Investment Q&A

• Edison International (EIX $72.47)
  • $72.47 P/E (TTM): 6.21X Cap: $27.60B
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• PPL Corporation (PPL $38.70)
  • $38.70 P/E (TTM): 24.22X Cap: $28.93B
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• Southern Company (The) (SO $98.67)
  • $98.67 P/E (TTM): 25.0X Cap: $109.71B
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• Williams Companies Inc. (The) (WMB $73.31)
  • $73.31 P/E (TTM): 34.27X Cap: $89.58B
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• Brookfield Renewable Partners L.P. (BEP.UN $41.88)
  • $41.88 Cap: $28.20B
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• Brookfield Renewable Partners L.P. Limited Partnership Units (BEP $30.59)
  • $30.59 Cap: $20.42B
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• Brookfield Renewable Corporation Class A Exchangeable Subordinate Voting Shares (BEPC $55.32)
  • $55.32 Cap: $7.88B
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• Brookfield Renewable Corporation Class A Subordinate (BEPC $40.48)
  • $40.48 Cap: $5.70B
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• Constellation Energy Corporation (CEG $303.00)
  • $303.00 P/E (TTM): 40.78X Cap: $109.23B
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Q: Hello 5i Team

I currently hold in my US$ denominated RRSP Brookfield Renewable Partners L.P. (BEP) to avoid complications with taxation of BEP.UN in a taxable account.

I want to proceed with buying Brookfield Renewable Corporation (BEPC) in my taxable account to receive Canadian Eligible Dividends. I would then sell my BEP holdings in the RRSP.

Could you please provide your top 5 ideas in the US market (i.e. NYSE or NASDAQ listed) for electrical utility and or renewable electrical generation to replace the BEP units in my RRSP.

Thank you

Upvote 0

Read Answer Asked by Stephen on August 17, 2023

• StoneCo Ltd. (STNE $13.97)
  • $13.97 Cap: $3.74B
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Q: Hi,

Could you tell me why Stone is dropping like a ''stone'' given that the quaterly results seemed pretty good ?

Thanks

Upvote 1

Read Answer Asked by Guy on August 17, 2023

• Lumine Group Inc. (LMN $24.50)
  • $24.50 P/E (TTM): 97.04X Cap: $6.43B
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Q: hi,
can I get your current thoughts on Lumine group as a long term investment-management-debt-earnings etc.... IPO was 16$, now trades higher? usually price goes to at least half IPO price? can you explain this price action? also, I think you have mentioned you like management, can you elaborate a bit, im having trouble understanding why by reading the company website.
cheers, chris

Upvote 0

Read Answer Asked by chris on August 17, 2023

• Target Corporation (TGT $117.20)
  • $117.20 P/E (TTM): 14.22X Cap: $53.13B
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Q: With the expected downturn in profits and the problems on social media should I take my 300% increase and run or wait it out? Meanwhile it has been going up $4.00, $2.00 etc almost daily and I hesitate to let it go.

Upvote 0

Read Answer Asked by STANLEY on August 17, 2023

Q: Hello 5i,
This message from RBC Direct Investing has just come through. I thought it might be of some interest to the broader 5i community. My guess is that soon the other large banks may follow suit if they have not already done so. Worth keeping an eye on.....

Effective October 31 2023, RBC Direct Investing Inc. is amending the ‘Conflicts of Interest Disclosure’, section 3 to delete the following sentence:

“RBC Direct Investing does not currently offer high interest savings account ETFs.”

Access to high interest savings account Exchange Traded Funds (ETFs) is now available on the platform.

Cheers,
Mike

Upvote 0

Read Answer Asked by Mike on August 17, 2023

• Arhaus Inc. (ARHS $7.29)
  • $7.29 P/E (TTM): 14.79X Cap: $766M
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Q: Is the news from yesterday of a large stockholder selling out completely a reflection of the company's future outlook? Do you think the stock remains in the doghouse for the next quarter? This year? Does it make sense to book a loss now and rethink in the future? How do you view its prospects and valuation after today's price change?
Regards

Upvote 0

Read Answer Asked by Rajiv on August 17, 2023

• goeasy Ltd. (GSY $34.15)
  • $34.15 P/E (TTM): 2.6X Cap: $573M
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Q: Further yesterdays and todays continued drop on Goeasy would you see this as opportune to add to the name?

Upvote 0

Read Answer Asked by Kim on August 17, 2023

• BIP Investment Corporation Senior Preferred Shares Series 1 (BIK.PR.A $26.60)
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Q: I believeI that this rate reset will reset on February 28 2024 at the five year Government of Canada rate +3.96% with a minimum reset of 5.85% . If that happened today it would be approximately 8.1%.. Is that correct? Assuming the 8.1% at the reset what would the probability be that these preferreds are redeemed at $25 per share (currently 22.2)?

Upvote 0

Read Answer Asked by Irwin on August 17, 2023

• Enbridge Inc. (ENB $74.25)
  • $74.25 P/E (TTM): 28.41X Cap: $162.10B
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Q: Is the weakness in ENB and other pipeline stocks because of interest rates and the large debts the companies carry?

