Investment Q&A

Q: Help me understand WEF please. Seems like they have mo debt, although Morningstar shows approx. $230M of “other liabilities” on their balance sheet. What could those be?
Morningstar states they earned about $80M TTM. True?
Why does the stock trade as if it could go out of business any time? Is the industry that fragile?
I note the stock was under 20 cents in 2008-9 crash. Can this happen again given their low debt?

Thanks
John

Q: I’ve been reading much negative commentary on this site lately, mostly shots against 5i’s recommendations, and I feel compelled to add my own observations.

Having invested since the late 90s, and earning my sole living from it since 2008, I find the shots against 5i alarming, and their defence against them heartwarmingly reassuring.

I’m essentially a large-cap, dividend-growing financial & utilities/pipeline/reit/preferred oriented-type investor, including looking to the US for what the TSX does not have (in essence, I’m investing for income first and growth second, though growth is still important), who has subscribed to 5i since its inception.

The alarming part is that while I’ve bought into ‘some’ of 5i’s growthier stock picks, my conservative-oriented big cap stocks (both US & CAD) have fared just as badly in recent weeks. So much for my own - intensely researched - so-called safety stocks. The reassuring part is 5i’s comments back to everyone, which is basically summed up as: relax, move to the sidelines - by ‘doing nothing’: meaning: hold - watch the show, but don’t be a part of it.

I was fully invested in 08/09, and while I fortunately ‘did nothing’ at that juncture, I certainly could have used 5i’s wisdom and calmness at that critical time.

This too will pass. Some companies will not survive. Most will. Those that do, will typically prosper. Try not to make large bets. Spread it around. Don’t react. Invest for growing income. Accept some losses, and let them go.

I write this more to remind myself, but since I have greatly benefited from other 5i members who have voiced similar thoughts, I thought it important to include my own.

I trust and hope that Peter, Ryan and The Team will keep their skins proficiently thick, and carry us through a multitude of turbulent times long into the future.

Thank you for helping us keep our heads in these difficult times.

Warren

Q: Meg is now trading at a 16% discount to Husky’s $11/ share offer. Is this not a no brainer to buy meg here for at least a 16% gain, if not more if a bidding war arises ? Am I missing something here ?

Q: Not a question but more a suggestion. I have been a client since year one of 5i I have done very well with the service using it as a guiding tool followed up with my own research. A suggestion for other investors out there who maybe experiencing some panic in this sell off that we are having. I suggest that when they do look at your recommendations and after they have done some of their own research and decided to buy they should write the reasons down in a note book as to why they are purchasing this company stock and date it. Then they should list the reasons why they would sell it. This way when the market starts the sell off they can go back and read their notes and see if anything has changed with their pick and if they should sell or maybe buy more due to an irrational sale. Once I personally implemented this practice I found my feelings of panic in a sell off were gone because I know and can look back at why I bought a certain equity and make sure the story has not changed. Please feel free to put this out there and thanks for the great service looking forward to 2019 ideas.

Q: Hi 5i,

Knowing that the US is not your focus, I would still value your opinion.

I have 30% of my portfolio in cash sitting in a USD margin account and I would like to invest in etfs for the S&P 500 and Nasdaq 100; could you please suggest etfs that do not pay any yield? I am also looking at IPAY and IWO for some diversification, would you be okay with this? Would there be any significant overlap in all these etfs? What percentage weighting would you have for more growth, medium to high risk tolerance and long term hold ?

Thanks as always. Please deduct as many credits as you see fit.

Q: Having read a number of complainer's questions in the last few days it occurs to me that not everyone should be a do-it-yourself investor. I well recall the myriad compliments fawning over you and your staff when certain members were watching their 5i recommended holdings climb in value on almost a daily basis. You likely knew that those words of praise would at some point turn to venom which they have. My plea to those who see fit to complain at this time is that you carefully consider what you are doing by making your own equity investment decisions. It may not be the right way to go. There are numerous options for you such as mutual funds, robo-advisors and broad-based etf's. However it isn't constructive nor in my view appropriate to complain to 5i that your stocks have diminished in value at the moment. Peter and staff don't control market sentiment nor momentum. They provide valuable information and opinion without bias for you to assess and then for you to govern yourself as you see fit. Please don't complain about this service solely because your holdings are down. That is one of but three alternatives of equity investing (along with breaking even and having your investments appreciate). A better approach at this time is to ask questions so as to position yourself more wisely. Publish at your discretion.

