocks would can be included in the sector?

Q: Margins will be lower what would you switch to

Q: thoughts on earnings warn today - good entry point or could the cockroach theory apply?

Q: Hi, I’m thinking of selling SYZ at a loss because I feel it may be in doghouse for quite awhile.
I would add to MG and NVEI which I have half position. Would you have any problems with my strategy, or would you just stay the course? Or maybe just add to one. Thanks

Q: I've been looking at my allocations and am very low in consumer defensive, consumer cyclical and materials. Could you give me some recommendations for companies in these areas that give a 3.5%div or more. For US and Canada. Ones that you would consider now a good time to buy. Thank you.

Q: I'm at looking at the following companies to invest in next; how would you rank them based on current values?

Q: MG data on your website:
1. are the numbers shown in $U.S. ?

2. Price to Cash flow seems to be at about 8. However, FREE cash shows as negative Can you explain the difference?

3. Graph seems to show consensus 2023 earnings at $8 / share
Is that in USD? Wouldn’t this mean stock is trading at about 8x 2023 earnings? Seems pretty cheap