Investment Q&A

Q: Mitek has been dealing with the non-compliant issue and now has another hearing on March 19th. the company has prospects, but is this enough of an issue to keep it as a hold at the moment. Want to add to the position.
Matthew

Q: Hi 5i,

I currently hold DND and REAL, which I had purchased approx. 1year ago. My Thesis for both of these stocks is that once interest rates begin to fall both stocks both could experience positive stock movement to the upside given the current need for housing and all the pent up demand in the US/Canada.

I have read your report on dropping coverage of DND and your answers to questions on REAL. It would appear that your main concern is on their debt levels and that there are better opportunities elsewhere for an investors capital. Is that correct?

Do you have any actual concerns with the business models of both these companies itself? What are your views on the real estate market in general?

Apologize for the multiple questions. Please deduct as many credits as needed.

Thanks in advance!

Greg C.

Q: Hello, I would like your opinion on XDIV, in contrast to others like XEI, ZDV, CDZ, etc. It is a concentrated dividend etf, is it a good thing or not? I like the MER…Thanks.

Q: Good Morning

Anything to explain the negative action on WELL this morning?

Q: What are the 5 oldest mutual funds and 5 oldest ETF in Canada along with performance figures.

Thanks
Reg

Q: What do you think about this company? Do they have lots of debt? They just received some government funding and I think they are in talks with a major producer. (please confirm) Is this a serious producer? Odds of buyout?

Q: Hello - what are your thoughts on Lithium investing and the best way to invest if it's a "good time". Specific company or ETF? Many thanks

Q: In answer to a question regarding the noted company you suggest the PE is still just 22 times even after the almost 35% increase on Friday. In the same answer you suggest 2023 earnings could be as high is $5.50 and 2024 earnings are projected to increase by 70%. Can you explain further please how you get a PE of 22? Thank you so much since I feel like I missed this one but if PE is that low perhaps not. John

Q: Hi, Any thoughts on Topicus stock, breaking out of $98-99 level, to a high of $107, with 8% jump in past 2 trading days, on reasonable volume ? Do you believe that stock is getting re-rated along with CSU/LMN family. Both CSU and LMN are trading at all time highs. TOI's 52 week high was $110, June 29, 2023 with All Time High of $142 on Nov 3, 2021. Thank You

Q: What do you think about this two companies? Do they have lots of debt? Odds of buyout?

Q: hello 5i:
Looking at estimates of Cash Flow (Fastgraphs) for FTS, I see that 2024 is estimated to be 7.69, 2025 is estimated to be 8.08 and 2026 is estimated to be 5.18.
First question is why such a drop off in 2026? A red flag for long term buyers, no?
Second question: how would such a scenario affect dividends/dividend increases?
Third question: how would preferred shares and in particular FTS.PR.K be affected?
thanks
Paul L

Q: Finally some good news about Tricon! TCN has been a real laggard in our margin account, and even with the recent substantial gain, it’s still down 18.6%. However, this is certainly not nearly as bad as it was several days ago! I can trade TCN for zero commission and of course, the loss will be reported in our 2024 tax return. Would your suggestion to sell half now still apply in this case?

Thanks.

Q: I am looking to park some cash for a while but have it relatively easily accessible. I understand that these ETF’s are not CDIC insurable but other than that what is the downside/risk of these ETFs and which one would you consider the best? Also I noticed that these etf’s are trading above their set value…$50.14. Under what circumstances would they trade back to their $50.00 value?

Q: Peter; Is there a risk that ,the chips manufactured overseas, could face a supply problem due to geopolitical problems, including the Red Sea/ Houthi situation?
Thanks.
Rod

Q: 9:51 AM 1/20/2024
Does the US newly instituted tax rule on limited partnerships doing any business in the US now apply to BEP.UN, BIP.UN. BEPC, BIPC?
I have owned these for many years and all have very large capital gains in cash accounts so I am reluctant to sell them due to the crippling 10% 'disposition' tax on top of the big capital gain were I to sell. It seems I am caught in a tax trap! I would appreciate any advice on which ones are vulnerable to the tax and what to do.
Regards............ Paul W. K.

Q: Don't know if the dividend is sustainable or not with this company, your opinion please and thanks

Q: Hello 5i
Many thanks for your continuing excellent weekly observations and advice.

In my RRIF, TFSA and Unregistered accounts some of the larger holdings are US companies (GOOG, MSFT, etc). I am concerned that upon my passing some or all of these US stocks may be vulnerable to US Estate Tax.
I know that there are various tax treaties between the US and Canada that might impact some or all of these holdings, but I am unclear on the details.
Can you tell me if either or both the TFSA and RRIF are exempt?
Can you provide references that would cover these questions?
Can you recommend CANADIAN-based ETFs that hold Mag. 7 and/or other popular US stocks?
Thanks again.

Q: One of the more recent questions by Kel was for 5i to rank the 11 sectors in 2024. I noticed that real estate was ranked last.

I've also noticed that 5i seems like to like stocks like BN (Brookfield Corp)

Can you advise how these two views compare?

Q: Can you give your analysis on this Canadian animal health care supplier? Microcap but kind of interesting. Thx

Q: Recently you recommended the above companies as top 5 small caps. Could you rank from 1 to 5 re: upside potential?
I currently own EQB and GSY.
Many thanks