Investment Q&A

Q: Hello Peter
one of the lesser known stocks for the Cdn defence sector, most people like MDA which is volatile, is it good for a medium (1 year) or a long term (3 years) hold ?

I have a partial position, waiting to add, hold or buy more, thanks

Michael

Q: It is my understanding that the budget move to more fully fund the Canadian military will require a massive spending push. What companies will benefit most? I expect for US based companies this would barely move the needle since their baseline US business will eclipse our spending? Are there Canadian companies that could sharply benefit? Also non-US companies if there is more appetite to avoid American during the tariff / trade tensions?

Thanks!

Q: Thoughts on earnings for each of these companies, each of which are likely to benefit from upcoming increased defense spending. Which one are you most positive on and why. Which are you more bearish on and why? Ratings for each Management 1-10.

Q: Your analysis please for these stocks,preference for a 2 to 3 year hold and entry price. Thanx.

Q: Hi 5i,

What high quality companies do you think stand to benefit from the upcoming Carney move to investing more in Canadian-related defense and the infrastructure built out?

Thanks!

Q: Hi,
Following up on the Q&A re: Magellan Aerospace Corporation, can you please provide a sense of the pros and cons of this company as a long-term investment? Does it have any moat features? What are the risks and potential rewards going forward? What about position size - is a full position justified?
Thank you so much, Michael

Q: Hello
our defense Minister tells the Arms company that Canada is spending more on our military, the NATO set a goal of 5% of GDP
what Canadian companies could benefit from this move? thanks
Michael

Q: Hi,
could I get your comments on the latest quarterly results please?
The street appears to have liked these, as well as the dividend increase announced earlier this week.
Thanks,
Daniel

Q: Hello 5i,
There have been many negative questions regarding Tariffs and other non-Canadian officials. Wondering if it makes sense to look to those Canadian companies that would benefit from the upcoming April 28, 2025 event results.
Following is my list of questions for you – please feel free to take as many credits as you require since I typically don’t use many.
• The clear winner looks to be BAM/BN/BIP/BEP with the massive housing & project build plans. Some housing build plans look to be well beyond anything the private sector has ever seen. Outside of investing in BAM/BN/BIP/BEP are there any other companies that will experience increased growth rates? Perhaps Canadian Only Lumber Companies, Steel, etc.… Being careful to ensure the industrial carbon tax doesn’t offset any building growth rates.
• Looks like major projects are going to be built to save the country from the tariffs. Assuming these are going to be non-conventional energy would the companies such as BAM/BN/BIP/BEP/WSP, benefit the most? Are there any other companies to start looking at? Perhaps carbon capture companies?
• I wonder if there are any areas of benefactors increasing/decreasing the amount of tax havens in Canada? There are a fair number of mid/small companies that could setup a beneficial tax structure and become more profitable. My experience with setting up offshore structures is that there are setup/dismantle/maintenance costs with Lawyers and Accountants but perhaps other benefactors are investable. Are there any publicly traded Accounting or Legal companies to start watching?
• With proposed additional spend to media companies are there any benefactors? Will BCE benefit from the overall plan? Are there companies worth looking at in the media sector?
• With the additional military spend are there any companies in Canada to invest in? I have a small position in MAL which could benefit from Canada built fighter jets. Is BBD.B a good one to look at?
• After reviewing the proposed firearm buyback pricing list, the overall program looks to be worth ~$2B in 2025 for Canadians. My question is could there be benefactors to this spend? Maybe ~$2B is not enough to stimulate the economy considering the current spending levels but it reminds me of a COVID-like spend bump. Assuming a large portion of the funds will be redistributed back into the economy.
• Health care seems to be getting an increased focus compounded with the buy Canada therefore are there any pure Canadian pharmaceutical/healthcare companies that will benefit? I have a SIS position that I could add to if they are going to be benefactors. Are there any companies that provide safe site vending machines or building structures?

Q: Hi there,
can I get your comments on the Q4 2024 results released last week please?
Thanks,
Dan

Q: If the Globe is to be believed Apple owns 20% of Globalstar courtesy of a USD 1.5 Billion financing. Globalstar in turn has added $750 million (CAD?) to MDA’s existing contract to build satellites for Globalstar. The satellites will be manufactured in Montreal presumably tariff free provided I suppose they don’t use a US launch site.Do you know if there are Canadian launch sites/companies? Is Magellan Aerospace a candidate? Any thoughts you have would be appreciated.
Jim

Q: Finally back even with MAL after 3+ yrs ...... hold or sell ?

Q: I have noticed MAL stock price moving upward a bit. I am seeing a $16 price target. I've been waiting patiently for this stock to recover so I can sell it, since it cut it's dividend. What is your 6-12 month outlook on it? I bought it just under $10 - would you continue to wait until I can realize my price, even make a small profit or sell? Thanks so much.

Q: I'm thinking of replacing my MAL shares with MDA for about a 2 to 2.5% position . { MAL is currently 1% so it would be a position size increase but still on the small side } ..... I notice the market cap of MDA is three times the size of MAL as well ..... It looks to me like MAL is a recovery play and MDA is a growth play. Could 5i give me a brief outlook on the short term and long term prospects of both and your preference between the two companies ? And whether a term I often see 5i use is applicable here ? The term is " We do not see it as need to own " ...... Thankyou for your terrific service .....

Q: I need to clean out the dogs and take some losses for tax purposes. In which order would you sell? Are there any keepers here?

Q: Hi,
could I get your comments on Q1 please?
Thanks,
Dan

Q: Hi 5i,

Looking for exposure to defense industry. MAL:CA has been a consideration. Would appreciate you thoughts on the stock moving forward and what other stocks you would consider for a long term 5+ year hold.

Thank you in advance.

Greg C.

Q: I'm interested in your thoughts on the quality of the management at these companies. All are negative in my portfolio at this point. Could you rank them by below average, good(average) and above average?
Thanks

Q: Please give your opinion on MAL's earnings. Would you buy , hold or sell right now? Thanks.

Q: your view on MAL please, thank you