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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi 5i Team,

Happy Thanksgiving! I am looking for 'sleeper' picks to tuck away and look at again 3-5 years from now. Other than GUD which you have been vocal about it being that kind of stock, could you recommend two of your favourites in each of the small, mid, and large cap segments of the market. They don't need to be new, they could just be unloved, unfollowed, or under appreciated. Thanks!
Read Answer Asked by Derek on October 10, 2017
Q: I recently ignored my logic in staying away from "new" listings and invested in IBAT. In essence, I went with my gut based on my research and more than doubled my investment within a few days.

IBAT acquired technology in extracting lithium from brine, effectively reducing the process time from 24 months to 24 hours. No earnings ... It was previously operated as Rheingold. Has this been on your radar? Perhaps I should consider myself fortunate and bank my gains or hold on. May I have your opinion? Thank you.
Read Answer Asked by Martin on October 10, 2017
Q: I am holding a full position (5%+) in each of ALA in a non registered account, PPL in a RRIF account, and ENF in a TFSA. I have decided that I am overexposed to the sector and
must reduce my positions. In your opinion which companies should be held for the long term and which should be sold? I also hold ALA.R in my RRIF as per your suggested opportunity, should the pending transaction be consummated.
Thank you for considering my question.
Read Answer Asked by Gail on October 10, 2017
Q: From the recent 5i report on Stantec: "Out of STN’s direct peers of WSP and SNC, we would
view Stantec shares as the cheapest of the group while offering
similar growth potential relative to competitors."

Comparing STN with WSP, which I hold, I see one cheaper on 3 metrics (STN - PE &
EV/EBITDA - by a whisker- & forward EV/EBITDA) and the other
cheaper on 3 metrics (WSP - P/B, PSR & Forward PSR)

The dividend at STN is half that at WSP. The 3 year performance at WSP is 50%
better. Would you endorse a switch from WSP to STN or if light on
WSP just direct new sector $$$ to STN? I wonder, too, if this is a cyclical industry that
would suffer with a real estate correction or business slump, say, or are there
enough government contacts which definitely are not cyclical?
Read Answer Asked by Jeff on October 10, 2017
Q: If the Canadian banks can ( total) return 13-14% consistently why wouldn't an investor just target them and leave the rest of the market alone? Your thoughts please.

“In fact, Canadian banks are the only sector/subsector in North America to generate a better total return than Warren Buffet’s Berkshire Hathaway over the past 20- and 25-years, which in our view speaks to the powerful and consistent compounding mechanisms they have been… In other words, based on their history of success, we have a high degree of confidence that they will manage their way through current headwinds,” Barasch said in the note.

https://www.msn.com/en-ca/money/topstories/canadian-banks-can-support-higher-multiples-rbc-capital-markets-says/ar-BByT3ZU


https://beta.theglobeandmail.com/globe-investor/as-long-term-investments-the-big-5-banks-are-hard-to-beat/article4506573/?ref=http://www.theglobeandmail.com&
Read Answer Asked by Mark on October 10, 2017
Q: Hi,

I am looking for a good emerging markets ETF. In my screens there are so many to choose from and many with high Dividends, along with very strong gains, which of course I like. Since I know nothing about which countries and sectors to look for, could you recommend 2 or 3 good Emerging Market ETFS, preferably with a solid dividend and high growth potential, and also at a value price if possible. I am not overly concerned about risk and have no exposure in this area. Thank You.
Read Answer Asked by John on October 10, 2017
Q: Like many others, I rely on my stock portfolio for income. Fixed income won't provide it. The possibility of a significant correction seems to be not a matter of if, but when, and the prospect of another 40% drop portfolio value is scary, especially at this point in life. Based on the past couple of crashes it takes 4-5 years of agony to recover.
However with a portfolio of companies having a history of NOT cutting dividends through the market crashes, the income relied on would be preserved, and the recovery period somewhat less painful. So thats the type of portfolio I'd like to see 5i construct. Rosenburg's recent comments on BNN suggest good balance sheet, predictable earnings, low correlation to economy. I would add liquidity, ( I find that a number of the stocks 5i portfolios just don't have enough trading volume).
Whats your thoughts on this strategy? Is there enough of these companies, and suggestions?
Read Answer Asked by Lloyd on October 10, 2017
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