Investment Q&A

Q: I’m interested in investing in 2 of the above O&G producers. I would appreciate 5i’s recommendation and possibly a brief description of reasonings.
Thank you

Q: Hi, Could you please share your thoughts on the recent performance of the stock. LMN stock made a high of $38, just before release of its quarter, but its price has been drifting lower since then, closing at $33 level, within a span of less than 10 days.

The results looked solid, but apparently, there seems to be some concern among investors related to an expense of $2,871 mln (FY 2023), related to the increase in fair value of the redeemable preferred/special shares and dividend payable. LMN also intends to issue new common shares on March 25, 2024 to satisfy
(1) mandatory conversion of the large block of preferred and special shares held by CSU/Others at a predetermined ratio
(2) payment of $87 mln of dividend on these shares and number of such common shares, to be based on average trading price of LMN for 60 days prior to March 25.

My understanding is that the loss related to “Increase in FMV of preferred shares” is only a “Book Loss” and will extinguish completely, with no effect on company profitability (Existing and Future) once the preferred shares are converted to LMN’s subordinate voting shares on March 25.

Thus, the only relevant factor here should be the impending issue of new common shares (How many and the final total o/s shares), which would result in increase of the share count, possibly impacting the Net Income and CFO per share and further elevating the PE ratio.

So, is the market concern justified or it’s more of a sentiment issue, which should resolve itself with more clarity over next few quarters?

Based on your assessment, do you believe that nothing has changed to its mini CSU profile? And if so, is it a good opportunity to take advantage of this uncertainty and to add LMN shares at current level ?

Thank You

Q: Hi, If I want exposure to Japan, should I buy Toyota or an ETF or something else?

Q: If buying one of these two for a 3 to 5 year hold, which would you choose and why? Thanks. ram

Q: On Mar. 14 in the Q & A, Mike was concerned about a short squeeze on CELH and provided the reasons why. 5i said yes there could be one and I get the impression from reading the answer that a short squeeze would cause a fair sized drop in CELH.
Jason Donville was answering a question on HPS.A and he said it had quite a run and he likes it, but he is going with NXT because it might have a longer runway at this time.
Thank you

Q: Can you send me some advertisement on 5i that I could give to my friends?

Q: Hi there,

Can you tell me a little bit about WTEs’ business and how you feel about it in terms of an income investment.

Thanks.

Q: When I retired at age 60, I was told that I should drawdown my RRSP as much as possible before I started to collect CPP and OAS at 70. I have been doing this, but because my highest growth stocks (MSFT and COST) are in my RRSP, there has been no drawdown.

I know the general rule of thumb is to place your US dividend stocks in your RRSP. However, in my case I think I would be better off holding MSFT in my TFSA, and COST in either my TFSA and/or taxable account.

I would lose 15% of the MSFT dividend in my TFSA, but the dividend is so small, it doesn't matter.

COST is a little different because of the special dividend. If I put COST in a taxable account, I could recover the withholding tax when I file the following year although I would have to submit a T1135 if over 100K. But given that I anticipate most of the returns to be from price appreciation rather than dividends, it would be better in my TFSA up to my limit, with the remainder going into my taxable account.

Does this make sense? Thank you!

Q: Hello,

Looking at co's like FTS, SLF, RY with an unblemished dividend payout record vs those that have cancelled or reduced the dividend makes me wonder why the "Gold" co's go to such extremes to preserve the payout? Is a dividend a cheaper source of capital and does a pristine payout record shave a % or 2 off the cost? There has to be an economic reason beyond "Aristocrat" status.

Thank you

Q: The press release says 120 million in revenue not 78 million . Where is 5i source? Please clarify?

Thx

Q: I opened an FHSA and am looking to max it out and put half in index and half in high growth potential stocks. Not looking to purchase a home for min 5 years up to 10. If i end up not buying I would just flip it over to the RRSP. What are some stocks that you would recommend that have a high upside potential? CAD or US stocks.

Q: Hi Peter,
In regards to Adam's question regarding OLY. Would it be appropriate to look at the interest income that OLY has been able to generate as a hedge against higher interest rates. If rates were to move higher, OLY is set up nicely to outperform. The business delivers high ROE in the 50% plus range and should be able to do well in low interest rate environment especially with a dividend in the 7% range. Would you consider it a compounder?
Thanks

Q: Hi Guys, what are your thoughts on the current quarter? Is it a time to buy more or wait to see how it settles? Thanks

Q: Thoughts on the quarter?
Thanks...Steve

Q: Which one would you prefer? Are they tied? Thanx.

Q: Hi Peter,

Can you provide comments on Copperleaf financial results. Also what do you think of this as an AI play for Gridtech. Can you comment on prospects going forward and is it a buy or at what level would you recommend.

Thanks

Q: Can you comment on the recent earnings and give your opinion on the stock for a 5-year hold?

Q: There seems to be a lot of commentary in the market about a potential pullback given the current run the US and CDN markets are having, while reaching close to all time highs.

Maybe the noise has me spooked but I do find it tough to deploy cash to stocks in the current environment, particularly in the AI and Tech space, given that some stocks are seeing growth of 200% to 400% in one year.

Its a long winded introduction to my question, what is your current view on the market, do you feel that a pullback is possible in the next few months, would you be cautious right now?

I understand that no one can predict the market at any given time but I would greatly appreciate your view.

Thanks
Tim

Q: Hi,

My partner I are doing financial planning, we will need a relatively significant (to us) amount of cash in the next 2-5 years for replacing aging cars and a down payment on a larger house.

I am always hesitant to hold cash/GICs for fear of missing out on growth opportunities. Currently, almost all the funds in our RRSPs and TFSA's are invested EXCEPT a long term GIC that came to term and is now sitting in cash (some in TFSA, some in Non-registered). We will need all this cash in the next 2-5 years.

I am looking for ideas on how to manage the cash.

Right now, the best option I can see is GICs with various terms, do you have any other suggestions or ideas to consider?

(we have already owned a house, so cannot use RRSP loan or the new FHSA)

Thanks

Q: Hi,

For total return, long term, do you prefer VIG or DGRW (not in database?) and why please? Thank you. Michael