Thx

Upvote 0

Read Answer Asked by blake on August 17, 2023

• Converge Technology Solutions Corp. (CTS $5.99)
  • $5.99 Cap: $1.12B
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Q: In hindsight do you think the strategic review special committee and board should have sold the company. Apparently everyone thinks highly of Shaun Maine and staying the course.

Upvote 0

Read Answer Asked by Steve on August 17, 2023

• Hawaiian Electric Industries Inc. (HE $14.88)
  • $14.88 P/E (TTM): 20.68X Cap: $2.54B
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Q: Is this company oversold based on current events? Would you feel comfortable taking a position in this?

Upvote 0

Read Answer Asked by Craig on August 17, 2023

• Brookfield Corporation Class A Limited Voting Shares (BN $53.51)
  • $53.51 P/E (TTM): 77.5X Cap: $118.35B
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• Brookfield Asset Management Ltd. Class A Limited Voting Shares (BAM $59.86)
  • $59.86 P/E (TTM): 28.87X Cap: $96.50B
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Q: Hi,
Answer to Peter’s question on Aug16:
“ For example, last year BN shareholders got 0.25 BAM shares for each BN share, and that is worth $11.50+ per share. “ What? My BAM shares were split Dec22 in “new-BAM” and BN . I'm confused ...

Upvote 0

Read Answer Asked by Denise on August 17, 2023

• BMO Covered Call Utilities ETF (ZWU $12.22)
  • $12.22 P/E (TTM): 16.11X Cap: $2.15B
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Q: ZWU recently dropped its distribution from $.08 to $.07 per month. What makes an etf like this cut its payout and do you think it's vulnerable to more cuts?

Upvote 0

Read Answer Asked by Patrick on August 17, 2023

• Costco Wholesale Corporation (COST $999.62)
  • $999.62 P/E (TTM): 70.08X Cap: $447.39B
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Q: how does costco's valuation today compare with in the past? I always feel like it's expensive but maybe it's time to get in. Thoughts?

Upvote 0

Read Answer Asked by Eugene on August 17, 2023

• Constellation Software Inc. Unsecured Subordinated Floating Rate Debentures Series 1 (CSU.DB $117.25)
  • $117.25 P/E (TTM): 76.65X Cap: $53.48B
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Q: Re your answer on the warrants. High finance seems as clear as mud. If csu wants a deb until 2040 it just needs to never redeem it.
It seems as I only have 30 shares of csu and $40,000 in debs I have to buy 370 warrants. Thus add to my cost base of 105.
On the surface it seems the best course of action is to sell my debs now for the cap gain ( rrif) as I prefer not to add to the cost basis .
I assume csu plans a redemption, why else go through with this exchange.
Thoughts ?

Upvote 0

Read Answer Asked by Leon on August 17, 2023

• NFI Group Inc. (NFI $17.77)
  • $17.77 Cap: $2.01B
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Q: You have recently dropped coverage on this company due to several detrimental factors. Would you therefore sell this company and deploy the capital elsewhere? It’s a kind of rhetorical question which I want to ask. Thank you.

Upvote 0

Read Answer Asked by Miroslaw on August 17, 2023

• Telesat Corporation Common and Variable Voting Shares (TSAT $48.37)
  • $48.37 Cap: $1.71B
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Q: A question on Telesat
What are your thoughts on the recent news and run up in this stock... I have always been interested in this and MDA and others in the space sector. Can you provide and updated view on Telesat considering the MDA contract and huge cost savings and specifically the TAM for the LEO satellites seems to be Massive.
Also what other companies would be classified as competitors specifically for Telesat's focus on non-consumer enterprise, government, aviation industries? Starlink is eventually going to offer those services but they focus on residential currently. Thanks!

Upvote 0

Read Answer Asked by Michael on August 17, 2023

• Park Lawn Corporation (PLC $26.48)
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Q: Hi

I'm confused with this one. 5I considers PLC an Income stock, yet it has a yield of less than 2%. It is a perennial acquirer which I think of as a rollup strategy. If you look at it's 5 year stock performance, it is not impressive having reached $40+ and then tumbling back to 23 which is where it was 5 years ago. Admittedly, it is in a sector that will always have market demand, but other than that, what is the attraction?

Upvote 0

Read Answer Asked by Carl on August 17, 2023

• BMO Mid-Term US IG Corporate Bond Index ETF (ZIC $18.18)
  • $18.18 Cap: $3.68B
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• Vanguard U.S. Aggregate Bond Index ETF (CAD-hedged) (VBU)
  • Cap: $921M
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Q: In a bond portfolio, should one be diversified across regions such as Canada, US etc similar to an equity portfolio? Can you recommend a US bond that trades in CAD?

Upvote 0

Read Answer Asked by Mary on August 17, 2023

• AbCellera Biologics Inc. (ABCL $3.57)
  • $3.57 Cap: $1.02B
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Q: Hello,
What do you think about Abcellera Biologics ? Is it a risky investment ? Is there any good chance to recover ?
Thanks

Upvote 0

Read Answer Asked by Nancy on August 17, 2023