Investment Q&A

Q: We've been reading of lots of deregulation coming in the U.S generally, but especially in the financial sector. Pundits have taken to saying 'animal spirits will be unleashed'. Additionally, I wonder if orange imperialism will tend to trickle down to C suites. Can you suggest a Canadian name or two in relevant sectors that might be more likely to be taken out?
(With the proviso that their debt levels be on the low side for sector average.)
Deduct as you see fit.
Thank You,
Tim

Q: I read one of the questions pertaining to GoEasy which talked about them being resilient during the 2008 financial crisis. In 2008, were companies such as GoEasy really impacted here in Canada ,as the banking regulations are different in Canada and the crisis was much more prevalent in the US. But this time around, if the tariff's kick in and a recession hits Canada, do you believe that GoEasy will still be able to weather the storm in a similar fashion, as I feel that there has been a very huge selloff of GoEasy in recent months. Do you think it may be overdone?

Q: Can you speculate what might be in the minds of those who have been selling off goeasy very hard over the last couple weeks, presumably over the tariff situation? I stuggle to see the connection.

Q: Hi, you have indicated that both of these stocks serve similar areas and should do well as interest rates fall. What are the potential benefits of each of these for the next 3 years, which would you choose first, and why? Thank you for an interesting service.

Q: My partner is opening a new TFSA account. What 5 stocks would you recommend for a 10+ year investment today, emphasis on growth?

Q: Hi Team,
On Jan. 15th Jordan Zinberg from Bedord Park Capital had Gsy as a top pick. He mentioned that GSY has a credit card. Is this true? I knew that the credit card was being looked into and possibly in development but I had not heard that it was active. I tried looking on the goeasy website by the investor presentation hasn't been updated for almost a year now. If you could share any info you have on this that would be great. I would think a credit card could be a big growth engine going forward for GSY.

Thanks,
Shane.

Q: Hi Team,
At the time of this question PRL is up approx 6% and GSY 3%. Just wondering if there is anything sector related to account for the positive move today being that both these names are moving up together today? GSY is finally starting to build some steam...any comments? Perhaps share buybacks at GSY?

Thanks,
Shane.

Q: I am still buying and looking around for the best possibilities. Today the motley fool listed the three Canadian stocks they would buy, if they could only buy three. I notice that you seem quite strong on cls these days. And perhaps I see you putting the breaks on for hps. I may be wrong on this perception regarding hps. But, I think you are getting stronger on cls. What would be your 3 stocks Canadian? I am particularly interested in your main reason for liking cls.? It has not corrected. I know you like moment, though. I wonder whether I would’ve put shop in it’s place with the recent drop?

Q: Of the following stocks please list those that are vulnerable to Trump's tariff threats and a brief reason for that vulnerability ..... Mr Canadian Market may not being taking his threats seriously but I am. My plan is to replace vulnerable Canadian names with U.S. ones ..... Thanks for your terrific service ......
WSP,TFII ,AND ,BN,BIP.UN,EQB,SIS ,WELL ,ENB,HPS.A,IFC,GSY

Q: As Trump’s inauguration approaches and our government falters it appears increasingly likely that the risk of tariffs is not zero. Yet Canadian markets don’t seem concerned. Do you have any guidance current Canadian equity holdings? The answer to these problems is usually to do nothing but it looks as though there is potential for serious market disruption.
Within your portfolio recommendations (my largest would be Tfii, gsy, shop, mg, byd ) do you see companies that are high risk of significant harm?

Q: Hi 5i

Please as many questions as needed.

I am heavily invested in stocks and want to raise cash, putting more money into bonds. I have about 10% in Canadian oil and gas, 5% gold stocks, and about 13% in uranium stocks. I am going to hold my gold and uranium.

What allocation would you suggest for a retiree in terms of portfolio holdings of gas and oil?

I am concerned about the possible coming tarriffs and the effect on the Canadian ecomomy. Most of my holdings are Canadian. A lot of these are in dividend stocks. I have held them through the past few years but I do need to increase the allocation to conservative investments. I plan to reduce most by about 20% or consider outright sells. I currently prefer to reduce downside risk than worry about the upside.

