Investment Q&A

Q: Hello 5i.
In assessing companies you mention ROA, ROE and ROC. Aside from these would it be beneficial to compare ROC (sic. ROIC) with WACC? If WACC is more than ROIC and the company is shedding unprofitable assets, then would there be a case for still seeing that company in a favourable light?
Thank you
Stanley

Q: Is there a free site that provides information about moeny moving into and out of various sectors. (Sector rotation)

Q: https://thestockboys.com/2018/09/28/akumin-the-acquisition-screener/
this article made me somewhat intrigued with akumin. with such a long runway for growth by acquisition, whats your thoughts on it?

Q: Is it a good time to add exposure to Japan through an ETF? Wisdom Tree has two JAPN and JAPN.B, what is their reputation and the liquidity? Does the currency (Yen) have upside? I am thinking of the unhedged version. Your thoughts on Japan and the preferred ETF. THX

Q: I have a question about CCL.B - I know you have answered questions on this one but given the current price action (looks like strong support here in the $54 - $55) can you elaborate on who is there competition is in the space and they losing or taking market share given packing labels are moving to more self-less cashier stores? Thank you

Q: I have about 100k in invest in a non registered account. Would like your recommendations on 10 small cap companies. Looking for growth companies for the next 5 to 10 years. Thanks

Q: Generally, if you took out the rise of pot stocks from the TSX year to date, where would the bourse be at today?

15,800 maybe? Or is the sector not that influential yet?

Q: A comment on the lawsuit. I am a lawyer who does lot of work for banks and I pay attention to court rulings that effect them. If Manulife has to appeal any adverse ruling to the Supreme Court of Canada, Manulife is very likely to win this case. The Supreme Court has demonstrated in other cases that it will try to accommodate the daily business of financial institutions. For those who care about such things look at the recent case of Royal Bank vs. Trang.

Q: Good Morning
MG had been grinding higher from Jan 2016 to about May 2018. It then dropped, presumably on NAFTA concerns. Now that this is somewhat resolved I would have thought tjat it would have had a bigger pop. Is this a good time to buy the stock or is there something else going on?
Thanks for your advice.
Ian

Q: Home Capital has been going sideways for the last 6 months. Could I have your opinion on its likely performance in a slowly rising interest rate environment? Hold or sell? Thank you.

Q: is it ok to hold DRG.UN long term even with rising interest rates? Is dividend safe? Thank you.

Q: Hello,
Do you guys have Flow thru share LP's that you recommend?
thanks

Q: Would appreciate your comments on TH after 3Q results today. They seem to be doing well and the outlook seems very favourable. thanks

Q: Hi, do you still like this company at this price today? (.75 cents)
thanks.

Q: Hi Peter & Team,
Is there anything specific to explain why GC is rising and TSGI falling, whereas it was the other way around a month ago? Or did I just answer my own question?
Thanks as usual.

Q: Hej
I’m a huge investor in
Tamarack Valley Energy. TVE
I see nothing but upside
Thoughts and Tnanks
Juri

Q: TH $ 9.60 is showing some strength on back of a good quarter. What is their drug Trogarzo ?
Outlook is promising don't you think ? RAK

Q: Please could you let me know the payout ratio for AQN? I read that dividends may be higher than earnings. Any concern you see with dividend growth/sustainability in the future?

Many thanks!

Q: Please clarify your answer you gave to my question on MAXR.
You included in your response the following statement .“We would not see any need to add to a losing position." BUT I was not asking about adding. Did you mean “hold”? as in sell in January?



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5i Research Answer:
We would not say we are highly confident in MAXR, but the large price adjustment (down 48% this year) does change the risk/reward scenario. With expectations low, a good contract or positive earnings surprise could still result in good stock gains from current levels. We would expect tax loss selling, which may be happening already. Either now, or in early January, would likely get a better price if one was selling. On valuation MAXR is very cheap, but the debt adds some concerns. We would still put it into the higher risk 'hold' category. The worst should be over and the short sellers will eventuallly move on. We would not see any need to add to a losing position.

Q: Is this stock following Micron today? Would you add today?