Investment Q&A

Q: What would be your top stock picks for the best returns over the next 2 years? US & CDN.

Q: Hi 5i team,

Can you please provide your outlook on Go easy? The valuation looks attractive but I am worried that their provision may rise. Are all of their loan secured? Also, government has asking Credit Card company to reduce the interest rate, will their margin being impact as well?

Thank you,

Q: Given the current environment, which do you foresee having a good recovery from today's lows. How would you rank these companies listed to purchase today to deploy some cash. Which would you rank this list for risk from high to low. (not considering sector allocation.
Do you have any other recommendations outside of this list that you think might have more potential?

Q: Hi Peter & Ryan

This is just a comment but please feel free to deduct a question credit.

During difficult market times we send you questions so that we dont feel alone when markets are crashing. It's the time we need some "emotional support" and the Q & A provides just that for me.

Thank you kindly to you both for helping me navigate during these turbulent times. I bought GSY and I held even though it dropped after that.My cost was still in the region of about $28. I was tempted to sell when it dropped further but found solace in your answers to the stock. I am glad that its today up over 25%.... I can't thank you guys enough for providing me with the confidence to hang on to my positions and to cease opportunities during crazy market swings.

Once again, thank you and much appreciated.
Sincerely,

Q: goeasy just put out a shareholder update, it seems very positive.
can you comment
dave

Q: You have been very bullish on GSY, and even continue to recommend it highly. I currently hold 1.6% of my portfolio in GSY (down 50%) and am keen to add more given your strong feelings. However, I also note that you recently mentioned it has negative cash flow...can you expand on this, how they manage this, and how one can still be bullish on a high-growth company with negative cash flow? I'm also showing debt at ~ 2x market cap with a 6.5% dividend? The market thinks this is all unsustainable, convince me otherwise please!

Cam

Q: would any of SHOP GSY or CSU be suitable for a RRIF ? or should they be in a TFSA ?

Thanks

Q: Hi there,

GSY has been brutally beaten down. Is it worth stepping into at $32? If one had no position in it, would you recommend a full position here, quarters, thirds? How would you proceed with buying it here?

Thanks!

Q: I’m struggling with why you would think GSY would do well in a recession. They serve sub prime customers with very little discretionary disposable income. Wouldn’t you expect these customers to be most impacted by unemployment, lost wages etc which would then drive late payments and then eventually loan losses. Initially I would expect GSY would take a similar approach to banks by deferring payments for customers to limit losses but eventually they will need to take them. New business will be impacted with branch closures, not to mention their leasing business, historically the reliable cash cow will be impacted as well without the foot traffic. Given the adjustment that big banks have taken to their stock prices over the last 3 weeks. GSYs massive drop looks warranted to me.

Q: Thanks for all you are doing during this turmoil. Your steadying voice is reassuring, at least to these ears.

Would you swap out a holding in ECN for an equal holding of GSY at this point?

Appreciate your insight.

Paul F.

Q: Hi,
Much like LSPD in my previous question, I didn't ever except to see GSY down from $80 to $21. I took a small portion in GSY at around $27.60.

I read other comments on GSY , but just thought if you had anything new to say, it would be much appreciated.

Thanks,

Q: Is there any company specific reason why GSY is down 27% today (so far) after major falls in price over the previous few days. Is this a serious buy opportunity?

Q: Do you see the regulators changing the rules for what non prime lenders can charge to help Canadians and essentially the client base of GSY and how would that impact on the company and the stock. Why do you think the stock sold off so much today?

Q: GSY: From 80,6$ to 36,5$.
Possibility of ±120% if going back to higher price

DOO: From 75,4$ to 29,3$
Possibility of ±157% if going back to higher price

AC: From 52,7$ to 15,5$
Possibility of ±240% if going back to higher price

1) Which one have the most chance at getting back to the higher price the fastest?
2) For a 12-18 month time frame, which one could recover faster?

Q: Hi,
What is their balance sheet?
Would you start buying them and in what order?

Thanks,
Milan

Q: These 2 stocks who have a very low PE are getting killed today with the market way up.
Is there anything that I am not seeing? Anything about the virus that may be the reason for this?
Thanks

Q: Hi Team,
Two part question, charge me accordingly:

For a US growth tech stock, what are your thoughts on Twilo? I own it, and I am down 32% on it. I realize the markets are in turbulence, but even before that it has been underperforming my other tech holdings since last quarter. Is there something changing with its growth story here, or is it simply a valuation catch up issue combined with last quarters results? When I bought it I was under the impression that they are in long term, secular growth trend here with their sms messaging business and as such. Should I continue to hold or should I be trading it in for a better name in the sector? Suggestions?

Also....what are your thoughts on GSY at the moment? Is it just me or is it one of the most compelling growth stories with dividend on the tsx right now, especially at current valuations? I am thinking its fall has been "unjustified" at this point and cannot see so far how this coronavirus would essentially hurt their business (being this is a virus scare slowdown and not a financial crisis) . If anything, perhaps improve it. We have lowered interest rates which should help boost margins possibly, and fiscal stimulus coming down the pipe. Just wanted your thoughts before adding more to my position here. I added on the way down at 65 (too early), and am thinking of adding more. I am not really worried about weighting at this point. My time frame is for the long term here (20yrs). Thanks,

Shane.

Q: Need to add to the financial sector. Prefer an alternative to banks and insurance because of dealing interest rates. I already have BAM.A
Ideas?

Q: Hi Peter and Ryan,
I am looking to take advantage from the current market dip and add the the above securities and ETF to my RRSP Portfolio. My time frame is 5 to 10 years. with adding the above I will be having all the 5i balanced portfolio stocks included. In addition I am adding some ETF and other stock that I think it can help my portfolio. Appreciate you advise of which stock look good at this time to buy (please rank). Is there any of the list I should avoid. Do you have other suggestions for good quality stocks and ETF (in the US and Canada) that have a good growth potential.
Thanks,
YR

Q: Hi,
Would you start buying these and in what order?
Thank you for great service.

Milan