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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: I have held Magna for multiple years, and with the execption of a surge in value three years ago (which it eventually surrendered), it is at pretty much my original purchase price. I have been considering a switch to Amazon, as I cannot think of a more dominant player in the consumer cyclical space. I had also considered starting a position in Aritzia, but I am not as confident in its profile as I am with Amazon. The position of this investment is 4% of portfolio, if the exposure level has any influence at all on the analysis. One potential tailwind for Magna could be manufacture of parts for battery electric vehicles, which should increase in demand over the next five years: my understanding is that MG provides many such parts to multiple companies that make these particular automobiles.

Would a switch from MG to AMZN be prudent, or is there a stronger case to be made for staying put? As always, thanks so much for your insights, and I look forward to your response.
Read Answer Asked by Domenic on March 27, 2024
Q: Hi 5i, seems MG is pushing out some of their bets on EV and Autonomous trends, Do you still believe in their growth over the next 2 years after this quarter? I know they raised their divi, but I fear this stock may become a value trap. Also, please provide a few alternatives, no small caps please, either CAD or USD. Thx.
Read Answer Asked by Christopher on February 09, 2024
Q: Sir. In the spirit of weeding the garden, I find myself well down in these stocks…with a time frame of 1 year , please comment on which to keep or toss how…. 5i had good things to say about many of these in the past, but we all know that times change quickly in this business…
Read Answer Asked by James on February 05, 2024
Q: I am looking at some of my struggling stocks- any comments on whether greener pastures are better found elsewhere and where to go?
Read Answer Asked by Peter on January 17, 2024
Q: Regarding Michael's question on Magna, here is what was reported on BNN Bloomberg:

"We will watch shares of Magna after Goldman Sachs downgraded the auto part maker. One of the big structural calls on Magna is that it is poised to benefit from the ramp-up of electric vehicles and getting more of its content into cars. This morning, Goldman is poking holes in both those ideas. Goldman says Magna will see slower content per vehicle growth compared to peers, and ramp-up of electric vehicle production from customers like Ford and GM will be slower"

Happy New Year to 5i and everyone!
Read Answer Asked by Steve on January 03, 2024
Q: I am low on Consumer Cyclicals. What portfolio percentage do you advise to allocate? I have broken down the sector into sub-categories: housing, e-commerce, retail, personal services, lodging. Am I missing a sub-sector that shoud be included? Which ones have the most potential? I have listed some names - but am not tied to any. Apart from AMZN [owned], what are the top 5 or more that you would buy today and any others to keep on watchlist with buy targets? Please rank.
Read Answer Asked by sam on December 20, 2023
Q: I want to add one of the above with the expectation of a total yearly return of 8% in the next five years.
Could you rank the above and explain your rational
Best of the season
Raouf
Read Answer Asked by Raoul on December 14, 2023
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