Q: Can you explain and justify what’s going on with Photon. I didn’t sell at the highs When I was up almost 100%, preferring to look more long term than trading. Now, for the first time, I am under water on it. I thought they were rolling out some new products that were supposed to do well and drive numbers up. Do you still see it as a long term (3-5 year) hold to get back to the $2+ range? Or do you see it as a missed opportunity, live and learn, sell and move on?
Thanks

Q: Hi team,
On Nov. 8 you said expected EPS is 0.11...... previous year was 0.44.....Wouldn't that huge difference concern you and would be bad for the stock price?
Thx!

Q: Another source has made the following comments:

Higher commodity prices and solid demand for a number of its more important chemical products should lead to improved operating results in the back half of this year and extend through next year. With a free cash flow (FCF) yield of 11% based on last year’s results, and a FCF yield that moves to around 14% based on this year’s projections, Chemtrade is selling at a very attractive valuation.

In addition, the 9.6% dividend yield should be well supported by cash flows with a payout ratio estimated to come in at around 70% this year. As operations improve, we expect the stock to react positively as its payout ratio declines further. This offers us a compelling valuation for a company with improving fundamentals.

I know you aren't happy with its past performance but it looks like it's getting very attractive for income?

Q: is there another vanadium company besides largo, that you think would be of interest , i understand the risks and speculative nature, prefer one producing or very close to producing. dave

Q: Hi Peter& Team,would like your opinion on PSI for a 3-5 yrs hold.many thanks Joseph.

Q: Would you sell a 70 call and buy a 70 put on KXS at this point?

Sheldon

Q: What are your thoughts on JWCA,is it a buy at this time?

Q: I have been accumulating cash in accounts for my 4 grandchildren, ages 2 - 10, and would now like to invest these proceeds. So, for long term holds, with some growth and some stability, what would be your stock recommendations. I have been considering investments such as BAM, SIS, AQN. Am I on the right track with these selections and/or are there others I should consider, such as TD and RY?
Many thanks........Jim

Q: Vermilion Energy keeps on sinking. Today, what is it Free Cash Flow? In other words, is it positive and does it cover the dividends or is it enough to pay the dividends going forward? What about positives back and forward coming from Vermilion now?

Q: Comments. There has been a change in the market and the economy. We have had almost 9 full quarters of U. S. growth, acceleration, etc. it may be coming to an end and we could be entering a downturn. This is the view of many smart people who do not publish or broadcast. Of course, based on the past, there has always been a recovery. Past results do not guarantee future performance and the winners may be different next time. The market is up or down for many reasons, but lets be frank here. 5i is not providing a hedge fund type service. I am sure many of the subscribers are inexperienced investors and feel the pain, if they bought stock near the peak of prices for certain areas. Common mistake. One's view of balance is critical but does not take into account major change in direction over a shorter time frame. One should not expect to have the market in their stocks recover. It may not. Risk mitigation is always the rule. Try not to lose your money or your can't play......Its my money and I expect to keep it and have it grow but I do not rely on anyone's opinion in the end. 5i is just one source of information or opinion.

Q: I'm looking for a straightly growth stock for the next two years. What would be your preference between GSY and SHOP, or you have a even better one (or ones) than these two. Thanks.

Q: What do you think of CTL moving forward after recent earnings? Is the dividend reasonably safe?

Q: Can I please get you thoughts on the recent earnings from EXE and CSH?
Also what is the street expecting from SIA next week?
Thanks

Q: Hello 5i,
I dont own any of the Brookfield group currently, but would like to at a discounted price. How would you rank all the bips, beps, bamas, bpys, etc, Which would you buy at current prices, for best 2- 3 year holding period, including growth and dividends ?