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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: Could you provide brief summary to I'm sure a complicated question?

How is it that some analysts, including 5i, are able to predict companies will be taken over (like People was recently?).

It sounds like sometimes companies can seek it as a long-term plan (eg is that Well's plan?), I know sometimes they're hostile, and sometimes just seem advantageous for all. What are the usual qualities? Eg undervalued, but growing profits? Usually small-cap?

What companies would you not be surprised to see bought out over the next year?
Read Answer Asked by Jeff on December 18, 2020
Q: I am pleased to say that with your advice I have enjoyed outstanding results and my portfolio is now at a level where I would like to protect against a significant market correction.
Reading your Q&A's there is references to puts and calls. From what I ascertain puts/calls can be a tool to protect and also enhance returns. Can you recommend resources for someone like me who is interested in learning more about this strategy.
Thanks
John


Read Answer Asked by John on December 18, 2020
Q: Can you enlighten me on this one: “a blank cheque company”. I have bought a few stocks over the years that made me feel like i signed a blank cheque ... but never one that actually declared itself to be a blank cheque company.

BFT hasn’t started business, no revenue, seemingly owns nothing. So what is it? Is there anything here to justify putting a bit of mad money into this non-entity?

Thanks for your help; and please add me to the long list of appreciative and happy 5i’ers wishing you and all the 5i team the best of all life has to offer now and in the years ahead. Merry Christmas 5i.
Read Answer Asked by Donald on December 18, 2020
Q: Do you know what's moving Versabank lately? I was about to sell my shares about a month ago after two years during which it went nowhere. Do you think it is worth hanging on? What would be a good replacement in the small-mip cap financial sector, other than GSY.
Read Answer Asked by Christian on December 18, 2020
Q: Seems there is a trend or investment opportunity to buy shares in small Canadian companies that are then acquired by US companies. What comes to mind are JPMorgan acquiring Solium Capital and Goldman Sachs putting in an offer for all of People. What other such small Canadian companies are liking to "suffer" this acquisition fate?.....Tom
Read Answer Asked by Tom on December 18, 2020
Q: Well, Air Canada's all time high was about 50 loonies per share. But now with the recent dilution of existing shareholders, I estimate the revised high will be about $45, adjusted for the dilution, Seems like a floor is forming under AC shares at about $23.60. What say you, aka your guess, and what with all the uncertainty that there is, about will this floor hold? And also what is the long-term guess-estimate target price in 12 months or longer?......Tom
Read Answer Asked by Tom on December 18, 2020
Q: I usually aim to invest 60% in Canada, 30% in the US and 10% outside North America. With US markets quite high again, is there more opportunity internationally and is a heavier weighting in that direction warranted?
Read Answer Asked by Alan on December 18, 2020
Q: Hi folks, can get your opinion of the merger between Aphria & TIlray. Aphria paid a 23% premium to hook up with tilray, to become the largest POT company. Investment community & analysts don't seem to like the deal...but I think Irwin Simon is the right person to run the new company, and has the brains/experience to make the new company successful & profitable. Can I please get your thoughts on the merger, and the future of the "new" Tilray. Thanks & Joyeux Noel, jb, Piedmont QC
Read Answer Asked by John on December 18, 2020
Q: I like companies that are based on a subscription model. With recurring revenues and growth "banking" on acquiring new customers, it would appear to be a path towards increased profitability and less risk. Aside from the obvious candidates, Netflix, Adobe, Crowdstrike, Microsoft and even Disney, can you identify a few companies in the US and in Canada that receive their revenue largely on subscriptions, that are not mega corporations already but exhibit strong growth.
Read Answer Asked by mitchell on December 18, 2020
Q: Hi,
What is your general opinion of investing in segregated funds? I understand that there are some great benefits for estate planning purposes as you get older, i.e. bypassing probate/estate fees, quick transfer of funds to beneficiaries, guaranteed death benefit, etc... but are the high MER fees (>2%) really worth it? I was helping my mom who is retired look into some of her investments in her TFSA and her advisor has her in invested in these two Manulife products, MPS4959 and MPS4980. Thoughts on these two funds? Do these two funds pay dividends or have a distribution yield? Could not find it.
Aside from the benefits I mentioned above where you only get with Seg funds, and looking at just the pure investment return/structure of the funds, could you suggest 4-5 other attractive ETF's that she could invest in that would outperform these over the next 10-20 years? I would like to switch her into some low cost ETF's or an all in one fund that are either comparable(balanced fund) or better than these two expensive products. She is close to 70, won't need to draw any of this money to live on (she has other sources of income) and looking for some steady and stable growth assuming life expectancy for another 15-25 years. Thanks!
Read Answer Asked by Keith on December 18, 2020
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