Investment Q&A

Q: Good day.

1. I am considering the purchase of mentioned. I did some quick research and noticed that on Jan 19th you mentioned in a response that it had a P/E of 15. Looking at its profile on your site and the BMO site, it shows 9.x.

If I look at the current stock price of $142 and its EPS of $15.66 (from its profile), this would correspond with the P/E of 9.x (which would not even be its forward looking P/E but its historical).

Am I missing something here? It appears to be a great deal.

2. I read your Jan 18,2022 report about this company. At the very top of the report (on the right hand side) it states that debt is high. At the very bottom of the report in the Summary section it mentions that that this company has strong balance sheet. Furthermore, this section and and "Key risks" section do not mention any concerns with debt. Is this something we should be concerned with? (Note; I normally look at the debt on the balance sheet but have difficulties understanding how to interpret this number for financial institutions as they have customer deposits on-hand as debt OR they would need to borrow money to lend it out which is also debt. Do you know of any articles that help explain this).

3. Do you think the business model is sustainable? I went on their web site and rates start at 30% for personal loans. That is high, really high (I feel).

Thanks again. Walter.
P.S. I recently posted a question and must have accidently posted it as private. If you want to make it public, please do so.

Q: When I compile your recent responses in the current January market, these two stocks popped out as looking like reasonably good buys now. Is my complier working okay (its pretty old)? Did I miss one or two better ones? Thanks as usual. Dan

Q: We recently initiated a TFSA for a family member (long-term buy & hold); the 10 securities purchased (in approximately equal amounts) were: Aritzia (ATZ), Unilever (UL), GoEasy (GSY), SunLife Financial (SLF), BAM (BAMa), WSP (WSP), Algonquin Power (AQN), Telus Int'l (TIXT), and an ETF called XUSR. Still have ~15% capital (~$12,000) to invest. Which 3 or 4 of these would you have greatest conviction to add to? And/or is there another security which would complement the above?

Ted

Q: Good day guys:
Can u provide a few names that are in oversold territory during this painful time in the markets .. I own well , lightspeed , and converge and I feel they are oversold and I am holding on .. I would appreciate your professional opinion please
Thx
Mark

Q: Hi 5i
For a TFSA which of these 3 would you choose at this time for growth .
I know you like all 3 but how would you rank for buying today? Thanks

Q: Can you define "secular compounder" and list a few Canadian companies which meet that definition and which you would find attractive today?

Thanks,

Q: Any Good buys you see in these turbulent times with a 3-5 year horizon.....

Q: GSY is one of my growth holdings still firmly in the green, although certainly down from its high. Is it time with the interest rate hike coming, to rotate out of this one for a while to preserve the gain?

Q: Favorite (hammered) growth stock that pays a divy? Bit of bottom-fishing for a long term hold. Thanks Ron

Q: With the business update from WELL I'm reminded of a similar update from GSY in the depths of market turmoil in 2020. I think GSY re-affirmed their business at a very low stock price ($12? maybe $20?). Had I been wiser and more knowledgeable at the time I would have bought more then and I didn't.

I'm curious why one would not add to (or start) a position in WELL today?

Thx,

Cam.

Q: If I want to initiate a position on GSY, what would you consider to be the optimate price? As well, GSY has dropped over 8% since the start of 2022, will it fall any further?

Q: At this time, what are your top picks (5 CDN, 5 US) for a 3-5 year hold in a registered account for an investor willing to take on an above average level of risk (but not high)? Sector does not matter. Thanks.

Q: Hi Team,
I am an aggressive investor, which paid off lovely in 2020, but now am being crushed. I hold the following stocks (with weightings in brackets) in total in my brokerage accounts. Could you have a quick look and tell me how this basket looks "In general"? And if you see this basket doing well over the longer term (say 5-10yr hold), pointing out any suggested changes you would make, if any are "sells" or worth switching out. Note that if I sell any GSY it would incur tax (the weighting is large because the position has grown and have been a firm believer in the company as its valuation still looks cheap and am collecting a nice div off it as well). I am 42yrs old so retirement is a ways away and my goal is maximum returns with reasonable risk until retirement. Please deduct credits as required. Thanks
ATZ(3.2%)DOO(1.3%),GSY(24.7%),NVEI(6.3%),TOI(8.6%),WCP(2.8%),SQ(3.5%),APPS(2.5%),RBLX(2.7%),BAM.A(1.7%),LSPD(3%),FB(8.2%),TTD(2.9%),U(2.2%),ABNB(2.4%),CRWD(2.4%),NVDA(6%),PINS(1.7%),CRM(2.9%),NOW(2.7%),SWKS(1.7%),TWLO(2.4%),VEEV(1.4%)WELL(2.5%).

Q: GSY and DOO both in the growth portfolio are also dropping despite beating their last
Q results handily and being value stocks.

If the market is buying value stocks, why are these dropping?

Q: Hello Peter and Team

I have above stocks in my TFSA account. I am down CAE 10%, NVEI 47%, ENGH 17%, KXS 24%, LSPD 12%, QIPT 18%.

Normally I will consider all of them as good growth stocks but with the rotation now hapening in the market, I am wondering if I should keep them for the next 12 months or I should switch to more value stocks.

I value you opinion

Raouf

Q: Please classify each of the above companies as one of the following:
LOWER RISK
MEDIUM RISK
HIGHER RISK
Thanks for your great service - use as many questions as you wish. ram

Q: I have these 2 in a TFSA, where the goal is to maximize growth. Do you see either as still having good growth ahead or are there other equities with more potential. If you still like the 2, which would you want your investment to go? FYI, currently about GSY @2.5.% weight and TFII @ 3.5%. Many thanks for your excellent service.

Q: Do you see any reason for the apparent weakness/breakdown of the shares.
You mentioned earlier that higher rates shouldn't be negative.

Thanks, Peter

Q: HAPPY NEW YEAR TO EVERYONE.
My question is about the stock market in general, last time that these prices went down so low in march and april 2020, and then they took off again and i missed the rally because i got cold feet. So this time around i am asking is it a good entry point ex like square, nvei, gsy,dsg i already own lspd and toi for tech stocks can you give me a suggestion if i should still wait or go all in i have $33,000 room in my TFSA. Thanks

Q: Hi 5i,
I wrote inquiring about the above names mid week last week but didn't get an answer - I'm pretty sure i hit submit but possibly not.
I'm down on each - on some significantly - and was looking forward to a post tax loss selling bounce, but none came. In act, all but WELL were down on January 4 before the interest rate news hit on the afternoon of January 5, and all have continued to drop like stones since. I'm concerned that droppage would be happening even if the Fed hadn't scared people about interest rates, and I have the depressing feeling I own a basket of stone losers.
If I sell out of each now and put the funds into some good dividend payers like ENB, SU, POW, BNS I might (hopefully) recoup my losses or at least cut them considerably by this time next year.
For each of the names could you tell me if you think it's a good idea to punt now before further losses accumulate, or are there any that you think have a reasonable prospect of returning to their early to mid 2021 levels by the end of 2022.
I really will appreciate your thoughts and advice - feeling a little beaten up right now ...
Thanks,
Peter