Investment Q&A

Q: Hi Peter and Staff
On June 14th Darren asked for your top 4 Canadian industrials . You listed in order WSP STN CAE GDI and NFI

Absent were ATA TFII BYD and TFII all of which I thought you favoured more than all of the ones listed (especially NFI) except WSP?

Dennis

Q: Why the plunge?

Q: I would appreciate an updated opinion on European Residential REIT. Why the big drop recently? Thanks!

Q: Hi 5i. I'm not sure if anyone has ever posed you a question about any of these companies, all of which have substantial operations in Canada.

Obviously, the expectation of continued interest rate hikes will have a strong negative effect on these companies' business this year. Taking a step back, though, do you see much to separate them as investments? For instance, is any of them materially more indebted than the others? Any thoughts you might have would be welcome.

Q: Regarding the Telus takeover of LWRK, if I opt for 100% shares will my cost basis rollover into the Telus shares so that the transaction would not generate any capital gains tax? Presumably, if I opt for cash or partial cash then capital gains tax would be payable on the cash portion?

Q: I heard to a podcast recently talking about natural gas being the key to reducing coal use. I'm curious if there any Canadian names that are primarily involved in natural gas with little involvement in crude oil? Pipeline or gas transportation companies?

Can you recommend an ETF to play natural gas in either the US or Canada?

Thanks!

Q: Hi, further to your reply on real return bonds to Alex on April 28th, I am trying to understand the return I could expect to receive on XRB from the underlying bonds vs. the inflation component.

For XRB, Blackrock currently shows the weighted average coupon at 2.33% and the the weighted YTM (coupon plus amortized realized gain/loss) at 3.43%. My understanding is that YTM is the true measure of bond return. If I bought this ETF could I theoretically expect to receive a 3.43% return from the underlying bonds in addition to an annual principal increase from inflation. So if inflation averaged 3% per year could I expect 3.43% YTM plus 3% inflation principal increase = 6.43% total annual return. Is that generally how it would work? Also would the annual principal increase just be added to the NAV of the ETF?

Thanks.

Q: want to have your opinion on Fru.to , the stock is up from the lows but nowhere near the 2014 highs even if oil price have skyrocket thx

Q: As a follow up to my last question, do you think Keyera is better than Pembina in the sense that it is almost exclusively natural gas processing, storage, etc. vs Pembina that has more exposure to oil. I understand that Keyera is much smaller, but given that I also own Enbridge size is not my biggest concern as long as its big enough.

Thanks,
Jason

Q: How secure is the Telus offer - should I just sell at $30 and move on or wait to get the $33 offer?

Q: I have had both of the above for quite some time.
In this environment with supply chain and overall disruption what is your analysis of these two stocks going forward.
Also NUE where would yo see this going over the year.
Thanks very much. Happy Fathers Day to you who are Dads.

Q: Hi Guys,

Which 20 lower risk stocks would you recommend to build out a $2,000,000 portfolio that will produce $ 80,000 in dividend income?

Would you want to spread out the risk and be in many sectors and stay only in Canada to take advantage of the dividend tax credit laws?

How much of the div is taxed if it’s a U.S stock compared to a Canadian stock?

Thank you for all your help & great services

Nick

Q: How do we follow Peter or Ryan on twitter?


Sheldon

Q: low share count price to book. 0.413 your thought on this as an investment or just focus on better stocks

Q: Dear 5i team.

Please provide an updated view of FLOW given recent Q results reported.
It's fall from IPO to current penny stock status is alarming. What ,in your view, does the Founder/now CEO need to do to right this ship and get the stock back to IPO levels? Can you give us a sense of the numbers they need to achieve to make this a possibility?

Many thanks for your insights.

Q: What is your advice on buying gold stocks right now? Why? Is AEM on your buy list? Thanks very much

Q: Morningstar is giving FNF a five star rating at its current valuation with Point & Figure analysis indicating continued declines ahead. What is your perspective on FNF's future growth prospects and its continued ability to pay its healthy dividend?

Q: Hi! I'm researching midstream companies. They all have a lot of debt given the capital intensive nature of the business. How do you evaluate if it is too much debt. All the ratios seems high, but they're like that for all the companies. For example, PPL has LTD of $10 billion and total equity of $14 billion, almost 70%! KEY has LTD of $3.7 billion or there about and not equity since it is in a deficit position. Help please!

Jason

Q: I am considering investment in HHL primarily for the Dividend but it has also pulled back in this market, so potential growth as well. Is Healthcare and Dividend ETF's fairly safe in this current market? Is there another ETF with good income and some potential for growth. Thanks

Q: Good day team,

First things first, thanks for your steady advice during this downturn. A calming voice is very much appreciated.

My portfolio so far is adequately diversified. Believe it or not it is still up on the year. I have some play money which Im planning on using to make a bet against commodities, in particular copper and/or oil and gas. One idea comes to mind is buying puts against TECK. Any other suggestions? Either stocks or ETFs?