Investment Q&A

Q: If you were to list favourite US and Cdn companies with the added criteria of high cash flow and significant stock buybacks what would they be?

Q: Hello 5i, Could you comment on if POW has a position in ATD and if so what is the size of the position. Also is ATD active in Europe?

Q: Hi 5i team,

I have two equal half positions in ATD and DOL and I'm looking to simplify by consolidating into one name. Which option is the best for my RRSP? I would also appreciate some information on why it is the best option.

Best,
Matt

Q: Hi Team,
I would like your opinion on FMC. The stock is down significantly because one of the key product family is seeing patents expiry-diamides. It probably also moved lower with the rest of the agrobusiness sector-. Do you think it is a good time to take a small position in FMC. I am looking to a 3 to 5 years horizon.

I would also take position in one of the 3 other Cie listed -LIN, CTAS, KBL- due to the fact that I think these are 3 companies that could be fairly resilient in an economic downturn. How would you rank these choices in term of stability and capital appreciation potential ? Other suggestions are welcome!

Take the amount of credit necessary to answer my questions and sub questions!

Thank you,

Michel

Q: I am overweight in energy with CNQ, TOU and ENB and underweight in consumer everything. I am down about 8% on the last two and up about 15% on CNQ. Suggestions for reducing?

What would you suggest for consumer?

I am just asking for thoughts/suggestions.

Thanks.

Q: I don't have any retaill type stocks in my RRSP. This would be for a mid to long term period. Looking for capital appreciation with possibily reasonable dividend gains. Any suggestions?

Q: I previously asked you about the rule of 40 for SaaS companies here:
https://www.5iresearch.ca/questions/text/rule+of+40#answer163822. Could you explain further why this model doesn't seem to work for companies in other industries?

For example, ATD has a low single digit free cash flow margin and would not meet the rule of 40 threshold, but it has proven to be a consistently good investment over the years despite that fact. Why doesn't its poor profitability hold it back and what other criteria would you consider important in lieu of the rule of 40 that help you identify it as a good investment?

Q: Good morning, Which Stocks do you guys believe should benefit the most with the rising cost of living and many people having to turn to cheaper retail and grocery stores for example. Would stores like Costco and Dollarama be a couple of obvious examples, thanks?

Q: I have a friend who has $20,000 to invest in a relatively safe group of stocks, hoping to gain about 8% a year; his plan is to leave the funds in for at least two years. He has no preexising stocks. Please recommend one or two groups of stocks for him to invest in.

Q: Hello, I am looking to enter a position into one of these two companies, I am leaning towards DOL. They have both been a consistent compounder since I started watching them over the years. Do you have a preference ? This would be a hold in my TFSA, (if that makes a difference)
Thanks.

Q: These all in my RESP, most of them under water except ATD and BAM. Please advise what should I buy to add 10k to it for 2 years hold. Also any thing need to be cleaned up in this list.
Thank you

Q: Hi, In a strong market and a FED induced rally, above stocks sold off sharply, in Today's trading, perhaps for different reasons. Drop in HPS.a, could be attributed to profit taking against the back drop of 300% jump, this year. But, the other three companies, I thought, will be benefitted with lower rates cycle over 2024/2025. May be, I am wrong. It;s just that, when some stocks don't go up ( and decline) in otherwise strong up market, makes me wonder, what am I missing ? Thank You

Q: Hi - as a follow up to your reply from my earlier question today on the above, would you consider a further pullback during this possible rotation to be an opportunity to add back to them? This would be under scenario that once a recession is upon us that they would once again do well. Secondly, do you "expect" that this rotation may last a quarter or two...or is your base case for recessionary positioning sooner?

Q: H - all 4 down sharply post fed day. Only one with earnings was DOL but they did very well. Any explanation as to why severe drawdowns today?

Q: If you were to pick quality compounders in the small cap space (US or Canada) like 3 mentioned, can you suggest a couple of good ones. I generally prefer long term horizon. Thanks. Shyam

Q: I just dumped DOO for tax loss and need a proxy in that C Discretionary space. Can you advice on a couple of options?

I suspect some C Discretionary CO’s might have some momentum here as well.

Q: Hi, I noticed that in Wednesday's trading, around noon, someone placed two large BUY orders at $75.80, for 30k and 18k shares (Total trade value $3.6 mln ). Stock later traded down to $75.51. Within an hour, after the orders were filled, Someone placed exactly the same two SELL orders at $76.20, for 30k and 18k shares. The stock bounced back up and both Sell orders were filled just before market close. These were not Block Trades, as there were multiple sellers/buyers for all four orders. CIBC World Market was the broker, both for initial buy orders and later sell orders.

Assuming (safely), that both buy/sell orders originated from the same party, the trades resulted in a net profit of $19k, on a trade value of $3.6 mln. Are these, Day Traders ( using Margin or not ), making money on a small arbitrage? Is this type of activity not uncommon during volatile trading of a stock, like today ? Does it have a relevance to large interest in ATD stock, Or, there is just not much to read here ? I am just curious and trying to educate myself. Thank You

Q: Hi, Based on the quarterly results and management commentary/confidence about their 5 years Growth Plan, and considering today's market reaction/price action of the stock, would you be on board, if we look to bump up current 1.50% position to 3% around $76 level ? Thank You

Q: Hi, Could you comment on ATD earnings. Thank You

Q: I already own CNR and ATD and am considering adding CSU and FSV as a couple more "solid additions". Can you please recommend 3 other large cap Canadian growth stocks ? (not including financials, energy, materials, nor Brookfields).

Could you please rank all 7 according to overall long term quality?