Investment Q&A

Q: Hi 5i
Teal Linde had DAL (48.28) as a Top Pick today. I see the EPS estimates have been ratcheted down a lot over the last 90 days, but still projected to make $5+ in 2025. So with PE under 10 would you agree that this may be a good entry point? He believes that they cater to higher end travellers who aren't affected much by inflation, tariffs, etc.

Thanks, Greg

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

Q: Please give your thoughts on Wynn and Delta? Are you still optimistic on their performance and growth in the next 5-10 years?

Q: Hi 5i Team,

I'm trying to clean up my US Portfolio so that I'm at 20-25 equities total. Please advise which 20-25 companies you would keep for a 5-10+ hold with balance/diversification but also some growth in mind.

Q: Looking for an investment other than BKNG to take advantage of the resurgence in travel. I don’t like airline stocks. I know in the past you were favourable on WYNN. Would you recommend that or something else?

Q: Is this a good prospect in the lodging industry or would other hotel/resort firms/Air BnB be superior?
Thanx!

Q: Hi 5i Team - What is your latest opinion on Delta Airlines. Is there still a substantial amount of debt and is it a concern. Do they have strong management. Is there still decent growth ahead. I think earnings are coming up soon - any thoughts on expectations. Delta's stock price has increased by a large margin year-to-date and I'm just wondering if it is still within a good price range for buying. Thanks.

Q: I have started travelling again and noticed that Air Canada flights are essentially full. I looked at a 3 year chart for the stock share price and it is down from about $50 to $18, obviously due to the pandemic. I noticed that you provided growth data in response to a question where the growth next year is expected to be 128%. This sounded good.

I used your symbol look-up tool to view the AC’s profile and compared it to Delta Airlines (DAL). AC has 359M shares out compared to DAL’s 641M. AC’s EPS and PB is -6.9 and 45.1 whereas DAL is +0.12 and 8.0. DAL is rebounded a bit more than AC but why was AC at $50/share anyway.

It seems to me AC is not managed well and probably has a lot of debt but your profile screen does not give me that info.

It seems DAL is much more attractive as an investment but I am just looking at very simple metrics. What are your thoughts, please?

Q: I own the following in my US-denominated TFSA:

ADBE, DAL, FIVE, PYPL, PAYC, TOL, SLQT, GOOG, AL

The goal of this account is high-conviction, long-term growth strategy, focused on eight US equities, with a risk profile somewhere in between that of your Balanced and Growth portfolios.

A) If I had to sell one of the 9 holdings listed, which should it be?

B) Are there any others that should be sold in light of the investment goal stated?

C) Which of these should I add to, if any, or, which new postition should I consider (US market only) that would complement the existing positions well? Please note that I am already fully-weighted/over-weighted in FIVE, GOOG, PYPL, and PAYC.

Thank you. Please deduct the appropriate number of credits as needed.

Q: Hi 5i Team,

With the recent slide with these "recovery" companies, would you consider this a good time to be picking them up?

Any reason for the recent weakness? I saw that CCL is exploring a tender offer for its secured notes so is this a cash cushion concern?

Would also appreciate if you could rank them from best to worst (in your opinion) in terms of potential upside as of now.

Thanks in advance for your comments!

Q: Hi, I am looking to put some US funds into companies/sectors, which will benefit from the reopening of economy. I also read that small caps generally outperform when economy rebounds. Could you recommend some USD ETf's and few large cap US stocks, still trading below their pre pandemic levels in such sectors, in order of preference. Thank You

Q: Hello, I've made 12% gains in delta airlines, 60% gains in JP Morgan and 41% gains in Wells Fargo. Do you think there is more upside in those position ? I wan't to get more cash in my margin account and look for more growth quality stocks. What do you recommend I do with those stocks ? Thanks !

Q: I have AC in a loss position. Would DAL or ALK see faster and better recovery than Air Canada over next 12 months?
Thank you

Raj

Q: First of all, thank you for your amazing work. Cannot express how helpful my 5i subscription has been. Life-changing in all honesty.

My positions in LSPD (17.3%) and GSY (12.7%) have gotten a little out of hand. I was fortunate to pick them up near their lows in April. I've already trimmed both a couple of times, but I am really struggling to sell more given the positive outlook 5i has of both for the future. I've seen similar questions asked about trimming and selling positions with phenomenal growth and seen your responses suggesting to trim positions to reasonable weightings. I thought I might have an easier time doing so if you suggested some positions to add to or some new ones viewed as favourably as LSPD and GSY.

I have the following companies in a TFSA and have included the weightings only of positions I think might warrant a second look. While I anticipate a comment about weightings needing to be personal what would YOU suggest as the highest weighting for LSPD and GSY? And, again, please suggest some positions to add to or new ones.

Feel free to take question credits as you see fit.

DOO (2.1%), ATZ (2%), AW.UN, BYD
ATD.B
BMO, BRK-B:US, GSY (12.7%)
WELL (4%), VEEV:US (1.3%)
CAE, DAL:US, AC (1%), XBC (3%)
LSPD (17.3%), KXS (7.6%), DSG (3%), CSU, PHO (1.1%), AMD:US, CRWD:US (2.4%), U:US (2.1%), NVDA:US (0.83%), TTD:US(1.2%)
ROKU:US (1.9%), TTWO:US (1.2%), PINS:US (1.5%)
AQN, BEP.UN
REAL

Thank you again

Q: Hi, my respected 5i team
Could you please recommend some solid names(US and Canadian markets) focusing on post-Covid theme play? I would like to take advantage of the price decline due to the pandemic lock down, some solid names that will be the survivors.

Thanks in advance!

Q: We are looking to adds some US positions to our TFSA. We currently have AMD, DAL, DOCU, BRK-B, and ROKU. Could you suggest 5 growth names for long term holds that you would feel comfortable entering new positions in today? And would you add to ROKU at present?

Thanks in-advance.

Q: If you knew the effects of COVID were going to be gone by Oct 2021 what 4 CAD and 3US stocks would you purchase right now for a 6-8 year holding period.

Q: Interesting question/answer on Oct 1 "I would like to have a little fun with this question. Imagine a boxing match between Canadian companies and American companies". Can you please answer the winners among Netflix/Disney; Amazon/Shopify; Union Pacific/CP; AirCanada/delta. Thanks

Q: If we found a Covid-19 vaccine tomorrow, what are the most depressed companies now that would benefit the most?

Q: Hi 5i gang,
I suspect that travel-related stocks are at their bottoms or nearly so. My impression is that airlines will be first sub-sector to rally, especially if the U.S. government goes ahead and sends them big stimulus checks that are being rumoured about these days. Given this context, which airline companies in your opinion have the best prospects of returning to their prior Covid-19 levels?
Robert