Investment Q&A

Q: Good morning all; I've a two part question for you, First, the listed investments are in a RRIF. The current plan is to extract only dividend income, and have some modest stock growth.

I have funds for one more position and I'd like 3 of your suggestions that would add decent dividend income with modest growth of stock value.

Second question is about XLB. It was originally purchased as a post-inflation investment looking for some appreciation as rates declined. While Canada may get a bit more downward adjustment I believe Trump policy will be inflationary. What would be a sound replacement, meeting the dividend and growth goals for the account?

Thanks as always.

Dave

Q: Follow-up to my earlier question about any news for the drop today. You indicated no news. I was hoping for more than this. Can you provide some thoughts on why it's down? I don't think its profit taking as the stock hasn't been a great performer recently.

Q: Are large (but not giant) tech companies at risk of being competed-out by the trillion plus tech companies? With their high multiples, is the growth case still there in 2025 and going forward?

Q: Hi 5i, today on BNN a PM @ Donnville just commented on his view that Hammond will have capacity constraints even though they are expanding in Canada and Mexico. He stated that they would only be able to grow the topline by 10%, and at today's price it was expensive. Any views on this comment?

Thx.

Q: Any news why KXS is down over 5% today (Wednesday morning)? I don't see anything that explains it.

Q: Hi 5i, I was curious on your ranking of SIS being highly impacted by tarrifs. I was of the view that FDA approved items would be exempt. Please comment.

Thx.

Q: Is there a good time to sell brk.b ?

Q: Would you see todays sell off as an opportunity to add ?

Q: I have only heard of EQL recently. How does it compare to XUS?

Thanks

Q: Is fru a buy for a long term hold at these prices? Your view on the price of natural gas this year and holding arx for this move? cheers

Q: Further to Stuart’s recent question on European defense spending, I’m also interested in the security theme. I recently purchased Axon in the belief police spending will be ramped up going forward. Do you have some suggestions for me to investigate in the areas of security/defense for the following: police, computers, military. Perhaps a couple of companies in each area as your top choices. I realize you have covered companies such as Raytheon extensively through the years but this theme hasn’t been on my radar until recently. Unfortunately, it seems to be increasingly significant going forward.
Thanks so much for your guidance in these challenging times.

Q: Your parents give you $100k CAD and $100k USD to invest on behalf of your family for the next 5 years. They instruct you to invest $20k in five Cdn stocks and $20k in five U.S. stocks to hold over the duration. Considering current valuations, the fact this is your family's money, and the objective of maximizing total return over the period, what are your 10 picks?

Q: Can I get your thoughts on Capstone please? Seems to keep dropping and now with talk of tariffs and maybe smaller AI infrastructure, it’s not looking great. Would you still hold here? If not, do you have another recommendation for materials sector? CAD or US? My only other one in this sector is Agnico Eagle.

Q: The Jan 20 report seemed fairly positive- lower end of guidance for 2024 but meaningful growth expected for 2025. But I seemed to miss something since it is breaking down to new lows. Can you explain what is spooking investors and your opinion going forward?

Q: Did MDA lose major contracts?

Q: A couple of things I'm not understanding from the Nasdaq Deepseek sell off ..... I know META, Google, Apple, and others are pouring a lot of money into AI research.... But do any of them actually have a verifiable revenue stream as a result of this research ? .....And as I understand it Deepseek's solution is " open architecture " Doesn't that mean anybody can use it as a base for their own uses ?

Also in an answer this morning to Jim you stated that HBND, FMAX, and HBIL were subject to with holding taxes in non registered accounts. What is their status in a SDRIF ? Thanks for your terrific service ......

Q: What's the rationale for the huge volume and significant drop today?

Q: In one of your answers you state that, "Software may be the 'next' wave of growth, as companies utilizing AI will now see higher margins (lower costs) as well as a possible explosion in useage cases." What would be your top choices, if this was the case. Many thanks.

Q: Hi 5i Team:

Before you reach out to that rotten egg to hurl in my direction for asking yet another question on this stinker of a company (!) let me say a few words in my defense! I spent the last 39 mins or so going through all the recent questions on BCE using your symbol search! I couldn't find the answer to the question that I am going to ask now!

Hypothetically IF BCE were to cut it's dividend by 25% ( currently at 11.58%) then what will be the stock price post cut? It is 34+/-.
However if the stock price drops a lot, wouldn't it make the dividend go up? I thought there's an inverse relationship between the stock price and dividend, no?

In any case, I know you are not too keen in speculating about price targets. Based on your experience with large companies that cut their dividend, what's your price target for BCE assuming it cuts it's dividend?

Many thanks.

Q: Besides IGV (US) and XIT (CA), can you recommend any other software ETFs ? Any that focus on small to mid cap software ? Thank you .