Can you help me decide from the viewpoint of possible tarriffs and effect on the Canadian economy which are at risk the most. Could you class these as hold, reduce or sell. I will hold all my U.S. stocks which are about 15% of my portfolio and haven't listed those here.

Thank you for your very helpful advice.

Q: I'm over allocated in Financials at 23%. Recognizing BN represents a diversified holding and Visa could be considered Consumer. What changes would you make if this was your account. Most of the 1% holdings are in my unregistered accounts with BN, Visa, JPM, BAM are split RRSP/TSFA. Long term investments +10 years with a tilt to risk/growth. Retirement in 2035.

BN 11%
BAM 2%
Visa 3.6%
JPM 2%
GSY 1.6%
PRL 1%
TD .8%
BNS .8%

Happy New Year and thanks for all the help in 2024!

Don

Q: You recently said that TSU has been frustrating and is a Hold. How would you rate holding it vs exchanging for EQB? Or maybe there is a better financial? There are no tax implications.

Thanks.

Q: What should the ultimate p/e ratio for Goeasy be? I know that p/e ratio in this sector tend to be low, but what would be fair in your eyes if say earnings growth plateaued at around 15% per year long term? 10X? 15X? Thanks.

Q: A number of these Small/Mid Cap companies have pulled back recently (other than CLS). Do you consider these companies all buys at current prices? What would be your top 5 picks from this list?

Thank you and deduct appropriately.
Tim

Q: Hi 5i,
I have to sell something in my RRIF to raise cash for my annual payment out, and can't decide between selling a portion of GSY or a portion of PRL or a combination of the two.
They're currently of roughly equal value in my RRIF, but only because PRL has gained far more than GSY since each was bought (PRL- 125% to GSY - 24%).
I'm not too concerned about losing the dividends either of them pay, and want to keep the one most likely to produce the most capital appreciation over the next year or two. And I'm not adverse to selling some of each to raise the required cash if that 'diversification' seems wise in the circumstances.
Any advice?
Thanks,
Peter

Q: Hi Team,
UNH is one that rarely seems to selloff. With my experience it’s often a good time to buy quality names when they are on sale. Does it look like UNH is at a good buy level today? Today it’s bouncing a little after many days of selling off.
Next part of the question. I would be looking at trimming a little of either Gsy or Nvda to purchase UNH if I choose to go ahead with the trade . Which would you prefer to trim today? Both Gsy and Nvda are equally overweight for me and in a non registered account with capital gains incurred if I sell. However I have enough built up tax losses at the moment to offset the sale. I hate to sell either one of Gsy or Nvda but with the weightings it makes most sense in my portfolio . Does this trade make sense to you?

Thanks,
Shane

Q: Good morning Team, Regarding the consequences of Trumps threats I read the following (in the Globe): 'Our most sensitive name to Canadian economy and labour markets is Goeasy Ltd' What are your thoughts about that quote in particular and the most exposed Canadian companies in general? Thank you, Adel

Q: I read this morning in the G&M there’s a push by consumer advocates for government legislation to be broadened to include restricting highly profitable credit insurance charges by alternative lenders. To what extent is even the threat of this a headwind for Goeasy and Propel? As as second question, should this restriction find its way into legislation, to what extent would this impact Goeasy and Propel?

Q: Retired, dividend-income investor. Sitting on roughly 5-6% cash for topping up existing positions to, over time, hit Asset Allocation targets.

Candidates = BCE, GSY, HHL, HMAX, XST, ZUT. If I was deciding to deploy funds to create the largest total return over the next year or two, from their existing valuation, a) in what order would you deploy the funds and b) a short qualifier for each position?

My view = buy in this order:
ZUT = good momentum, room to run before hitting earlier peak
GSY = good value, $150-155 should be excellent value
XST = graph against 50 and 200mda...very tight chart....could buy anytime
HMAX = good value, banks should run
HHL = healthcare stocks should get over their fear of their new boss in a few months....or not. Give it some time.
BCE = last on the list. Just rebought after cap loss capture. Give it even more time.

Thanks for your help....Steve