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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: Please list companies in your balanced equity and growrth model portfolios that are now in bear market territories and of those what would be your top 5 listed in preference to add to for a long term hold.
Read Answer Asked by Terry on February 08, 2022
Q: I have 6K in my TFSA that I’d like to deploy. Presently the TFSA contains the following names and the weight for each one of my TOTAL portfolio (Margin+TFSA+RRSP).

EGLX 0.87%
GSY 3.75%
LSPD 1.62%
MG 5.41%
NTR 6.26%
SHOP 2.05%
WELL 1.94%
NVDA 3.42%
PLTR 1.33%
PINS 0.53%
TFII 5.74%
U 2.29%

Should I sell EGLX and PINS since they have dropped below 1% of the portfolio?
Should I add to one, two or three of these names? If so in what order of preference?
Or should I go with another suggestion? If you can list 5 in order of preference.
Any sector CDN or USA.
I will not need the cash for another 8-10 years minimum.
Thanks for all you do.
Read Answer Asked by Marco on February 07, 2022
Q: Thank you for helping us navigate through the volatility with a cool head. I have 2 questions.

In a long term horizon 3 years and more for the above list could you separate them into 3 buckets and identify 1 group for which you would add funds, 1 group to keep and 1 group to sell? All stocks mentioned are now reduced to 1% or less in a non-taxable portfolio.
XBC -20%
AT -15%
CARE -50%
LSPD -45%
DOC -60%
WELL -30%
EGLX -30%
ENGH -30%

My 2nd question:

For the following securities in a corporate account with a 2-year horizon. Do the same exercise and separate into 3 buckets which ones you would add funds to, which ones are keepers and which ones you sell.
AT -50%
LSPD -45%
DOC -60%
WELL -30%
EGLX -30%
ENGH -30%

Thanks again
Read Answer Asked by Yves on February 02, 2022
Q: Please rank these telemedicine stocks as likely (1) survivor and consolidator, (2) acquiree, (3) flash in the pan and eventually bankrupt. Please include any other Canadian telemedicine stocks that I missed in this list.
Read Answer Asked by Brendon on January 28, 2022
Q: Hi 5i
For a TFSA which of these 3 would you choose at this time for growth .
I know you like all 3 but how would you rank for buying today? Thanks
Read Answer Asked by Gary on January 26, 2022
Q: Hi, There are lots of high growth companies out there with little or no free cash flow. Growth investors accept this because these companies invest aggressively in their own growth, development, market position, etc.

While it's understandable that high growth companies focus on their own growth now, presumably they will eventually need to switch to other forms of capital allocation. I am wondering if you have any insight into how much confidence we should have in which of these management teams will act in the best interest of shareholders when the time comes to maximize shareholder value via other forms of capital allocation. For example, if a company reaching maturity throws most of their resources into R&D despite diminishing returns it would not be in our best interest.

I realize the answer to this isn't completely knowable, so also interested in your general thoughts on this topic.
Thanks
Read Answer Asked by Alex on January 21, 2022
Q: Hi 5i,

Question regarding Well. Do you possibly have any info. (or know where we could find any info) on how their purchase of CRH Medical is going?

It seems like CRH's CEO (Tushar Ramani) left the company last month (Dec). Is there any information explaining this and/or any information relating to their revenue trends?

Thanks very much!
Read Answer Asked by Alex on January 21, 2022
Q: I see that WELL is planning to initiate a buyback program to take advantage of the drop in share price. Are you confident in management's assessment that the share price in undervalued? The price has still more than doubled in the past two years which is a steep increase. Also debt is almost 40% of it's market cap and they aren't currently showing any earnings. How will they fund future big acquisitions to continue this growth?

If we are confident with their assessment of value and their ability to execute going forward, should we not want the share price to drop further to make the buybacks more effective? In which case, why are they releasing material to pump the share price back up?

If the answer is that they need the share price higher to help fund acquisitions by diluting shareholders then the buyback program seems misleading.
Read Answer Asked by Alex on January 20, 2022
Q: Hello!
What is the likelihood of WELL needing cash giving the share price drop, potential acquisitions, and value returning (or not) to the sector. Are we taking on unnecessary risk holding it at these levels under water? I really like the execution team and their strategy, but sometimes there are things the business cannot control. Would love to see them continuing expanding paying penny on the dollar, I don't see any insider selling so far at glance, encouraging.
Thank you!
Read Answer Asked by Etienne on January 20, 2022
Q: Hi Team,
I am an aggressive investor, which paid off lovely in 2020, but now am being crushed. I hold the following stocks (with weightings in brackets) in total in my brokerage accounts. Could you have a quick look and tell me how this basket looks "In general"? And if you see this basket doing well over the longer term (say 5-10yr hold), pointing out any suggested changes you would make, if any are "sells" or worth switching out. Note that if I sell any GSY it would incur tax (the weighting is large because the position has grown and have been a firm believer in the company as its valuation still looks cheap and am collecting a nice div off it as well). I am 42yrs old so retirement is a ways away and my goal is maximum returns with reasonable risk until retirement. Please deduct credits as required. Thanks
ATZ(3.2%)DOO(1.3%),GSY(24.7%),NVEI(6.3%),TOI(8.6%),WCP(2.8%),SQ(3.5%),APPS(2.5%),RBLX(2.7%),BAM.A(1.7%),LSPD(3%),FB(8.2%),TTD(2.9%),U(2.2%),ABNB(2.4%),CRWD(2.4%),NVDA(6%),PINS(1.7%),CRM(2.9%),NOW(2.7%),SWKS(1.7%),TWLO(2.4%),VEEV(1.4%)WELL(2.5%).
Read Answer Asked by Shane on January 19, 2022
Q: I get that there is money moving out of growth (tech) and into other areas of the market. However, all the mentioned names here have CAGR of > 25% amongst other great fundamentals (free cash flow, equity,...). So long as fundamentals don't change, I can't see any reason to sell - only to add to these names on this opportunity. So long as business grows (and >25% is huge!) all these should be winners in the long term, no?

I've experienced significant whiplash with most of these stocks but am optimistic that with a longer timeline I should be okay.

I'm hoping for two things in your response:
1. Giving me comfort that my thinking is correct and if I hold on I should be okay, and;
2. Of the list, the one stock you would add to today.

Thx for the comfort,

Cam.
Read Answer Asked by Cameron on January 18, 2022
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