Investment Q&A

Q: Well Health achieved very low return on invested capital results (ROIC) over the past seven years. What does this mean? Does it mean that their acquisitions were not financially successful?

Thank you,
Gabor

Q: Which between WELL and PNG do you feel will appreciate in value more over the next year and why? Pros and cons for each?

Q: Hello Peter,
Given your last reply on well at 16 times forward earnings, is this stock mis priced by the market? I would think for growth company, investors would pile into the stock given the current decrease in rates which help small caps.. Any comments? Also, do you think xsu can go much higher or has it rallied already in expectation of rates going down? Lastly, i know you don't believe in market timing but when some stocks surge due to recent announcements on lower rates, is it worth selling and buying it back when markets settle.. much appreciated.

Q: Can you expand on the recent question on WELL. How good a company is it for a growth investor? It recently traded up to $5 but has back off to around $4.40. Is this a good point to buy? Where do you see it over the next 12 months? What are the catalysts that define company performance? It has been recommended by 5i, how strong is this conviction?

Q: My TFSA is roughly equal parts EIF, LMN, and WELL. MY TFSA is roughly 5 % of total reg. and non registered accounts. I am retired and have used my TFSA for more growth orientated stocks; with limited success. I am looking to replace these stocks ( which I also hold in other accounts ) , with HTA. I hold HTA in other accounts as well. HTA gives me access to 20 of the largest tech stocks and an 8% return which I receive every month ( important to a retiree ). Am looking at doing this in stages with EIF first and then the other two depending on fundamentals, relative value, etc.

Would you do this in stages or in one shot recognizing that I own these in other accounts ?
Your thoughts of HTA as a single holding in a TFSA to be representing 8 % of total portfolios ?

Thanks. Derek

Q: Hi 5i Team - The guest on BNN Market Call today, said that WELL has to grow into itself since it's trading at at 100 times 2025 (I assume earnings). At the same time he praised it for its strong organic growth with 98% returning revenue and 37% revenue growth. I'm a little confused by these numbers. Could you perhaps put them into a perspective that I can understand. Thanks.

Q: Any stocks you see that have strong fundamentals and show some god technicals as well ?

Q: Is it timely to add to Well,which I bought a few years ago at much higher price?What is a good entry price?Txs for U usual great services & views

Q: I just read an article in the western Investor online saying that WELL is going to split into 2 companies. I would like to know your thoughts on this and do you feel this could unlock some value or is it a non event. Would you still endorse holding this company/stock

Q: Can you rank in order the top 10 small caps that you feel have the most potential over the next 6 months and provide a quick statement on why each is included?

Q: I'm a 65 year old div investor with a defined pension. I'm investigating the BMO covered Call Health Care ETF (ZWHC) as a way to play the Health Care Sector as there is not much available in Cdn. I have a question on the cost of this ETF. The fact sheet states Max annual management fee of .65% and then it says an MER of .73%.
Do I add the two % up to equal 1.38% or would I just pay the MER of .73%?
I hold WELL (hoping for growth) but have been waiting quite awhile and nothing much seems to happen. I'm down (-26%). Its been good if you bought lately but if you bought back during COVID, not so much.
I know you still recommend it so should I hope for the best and wait awhile longer (hope not being much of an investment strategy) or move on? VHI seems to be moving better? Appreciate your thoughts.

Q: Looking to setup a very concentrated TFSA to drive long term capital gains. Currently holding the above names. TSU has not been nearly as exciting as the other names. Is TSU going to provide outsized capital gains? My thinking is to sell TSU and allocate the funds to the other names equally. If there are others names you would recommend pls do share.

Q: On the last quarter conference call there was a review of the earnings and potential growth in earnings per share in the future. With the organic growth and potential margin improvement from cost cutting, earnout payments dropping in future years, spin out of Provider Solutions and the potential monetization of Circle/Wisp (assuming the money spent on debt reduction and share buybacks). I expect that the earnings should improve significantly in the next two or three years. All of this ignores any acquisitions. If all this happens I figure all is needed is some patience and we should see higher stock price 3 years out perhaps significantly agree?

Q: WELL is drifting down after reporting good results a couple of weeks ago. What to you see happening over the next 6 months? What catalyst is needed to kick start an upward movement? Would you top up a position now?

Q: I've owned these for quite a while (KXS 5 yrs; WELL 4 yrs; CTS 3 yrs) but they haven't performed as I'd hoped (KXS +17%; WELL +4%; CTS -1%). Note that I've added to each since the initial purchase.

I understand 'wait time' and that the market sometimes takes a while to respond to fundamentals, but I feel I've given these all a fair chance and yet I continue to believe - and to hold!

Can you offer me any assurances to either continue holding or selling any of the three stocks? Interestingly, when starting a position in KXS I made a decision to purchase that and not Descartes which 5i also supported strongly at the time. Needless to say, I've watched DSG clean up and KXS tread water.

Q: Hello Team,

Looking at updating/rejigging my TFSA account, are you able to rank the above stocks from 1 - 12, looking at a 3 year hold. These are a mix of some I hold and some I want to purchase. Not worried about size, risk and or industry. Thanks.

Q: Hi Team,
Two part question. Firstly, like a fool I sold out of crwd at the worst possible time during the selloff in anticipation of more bad news and to raise cash in the overall sell off. Ever since it seems to be on a steady rise back up. Is it time to buy back the shares or should I wait until after earnings?
Second; do you see any compelling buys out there today to put new cash to work? If so what are some of your favourite names to purchase today Canadian and US. I was looking at adding to propel possibly …it boggles me it had such strong results and a muted share price ; not sure why but it seems undervalued. Same with go easy but I am already over weight in that one.

Thanks ,
Shane

Q: Which one do you prefer right now?
Thank you

Q: I wonder if the low price per share could be a problem for WELL, wrongly perceived as "not serious". TVK at 1B was $40/share

Q: WELL just reported a good quarter and the stock is down 5%. My data shows that EPS was .43 not .04 as you reported on your recent post. Can you explain the weak stock performance today? Thank you