Investment Q&A

Q: Could have I an update on your views of PBH. Its hold in a RRSP. Would you suggest 1-2 companies with better or same risk profile you would suggest to switch for if you think that’s a good idea .

Q: Follow your balanced and income portfolio I am wondering what order would you add today Included RY and DOL also because of their growth over the last year. Please include rationale of the top 4. Thanks as always.

Q: Seems ro be consolidating in the $100.00 range. Will it take time to digest the acquistion in the united States ? Hold sell or buy?

Q: Hi 5i, can you please provide your opinion on PBH's acquisition of Stampede Culinary Partners, Inc.? Thx.

Q: That inflection point in free cash flow, looks to be a quarter away still. I don’t mind holding for another year, but just want to be sure those earnings don’t concern you as much as the market, given down over $4 today.

Q: Good morning;

I am doing some rebalancing of my portfolio. In light of my views on world events over the next 3-5 years I am looking for the top 3 "Consumer Defensive" stocks. I believe there to be risk in the US dollar over this period so would appreciate your recommendations on 3 Canadian and 3 American consumer defensive stocks and what makes them a consideration.

As always, thanks for your insights!

Q: I have very limited to zero holdings in Consumer Defensive and Cyclical. Could you explain the difference between Defensive and Cyclical and recommend how best to invest, either individual stocks or ETF.
Many thanks,
Ralph

Q: Could I have your top 5 favored Canadian companies the achieve the following criteria. A combination of price momentum, positive earnings revisions and attractive valuations.
Thanks.

Q: Last week a regular PM on BNN mentioned PBH Q3 results COULD be disappointing ? 5i s thoughts ?

PBH seems to have a trading range last few years ... perhaps time to take profits?

Q: Any Canadian companies paying a decent dividend, that in you opinion, are undervalued these days? Any sector.

Thanks

Q: I am constructing a dividend growth portfolio with the intention of holding all positions for the longterm, holding the following equities in equal weight (likely only one of MRU or L - or should I include both?), with 80% of the portfolio consisting of these individual equities and 20% in the ETF VGG.

Would there be any in this list you would not include, and are there other Canadian equities you would consider for this list? Is this the appropriate number of positions for such a portfolio. Please deduct multiple credits as required, thank you.

Q: What are your top Canadian picks in:
Healthcare
Consumer goods and services?
Much appreciated. ram

Q: Do you know what % of the companies sales come from Costco? I understand they are finished a $1B capital spend having expanded production facilities in the US. I know they are on the cusp of large anticipated cash flow increases from the expansion. Will producing there largely shield them from tariffs? Would you buy it now? What are the risks? Debt? Thank you.

Q: Premium Brands Holdings (PBH) is part of 5i’s Balanced Portfolio. It reported today and appears to have met or slightly exceeded analyst range of estimates both on EPS and Revenues.

It has completed its sale and leaseback of its Tennessee Sandwich Plant, and used the proceeds to repay a $172 debenture that matured in April, slightly reducing its total debt to EBITDA to 4.2:1 from 4:6:1 for the quarter.

They have also posted a 6 page letter from the CEO to Shareholders entitled “The Future of Food is the Past”

It would be appreciated if you could review both the results and the letter; and provide your comments, as well as sentiment on the company/strategy.

Thank-you!

Q: Thought on the quarter please?Thx

Q: This morning a guest on BNN recommended Premium Brands. Their new revenue generators with Costco sound promising. However they seem to have a lot of debt and a very high dividend payout ratio.

Do you think their cash flow covers their debt and is the payout ratio really at 128%?

Thanks for all your help.

Mike

Q: Hi 5i
A question dated July 23 had this portion of an analyst's opinion on PBH:


Assuming that 1) the Distribution Group is sold at a reasonable valuation and 2) the "new" PBH is re-rated back up to a trading range of 12-13x (i.e., historical ten-year average is ~12.5x; we are using 9.0x to derive our June 2026 target price of $140), we think that a hypothetical divestiture and subsequent debt repayment implies a share price anywhere between $205 to $225 at the end of 2026, ~50-60% above our current $140 target.
~~~~~~~~~~~~~~~~~

Does this defy logic, gravity or both? Can a stock that has been dead money for more than 5 years more than double in a year and a half? The $140 target seems optimistic, but over $200 is mind boggling.

Thanks,
Greg

Q: What are your thoughts on PBH? TD released a research report on Friday, increasing its target price from $120 to $140 based on a stronger 2nd half of 2025. Buried in the report was the possibility of PBH divesting its Distribution Group and using the money to deleverage; in doing this, TD sees an implied share value of $205 to $225. See TD's comments below. Do you see the current price as a good entry point for PBH?

Which should drive significant deleveraging and could push the share price to $205-
225 by YE2026. Should PBH divest its Distribution Group, we think that PBH may first consider using the proceeds for debt reduction to both improve balance sheet flexibility and realize meaningful interest savings (i.e., ~75% of PBH's interest-bearing debt is floating rate), which should push total funded debt leverage down to 1.5x by the end of 2026, versus our current estimate of 2.5x. Assuming that 1) the Distribution Group is sold at a reasonable valuation and 2) the "new" PBH is re-rated back up to a trading range of 12-13x (i.e., historical ten-year average is ~12.5x; we are using 9.0x to derive our June 2026 target price of $140), we think that a hypothetical divestiture and subsequent debt repayment implies a share price anywhere between $205 to $225 at the end of 2026, ~50-60% above our current $140 target.

Q: Hello, can I have your top ten list of consumer stocks, Canadian or CDRs, based on projected total return (share price plus dividends, if applicable), for a 5+ years holding period? Thanks!

Q: I hold PBH (0.8% position) and COST (1.5%), and I realize that consolidating them is prudent. COST has been a very solid performer over time, but PBH has been performing quite well recently, after a couple of years where the share price was on a downward trajectory.

I understand each company has its attributes: with a time horizon of five years, in terms of share price appreciation, which is poised for better growth?