Investment Q&A

• Sun Life Financial Inc. (SLF $82.00)
  • $82.00 P/E (TTM): 14.79X Cap: $46.18B
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• Intact Financial Corporation (IFC $281.15)
  • $281.15 P/E (TTM): 22.51X Cap: $49.89B
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• Definity Financial Corporation (DFY $72.79)
  • $72.79 P/E (TTM): 21.68X Cap: $8.38B
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Q: Are the California wildfire losses expected to have any impact on Canadian insurers, possibly as reinsurance partners?

Upvote 4

Read Answer Asked by Jeff on January 13, 2025

• iShares Core MSCI Canadian Quality Dividend Index ETF (XDIV $33.06)
  • $33.06 P/E (TTM): 3.19X Cap: $2.64B
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Q: To my big surprise the monthly income from XDIV is classified as "interests" income at BMO Investorline and not as dividends income. A T5 slip will confirm this in a few weeks but in your view should it be interest or dividend? Thanks.

Upvote 2

Read Answer Asked by Charles on January 13, 2025

Q: Good day, 5I. Is it ok to sell a ETF in a RIF and repurchase immediately in a TFSA. There would be no capital gains or losses to claim. Thank you.

Upvote 2

Read Answer Asked by Donna on January 13, 2025

• Alphabet Inc. (GOOG $200.74)
  • $200.74 P/E (TTM): 21.59X Cap: $2.42T
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Q: As Google spent US$48 Bn a year (2024) it should have very robust search engines. The startup, perplexity.ai, is reportedly valued at US$9 Bn now. Mr Bezos and others back the firm. Personally, I haven't noticed big change for quite a while in Google's searching features. Do you if / know when perplexity might be brought public, and whether is looks at this point to be close to being knock Google's searching feature away? If it could, would you expect this to have much impact on Google's profitability?
Thanks for your valued insights.

Upvote 6

Read Answer Asked by TOM on January 13, 2025

• Tantalus Systems Holding Inc. (GRID $3.01)
  • $3.01 Cap: $156M
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Q: Tantalus looks like it could be breaking out. Have you seen any news to explain this? I believe you were mildly interested before; has your opinion changed at all?

Thanks for all you do.

Upvote 3

Read Answer Asked by David on January 13, 2025

• United Rentals Inc. (URI $890.08)
  • $890.08 P/E (TTM): 23.72X Cap: $58.02B
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Q: United Rentals has had a significant pullback since early December (approximately 25%). What is the reason for this pullback? Would you consider it a buy at this level or would you wait to see if it turns around after earnings on 22-Jan?

Thanks in advance and Happy New Year.

Brendan

Upvote 6

Read Answer Asked by Brendan on January 13, 2025

• First National Financial Corporation (FN $48.23)
  • $48.23 P/E (TTM): 15.82X Cap: $2.89B
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• Atrium Mortgage Investment Corporation (AI $11.70)
  • $11.70 P/E (TTM): 11.32X Cap: $556M
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• Firm Capital Mortgage Investment Corporation (FC $12.13)
  • $12.13 P/E (TTM): 45.11X Cap: $444M
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Q: Can you explain what a MIC is? what are the benefits and risks? How do you buy them? Any you would recommend?

Upvote 3

Read Answer Asked by Carla on January 13, 2025

• TransMedics Group Inc. (TMDX $118.35)
  • $118.35 P/E (TTM): 89.42X Cap: $4.15B
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Q: Your thoughts on the company after the short report? Is there more damage yet to come or is there an opportunity here?

Thanks

Dave

Upvote 3

Read Answer Asked by David on January 13, 2025

• Delta Air Lines Inc. (DAL $57.88)
  • $57.88 P/E (TTM): 8.77X Cap: $38.55B
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• Air Canada Voting and Variable Voting Shares (AC $19.15)
  • $19.15 P/E (TTM): 5.27X Cap: $5.65B
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Q: Hi 5i
Dal reported today Fri Jan 10....Delta forecasts the strongest profit in its 100-year history.....it expects 2025 to be the most profitable year in the company's 100-year history...

Do you think Delta earning/outlook are reflective of the industry in general and specifically AC?

Could this be the positive catalyst the airline needs or is management so bad its still basically a coin toss on their outlook?

Is AC expected to meet their forecast earnings Feb 14?
I meant to add to this question that the american airlines , LUV, Ual are up today after delta earning while air canada continues its slide.. why do you think that is?
Thx

Upvote 2

Read Answer Asked by jim on January 13, 2025

• Eagle Materials Inc (EXP $225.33)
  • $225.33 P/E (TTM): 16.95X Cap: $7.34B
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Q: EXP has fallen by nearly 25% in the last 5-6 weeks. Any idea what has caused this? And do you see it recovering going forward? Thanks

Upvote 1

Read Answer Asked by Leonard on January 13, 2025

• Fiera Capital Corporation Class A Subordinate Voting Shares (FSZ $6.59)
  • $6.59 P/E (TTM): 21.9X Cap: $704M
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Q: Is FSZ a buy for income investors at this level?

Thank you!

