Investment Q&A

Q: My apologies - I forgot to say that I was looking to invest in that thesis with US stocks. I'd like to invest in the thesis that low-mid level income earners are going to start having more income based on a resurgent economy, lower taxes, and a very tight labor market along with reduced immigration. Can you suggest 3-4 companies that would really benefit from this scenario?

Q: Have recently heard some good things about both these companies but as a 68 year old investor who doesn't need to take money out wondering how you feel about them.

Q: I see a lot of sites that end with 'do your own due diligence' and while I understand the suggestion and concept, I don't have any idea what the steps are. Can you help me with a step by step DD?

Q: Could you please clarify what exactly "we think it's good for income mainly " means ? For instance, I'm currently down 16% on CGX, are you saying based on your current opinion I'll have to wait close to 3 years to break even based on todays yield? I struggle with giving companies time to develop business plans, while looking at lost opportunities elsewhere, reading "mainly good for income" makes my sell finger itchy.

Q: Sierra Wireless has been recommended to us as a stock beaten down but maybe ready to get into. The last comment on it was early March. Your thoughts?

Thanks, Lesley

Q: Hi 5i,
For Altagas, assuming that the WGL acquisition is completed successfully, and that no material additional business divestment is required in connection with the pending final regulatory approval, can you estimate what the implied funds from operations would be, on a ‘per share’ basis, of the combined entity (so after the conversion of all of the subscription receipts to common shares) and compare that to the FFO per share from ALA’s most recently reported year or quarter? I’m wondering if the WGL acquisition is expected to be accretive on that metric or whether the growth platform WGL is expected to provide would have to be proven successful before the profitability of the merger might become apparent.
How would you anticipate the shifting of ALA’s business mix to relatively more US-based business and a relatively larger regulated utility component might impact risk perceptions in the debt market (i.e. credit rating and cost of capital) and the equity market (business enterprise risk, current dividend and dividend growth plans). If those impacts would tend to be positive, what might be the most significant potentially offsetting factors (e.g. maybe debt metrics, rising interest rates, or the relevant regulatory authorities)?
Thanks!

Q: Hi Ryan
This stock was one of my poorer choices and thinking about cutting my loss.
I would however to ask your opinion on what catalyst it would take to move this stock in either direction since the CARA take over it seems just a cash account unattached to the main company
Kind Regards
Stan

Q: I own some Zymeworks stock and there was a trading halt for news and then today it dropped $5 despite what I thought was good news, could you comment?

Thanks

Q: When you speak of 5% as an optimum weight for a stock holding are you calculating that on the total portfolio or on the part aside from the fixed income? For instance, with a portfolio of one million with 50% fixed income and 50% eqities, would the 5% max per stock apply to the one million portfolio or the $500,000 after the fixed income had been split out?
thanks very much

Q: I will be on holiday for a month in July, and rather than selling and going away I was considering increasing my positions in solid blue chip stocks. Canadian and US financials have not done well recently. What about Visa and MA? Any other suggestions?

Q: Hello 5i team,
I have just turned 75 and can no longer fathom to have all my RRIF invested in equities; since I have made 15% compound p.a. in the last 10 years, I don't mind getting a lower return in the next 15 years. I have therefore decided to have only half the portfolio in equities.
The following are the equities I own; could I be so bold as to ask you which 20 of the 38 to hold?
Consumer discretionary BYD.UN, LNR/MG, NFI, TOY
Consumer defensive ATD.A, DOL, PBH
Energy ENB, KEY, PKI
Financials BNS, SLF, TD
Health GUD
Industrials CAE, CNR, SIS, WSP
Materials CCL.B, MX, SJ
Technology CLS, CSU, DSG, RNGH, GIB.A, KXS, OTC, PHO, SHOP
Real Estate CIGI, FSV, TCN
Telco BCE
Utilities AQN, BEP.UN, BIP.UN
Looking forward to your response; please deduct as many credits as you deem appropriate
Antoine

Q: Which of these would you initiate a position in today based on a 1-2 year holding time frame?

Q: Hi,
I purchased a small starter position in SPOT a few weeks ago. I know 5i sees a lot growth potential with Spot and it has a high valuation. Lately I’ve read lots of bearish views on this company. What sets them apart from all the competition and free music available? I realize they have more users, international following, playlist sharing, and ad revenues. What am I missing that google, amazon and Apple don’t have or can’t replicate? What sets them apart from the competition?
Thanks,
Kerri

Q: A couple years ago, on your suggestion. I purchased some shares of CSU. for my wife's portfolio. At the time they were pretty cheap.. They now represent 23% of her total account. I find it hard to sell any as they keep going up, but if they ever took a nosedive, I would likely have to live in a tent in our back yard.. Would you suggest I sell some or hang on for a while longer? I notice you are suggesting them frequently as a good buy.

Q: If I understood the following correctly should I consider a switch from AW.un to ECI?

"Symbol(s): Enercare (ECI), A&W Revenue Royalties Income Fund (AW.UN)
Date: Jun 4, 2018 4:26 AM
Question: Which of these two would you choose for a long term hold for income?
Answer:

We think ECI looks best here today."

Q: Down on these two, but not desperate to sell. Are they still good as long term holds?

Q: Good Morning Folks,

I own half positions in several companies - AFN, AC, TCL.A and NFI. Do you think now would be a good time to increase some or all to full positions?

Thanks for your assistance.
Dennis

Q: Hi Everyone at 5i! Could you please comment on the future growth prospects of People? It has has a nice run up so far. Thank you, Tamara

Q: which company do you like the most for the next 6-12 months for growth period.
you have been asked this question before with no clear answer.
i own tsgi , would be happy to buy gc depending on your answer.
maybe i should just own both, overweighting a sector is not a concern for me. dave

Q: Thank you for your prompt response to my question. I checked the stock at 4:30 PM and l saw a news feed that the company had received the final government permit to operate the back fourty mineral deposit. (We will call it a mine if it ever gets into production). It appears possibly some people or maybe even many people knew the permit was going to be granted before the general public knew. Would this concern you?
Market capitalization has now passed 100 million. A Feasability Study is next up in the not too distant future. I am pretty sure management already knows the study will be positive - otherwise they wouldn’t be spending all this time and money getting permitted. There may news leakage out of the head office but I don’t think this company is a promotion and dump operation. Would you consider the company investable now or is it still highly speculative?
Thank you,
Jim