Investment Q&A

Q: What are your top 5 Canadian choices in each of Utility and Consumer Cyclical sector going into 2022, I am looking for a combination of growth and income, plan to hold long-term in registered accounts. Thanks!

Q: Hello, Can I get your assessment on this company, its valuation and growth prospects. I currently hold a position and would like to add to the position, but wondering if now is a good time. Thanks

Q: Hello Peter,
I am assuming no credits will be taken off as this is a clarification on the answer.

Asked by Robert on November 09, 2021
5I RESEARCH ANSWER:
NVEI saw revenue increase 96% to $183.9 mln and EPS of $0.19. Analysts expected revenue of $178.9 ln and EPS of $0.39, so markets are likely a little unhappy with the EPS number here. Full year revenue view for NVEI was $717 mln to $723 mln, ahead of expectations of $703 mln. At a high level, we don't think results look too bad here. Total volume were up 88% and ecommerce was 83% of that total volume. Cash was at $288.7 mln as of Sep 30. Shares are down a bit today but they are up roughly 40% prior to the release and trade at a higher valuation, so some volatility would not be out of the ordinary.

Asked by Greg on November 09, 2021
5I RESEARCH ANSWER:
EPS of 42 cents beat estimates of 35 cents; sales of $184M beat estimates of $179M. Year sales guidance was raised to $717M to $723M, from $703M estimates. Revenue rose 96%. EBITDA rose 97%. Income more than doubled. Cash is $288M. The call has not yet started but these numbers look solid. The stock is up 1% pre-market.

The earlier answer provide net income per diluted share and the latter was adjusted. I am slightly confused. What is the actual answer ?

Are the estimates normally on diluted share or adjusted share as other answers you provided showed a beat on top and bottom line. Please clarify. Thanks very much.

Q: Just a question about "Sell on news stocks", I find it quite confusing that so many stocks nosedive with exceptional earnings reports and your response is it looks like investors are selling on news?? Wouldn't it make sense to dump the stock the day before earnings came out after a big run up and buy back in later??? Thanks.

Q: Good Morning Peter & Team,

On November 3rd subscriber Peter' asked;

"Top USD stocks for dividend income please."

Your answer offered a number of suggestions all of which indeed generate good dividends but offer minimal (for the most part) in the way of capital gains.

Can you please tell me how your answer might have been different if the question had asked for;

"Top USD stocks for dividend income which have the potential for good growth/capital gains moving forward please."

Thanks for all you do

gm

Q: What are your thoughts on BBU's recent acquisition of SGMS's lottery business?

Q: Please comment on this company.

Q: Good morning, can you please comment on Finning's results and outlook? Is now a good time to initiate a position?

Thanks,
Jeff

Q: Thank you for your prompt and your customary excellent answer to my earlier question!

Q: 1. May I then request you to give me a concentrated collection of small/midcaps energy stocks that you think will be comparable to an ETF? say ZJO?

Q 2: Big and mid to big caps that are comparable to XEG?

I will leave the number of stock selection to your discretion.

Many thanks.

Q: I would appreciate your comments on the 3rd q numbers. They seem quite impressive but I don't have access to reports that indicate what analysts were expecting in cash flow. They seem to have beat earnings by a wide margin.

Q: Comments please on the latest quarter. Thanks.

Q: Is it an overkill to own both CU and ENB for the purposes of diversification, or are there sufficient distinction between the two businesses?

If the focus is on a steady growing income, and some growth, which would be your pick today? Thank you

Q: Peter; Any reason natural gas is off about .45cents this am ? Thanks. Rod

Q: Please provide comments on PLTR quarterly results. Would you consider purchasing a 1/4 position if you only have a 1/2 position right now and you holding period is >5years?

Q: Continues to drift lower. Would you be buyers? I suspect there are some further tax loss selling going on.

Q: Can you comment MAGT's latest earning please?

Thanks

Q: Hello 5i Team

I currently hold a Canada Real Return Bond (Canada Dec-21) in a RRSP account which matures December 01, 2021.

I would like to maintain my current exposure to Real Return Bonds, however from experience I find it very difficult to purchase Real Return Bonds from my discount broker.

I am looking at the following current Real Return Bond ETF:

XRB – MER = 0.39 % – Effective Duration 15.26 year – YTM 1.83 %

ZRR – MER = 0.28 % – Effective Duration 15.91 year – YTM 1.65 %

Three newer ETFs based on the US short term TIPS are as follows:

BMO Short-Term US TIPS Index ETF (Hedged Units) [ZTIP.F] – MER = 0.17 % – Effective Duration 2.65 year – YTM 0.24 %

iShares 0-5 Year TIPS Bond Index ETF (CAD-Hedged) [XSTH] – MER = 0.15 % – Effective Duration 2.60 years – YTM 0.23 %

Mackenzie US TIPS Index ETF (CAD-Hedged) [QTIP] – MER = 0.17 % – Effective Duration 8.05 year – YTM 1.13 %

Which ETF would be a suitable replacement for my Canadian $ Real Return Bond maturing on December 01, 2021?

Thank you

Q: I have two smaller positions (about 1% each) in Gildan and Manulife, and I am considering consolidating them into a position in Apple (would be roughly 2.3% of total portfolio). I believe I still have room to add to my technology weighting, as I am around 12% currently, and I still have decent exposure to both consumer discretionary (roughly 10%) and financials (roughly 19%). Would such a switch be reasonable, or do you feel a more compelling argument could be made for consolidating around either GIL or MFC?

Q: I read your answer on DND this morning and you noted they missed EPS expectations.

I was trying to figure that out after the earnings were released yesterday but it seems pretty muddy to me with the shares, debentures, diluted eps/non diluted etc. The EPS expected on the TD site was 21cents and if you take shares outstanding (listed on TD at 68.1m) I get 32cents EPS on income of 22.1m.

So to break that down what did you see as the expected EPS and on what basis was it?

Also I cannot find any information on the debentures (other than the amount raised and the nominal denomination) and at what rate/level they are convertible. Do you have that information?

Q: Hi 5i
I have been unsuccessful in my search to find the release date for HWX 3rd Qtr results. Are you able to provide it? Thanks