Upvote 4

Read Answer Asked by Jim on January 13, 2025

• Royal Bank of Canada (RY $189.57)
  • $189.57 P/E (TTM): 20.44X Cap: $266.89B
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• BMO Equal Weight Banks Index ETF (ZEB $48.15)
  • $48.15 P/E (TTM): 12.49X Cap: $4B
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• EQB Inc. (EQB $99.69)
  • $99.69 P/E (TTM): 10.35X Cap: $3.84B
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Q: Hi there. As always, we really appreciate your insight into the markets and your thoughts on the evolving landscape. We have held Royal Bank for many years in a portfolio for our grandchildren and it has done well on an annualized return basis. It is a core holding but would you suggest going into a basket possibly being the better move going forward as market uncertainty seems to be growing? Do you have any names we can explore that might better capture future growth and allow a bit more diversification? Do you see Canada as an index finally outperforming the US this year with the sky-high valuations of the Mag 7? Thank-you!
Please take as many credits as needed

Upvote 6

Read Answer Asked by Lesley on January 13, 2025

• Intuitive Surgical Inc. (ISRG $474.83)
  • $474.83 P/E (TTM): 66.74X Cap: $172.23B
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• Dollarama Inc. (DOL $196.54)
  • $196.54 P/E (TTM): 44.95X Cap: $54.08B
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• Celestica Inc. (CLS $251.18)
  • $251.18 P/E (TTM): 41.4X Cap: $29.19B
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• Transdigm Group Incorporated (TDG $1,393.76)
  • $1,393.76 P/E (TTM): 47.16X Cap: $79.01B
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• Axon Enterprise Inc. (AXON $757.40)
  • $757.40 P/E (TTM): 183.43X Cap: $59.73B
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• Berkshire Hathaway Inc. (BRK.B $487.50)
  • $487.50 P/E (TTM): 16.63X Cap: $1.05T
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• Heico Corporation (HEI $308.42)
  • $308.42 P/E (TTM): 70.98X Cap: $42.73B
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Q: Please rank the following from best to worst for a long term hold. Thanks

Upvote 14

Read Answer Asked by Ben on January 13, 2025

• Miscellaneous (MISC)
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Q: In general, how should Canadian investors consider adjusting portfolios in light of the tariff threat? Should they be reducing exposure to Canadian equities on a relative basis? What fixed income /cash alternatives should be considered?

Upvote 10

Read Answer Asked by Ian on January 13, 2025

• Abacus FCF International Leaders ETF (ABLG $29.87)
  • $29.87 P/E (TTM): 129.81X Cap: $32M
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Q: I have been trying to find research information in 5i questions and on my trading platform, RBC Direct Investing for TTAI - FCF International Quality ETF mentioned on the latest podcast, but I can't find it using the ticker or description. Can you help me with where to look? If this isn't an ETF that is available to me through RBC DI, is there a comparable ETF for international market compounders? Thanks!

Upvote 1

Read Answer Asked by Kim on January 13, 2025

• Eli Lilly and Company (LLY $713.80)
  • $713.80 P/E (TTM): 57.22X Cap: $667.66B
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• Novo Nordisk A/S (NVO $55.56)
  • $55.56 P/E (TTM): 15.55X Cap: $363.68B
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Q: Hi, what would you replace NVO with? Thanks and Greetings, Peter.

Upvote 2

Read Answer Asked by peter on January 13, 2025

• Brookfield Infrastructure Corporation 5.000% Subordinated Notes due 2081 (BIPH $17.19)
  • $17.19 Cap: $7.83B
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Q: Hi
Happy New Year
Could you have a look at this bond/corporate note and provide some feedback? I am wanting to add it to my US portfolio. I see that its end date is 2081? As well it can be redeemable as early as 2026? Could you confirm these dates as well. Thanks, Len

Upvote 3

Read Answer Asked by Leonard on January 13, 2025

• Celestica Inc. (CLS $251.18)
  • $251.18 P/E (TTM): 41.4X Cap: $29.19B
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• TerraVest Industries Inc. (TVK $142.77)
  • $142.77 Cap: $3.10B
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• Hammond Power Solutions Inc. Class A Subordinate Voting Shares (HPS.A $118.18)
  • $118.18 P/E (TTM): 18.94X Cap: $1.48B
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• WELL Health Technologies Corp. (WELL $4.83)
  • $4.83 Cap: $1.23B
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• Propel Holdings Inc. (PRL $31.62)
  • $31.62 P/E (TTM): 15.66X Cap: $1.22B
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Q: i've done well in 2024 with a number of 5i canadian small and mid cap picks such as CLS, PRL,TVK, WELL, HPS, etc.
I did similarly well with a number of picks in 2021 only to watch those gains evaporate in 2022.
I know 5i prefer not trying to time the market but i'm watching my 2024 winners trend down, some more than others.
I still believe in the fundamentals of my 2024 winners but if the market is trending down is there not some point one should step aside, take the profit and wait for a new or renewed uptrend?

Upvote 22

Read Answer Asked by Rob on January 13, 2025

• Meta Platforms Inc. (META $737.89)
  • $737.89 P/E (TTM): 27.27X Cap: $1.87T
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• NVIDIA Corporation (NVDA $174.82)
  • $174.82 P/E (TTM): 56.66X Cap: $4.27T
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Q: In follow-up to the Q&A on Howard Marks' recent memo, out of the current "Mag 7", which one do you think is most likely to be in the S&P500's top 20 companies in 20 years, and which one do you think is least likely to be there? Feel free to make two picks for each or decline to respond. I own 5 of the 7.

Upvote 3

Read Answer Asked by Barbara on January 13, 2025

• Vanguard U.S. Dividend Appreciation Index ETF (VGG $98.93)
  • $98.93 Cap: $2.12B
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• Vanguard U.S. Dividend Appreciation Index ETF (CAD-hedged) (VGH $67.30)
  • $67.30 P/E (TTM): 68.42X Cap: $896M
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• Vanguard Dividend Appreciation FTF (VIG $209.17)
  • $209.17 P/E (TTM): 68.92X Cap: $92.40B
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Q: Good Morning
Is there an unhedged version of VGH ?
Can you recommend any other unhedged ETF similar to VIG but listed in the Toronto Stock Exchange ?
Thank you

Upvote 4

Read Answer Asked by Terry on January 13, 2025